Another article showing concern in the housing market- yet the author may have lacked critical thinking

[GON]

Just one tiny example but a planned 120 home development right across the street from me has stopped. The land was cleared and graded, utilities were put in, streets and lighting installed and landscaping has been done. They even put in playground equipment for a small children’s park. But not one house has even been started. A chain link fence was put up about five months ago. The activity stopped about 8-9 months ago.

With the severe shortage of housing in the area one has to wonder.

PT,

Yes- very severe shortage of housing nationwide, even more severe south of the Mason Dixon line and west of the Mississippi.

I suspect any housing development cancelled west of the Mississippi is for reasons other than cost and/ or demand. Bad plan, can't finance a bad plan, didn't play nice with the governmental agencies required to move the development forward, etc.

 

[Pew]

Just one tiny example but a planned 120 home development right across the street from me has stopped. The land was cleared and graded, utilities were put in, streets and lighting installed and landscaping has been done. They even put in playground equipment for a small children’s park. But not one house has even been started. A chain link fence was put up about five months ago. The activity stopped about 8-9 months ago.

With the severe shortage of housing in the area one has to wonder.

That's how it was around here before I moved to my current spot. Talking to the residents that were around before 2009, there was a lot of land that were ready to be turned into subdivisions. Once 2009 hit, all of that stopped and ended up being large swaths of unmaintained fields and half-way built entrances that would have led into subdivisions with "land for sale" relator billboards until this latest boom.

 

[Hillbilly Deluxe]

I've mentioned this new subdivision near me ad nauseum here - about 18 homes, 2-3 are occupied. I think one of those is closing in on 12 months of ownership, the other two are 6-9 months. All homes were completed more than 9 months ago. There's about 14 homes unsold at this point and about 7-8 empty unbuilt lots.

Price: $535-550K

On Friday I went to a neighboring town to get some supplies at lunch. On the way back to work (I work between the neighboring town and where this subdivision is), I was seeing the 2x3 plastic "yard signs" along the 2-lane state highway advertising this subdivision.........

13-14 MILES AWAY

Nothing in this price range is selling around here and hasn't been in nearly 12 months. Maybe 1-2 homes like this per 200 in the county. This area is NOT distressed, poor, etc., This area has nearly double the national average annual household income.

What IS selling around here are ~3 bedroom, 2+ bath homes that have been 'fixed up' and in the $250-300k range. Realtors tell me this is ALL that is selling and you are guaranteed $315k at a minimum for a home like this in good condition, move-in ready, etc. Higher than that price range, they say you will be lucky. Anything under that price range, investors are gobbling up, throwing a can paint at it, cleaning the yard, washing the roof, etc., and putting it out there for $250-275, which gets bid up.

 

[CanAmAndMore]

I've been buying land and farms up the last 9 months as prices have been dropping.
The realtor told me that 1 in 3 deals are falling apart now, because the people cannot get financing....and it's only going to get worse.

2020, 2021, and early 2022 were a sellers market.
Now its a buyers market, and offers well below asking are often accepted.
Wait another year, and houses will really be selling cheap.
The banks don't want to hang onto all the repos forever, so houses, land, cars, boats, motorhomes, and more will be selling cheap cheap cheap.

 

[SC Maintenance]

The realtor told me that 1 in 3 deals are falling apart now, because the people cannot get financing....and it's only going to get worse.

For land or home or both?

What region of Canada?

 

[CanAmAndMore]

For land or home or both?

What region of Canada?

I assume both, but didn't specifically ask her.
The Prince George area.

 

[zzyzzx]

 

[CKN]

May home sales rise with near record-few on the market and biggest annual price drop since 2011

Sales of previously occupied U.S. homes edged higher in May and the national median sale price posted its biggest annual drop in more than a decade, as a near all-time low supply of available properties constrained the housing market.

apnews.com

 

[alarmguy]

May home sales rise with near record-few on the market and biggest annual price drop since 2011

Sales of previously occupied U.S. homes edged higher in May and the national median sale price posted its biggest annual drop in more than a decade, as a near all-time low supply of available properties constrained the housing market.

apnews.com

Prices keep rising or homes smaller with less options as builders try to keep up with demand Coastal NC areas

 

[Rmay635703]

https://finance.yahoo.com/news/house-flippers-triggered-us-housing-175705459.html

House flippers triggered the US housing market crash, not poor subprime borrowers​

The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.
Dark arts notwithstanding, that’s not what really happened, though.

Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble .

Until glass segal is fully re-implemented we will never stop having primary investor and bank fed speculative failures.

Sub prime mortgages are an extremely small part of the current market, most being amongst the elite and despite this we are still in an unstable unhinged market.


The fact of the matter is these guys make money when they fail so it’s not gonna stop unless they get locked out forced to use their own non-insured money.
Aka glass segal

The recent banking and real estate laws are just window dressing on a pig and not actually solving the true problem

Prices keep rising or homes smaller with less options as builders try to keep up with demand Coastal NC areas

After the 2008 collapse many areas kept going up in price until 2011, then crashed

The national market is extremely segmented

 

[GON]

Still see out of context statistics use that don't reflect the market in any way. The above article uses numbers that are under 18 months old. When using single family homes sold numbers from just DEC 2021, not one market is seeing a decline in sold home prices, nit even horrible markets like Illinois.

Of the 16 markets I am tracking, all west of the Mississippi, most every home that is decent and not grossly overpriced or has a major flaw goes under contract in five business days or less after the home is listed. Record shattering prices every day in hot states like Arizona, Utah, Idaho.... even South Dakota.

 

[zzyzzx]

She could try the most effective way of selling a house, or anything for that matter

......lower the price

 

[CanAmAndMore]

View attachment 166907

She could try the most effective way of selling a house, or anything for that matter

......lower the price

Exactly.

If a house doesn't sell in a month, it's over priced.

 

[Hillbilly Deluxe]

Facts.

If something isn't selling, it's priced above market value. I'm in the process of selling some pretty nice woodworking equipment. I've sold a couple of nice items, $1000 and above, pretty quickly. I have some other stuff, priced at 50% of new, got one or two hits but it hasn't sold. Obviously, I need to lower the price.

There's a lot of stuff that isn't selling right now. I have a brand-new Kelty 3-person tent, I used it one time. It's very nice, goes up and down easy, lightweight, etc. I've got it priced at $50 and no hits. This thing is $150-200 new....

 

[Hillbilly Deluxe]

Still see out of context statistics use that don't reflect the market in any way. The above article uses numbers that are under 18 months old. When using single family homes sold numbers from just DEC 2021, not one market is seeing a decline in sold home prices, nit even horrible markets like Illinois.

Of the 16 markets I am tracking, all west of the Mississippi, most every home that is decent and not grossly overpriced or has a major flaw goes under contract in five business days or less after the home is listed. Record shattering prices every day in hot states like Arizona, Utah, Idaho.... even South Dakota.

I imagine you're seeing a lot of California Flee'in in those western states that is assisting the "Bull Market".

 

[Rmay635703]

delete

 

[Rmay635703]

Exactly.

If a house doesn't sell in a month, it's over priced.

 

[BMWTurboDzl]

Until glass segal is fully re-implemented we will never stop having primary investor and bank fed speculative failures.

Sub prime mortgages are an extremely small part of the current market, most being amongst the elite and despite this we are still in an unstable unhinged market.


The fact of the matter is these guys make money when they fail so it’s not gonna stop unless they get locked out forced to use their own non-insured money.
Aka glass segal

The recent banking and real estate laws are just window dressing on a pig and not actually solving the true problem



After the 2008 collapse many areas kept going up in price until 2011, then crashed

The national market is extremely segmented

The Fed just can't stop buying MBS rather than letting the portfolio just runoff.

 

[zzyzzx]

 

[Zee09]

Exactly.

If a house doesn't sell in a month, it's over priced.

Or in the hood