FED Holds Steady

[J Grant]

That may have been true back in 2021 and 22. No one cared about prices nationwide with those low interest rates.

Now.... the market is acutely aware and affected by the home prices here in SoCal. They have more choices now. Stubborn sellers just don't want to face the fact that home prices are now trending downward and they have to do price reductions or give concessions if they want to sell. Especially properties that need remodeling or upgrading.

Couple that with economic uncertainty and you have properties sitting with extended days on market. Those to the Moon housing prices couldn't last forever. There's nowhere for those prices to go but down. Same with the stock market. Something's got to give...

Seeing the same thing here in FL_ things are selling, but only after a price reduction and or concession, unless the property is very special or highly remodeled.

Those ugly c 4 properties that sold for top $ in 2022 - those people are upside down now relative to what they paid - if their mortage rate is low enough they may not care today, but if they ever try to sell they may face the omg I have no equity realiztion and they can not take out a line of credit or small loan if needed - no equity or upside down in mortgage is a thing.

 

[Non Sequitur]

Too much money was printed since 2020, lowering interest rates will not cure what ails the housing market. Housing affordability has outpaced income by a wide margin due to inflation, utility costs, taxes, and insurance.

 

[Fernando]

CEO Zillow Wacksman noted that if the housing industry had continued to build new properties to keep up with buyer demand, it may not have become the 'crisis' it is today.

'We have been chronically under-building since, really, the global financial crisis,' he said. 'Less supply and a lot of demand is going to keep home prices elevated.'