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What a strange metric. It's not 'prices are falling' even though doomsayers really want it to say that. IMO what it mostly says is 'Sellers have been posting re
by jldugger 8y ago
What a strange metric. It's not 'prices are falling' even though doomsayers really want it to say that. IMO what it mostly says is 'Sellers have been posting really high numbers and slowly walking them back.' Which is effectively a time-based auction, so it's not a completely irrational price discovery model.
- nerdponx 8y agoThat sounds to me like the market is plateauing.
- partiallypro 8y agoJP Morgan just laid off a ton of Mortgage brokers fwiw.
- latchkey 8y agoSource: http://archive.is/3psee http://archive.is/3psee
- jldugger 8y agoLook at the chart -- its an ongoing trend. Why does this particular moment indicate the start of a plateau?
- claydavisss 8y agoSellers have been greedy...but reductions send a pretty clear message to buyers: wait, and there will be more
- eksemplar 8y agoSellers will always be greedy, the problem arise when buyers and lenders take risks. In Denmark housing is way higher than it was before the crisis, but wages aren’t really up. The market has now reached the point where the middle class can’t afford to buy a home near our biggest cities. Of course it’s going to end poorly. Especially with the aging population. If we didn’t own an appartment in the central part of time that was bought at 30% lower than the current prices I’d honestly be shitting bricks.
- village-idiot 8y agoAmerican here. Basically giving up on ever owning in a city that I want to live in. Also terrified that if I ever did buy, the bottom would fall out on me. Most of the homes in my area are a few million even if they’re objectively garbage.
- madengr 8y agoEveryone wanting to live in the same place, is the problem.
- AnimalMuppet 8y ago> Basically giving up on ever owning in a city that I want to live in. I'm going to guess that "in a city that I want to live in" is a fairly short list. In most of the country, a few million gets you a palace. You might consider re-evaluating where you want to live. Most of the rest of the country isn't horrible.
- dragonwriter 8y ago> I'm going to guess that "in a city that I want to live in" is a fairly short list. In most of the country, a few million gets you a palace. In most by geographic area, sure, but most of the country by geographic area is sparsely populated because, to a rough approximation, no one wants to live there (at least, after accounting for work opportunity.) In urban centers that aren't going through collapse, it doesn't go nearly that far, though outside of Manhattan and San Francisco (even in the same metros) it'll still get you a pretty nice place.
- AnimalMuppet 8y agoAtlanta, Dallas, Houston, Denver, even Chicago - are any of them that overheated? No one wants to live in those places? That seems a bit unrealistic. Seattle, San Francisco/San Jose, NYC, maybe Los Angeles and San Diego are that overheated. But that's not even the majority of the population of large metro areas. I mean, I get it if someone doesn't want to live in Boise or Omaha. But what's so bad about Denver?
- gcb0 8y agoor sellers are selling for non-planned reasons and need the money now?
- azernik 8y agoIt could mean that. Or, it could mean "sellers have had inflated expectations of where the housing market is at based on previous growth".
- bsder 8y agoWell, school started again. So, if you haven't moved your house by now, it's probably not gonna move until next spring. I would be more interested in how many simply delisted and will wait until next spring.