San Francisco -11% from peak, Seattle -10%, followed by Las Vegas, Phoenix, Portland, Denver, Dallas, San Diego, Los Angeles, Tampa.
Cut the price, and they will not come? Homebuilders, in a tough market, compete with homeowners who are still delusional.
New listings rose in August, when they normally fall in August, an interesting break in the seasonal pattern.
Appraisers have not yet caught on to it either.
Year-over-year price drops in San Francisco, Seattle, Las Vegas, Phoenix, Denver, Portland, Dallas, San Diego, Los Angeles, and Tampa suddenly.
The new era of “higher for much longer.” The 40-year bond & mortgage bull market died in late 2020.
A home enters inventory when it’s listed for sale and exits inventory when the sale closes. Technology finally sped up the clunky processes in between.
Prices drop MoM and from peak (Jun 2022). Days on market jump. Homeowners with 3% mortgages vanish as buyers and sellers, entire market shrank.
But the Bay Area cannot keep up with the spectacular collapse of prices during Housing Bust 1. That had been a doozie.
Mortgage applications to purchase a home: -40% from 2022 and 2019, 3rd worst week since 1995, behind only two weeks in February.