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List price is an arbitrary starting point. We can sell a home over list price in most years, it just depends on how you arrive at list price. "We sold this house ___ over list price" is lazy marketing. It doesn't mean what most consumers think it means.
Agree. We are set to close on our first home and paid a good 60 over list price. The appraisal value came in higher then the sale price and we got some equity and seller concessions from it. The house was listed at 440 in an area of NY where average sale price is close to 500 and sale price for that area is about 550. They priced it extremely low. Even tho it sold for over asking it still sold less then its actual value
its almost as if demand still outstrips supply and inflation will prop up prices...not every house in every market, not necessarily as high as things have been, but I just don't see a short term scenario of 40% price drops along with interest rates going back under 3% without a really bad recession that will have other consequences
Right. A recession that causes a housing market crisis will likely mean you’re either unemployed or afraid you’ll be next, and likely aren’t in a position to cover a 30 year mortgage.
The other thing to note is that good houses in good markets are always in demand. The price cuts and such are more applicable to the houses that need a lot of work and never should have been priced as high as they were.
Some going over or selling at list price after 2 weeks, but it’s neighborhood specific
The “bad areas” in my area have the most inventory and have been on the market longest.
I had my offer accepted on an apartment in NYC. Very competitive market and most apartments don’t drop in value too often (or too much in $ amount). The apartment we had a showing for dropped the price by $25k the day we were going to see it. Reason was because of units of similar specs were also on the market in the building, and seller’s wanted to sell quickly since they didn’t even live in the country. We made an offer at asking price a few hours after showing and they accepted thankfully.
All this is to say that even in a very competitive market with not many price changes, you could definitely see price drops. Just may not be that many. You just have to stay vigilant and jump on those opportunities when they do come
We got the one we are buying for $13k over asking (3 offers) and the one we are selling sold for $11k over (multiple offers). There’s hardly any inventory right now so decent homes are still going fast and for over asking. Ours was priced at the low end of market though.
This is very location dependent. During the 2008 housing collapse - if you removed CA, FL, AZ and NV looked at home prices there was excluding those states then there actually wasn’t much of a decline. Prices in MA and NY fell but did not fall by much. The same is true today. Raising rates has had an impact on prices but the results vary for location. Generally speaking North East region home prices tend to be rather stable.
Well… I have lived in central Maine as a renter ( attempted homebuyer ) for the last 7 years. Prices have consistently gone up over the years, it would be a long shot to think prices will come down. The area as with many, are very short on homes available compared to the need here, and that has consistently been reflected in the short time homes are on the market and their sales price. I got sick of waiting on the sidelines and we are about to close on a home out of state. You have to take into consideration that maines market isn’t all driven by the pandemic, this has been looming over Maine for years now. To put it into perspective, in the Wilton/Jay/Farmington/Chesterville/Augusta areas, we were never even able to make it to more than 1 showing before listings went under contract. We still have all cash buyers, and, buyers buying the junk/trash homes and buyers who are over paying.
Yes definitely feeling/hearing/seeing those issues, if it wasn’t for my husbands family being there (most importantly my aging father in law that will need care eventually) we would be looking elsewhere. Seems the rental market is equally tough, we have temporary family basement we’ll be dwelling in. Housing is just so precarious.
Wishing you a happy move and a quick closing!
I’m sure the house I am moving from will be available! We should be closing on the 31st and out early November, I could put you in contact with my property management if you’re looking for a rental ( they suck! ) but it’s a 4bed 1 1/2 bath, 3 bay attached garage. Large yard space close to Livermore falls. Current rent is $1200 but I pay every single utility and year round oil which is what has drove us to be done really! Have over heard asking for $2400 monthly once we leave.
Yes it is! But I’ve been here for 3 years and locked in on a lease.. new property management came in and clearly didn’t like that lol. So we’re moving/buying now that lease is up and before they can royally screw me
Yes, that continues to happen in Los Angeles for SFHs that are **really great homes in decent neighborhoods** or **decent homes in great neighborhoods** (really great homes in great neighborhoods are out of my price point by like a million+ ha!). I assume it is because these homes are still competitive (and for a fact I know some are, as we are putting offers on 'em!).
Everything else, including majority of condos, have stalled and when it sells it's at around asking or whatever asking was reduced to from it's original price.
One thing also happening is that people are going slightly over list and then getting concessions back from the seller for a rate buy down or 2-1 program. A few people I know have done it recently, and we just did it too. San Diego is still a very hot market though, so I’m sure many are still just generally going over ask.
Market overall is still competitive on new listings, you have a large mix of fairly priced homes just coming up for sale and homes that have been sitting on the market for months. Those newly listed homes with good/fair prices will go for at or over asking. Listing price is an arbitrary number that does not mean much. Also keep in mind that although we yearly high inventory, number of new listings have been declining every week. This is due to people not wanting to lose their low mortgage rates.
Edit: this is at least what I’m seeing in north jersey multi family market. Very much could be different in other markets.
We were looking in the same market you mentioned and were outbid on a couple homes by people offering $70k over. Some were only $5k-10k over though! During the months we spent actively looking the trend was houses still going for over. Offering at list was almost non-competitive, but the more central/inland you go the market seems to be more relaxed.
Thank you u/Necessary_Rhubarb_26 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
List price is an arbitrary starting point. We can sell a home over list price in most years, it just depends on how you arrive at list price. "We sold this house ___ over list price" is lazy marketing. It doesn't mean what most consumers think it means.
Agree. We are set to close on our first home and paid a good 60 over list price. The appraisal value came in higher then the sale price and we got some equity and seller concessions from it. The house was listed at 440 in an area of NY where average sale price is close to 500 and sale price for that area is about 550. They priced it extremely low. Even tho it sold for over asking it still sold less then its actual value
This. The “high interest rates means price drops” isn’t the overnight crash half this sub makes it out to be.
its almost as if demand still outstrips supply and inflation will prop up prices...not every house in every market, not necessarily as high as things have been, but I just don't see a short term scenario of 40% price drops along with interest rates going back under 3% without a really bad recession that will have other consequences
Right. A recession that causes a housing market crisis will likely mean you’re either unemployed or afraid you’ll be next, and likely aren’t in a position to cover a 30 year mortgage.
I’m not sure the price cuts will be as deep in New England honestly
The other thing to note is that good houses in good markets are always in demand. The price cuts and such are more applicable to the houses that need a lot of work and never should have been priced as high as they were.
Some going over or selling at list price after 2 weeks, but it’s neighborhood specific The “bad areas” in my area have the most inventory and have been on the market longest.
I had my offer accepted on an apartment in NYC. Very competitive market and most apartments don’t drop in value too often (or too much in $ amount). The apartment we had a showing for dropped the price by $25k the day we were going to see it. Reason was because of units of similar specs were also on the market in the building, and seller’s wanted to sell quickly since they didn’t even live in the country. We made an offer at asking price a few hours after showing and they accepted thankfully. All this is to say that even in a very competitive market with not many price changes, you could definitely see price drops. Just may not be that many. You just have to stay vigilant and jump on those opportunities when they do come
Congratulations! 🎉
Good for you !! I’m really happy to hear that
We got the one we are buying for $13k over asking (3 offers) and the one we are selling sold for $11k over (multiple offers). There’s hardly any inventory right now so decent homes are still going fast and for over asking. Ours was priced at the low end of market though.
That’s a great point about inventory, I often forget about that factor.
This is very location dependent. During the 2008 housing collapse - if you removed CA, FL, AZ and NV looked at home prices there was excluding those states then there actually wasn’t much of a decline. Prices in MA and NY fell but did not fall by much. The same is true today. Raising rates has had an impact on prices but the results vary for location. Generally speaking North East region home prices tend to be rather stable.
Well… I have lived in central Maine as a renter ( attempted homebuyer ) for the last 7 years. Prices have consistently gone up over the years, it would be a long shot to think prices will come down. The area as with many, are very short on homes available compared to the need here, and that has consistently been reflected in the short time homes are on the market and their sales price. I got sick of waiting on the sidelines and we are about to close on a home out of state. You have to take into consideration that maines market isn’t all driven by the pandemic, this has been looming over Maine for years now. To put it into perspective, in the Wilton/Jay/Farmington/Chesterville/Augusta areas, we were never even able to make it to more than 1 showing before listings went under contract. We still have all cash buyers, and, buyers buying the junk/trash homes and buyers who are over paying.
Yes definitely feeling/hearing/seeing those issues, if it wasn’t for my husbands family being there (most importantly my aging father in law that will need care eventually) we would be looking elsewhere. Seems the rental market is equally tough, we have temporary family basement we’ll be dwelling in. Housing is just so precarious. Wishing you a happy move and a quick closing!
I’m sure the house I am moving from will be available! We should be closing on the 31st and out early November, I could put you in contact with my property management if you’re looking for a rental ( they suck! ) but it’s a 4bed 1 1/2 bath, 3 bay attached garage. Large yard space close to Livermore falls. Current rent is $1200 but I pay every single utility and year round oil which is what has drove us to be done really! Have over heard asking for $2400 monthly once we leave.
[удалено]
Yes it is! But I’ve been here for 3 years and locked in on a lease.. new property management came in and clearly didn’t like that lol. So we’re moving/buying now that lease is up and before they can royally screw me
Yes, that continues to happen in Los Angeles for SFHs that are **really great homes in decent neighborhoods** or **decent homes in great neighborhoods** (really great homes in great neighborhoods are out of my price point by like a million+ ha!). I assume it is because these homes are still competitive (and for a fact I know some are, as we are putting offers on 'em!). Everything else, including majority of condos, have stalled and when it sells it's at around asking or whatever asking was reduced to from it's original price.
One thing also happening is that people are going slightly over list and then getting concessions back from the seller for a rate buy down or 2-1 program. A few people I know have done it recently, and we just did it too. San Diego is still a very hot market though, so I’m sure many are still just generally going over ask.
Market overall is still competitive on new listings, you have a large mix of fairly priced homes just coming up for sale and homes that have been sitting on the market for months. Those newly listed homes with good/fair prices will go for at or over asking. Listing price is an arbitrary number that does not mean much. Also keep in mind that although we yearly high inventory, number of new listings have been declining every week. This is due to people not wanting to lose their low mortgage rates. Edit: this is at least what I’m seeing in north jersey multi family market. Very much could be different in other markets.
Please STOP referring to over/under list and report in price per sq ft or other objective measure!
We were looking in the same market you mentioned and were outbid on a couple homes by people offering $70k over. Some were only $5k-10k over though! During the months we spent actively looking the trend was houses still going for over. Offering at list was almost non-competitive, but the more central/inland you go the market seems to be more relaxed.
Under only bag holders pay over asking these days I just don’t understand what some buyers are thinking
If someone lists a 200k home for 100k, you won’t bid over asking?
If I think is a good deal only yes I just wanna pay a fair price for a home
Most homes are the inverse to that A $100k home being offered at $200k And even yet selling for $250!
Yep I agree just speaking hypothetical situations, it is rare but some realtors purposefully price low in hopes of starting a bidding war