[Prosze]

We haven't had anyone look at our property in days. Going to delist soon and get it ready for rent again.

[Willy702]

Originally Posted by Mike from back east

Bloomberg reports today that "Builders Are Stuck With Too Many Houses as US Buyers Pull Back"

Boom and Bust, IIRC that's known as The American Way.

This is all very true but also what will drive the next shortage of homes. Demand drives supply in the housing market and while many can't or don't want to buy a house now, that will surely change at some point. This is just like the oil market, the decisions today drive problems tomorrow. As sure as people said oil was going to be $100 or more forever I said that's the surest way to know it won't be that long until it's under $50.

Wait until the next shortage comes. No one will have construction workers so builders won't build anything for under 600k. And then everyone will say what a horrible spot it is, no one can afford that. Why don't they build something affordable? Well folks, now is the time they can build relatively affordable houses but they don't have the liquidity to do it.

[Koshka2]

We are trying to sell our house in Texas intending to buy in Las Vegas. Both markets have gone down but more so in Las Vegas. Where I live about 45% of houses in our selling market have had price reductions. I live in an area where the big draw is school district so as school is about to start demand has gone down a lot. Still, the price reductions here are not as many and not as much as those in my market in Las Vegas.

We are looking to buy a house of around $450k (give or take $25k) in Las Vegas. We are focusing primarily on the Northwest area (Providence, Centennial Hills) or perhaps the far Southwest and are focused on houses built in the last 15 years or so.

I've been tracking houses for a while. On my tracking I noticed the other day that about 67% of houses in that market have had price reductions. I also noticed that houses now are being initially listed at much lower prices than they would have been awhile ago. About 58% of sold houses the last couple of months have had price reductions. Average price reduction across all these houses (those on the market and those sold) is about 6.4%. (That is a bit higher than the price reduction in my market in Texas).

When I look at new listings many are now starting out lower than they would have been a couple of months ago. There are a few outliers that are priced at what clearly seems to be an overpriced amount. With houses newly on the market starting out lower, there may be fewer reductions and prices may stabilize. Almost every house that was listed in May and June that has not sold has reduced prices. Even 64% of the houses listed in July have reduced prices.

[Mike from back east]

Originally Posted by Mike from back east

Reminds me of 2005. In May we sold our house in the DC area, in just a few days, with 4 offers.

In August 2005 our realtor back in the DC area said the market slammed shut, dead stop. The rest is history.

I've been tracking homes in Beaumont, CA, lately. Got an email on 01 Aug from www.Realtor.com that six home had price decreases in one day.

Edit to add on 02 Aug: Got another email today with 3 more price reductions.

Edit to add on 03 Aug: Got another email today with 5 more price reductions.

Edit to add on 15 Aug: Got another email today with 20 more price reductions.

News today from Bloomberg
- US Homebuilder Confidence Hits Worst Slump Since 2007 Collapse.
Excerpt: "The National Association of Home Buyers/Wells Fargo gauge decreased by 6 points to 49 in August, figures showed Monday. The reading was worse than the most downbeat estimate in a Bloomberg survey of economists and below the breakeven measure of 50 for the first time since May 2020."

- Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated.
Excerpt: "Wells Fargo & Co. plans to shrink its vast mortgage empire, which once churned out one of every three home loans in the US and for a time made the bank the most valuable in the nation. No longer committed to ranking No. 1 in the business, Wells Fargo’s leadership is preparing a retreat that will probably start with the bank’s ties to outside mortgage firms that generated roughly a third of its $205 billion in new home loans last year, ... "

- Biggest US Real Estate Brokerage Braces for Its First Housing Downturn.
Excerpt: "Compass Inc., spent more than $1 billion to become a go-to home seller in New York, Miami and Los Angeles, and rode the pandemic housing boom to an initial public offering. It sold more residential real estate last year than any other brokerage ... But Compass has yet to generate an annual profit. In June, the company laid off 450 employees, 10% of its salaried staff, and signaled that further cost-cutting measures could come..."


The industry ate the low-hanging fruit for years, now the chickens are coming home to roost and it's a heaping helping of humble pie. No soup for you.

[wpcoe]

My sister's LV apartment rental went from $921/month to $1151/month when she went to renew in July. It has since risen to $1300/month on the apartment web site. This follows along with the significant increases in home sales prices and the short time those houses were on the market before they sold.

Now that home prices are starting to fall, is it logical to expect apartment rents to recede, as well?

[Mariza160]

Originally Posted by wpcoe

My sister's LV apartment rental went from $921/month to $1151/month when she went to renew in July. It has since risen to $1300/month on the apartment web site. This follows along with the significant increases in home sales prices and the short time those houses were on the market before they sold.

Now that home prices are starting to fall, is it logical to expect apartment rents to recede, as well?

No, not really. If tenants are locked into a year's rental contract,
I don't see much downward price pressure on rents. At the same point,
house buying has become more expensive due to rising interest rates
so this has propped up the price of rent as a substitute product. People
have to live somewhere and if they can't afford to buy a house then they
must be renting!

[Mike from back east]

Today, Bloomberg is reporting data from Redfin that 44.8% of homes for sale in Las Vegas had a price reduction in July 2022, up from 19.7% in July 2021.

Excerpt: "Take Boise, Idaho, where 70% of houses for sale dropped their asking price in July, more than double the 30% that cut prices a year earlier. ... Denver, which attracted hordes of remote-friendly Silicon Valley tech workers during the pandemic, saw 58% of homes for sale slash prices in July compared with 36% the year prior. In Salt Lake City, 56% of listings cut their asking prices followed by Tacoma, Washington, at 55% and Tampa at 52%."


Here's the Redfin article, which lists all 97 metro areas in the survey.

[moguldreamer]

Our daughter recently sold her condo in Panorama. The buyer was a retired California couple. From listing to offer was less than a week, with a 30 day close (the buyer's contingency was selling their SFH in California, which fortunately happened without any issues).

[silentbob12]

I am looking to buy a second home in LV. The housing market is still up from last year. As a matter of fact, I am seeing people who bought their house in the last couple of years, trying to sell it for twice as much or more. So from my perspective, the housing market in Vegas is still over priced and does not represent a reasonable value. I don't see the logic of paying seven figures for a tract home built by a volume nationwide builder. I don't think the Vegas economy can provide the incomes to support these prices. At these prices, even if you are selling your home in CA or any other expensive housing market, you are not saving much money if any by relocating to Vegas.

[Cold Warrior]

I don't think the Vegas economy can provide the incomes to support these prices.

It doesn't need to provide much income to upper income buyers, many of whom run their out of state businesses from Las Vegas, or are retired, or are high income individuals who base their home addresses in Las Vegas for tax purposes.