You all know that we moved to a new home at the beginning of the year. We placed our house on the market about two months ago. At first we tried to do a sale by owner. No dice. We had only one person contact us to inquire, and that led nowhere. After a month or so with no leads, we hired a realtor, who has had at least four open houses, but no dice. So we cut the price by $25k about two weeks ago. Still nothing.
No other houses that are listed in the area are selling, either. It looks like the bottom is falling out of the housing market. Nothing is selling. The realtor says that he isn’t moving inventory, and he thinks that people are waiting to see if sleepy Joe is going to get ousted, which will change the nation’s economic course and lower the insane interest rates.
In the meantime, Zillow is still showing that prices are falling like a rock. The price that Zillow is estimating for our house is a full $60k less than it was six months ago, and $10k less than it was two weeks ago.
All I know is that we have decided that, should our house still not sell by the end of our contract with the realtor, we are not going to cut our price again. Instead, we will convert it into a rental and ask for $2500 to $3000 per month in rent for an 8 month lease. Then we will see where the market is in 8 months.
In the meantime, sleepy Joe is talking about passing a law for nationwide rent control. Rent control will actually increase costs more than simply letting the market do it. I have posted on that numerous times.
8 Comments
oldvet50 · July 17, 2024 at 6:04 am
Did you ever notice that most Democrat agendas prominently contain the word ‘control’?
MiniMe · July 17, 2024 at 8:30 am
Everything progressive DemonKKKrats do or say on their quest to replace normalcy with their crappy communist “utopia” is about control. Everything.
Southernborne · July 17, 2024 at 6:44 am
My wife and I have been looking to buy a retreat in W. Virginia, I’m noticing a lowing of prices, so the question is do I pull the trigger or wait for more. Think I’m going to give it a few more months.
Sailorcurt · July 17, 2024 at 7:13 am
I’ve been reading how property values keep going up in spite of the high interest rates at the same time as reading stories about how no one can afford to buy a house anymore because of the high prices and high interest rates.
I’m no economist but that’s never made much sense to me. When something isn’t selling, that’s a sign that the prices are too high and the market generally responds with lower prices. Pretty basic. If the housing market hasn’t been responding that way, someone will have to point out the external factor that is causing it to defy basic economics.
Perhaps your experience explains it…people with houses to sell are renting instead hoping for a better market in the future. That actually makes sense to me.
The thing is, these high interest rates are not going anywhere for a while. Trump won’t be able to wave a magic wand and reverse the damage that the recent profligate money printing has done. I see it getting worse before it gets better and it not getting better until toward the end of Trump’s term.
Hopefully we’ll be able to replace Trump with Vance and he’ll have another 8 years to get the economy back on track, but with the left’s open willingness to do absolutely ANYTHING to win, that’s hardly guaranteed.
Steve · July 17, 2024 at 2:17 pm
Up until recently, Hedge Funds, notably BlackRock have been buying properties and then turning around and renting them. I haven’t read the current stats but because of those purchases the prices are staying up. Maybe if the Hedge Funds decide that property isn’t a worthwhile investment the price will drop, but my guess is that by that point, the economy will be so bad that people won’t be able to buy, even if they have saved a lot of Biden bucks as this reminds me of Germany in the middle ’30’s.
Univ of Saigon 68 · July 17, 2024 at 7:17 am
Economist Assar Lindbeck once remarked that rent control “appears to be the most efficient technique presently known to destroy a city—except for bombing.”
Himself · July 17, 2024 at 6:38 pm
I”m seeing the market plummeting here as well. Currently I live in a house owned by a chinese slumlord. It’s a dump and they fix nothing. It was the best I could get when I had to move after the post-divorce house sale. BTW, that house dropped 50K from listing.
I’m seeing places where I want to move that are far nicer for $500 less a month. If I wanted a 2 bedroom dump, or ‘manufactured’ home on an acre down there, I can score that for less than half what houses go for up here. I’ve seen some $90k-$150k. Sure, it’ll be a dump, but on a acre of land away from the metroplex? I’ll start looking mid October for a December move. I can afford both at once, and I want to be outta here before the inauguration, whoever that is.
Jonathan · July 18, 2024 at 11:30 am
I’ve seen several articles recently admitting to the recession we’ve been in for over a year now.
I wonder if some Leftists are resigned to a Trump win and are setting the stage to blame him for a major recession. They have sure tied themselves in knots to avoid admitting it so far under Biden!
I’ve heard of multiple “green” companies rushing projects with federal grant funding on the assumption Trump will win and cancel remaining grant funds in January.
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