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The article says that prices are rising at a higher pace than usual and putting buyers out of reach. 9% does seem like a big drop, especially in the summer.
the article references new home prices, not existing home prices & it points out that new homes carry a 40% premium over existing homes, which is double the historical average. So yes, *new* home pricing is due for a correction. The article also mentions there is extremely limited supply of existing homes, which means there won't be a "correction" in pricing for existing homes, except upward.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Another case of the location being a big factor. Overall in the USA it may be down, but here the new homes are selling fast, even though they start at $1.1 million, helped by the lack of existing home inventory. Many are sold before they have even been completed. In our small city of 60,000 there have been about 300 built in the last year, with a few hundred more under construction now. The prices have continued to go up. In the example below ours are starting at $1,060,000, but if you click "Find your Home" and Tennessee, you will find the prices are in the $200s.
the article references new home prices, not existing home prices & it points out that new homes carry a 40% premium over existing homes, which is double the historical average. So yes, *new* home pricing is due for a correction. The article also mentions there is extremely limited supply of existing homes, which means there won't be a "correction" in pricing for existing homes, except upward.
I disagree.
New construction single family homes have been on the high end for years and I don't see that changing. That is where the margins for builders are.
Volume of existing home sales has also been relatively low for years. Demographic shifts/Boomers becoming empty nesters and downsizing will probably be a drag against a significant upward trajectory in SFH prices in the coming years. Not saying we are due for a correction, but I don't see significant widespread gains either in the short to mid term.
Depends on where you are. In my town of 75,000 people, a NW suburb of Chicago, 176 homes were sold in July with a median value of $315,00. That's good for us since our house is going on the market right after Labor Day. My neighbor's house sold within an hour of being listed.
In the city we are moving to, Henderson, NV, the inventory of homes is down to about a two month supply. They are selling fast and many are getting full price offers. If you see something you like, buy it, because it likely will be gone before you know it.
In my area, existing homes were under contract within 24-48 hours throughout the entire summer, and I suspect they sold at or above listing prices. And this is despite the fact that my area is heavily under construction with new home developments popping up left and right due to the constant influx of new residents.
In my area, existing homes were under contract within 24-48 hours throughout the entire summer, and I suspect they sold at or above listing prices. And this is despite the fact that my area is heavily under construction with new home developments popping up left and right due to the constant influx of new residents.
I wish people would put there area. This is almost meaningless
New homes sales estimates volume according to contracts. Existing homes sales reports according to the settlements. New homes data will generally peak earlier in the summer as a result of the difference in quality of reporting.
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