For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[PaPaG]

This is us. Reason #1- many places are closed Mon-Tues due to staffing shortages. We consider going out these nights but remind ourselves that the restaurant is probably, or we are certain, closed. Reason #2- if it is open, like on a Fri-Sat, due to staffing shortages and fewer tables available, there is probably a huge wait. That leaves us with 3 nights a week to choose from if we want to eat out. Reason #3- Price versus food quality- The prices have gone up 25-30 percent, and the quality of the food has gone down by about the same percentage. Food is either overcooked, undercooked, or just "meh," edible but not an enjoyable experience for the price. Basically just a mediocre meal, but we don't have to cook or do dishes. We've found not doing dishes is no longer worth the price for a so-so meal. In response, we've found we prefer to spend more effort making nice meals at home.

You hit the nail on the head, we used to eat out at least twice a week, it is getting harder and harder to eat some of the food being served, I always appreciate ANYONE who is working and doing their best and make sure they know it by thanking them and making sure the tips are very nice BUT to eat some of this food and paying 50 or 60 bucks for 2 of us and it tasting so-so or even bad has gotten old. When the food is good I don't mind paying the higher price at all because costs have gone up and I understand businesses need to increase prices to stay in business and make a profit but when the food sucks or is not really good its a NO GO...

 

[Runs2rch]

You hit the nail on the head, we used to eat out at least twice a week, it is getting harder and harder to eat some of the food being served, I always appreciate ANYONE who is working and doing their best and make sure they know it by thanking them and making sure the tips are very nice BUT to eat some of this food and paying 50 or 60 bucks for 2 of us and it tasting so-so or even bad has gotten old. When the food is good I don't mind paying the higher price at all because costs have gone up and I understand businesses need to increase prices to stay in business and make a profit but when the food sucks or is not really good its a NO GO...

One of the first things people quit. Eating out. Then the gardener, cleaning lady, and pool man go. That is easily 300-500 a month depending.

 

[Your ad here]

I think those that say people are not going to walk away from equity or a 3% loan just to go rent are missing the problem of inflation.

Those that bought and got an FHA and put the minimum down and were at the top of the DTI ratio. They are going to get squeezed by rising gas and food prices. Have to eat and get to work, so the house payment doesn't get paid. Even if they put 20% down. How are they going to access the equity? They probably won't qualify for a heloc or a refi. They could try to sell, but then you have real estate and closing cost.

So they have to move to a cheaper area. This scenario is without losing your job.

My sons is probably going to be in this situation soon. He didn't listen to me when I told him the market is too high to buy a house. He bought last Feb. I know he just barley qualified and gas prices are killing him.

Now I have to decide if we are going to bail him out or let him get the education the hard way. I doubt we will help him, but I will make sure the grandkids do not do with out.

At least your son established rent control so his house payment won't change assuming his loan is a fixed rate. That's one less cost to worry about changing (rising). The other cost vary up and down. He may have to step up to the next pay level at work or take a 2nd job.

 

[rivermobster]

I watch the local real estate scene...

Yesterday a nice place came up on the MLS. Said "listed for 4 hours" by the time I saw it.

A few hours later, it was pending.

SoCal is still smoking hot!

 

[hallett21]

I watch the local real estate scene...

Yesterday a nice place came up on the MLS. Said "listed for 4 hours" by the time I saw it.

A few hours later, it was pending.

SoCal is still smoking hot!

It’s a shit hole

 

[Springfield]

One of the first things people quit. Eating out. Then the gardener, cleaning lady, and pool man go. That is easily 300-500 a month depending.

LOl...since I am the gardner, cleaning lady and pool boy I am sure my wife will keep me. and she feeds me well.

 

[zhandfull]

I watch the local real estate scene...

Yesterday a nice place came up on the MLS. Said "listed for 4 hours" by the time I saw it.

A few hours later, it was pending.

SoCal is still smoking hot!

Yeah I’m still see properties go over asking in Rancho Cucamonga. But only by 1 percent or so, not 5 to 10 as I was seeing a few months back. The market is definitely changing. Still a lot of wish pricing taking place today.

 

[Havasu blue label]

In my area there selling 1.6 for junk

 

[Thunderhead1]

We just sold our home in So Cal in 1 day with multiple offers... No bidding war but we asked an elevated price for it and we got it..
I read this thread and the others like it and have opinions on both views ... safety is good if your content where you are... but also nothing ventured nothing gained..

I hope everyone with an opinion or a dog in the fight only the best ....

Cheers!! Mike

 

[c_land]

I don’t see CA dropping 30-60%. 10-20% sure and that is pre covid pricing. To much overseas money still buying CA.

Without speculating on future RE prices, the Dollar is at 20 year highs against other foreign currencies. I'm not sure that we get the same level of support from overseas buyers moving money to US assets. It think there was a thread here the other day about USD/Euro at parity for the first time in a while.

It could work in reverse even if foreign owners wanted to sell and get their hands on USD where it now buys more at home.

 

[HB2Havasu]

I watch the local real estate scene...

Yesterday a nice place came up on the MLS. Said "listed for 4 hours" by the time I saw it.

A few hours later, it was pending.

SoCal is still smoking hot!

That’s probably going to come to a screeching halt soon. Rumor is the Fed is going to raise rates 1.5%-2.0% at there September meeting. They’ve been tapping the brakes too softly the last few months to try get a soft landing to stop inflation but after the 9.1% CPI Report the other day they’re going to have no choice but to pull the Emergency Brake and put the USA into recession to stop the OBidenflation. Get ready for the sky to fall, lol

 

[angiebaby]

You hit the nail on the head, we used to eat out at least twice a week, it is getting harder and harder to eat some of the food being served, I always appreciate ANYONE who is working and doing their best and make sure they know it by thanking them and making sure the tips are very nice BUT to eat some of this food and paying 50 or 60 bucks for 2 of us and it tasting so-so or even bad has gotten old. When the food is good I don't mind paying the higher price at all because costs have gone up and I understand businesses need to increase prices to stay in business and make a profit but when the food sucks or is not really good its a NO GO...

Exactly. We previously ate out 2 times a week minimum, often closer to 5 times if you count going out to breakfast and/or lunch on the weekends. There are so many great places to eat in Reno, and the local Mexican restaurant owners were our neighbors. It was 2 right turns to get home from their place, so we ate there regularly. We made sure to give them a lot of monetary support during the draconian lockdown. That doesn't even account for the multitude of excellent Italian restaurants in an old mob town. Now, based on the lack of availability and the poor food quality, we might go out once a week. Not for the cost so much, just the inconvenience and lack of enjoyment. It just ain't worth it.

 

[MSum661]

Without speculating on future RE prices, the Dollar is at 20 year highs against other foreign currencies. I'm not sure that we get the same level of support from overseas buyers moving money to US assets. It think there was a thread here the other day about USD/Euro at parity for the first time in a while.

It could work in reverse even if foreign owners wanted to sell and get their hands on USD where it now buys more at home.

Just wait for our Fed to raise rates again next week. Right now our Fed is the EU's biggest threat and If they think inflation is bad now, they have'nt seen anything yet.
When our economy slows down & the US isn't supplying anymore USDs........you know what that means.

Have you seen what some foreign banks are paying for Fixed US Dollar deposits??
Page down..

Fixed Deposit | ABA Bank Cambodia

ABA Bank is your best bank in Cambodia backed by National Bank of Canada.

www.ababank.com

 

[c_land]

Just wait for our Fed to raise rates again next week. Right now our Fed is the EU's biggest threat and If they think inflation is bad now, they have'nt seen anything yet.
When our economy slows down & the US isn't supplying anymore USDs........you know what that means.

Have you seen what some foreign banks are paying for Fixed US Dollar deposits??
Page down..

Fixed Deposit | ABA Bank Cambodia

ABA Bank is your best bank in Cambodia backed by National Bank of Canada.

www.ababank.com

5.00%!!

 

[OldSchoolBoats]

Wonder where we should go out to eat at tonight??

 

[angiebaby]

Wonder where we should go out to eat at tonight??

LOL, I think I'm going to try to make a reservation at the local steak house.

 

[Done-it-again]

Without speculating on future RE prices, the Dollar is at 20 year highs against other foreign currencies. I'm not sure that we get the same level of support from overseas buyers moving money to US assets. It think there was a thread here the other day about USD/Euro at parity for the first time in a while.

It could work in reverse even if foreign owners wanted to sell and get their hands on USD where it now buys more at home.

Asian's are the ones I'm talking about who are still buying in CA to get money out of their communist country... They don't care about the exchange rate or interest rates as its all cash. They LOVE CA real estate

 

[Racey]

@PaPaG might end up giving the speed utv thread a run for it's money

 

[zhandfull]

Asian's are the ones I'm talking about who are still buying in CA to get money out of their communist country... They don't care about the exchange rate or interest rates as its all cash. They LOVE CA real estate

Asian couple with five year old child bought next door. Nice family and good neighbors. Stay at home mom. All cash buyer according to seller.

 

[HNL2LHC]

Just hopped onto my favorite site for Havasu Realty. I usually do it every few weeks. Do my normal search and am surprised to see how many homes have a reduction in price. It is more than 10% but less than 20% in the 4-600k range.

 

[CSmith]

Just hopped onto my favorite site for Havasu Realty. I usually do it every few weeks. Do my normal search and am surprised to see how many homes have a reduction in price. It is more than 10% but less than 20% in the 4-600k range.

I do the same. IMHO however the prices vs what's on the market, i don't see any I'd willingly purchase for the listed sales price. My price point is in the 400-500k range.

 

[HNL2LHC]

I do the same. IMHO however the prices vs what's on the market, i don't see any I'd willingly purchase for the listed sales price. My price point is in the 400-500k range.

They might have had the pie in the sky thoughts that they might get more $$$$$&. We are watching a few comps and there is on that we thought was a little high. We might pick up another rental if it drops a bit more.

 

[hallett21]

This one just closed in our area

 

[Runs2rch]

This one just closed in our area

View attachment 1137426 View attachment 1137428

Ass for every seat as they say. The people that paid 965k are stoked and bailed out.

 

[Havasu blue label]

Yes sir theres one for everything

 

[hallett21]

Few more

 

[hallett21]

This one went under ask

 

[hallett21]

 

[Magic Mike]

I bought my first house 21816 Dumetz for $206k in 1993, wish I still had it.

 

[hallett21]

Just searched Simi Valley. Out of the 10 most recent sales 1 went under ask (10k) the others went for ask or over.


Edit:
Thousand Oaks & Westlake doing the same, although there you can have a $600k home 2 miles from a 4 million dollar home.

 

[Dalton]

And then they’re doing 1031’s with the proceeds, so they don’t mind paying over as long as they’re in the time frame…perpetuating the cycle

 

[OldSchoolBoats]

Just searched Simi Valley. Out of the 10 most recent sales 1 went under ask (10k) the others went for ask or over.


Edit:
Thousand Oaks & Westlake doing the same, although there you can have a $600k home 2 miles from a 4 million dollar home.

But......but......but........

Just got home from buying the youngest a new mattress / box spring and holy crap was it crazy out in Temecula. Easily over 100 degrees out and everywhere was packed!!

 

[Bpracing1127]

One of the first things people quit. Eating out. Then the gardener, cleaning lady, and pool man go. That is easily 300-500 a month depending.

Yep, we basically stopped eating when we go to havasu. At home. We cut back to 1-2 nights maybe.

When we move to st George. I won’t have a cleaning lady like I have now

 

[HNL2LHC]

Yep, we basically stopped eating when we go to havasu. At home. We cut back to 1-2 nights maybe.

When we move to st George. I won’t have a cleaning lady like I have now

I hope that I never loose my cleaning lady. Things would not be the same without my wife. :looking: Then you have the whole who makes the sammishes dilemma.

 

[Englewood]

Yep, we basically stopped eating when we go to havasu. At home. We cut back to 1-2 nights maybe.

When we move to st George. I won’t have a cleaning lady like I have now

Same with us. Wife and 2 kids it $100 min to eat out. Food tastes bland, takes an hour, etc. I can make a tip tier filet dinner at home for $40.

 

[Done-it-again]

Ate at Lawry’s last night and it was busy. No one seemed to be bothered by a potential housing doom and gloom coming.

 

[LargeOrangeFont]

Ate at Lawry’s last night and it was busy. No one seemed to be bothered by a potential housing doom and gloom coming.

Did you pull this thread up on your phone and show them they should be bothered?

Hope you had a nice evening.

 

[Done-it-again]

Did you pull this thread up on your phone and show them they should be bothered?

Hope you had a nice evening.

Most had 3.5% and lower mortgages, others had paid cash and a few renters.

All were having a great time, as they should be.

 

[LargeOrangeFont]

Most had 3.5% and lower mortgages, others had paid cash and a few renters.

All were having a great time, as they should be.

You did yore part. Thank you.

 

[Done-it-again]

You did yore part. Thank you.

Anytime, we had a great time and kids already wanting to go back to see the spinning salad again.

Just sucked driving back home, it’s an hr from the IE.

 

[attitude]

What’s up with realtors posting houses and immediately dropping the price? Is there a tactic here? I’ve noticed multiple houses being dropped less than a week after being posted. One house has been dropped twice in a week, and no it’s not over priced, it’s now the cheapest house in the neighborhood.

 

[CLdrinker]

I watch the local real estate scene...

Yesterday a nice place came up on the MLS. Said "listed for 4 hours" by the time I saw it.

A few hours later, it was pending.

SoCal is still smoking hot!

Last year a house I my neighborhood would only be on the market days. Now we have 7 for sale and they aren’t moving. Admittedly a few are insane on asking price.

 

[Runs2rch]

What’s up with realtors posting houses and immediately dropping the price? Is there a tactic here? I’ve noticed multiple houses being dropped less than a week after being posted. One house has been dropped twice in a week, and no it’s not over priced, it’s now the cheapest house in the neighborhood.

Activity is my guess. 7-10 days you know its priced too high if you have no calls, texts or showings.

 

[attitude]

Activity is my guess. 7-10 days you know its priced too high if you have no calls, texts or showings.

The house in questing was originally posted 50k cheaper than any house in the neighborhood, dropped 35k 3 days later, then another 15k 4 days after that. It is now a 100k cheaper than any house in the neighborhood. I would assume the realtors know the market pretty well so a drop in price 3 days after being posted seems odd, almost like some kind of tactic, maybe some people only search for price drops?

 

[PaPaG]

Ate at Lawry’s last night and it was busy. No one seemed to be bothered by a potential housing doom and gloom coming.

People eating at nice restaurants where it costs 350-450 for 4 typically go there for special events, business dinners or they are smart money folks enjoying their smart money investment rewards. I HIGHLY DOUBT 95% of the people there eat there once or twice a week, and if they do I can bet inflation, recession, etc does not really effect them nor does the housing market sales and value decline.

 

[MSum661]

The house in questing was originally posted 50k cheaper than any house in the neighborhood, dropped 35k 3 days later, then another 15k 4 days after that. It is now a 100k cheaper than any house in the neighborhood. I would assume the realtors know the market pretty well so a drop in price 3 days after being posted seems odd, almost like some kind of tactic, maybe some people only search for price drops?

Another $100K drop and it might go pending.
Keep us posted

 

[PaPaG]

What’s up with realtors posting houses and immediately dropping the price? Is there a tactic here? I’ve noticed multiple houses being dropped less than a week after being posted. One house has been dropped twice in a week, and no it’s not over priced, it’s now the cheapest house in the neighborhood.

A lot of times a Realtor lists for a higher price to get the client to sign, then once a client and if there is not much activity they advise to lower the price to get more activity. Buyers are getting smarter, with higher rates only going higher and prices dropping they want to get better deals for the buck.

 

[Runs2rch]

A lot of times a Realtor lists for a higher price to get the client to sign, then once a client and if there is not much activity they advise to lower the price to get more activity. Buyers are getting smarter, with higher rates only going higher and prices dropping they want to get better deals for the buck.

Tons of shit bag realtors do this. We have lost listings because people buy into whatever bullshit the used car style realtor is putting out.

Only to see the property reduced to where it should be 10-14 days later.

 

[attitude]

Another $100K drop and it might go pending.
Keep us posted

For 375k in SoCal I would be a buyer, it’s already a decent deal at 475k.

 

[MSum661]

For 375k in SoCal I would be a buyer, it’s already a decent deal at 475k.

Keep an eye on it.