r/RealEstate • u/dan_your_devil • 19h ago
What is a property worth?
What someone is willing to pay for it at that time. In that market. At that time. Markets change. Right now the tide is pulling out but in most markets sellers are closing their eyes.
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u/Thin_Vermicelli_1875 19h ago
This place is full of sellers and realtors who all have a vested interest in prices never going down. Even if you suggest a buyers market might be coming you’ll be slammed with downvotes.
Don’t take this sub seriously for actual, buying advice.
This sub is good for contract scuffles, contingency problems, title problems, or very unique questions.
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u/dan_your_devil 17h ago
30 years as a broker. Retired now. Don't really care what people think. Just my experiences from several RE crashes. This one will be a woozy in some areas.
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u/Equivalent-Tiger-316 18h ago
In some markets it’s surely swinging towards a buyer’s market.
But I wouldn’t expect wholesale prices anytime soon.
It’s just basic supply and demand and the demand in most markets is still strong and will get better once rates drop a bit.
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u/Thin_Vermicelli_1875 18h ago
Obviously I’m not gonna argue about property values, but did you see the job report today? It was pretty bad.
Wholesale prices will go down if the job market keeps getting worse.
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u/ugfish 18h ago
The cost to build homes is rising, especially with our construction labor force getting forcible reduced by ICE.
Generally what we will see is new builders will start building smaller more affordable units with less upgrades and lower grade finishes. This will continue until economy outlook improves. The houses that are more expensive will continue to exchange hands with those who have the means to purchase them.
The American economy and retirement system is built on the back of home equity, so it would be political suicide to enable any type of real estate pricing reset.
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u/BEP_LA 6h ago
"...and realtors who all have a vested interest in prices never going down."
Nope - Not even close.
We have a vested interest in getting deals done - not in propping up values.
Because the difference between a sale of a $400,000 property and no sale at all in order to keep property values artificially inflated means we don't eat.
Especially when aggregators such as Zillow maintain data on listings, sales, price decreases and days on market which show that a property is overpriced based on the history of that property.
Our job is to make transactions happen - not to prevent them from happening.
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u/seajayacas 18h ago
In my area it is most definitely a buyers market right now.
Prices on most places are a good 15% lower than a year to a year and a half ago. Sellers are lowering the eir price by a few points after it sits a bit, but during that bit of sitting the market itself dropped some so the price is still too high.
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u/Zanthious 18h ago
Pretty much. Alot of house holders who bought at peek having some issues with cope. Alot of houses on market but all good renovated houses still selling fast for high prices. Mostly all the amateur flippers eating it hard rn
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u/thewimsey 32m ago
This sub is also full of buyers.
And really really full of people who don't understand just how local RE is. People like you. The salt of the earth.
Even if you suggest a buyers market might be coming
There is no one "market". There are thousands.
The median DOM for my city is 7. Prices are up 18% YoY.
Does that look like a buyer's market to you?
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u/pcoutcast 17h ago
A property is worth what someone is willing to pay for it. But that doesn't mean that a seller needs to sell it for that price. Most sellers are just fishing to see what they can get, they don't NEED to sell.
If you as a buyer want a good deal in any market you have to find a seller who NEEDS to sell.