Same song in the real estate market. It's the one they’ve been humming for more than a year.
The agents try to hum a good tune conceding business is down a bit, but … we’re half way through the year. Nine home sales have closed. Last year the number was 12.
You do the math.
For the first time in years, too, there appear to be more higher-priced properties coming onto the market.
The average asking price has traditionally held at $2.2 million, or so. Now, with 145 houses on the Multiple Listing Service, it’s risen to $2.5 million, an increase of about 14%. The median price of a listed house, however, is steady at $1.5 million.
There is clearly lots of negotiating and dealing going on. None of the nine deals closed at the most recent asking price. In fact, the average house sold for 21% less than asking. Three sales went off at prices more than 30% below the listed number. The average sale price was just under a million, at $987,000.
4 thoughts on “Villa sales off 25%, prices too”
Most homes on MLS are still way overpriced. Income from rentals does not come close to justifing most of these home prices
What do homes sell for wherever you live? How much rental can you expect there? Surprise, the math doesn’t work out in most places. If it was a sure thing and the rentals could pay for the mortgage, then of course everyone would buy into everything they could.
Most home owners will tell you rentals are down. (next story in this post talks about 30% decline)
I haven’t seen any real change in MLS prices that reflect that
Look to long term trended prices for an idea of the floor.
Can’t say I would make an investment into a rental that had negative cash flow…from an investment point of view. If it were my home with the rental just being seasonal offset, perhaps…but I doubt it.