This might be a total coincidence.

I have seen 5 for sale signs on my street come up all of a sudden in just 6 days.

Every house on my street has doubled in market value over the last couple of years.

I didn't think about it too much until I found out about the Dow and Nasdaq falling so sharply today.

Are they doing this to get ahead of a major recession or correction that could possibly tank home values?

Are they basically taking the multiple hundreds of thousands of dollars in equity they have got over the last few years and cashing out?

I only talked to one of them. He said he wants to sell the house and cash out on the equity before the market possibly crashes. He is taking the massive proceeds of the eventual sale and moving to the mountain west for retirement.

Yes, sell now

If you believed the market was about to crash why would you sell and then buy a presumably more expensive home at the top??

The ones I'm seeing that need to sell are getting squeezed by ARMs and property taxes on rentals or they've been holding on as long as they could but now they have to move for jobs.

I put my son's house on the market Thursday afternoon expecting to have a lot of showings this weekend as it is a very desirable property that is well priced.

Not one showing so far. It is the only home for sale in a very desirable neighborhood.

I talked to another agent and they said the market is just dead.

JobSecurity said:

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If you believed the market was about to crash why would you sell and then buy a presumably more expensive home at the top??

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You sell and rent for a while until after the crash and then scoop up something for much less.

aglaes said:

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JobSecurity said:

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If you believed the market was about to crash why would you sell and then buy a presumably more expensive home at the top??

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You sell and rent for a while until after the crash and then scoop up something for much less.

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Yeah. I thought that was pretty obvious too but he got over 10 people to blue star it. So maybe not…

All I know is that it would cost me 3x my monthly mortgage to rent a like house that I'm currently in and that's with the hope that maybe the market will crash within a year or two to make a couple hundred grand? I'm not seeing the juice for that amount of squeeze.

I can see it if you're talking a portfolio of units but not my personal house. It's summertime and people move during the summer. I think it's coincidence.

TheWoodlandsTxAg said:

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SteveBott said:

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They just decided to sell. Coincidence

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Will another market crash like the one that happened today have any effect on the real estate market? Many retirement accounts, 401ks, and stock portfolios are plummeting if they are not in very safe allocations.

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oh dear...how will they survive this carnage?

There are 2 economies right now - one for the Gen Xers who have been putting away money for the last 25 years, and another one for the millennials and Z'ers who may have good jobs, but no savings due to inflation.

I put a home for sale last fall that was move-in ready, a great starter home, and the only home under $250K in the entire well-off suburb where Iive. No traffic. None. Finally after lowering the price by almost $40K, I got $202K for it. The problem is that nobody in their 20's or 30's can scrape together a downpayment. Even fewer can come up with a GOOD downpayment (20%, like EVERYBODY should try to do).

Inflation is killing Gen Xers too, but they have wealth. They are hurting for cash flow, but they know the 401(k) has got their backs. The house next door to mine sold at the same time. It's in the $500K - $1M range. They listed for $50K over market value, and had an offer in a week from some 50-somethings. Why? They liked the location. 2 acre lot close to the highway. What do they care if they overpay? Probably even paid cash right out of a retirement account to avoid the current interest rates.

As for me, I got tired of being a landlord. I had a great tenant. Paid every month. Single. Still, I had a $200+K home and couldn't get more than $1500 in rent? I could've kicked her out and maybe gotten $1700? Yeah, right - I'm gonna gamble the house on the chance that I might get a meth lab or a dog breeder for only $3K/year in more rent? Screw that noise. I decided to get out. Bought the home at $160K, sold it at $202K after 3.5 years. Probably broke even. Certainly would've made more in the stock market.

TLDR - Gen Xers can buy whatever they want; millennials and Zers can't - there's no such thing as an affordable home for most of them.

Shooter McGavin said:

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I put my son's house on the market Thursday afternoon expecting to have a lot of showings this weekend as it is a very desirable property that is well priced.

Not one showing so far. It is the only home for sale in a very desirable neighborhood.

I talked to another agent and they said the market is just dead.

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As always, the market is important.

My buddy has made 3 over asking offers in the last few weeks and gotten beat on all 3.

94chem said:

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There are 2 economies right now - one for the Gen Xers who have been putting away money for the last 25 years, and another one for the millennials and Z'ers who may have good jobs, but no savings due to inflation.

I put a home for sale last fall that was move-in ready, a great starter home, and the only home under $250K in the entire well-off suburb where Iive. No traffic. None. Finally after lowering the price by almost $40K, I got $202K for it. The problem is that nobody in their 20's or 30's can scrape together a downpayment. Even fewer can come up with a GOOD downpayment (20%, like EVERYBODY should try to do).

Inflation is killing Gen Xers too, but they have wealth. They are hurting for cash flow, but they know the 401(k) has got their backs. The house next door to mine sold at the same time. It's in the $500K - $1M range. They listed for $50K over market value, and had an offer in a week from some 50-somethings. Why? They liked the location. 2 acre lot close to the highway. What do they care if they overpay? Probably even paid cash right out of a retirement account to avoid the current interest rates.

As for me, I got tired of being a landlord. I had a great tenant. Paid every month. Single. Still, I had a $200+K home and couldn't get more than $1500 in rent? I could've kicked her out and maybe gotten $1700? Yeah, right - I'm gonna gamble the house on the chance that I might get a meth lab or a dog breeder for only $3K/year in more rent? Screw that noise. I decided to get out. Bought the home at $160K, sold it at $202K after 3.5 years. Probably broke even. Certainly would've made more in the stock market.

TLDR - Gen Xers can buy whatever they want; millennials and Zers can't - there's no such thing as an affordable home for most of them.

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I've offloaded 7 in the past 18 months. The amount of straight up dumb comments i've received made me never want to sell a home again. All were priced 200-350. All of which, were listed below CAD appraised value. Every single house had realtors saying "it is overpriced" ... CONSTANTLY. Most nagging i've ever encountered.

Turns out, out of the 7 homes, I was able to sell 5 of 7 for the listing price. At the end i started telling potential buyers to stop calling me. It was like listing a trampoline on craigslist free section.

I'm seeing the same in the vacation market. My home is almost beachfront on Bolivar. It's a great compromise for people looking for an affordable alternative to the dreaded "stay-cation." I've never seen so many people who expect to get a 1700 square foot home on the beach in the middle of summer for the same price as the Super 8. It seems that nobody has any cash, and as far as real estate goes, you've either got to be at the extreme low end (multi-family, section 8, motels) or at the very high end (custom homes, resorts). Properties that should be readily accessible to the middle class (modest week long vacation rentals, starter homes) just aren't moving.

I believe what we're seeing is a massive wealth transfer from the middle class to the upper class. Whereas Chavez and the commies kill the middle class by bribing the poor, our free money policies of the past 20 years have created enormous wealth for the elites and older generations, and a burden of debt and inflation that is crushing the middle class, especially young people.

Ryan the Temp said:

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I just looked at SFR listings in my Houston neighborhood and the listing prices are much, much lower than they were 6-12 months ago.

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Anecdotally, I've seen some decent (but not amazing) homes in desirable neighborhoods that priced like they thought it was 2021/2022 slowly come back down to earth.

Multi year buyers markets incoming imo.

Mortgage rates may "come down" a bit but that won't compensate for the massive increase in property taxes, insurance, and energy.

As we **** more towards an employers market I don't see where the buyers will come from.