as i have been warning for a couple of months now, there is a seismic shift happening in residential real estate. The real estate cycle has turned, i dont see how anyone could argue that fact at this point. The fed initiated this slowdown to slow down price growth, man is it working! Those that say low inventory levels will prevent a crash will be proven wrong. Builders have no foot traffic at their sites right now. Dramatic drop off in interest in buying a new home. Homebuilding is what creates economic activity. Jobs, material, you build a house and then the buyer goes out and buys new domestic goods to put in their house. all great for the economy. Well, builders know there is a change and have slowed down permit pulling. Another interesting phenomenon, listings are way up, pretty much everywhere. Sellers know the bargaining momentum is about to switch to Buyers. Listings are waay up but houses are sitting without an offer longer. Thats not an inventory issue, thats a price issue. Its Buyers saying, "fawk this shet, we are sitting this out". as it happens in every crash since i have been paying attention (1987), the Inland Empire will be the first to crash. Look at the lisiting activity there. always the IE first. look at Austin, Phoenix and Boise...crash
Big FED rate increases (with more by end of summer anticipated) have got sellers off the fence. In an early sign, the rate of sellers making price cuts accelerated in May.
And a softening economic outlook may have thinned the number of house hunters and made bidding wars less exuberant. Enjoy the post.
Where in California did owners rush to list homes for sale?
By JONATHAN LANSNER | jlansner@scng.com and BLOOMBERG NEWS | | Orange County Register
Source: Realtor.com compiles a monthly survey of listings of existing homes on the market.
The number of active U.S. listings rose 8% year over year in May, likely driven by new sellers and a slowdown in would-be buyers deterred by high prices, Realtor.com said in a report June 2nd. Listings were down 12% year over year in April.
The largest increases in new listings were in the West and the South.
Among the 50 metro areas tracked, the year’s largest jump in homes on the market was in Austin (up 86%), then came Phoenix (up 67%), Sacramento (up 55%) and the Inland Empire (up 52%).
Here’s what happened in California in May — and how that activity stacked up nationally, ranked by the size of listing increases within the state.
No. 1 Sacramento Active listings: Up 55% — No. 3of 50nationally. Median listing price: $649,000 — No. 9. Year’s price change: Up 11% — No. 29. Share of price cuts: Up 17.2% of listings — No. 4.
No. 2 Inland Empire Active listings: Up 52% — No. 4 of 50. Median listing price: $599,000 — No. 12. Year’s price change: Up 14.2% — No. 24. Share of price cuts: 13.9% of listings —
No. 7 No. 3San Francisco Active listings: Up 32% — No. 12 of 50. Median listing price: $1.13million — No. 2. Year’s price change: Up 3.8% — No. 38. Share of price cuts: 9.1% of listings — No. 30.
No. 4 San Jose Active listings: Up 23% — No. 15 of 50 nationally. Median listing price: $1,494,000 — No. 1. Year’s price change: 15.1% — No. 22. Share of price cuts: 9.9% of listings — No. 24.
No. 5 San Diego Active listings: Up 10% — No. 26 of 50. Median listing price: $926,000 — No. 4. Year’s price change: Up 15.9% — No. 19. Share of price cuts: 11.5% of listings — No. 14.
No. 6 Los Angeles-Orange County Active listings: Up 5% — No. 31of 50 nationally. Median listing price: $972,000 — No. 3 Year’s price change: Up 1.4% — No. 41. Share of price cuts: 10.5%, of listings — No. 18.
Keep posting and providing housing updates. Ive been so busy I forgot about this board. Thanks for your info, BB.