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Super Contributor
Posts: 364
Registered: ‎12-26-2011

Re: Real Estate/Price of Homes Dropping?


@BoopOMatic wrote:

 In your area, do you see the prices of homes for sale dropping at all?

 I keep reading that real estate prices will be falling any time now, but I don't see it happening yet.

 


Dropping slightly in Central Texas.  Not significantly, but around 5 K on a 350 K listing.

 

New buyers who have closed recently aren't in trouble but the market has softened here.  As a homeowner, not an investor, I am content where I am.

Respected Contributor
Posts: 3,926
Registered: ‎05-31-2022

Re: Real Estate/Price of Homes Dropping?

When I look online at the real estate sites, many have reduced their prices...but mainly because they had been asking a ridiculously high amount and the home had been on the market a few months, in our area, if the house sits on the market over two weeks, the agent encourages a drop in the asking price. Interest rates are climbing, so that is another reason.  

Respected Contributor
Posts: 3,926
Registered: ‎05-31-2022

Re: Real Estate/Price of Homes Dropping?

We had a house go on the market a week ago that is on the next block of our street. They dropped the price $76k after one week. I think they figured out the realtor listed it way too high to begin with, and the owners want to move quickly.

Honored Contributor
Posts: 8,736
Registered: ‎02-19-2014

Re: Real Estate/Price of Homes Dropping?

Like I said. People can't afford to live in California. They really need more affordable housing. The governor recognizes the problem and the state is working on it. 

 

It's an exportation of poor Californians and an importation of wealthy, working, educated people. A brain drain on other states.

 

From the nonpartisan Public Policy Institute of California:

 

"People who move to California are different from those who move out. In general, those who move here are more likely to be working age, to be employed, and to earn high wages—and are less likely to be in poverty—than those who move away.

 

Those who move to California also tend to have higher education levels than those who move out—an especially important factor given the state’s strong need for college graduates. Notably, this gain in educated residents is concentrated among young college graduates (generally, adults in their 20s) looking for opportunities as they start their careers. In recent years, though, the net flow of college graduates has slowed considerably, and perhaps even reversed during the pandemic (but still remains positive for young college graduates).

 

Also of note: people who move to California have higher incomes than those who move away. Some have argued that the opposite is taking place—that California’s relatively progressive and high personal income tax rates drive out higher-income residents. But the fact is that California has been losing lower- and middle-income residents to other states for some time while continuing to gain higher-income adults. In the past five years the flow of middle-income residents out of the state has accelerated and net gains among higher income adults have ceased.

 

figure - California has lost lower- and middle-income adults to other states

 

Most people who move across state lines do so for housing, job, or family reasons. Since 2015, among interstate movers who cite housing as the primary reason, California has experienced net losses of 413,000 adults (according to the Current Population Survey). Net losses among those who cite jobs as the primary reason totaled 333,000 and among those who cite family 239.000.  The PPIC Statewide Survey finds that 37% of Californians have seriously considered leaving the state because of housing costs.

 

The picture painted by these trends illustrates the economic challenges faced by many lower- and middle-income Californians. The state’s high cost of living, driven almost solely by comparatively high housing costs, remains an ongoing public policy challenge—one that needs resolution if the state is to be a place of opportunity for all of its residents."

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Esteemed Contributor
Posts: 7,776
Registered: ‎02-13-2021

Re: Real Estate/Price of Homes Dropping?


@Porcelain wrote:

Like I said. People can't afford to live in California. They really need more affordable housing. The governor recognizes the problem and the state is working on it. 

 

It's an exportation of poor Californians and an importation of wealthy, working, educated people. A brain drain on other states.

 

From the nonpartisan Public Policy Institute of California:

 

"People who move to California are different from those who move out. In general, those who move here are more likely to be working age, to be employed, and to earn high wages—and are less likely to be in poverty—than those who move away.

 

Those who move to California also tend to have higher education levels than those who move out—an especially important factor given the state’s strong need for college graduates. Notably, this gain in educated residents is concentrated among young college graduates (generally, adults in their 20s) looking for opportunities as they start their careers. In recent years, though, the net flow of college graduates has slowed considerably, and perhaps even reversed during the pandemic (but still remains positive for young college graduates).

 

Also of note: people who move to California have higher incomes than those who move away. Some have argued that the opposite is taking place—that California’s relatively progressive and high personal income tax rates drive out higher-income residents. But the fact is that California has been losing lower- and middle-income residents to other states for some time while continuing to gain higher-income adults. In the past five years the flow of middle-income residents out of the state has accelerated and net gains among higher income adults have ceased.

 

figure - California has lost lower- and middle-income adults to other states

 

Most people who move across state lines do so for housing, job, or family reasons. Since 2015, among interstate movers who cite housing as the primary reason, California has experienced net losses of 413,000 adults (according to the Current Population Survey). Net losses among those who cite jobs as the primary reason totaled 333,000 and among those who cite family 239.000.  The PPIC Statewide Survey finds that 37% of Californians have seriously considered leaving the state because of housing costs.

 

The picture painted by these trends illustrates the economic challenges faced by many lower- and middle-income Californians. The state’s high cost of living, driven almost solely by comparatively high housing costs, remains an ongoing public policy challenge—one that needs resolution if the state is to be a place of opportunity for all of its residents."


@Porcelain  Thank you for the slide with details.  Like I said somewhere upthread people might be leaving, but they are being replaced.  The same can be said for New York.  Those fleeing NY for whatever reasons is blip on the radar for those who want to come here and live.  Belive me they are coming too.  They typically bring with them their ideologies.  People to don't uproot because of public policies.  They uproot for affordability and/or better and nicer areas to live.  The ideologies are an after thought.

 

@ThinkingOutLoudit is what it is.

 





A Negative Mind ~ Will give you a Negative Life
Trusted Contributor
Posts: 1,929
Registered: ‎06-08-2021

Re: Real Estate/Price of Homes Dropping?

 No offense, but this thread really isn't about California, it's about real estate everywhere in the US.

Honored Contributor
Posts: 8,133
Registered: ‎03-14-2010

Re: Real Estate/Price of Homes Dropping?


@icezeus wrote:

@drizzellla wrote:

I have not seen prices drop in our area. But I must say there doesn't seem to be the frenzy there was a few months ago. 

 

My niece sold her house $30,000 over asking price and $100,000 above the price she paid 3 years before. The neighbor next door bought his house $50,000 over asking price. It was crazy to watch.

 

@BoopOMatic One thing to keep an eye out for - The Federal Reserve. They bumped up the interest rate. And there is talk they are going to bump it up again.

When we bought our house we paid 16.5% interest. And we had a VERY HARD time finding a bank to give us a mortgage. My husband had banks hang up on him when he inquired about a mortgage. Our Realtor pulled strings for us and had a friend of hers write up a mortgage for us. It was a sweet deal for the bank. Points, 16.5% interest and a 3 month penalty if we refinanced. And we were putting down 20% cash and both my husband and I were at our jobs for over 10 years each.  


@drizzellla 

I hope that you have since refinanced. That interest rate is ridiculous. I did not even know that they had them that high for homes. 


@icezeus HA! HA!  Oh yes we did - 3 times. But it cost $5,000+ to refinance each time. It was back in 1980.

 

Then my Dad took pity on us and took over our mortgage and charged us 7%.

Esteemed Contributor
Posts: 7,776
Registered: ‎02-13-2021

Re: Real Estate/Price of Homes Dropping?

Why are you looking for stories for the U.S. housing Market from UK papers @BoopOMatic ?

 

 





A Negative Mind ~ Will give you a Negative Life
Honored Contributor
Posts: 8,674
Registered: ‎12-12-2010

Re: Real Estate/Price of Homes Dropping?

Not here.  The median price for a home on O'ahu is $1.15M.  Rent is ridiculously high, too.  I'm thankful that we can afford it, but feel horribly for young families with children.  This is why so many families here have multiple generations under one roof.

Time is just a drop in the bucket compared to eternity. It isn’t how long you live that matters; it is how well you are prepared to die. ~~Colonel Robert B. Thieme, Jr.
Trusted Contributor
Posts: 1,929
Registered: ‎06-08-2021

Re: Real Estate/Price of Homes Dropping?


@gertrudecloset wrote:

Why are you looking for stories for the U.S. housing Market from UK papers @BoopOMatic ?

 

 


Are you not familiar with the Daily Mail?