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What are others saying about the
current market in Southern California?
“Cracks Are Appearing” - Johnathan Lanser, O.C. Register, May
2018. Southern California house hunters are putting nine percent
fewer existing homes into escrow this spring, a dip that caused
one analyst to make “Cracks Are Appearing” the title of his latest
report. ReportsOnHousing tracks regional home buying patterns
found in real estate broker networks: supply (active listings),
demand (new escrows in past 30 days), and “market time” (a
measure of selling speed of days it takes a typical listing to enter
escrow). Steve Thomas, the man behind ReportsOnHousing,
wrote: “Noticeable cracks have appeared that illustrate a cooling
market. Sellers are still in the driver’s seat. Nonetheless, trends
have surfaced that highlight a cooling marketplace.”
What’s the prediction for home
prices in 2019?
There’s no doubt that the housing market currently favors sellers,
with low inventory driving competition and pushing prices higher
and higher throughout much of the country. But a survey of industry
experts released by Zillow predicts that the market will change by
2019 to favor buyers. More than 100 housing experts participated
in the Zillow Home Price Expectations Survey, with the majority
indicating that they believe the housing market will shift from a
seller’s market to a buyer’s market sometime in 2018 or 2019.
buyers dry up, new tax laws bite the wealthiest states, and sellers
realize the market peak of 2014-2015 isn't coming back anytime soon,
luxury brokers say. According to Redfin, the real estate brokerage and
research firm, fully 12 percent of homes listed for $10 million or more
saw a price drop in 2018 — double the levels of 2016 and 2015. Just
over 500 listings in the US had a combined price cut of $1 billion in the
second quarter, according to Redfin. "Prices were growing too fast for
what buyers were willing to pay," said Taylor Marr, a senior economist
at Redfin. Some of the price cuts have reached tens of millions of
dollars, according to the listing. The Ziff family estate in Manalapan,
Florida cut its price in May by $27 million, from $165 million to $138
million. That follows a previous price cut, from $195 million last year —
so its price has dropped by $57 million over the past year.
A ten bedroom mansion on Miami Beach's posh Star Island cut
its price by $17 million in May, from $65 million to $48 million. A giant
apartment at New York's Sherry Netherland had its price cut by $18
million, falling from $86 million to $68 million. The cuts follow a spate
of even bigger cuts earlier this year. Even the Oracle of Omaha,
Warren Buffett, has had to lower his asking price on his beach home
in Laguna Beach. The home was listed in 2017 for $11 million, but he
has slashed the price to $7.9 million.
Is it time to sell in coastal
Orange County?
Personally, I have seen an increased supply in inventory, homes
sitting on the market longer, and showings slowing down, which
indicates to me that, yes, it’s a great time to sell your home. I feel
we are truly at the “top of the market,” so if you are sitting on the
fence about listing, I would suggest getting a realistic price evaluation
along with an estimated sales time from a professional realtor who
specializes in your community and getting your home ready to sell
ASAP.
What about buying a home today?
Is this phenomenon affecting
the luxury market? If a seller is reasonable, it’s still a good time to purchase. This is
Source: CNBC.com (edited by Robert Frank). The most expensive is fair. Have a look at how long the property has been on the market
real estate in America just became a little less expensive — with $1
billion in price cuts among America's top listings over the past few
months, according to a CNBC analysis. The high-end real estate
market has seen steep price cuts in recent months as foreign
where your agent, who should be an expert in negotiations, comes
in. Don’t let the asking price keep you from making an offer you feel
and if the price has been reduced, and speak to a professional
realtor who is familiar with the community where you would like to
purchase a home. If your intent is to stay in the home long-term (over
five to ten years), you’re likely to be safe if you pay a fair price.
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