Real Estate Days on Market?

[CloverKnollFarms]

None of this should be a surprise

 

[check]

I didn't realize this part. I know people who move every two years, to take advantage of the tax benefit. Moving costs, et.al. are all deductible against that 250/500K threshhold.

Wow, having to move every 2 years in order to escape capital gains taxes - that is a bummer!

Here the rule is simply no capital gains tax on your primary residence - ever. (Regardless of the amount.)

 

[2manyrocks]

None of this should be a surprise

Funny you should say that because it makes absolutely no financial sense to me that 30 year mortgage rates could ever have been as low as they have been. Interest rates should always be high enough to offset the effects of price inflation, include a risk premium for the possibility of default, cover administrative costs, and at least include some compensation for taking the risk that rates might change adversely over the term of the loan.

Roughly speaking, in the 1990s, the rates were 7-9%. In the early 2000s, rates were hovering around 6-7%, then 5-3.5% post 2008, and then in 2020, dropped below 3%. 30 Year Fixed Mortgage Rate - Historical Chart

They've held rates down so long that investors started looking around for somewhere safe to put their money. Indirectly, I suspect this contributed to investors buying homes to get a better return on their funds. They had the money to outbid potential homebuyers and this also contributed to the crazy run up in home prices.

Even though the inflation bear has now come out of the woods for all to see, the current mortgage rate is still below the current rate of inflation.

 

[arto98607]

Bye bye to what once was a large middle class......

 

[plowhog]

Some Realtors are pulling listings and relisting so as not to reflect actual price reductions

This is a common practice that sometimes occurs even in a hot market. If it was priced too high to start.

There is a LOT of scrutiny and attention to brand-new listings on the RE market. By pulling the property off the market and then re-adding it, the property again becomes a "brand new listing." Except its not.

Licensed realtors who have access to the local MLS have a big advantage over non-realtors in this area. When you look at the MLS listing you can easily see the history. It is much more difficult for "average joe" to get access to that information.

I've seen MLS listings that have had 10+ price adjustments or on/off the market gyrations.

btw, lots of price reductions throughout Northern CA. Pretty widespread, significant price cuts.

 

[Torvy]

I'm not too worried. According to this article 5 of the top 10 markets are here in the DFW area.

Best US real estate markets in 2022, according to new report

WalletHub published a report on the best real estate markets of 2022, based on 17 metrics in two categories: “real estate market” and “affordability and economic environment.”

www.foxbusiness.com

 

[Torvy]

Even though the inflation bear has now come out of the woods for all to see, the current mortgage rate is still below the current rate of inflation.

Inflation rate and interest rates do not have that type of correlation. Inflation rate is the rate of increase of prices over time. (Based on a market basket of consumer goods). Interest rates are based on many things and while increasing rates is one tool to cool inflation, the inflation rate compared to the interest rate means nothing.

Inflation is all about money supply. Fiscal policy is government spending, which is at all-time highs. Monetary policy is how the fed raises rates and buys/sells securities to make money looser or tighter. Right now you have them working at cross purposes.

Rates on mortgages are not as directly affected because a) they are long-term and b) real estate does not lose value as much as other assets like cars. Regional differences can be huge, though.

 

[2manyrocks]

Hmm, then all of the principles underlying the calculation of net present value of a stream of future payments must be wrong.

 

[ultrarunner]

btw, lots of price reductions throughout Northern CA. Pretty widespread, significant price cuts.

My in box has dozens of reductions every day…

My city MLS shows 500+ listings.

At least the mailbox solicitations to sell have tapered.

 

[ultrarunner]

Regarding inflation and rents…

Many cities including mine enacted emergency legislation now that Pandemic Rent freeze expired.

The new rules max rent increases to 1/2 the published rates of inflation…