No bubble, simple supply and demand economics. Even in a hot market like Flagstaff where there are tons of investor owned properties, things are starting to slow a bit. It’s partly due to the increase in interest rates taking potential buyers on the fringes out coupled with the peak time for the market.
There are 24 active listings in my neighborhood right now, a huge number compared to last year, ranging from $500k to $2.5M. Seven of those listings have cut prices in the last 2-3 weeks. Oldest DOM is 63 days. Last year at this time they would have been long gone and under contract. Zillow stopped buying homes some months ago, long before the market started to slow. Their business model is unsustainable, and they were starting to (finally) figure that out. My neighborhood in Florida saw about a one and a half times increase in home values. Up until recently, homes were selling in the mid-$400k range without buyers blinking an eye. We had one top of the line property that someone really tarted up that recently went under contract around $700k! What’s really funny about this is that a property just listed a day or two ago for $729k. No doubt someone trying to catch the peak before it’s gone, probably driven by the recent $700k listing that hasn’t closed so we don’t really know the selling price - yet. I doubt very much they’ll get their ask - they’re now on the back side of the peak, in my opinion, and will likely take a beating on the asking price. I’ve already got my popcorn out to watch the show. If they get it, it’s good for all of us. I really doubt they will. -D > On Jun 24, 2022, at 8:44 AM, Allan Streib via Mercedes > <mercedes@okiebenz.com> wrote: > > Also VC money is drying up. So companies like Zillow and Redfin buying > property on spec knowing they can sell it tomorrow for more is probably > coming to an end. > > > On Fri, Jun 24, 2022, at 10:38 AM, Curt Raymond via Mercedes wrote: >> I don't know that the bubble is bursting, more like the wave is >> receding. As that cheap financing goes away you don't see the mad rush >> so much anymore. >> >> -Curt >> >> >> >> >> On Friday, June 24, 2022 at 11:34:39 AM EDT, mitch--- via Mercedes >> <mercedes@okiebenz.com> wrote: >> >> >> >> >> >> Has the bubble burst in AZ? >> This is 1/3 bigger than my house and a lot less outdated. >> >> https://i.redd.it/ykwhvg85o6791.jpg >> >> >> https://www.redfin.com/AZ/Scottsdale/9468-E-Sunnyside-Dr-85260/home/27779763 >> >> >> _______________________________________ >> http://www.okiebenz.com >> >> To search list archives http://www.okiebenz.com/archive/ >> >> To Unsubscribe or change delivery options go to: >> http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com >> >> >> _______________________________________ >> http://www.okiebenz.com >> >> To search list archives http://www.okiebenz.com/archive/ >> >> To Unsubscribe or change delivery options go to: >> http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > _______________________________________ > http://www.okiebenz.com > > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
