AMY HOAK'S HOME ECONOMICS http://www.marketwatch.com/story/in-some-places-homes-sell-in-just-one-day-2013-06-10 June 10, 2013, 6:30 a.m. EDT In some places, homes sell in just one day Tight inventory in hot markets means buyers act in a flash Here’s a sign of how tight inventory levels have been lately: More homes are selling in a flash—finding a buyer within 24 hours of being listed. Sound... [more]
AMY HOAK'S HOME ECONOMICS http://www.marketwatch.com/story/in-some-places-homes-sell-in-just-one-day-2013-06-10
June 10, 2013, 6:30 a.m. EDT
In some places, homes sell in just one day
Tight inventory in hot markets means buyers act in a flash
Here’s a sign of how tight inventory levels have been lately: More homes are selling in a flash—finding a buyer within 24 hours of being listed.
Sound unlikely?
Angela Catanzaro thought so, too, until her Broward County, Fla., home received a written offer one day after their listing hit the Internet. The home she and her husband decided to buy was also on the market for less than a day; they pounced on it after struggling to find quality properties that didn’t “need work.”
They plan to close on both transactions this month.
“We weren’t anticipating our home to sell so fast, so we asked if it was OK to stay until June so our daughter could finish school,” Catanzaro said. The Catanzaros didn’t even use a real-estate agent to market their house. They simply posted it on Zillow, a real-estate website.
Glenn Kelman, chief executive of Seattle-based real-estate brokerage Redfin, calls quick transactions like these “flash sales,” and said there have been more of them since the beginning of the year. That’s due to low inventory in the most competitive markets, including Miami, Washington, D.C., San Francisco and Los Angeles.
In some hot markets, homes are finding buyers within 24 hours of being listed.
San Jose, Calif., is also hot. It had less than one month’s worth of inventory in April, meaning that at the current pace of sales, it would take only a month to sell all the homes currently on the market. That made San Jose the tightest market of 22 analyzed by Redfin. There, 65% of homes were under contract in April within two weeks of being listed, while 20% were under contract after one week, according to Redfin data.
Over all 22 markets, the percentage of homes under contract within two weeks rose by 39% in April, compared with last year. Those under contract within one week rose by 54%.
Advances in technology, including mobile alerts for new listings, are also enabling these quick sales, Kelman said.
“People used to get the news about a new listing on Saturday morning and see it over the weekend,” he said. Now, websites including Redfin will send messages to mobile devices the moment a listing hits the market, and potential buyers can set up showings immediately, he added.
Granted, this kind of market speed isn’t everywhere. Few Midwestern towns and smaller markets, for example, will see many—if any—of these quick sales, said Michael Sklarz, president of Collateral Analytics, a company based in Honolulu that develops real-estate analytic tools for financial institutions.
“It’s the extreme, though there is more of it right now than there has been in years,” said Jed Kolko, chief economist for Trulia, a real-estate website, referring to the flash sale phenomenon. “When buyers find something they want, they are moving quickly—sometimes offering more than asking because there’s little to choose from, especially in markets that have seen big price increases lately.”
Despite the quickness with which they need to move and the extra they might have to pay, many buyers are often still getting bargains on the homes they decide to purchase, Sklarz said.
“In a lot of markets, we still have prices significantly below prices in 2005 and 2006. Even though there is competition for existing homes, in many cases they’re still getting good deals,” Sklarz said.
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Response by renterjoey
over 12 years ago
Posts: 351
Member since: Oct 2011
so prices are not rising as they did in 2005-2007. Bottom line If the house is priced fairly in today's market it will sell.
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
Exactly. In any market -- even the very darkest days in the sand states -- pricing strategy is everything. If you find a buyer in one day, chances are excellent that you're leaving a lot of money on the table.
If you're goal is simply to unload it -- and possibly take some profit relative to your sand-state purchase three years ago -- before the knife starts falling again, you've done very well to go to contract in one day. Hope nothing happens before you close in a month.
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Response by stevejhx
over 12 years ago
Posts: 12656
Member since: Feb 2008
"Sound unlikely?"
Yes. I live in Broward County and you just have to go onto zillow & look at "days on the market" to see that there are plenty of properties out there languishing.
Properly priced, they sell. But there is still too much aspirational pricing.
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
Isn't Broward one of those markets in which institutional investors are artificially pumping up prices at the low end, causing people and Canadians to drive up the market beyond any sense in their rush to "invest"? I know the cover stories always point to Phoenix, but I assume SoFla is the same.
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Response by caonima
over 12 years ago
Posts: 815
Member since: Apr 2010
with crooks keep writing money and debt like this , we'll see higher housing price in the afternoon than the morning soon
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Response by stevejhx
over 12 years ago
Posts: 12656
Member since: Feb 2008
I haven't seen that happening here - when property sells you can see who buys it online, & of the ones I've looked at not one was sold to an institution.
One house by me just listed at $1.1 million. Sold for $850k at the peak of the boom; the exact same house one block over sold for $650,000 a few months ago.
Price drops are measured in $100,000 increments.
But if properties are properly priced, they do sell quickly, and more foreclosures are now coming on the market.
I don't know what's getting into people's minds with these prices - the properties won't appraise for what they're asking, and all the comp and sales and listing information is on zillow. They must think it's still 1967.
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
Sorry, I wasn't clear. Institutional investors at low end (<$150K) create media frenzy, causing individual speculation at the med-high to high end.
Can you tell whether much of it is for owner-occupancy? I'm guessing no.
I'm surprised houses (whcih I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
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Response by stevejhx
over 12 years ago
Posts: 12656
Member since: Feb 2008
I doubt most of the institutional investor stories unless they're buying whole foreclosed developments or apartment complexes, principally because of how capital- and labor-intensive property management is. With single-family homes it's even more capital- and labor-intensive, and riskier: no onsite property manager, tenants destroying the property, not paying, having to be evicted, etc.
I think that that story is basically a lot of hooey, except for whole developments or apartment complexes.
Broward is a big place - there are post-WWII homes, new homes, new developments, etc. The closer you go to the coast the older the homes tend to be, though tear-downs - as is happening in Nassau County - are common, replaced with larger homes or, especially, luxury town homes with private elevators, etc.
A lot of town home developments went under from 2005 - 2008; those are being bought by institutional investors and being rented out and/or completed and sold and/or just held. But again, town homes are easier to manage than single-family homes: I find that story impossible to believe.
Prices vary a lot in Broward County - a home that would cost you, say, $400,000 in Oakland Park on the water would cost you $800,000 without the water in Victoria Park. If you go further south, toward the airport, you get huge areas recently developed, such as Cooper City, next to established towns like Davie.
StreetEasy has 5,774 listings in Broward County, top price being $74 million, lowest price being $15,000. I know which one I'd pick.
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
Gibberish.
Sorry, I wasn't clear. Institutional investors at low end (<$150K) create media frenzy, causing individual investors from afar to bid up prices in the upper-mid to upper range ... beyond any rationally supportable price level. That's Phoenix (media-featured for the past 6-9 months), and I believe Vegas also.
I'm surprised Broward houses (which I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
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Response by alanhart
over 12 years ago
Posts: 12397
Member since: Feb 2007
It doesn't like the less than symbol. Take 3.
Sorry, I wasn't clear. Institutional investors at the low end (below $150K) cause media frenzy, bringing hordes of individual investors running up prices at the mid-upper to upper end. I'm surprised Broward houses (which I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
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so prices are not rising as they did in 2005-2007. Bottom line If the house is priced fairly in today's market it will sell.
Exactly. In any market -- even the very darkest days in the sand states -- pricing strategy is everything. If you find a buyer in one day, chances are excellent that you're leaving a lot of money on the table.
If you're goal is simply to unload it -- and possibly take some profit relative to your sand-state purchase three years ago -- before the knife starts falling again, you've done very well to go to contract in one day. Hope nothing happens before you close in a month.
"Sound unlikely?"
Yes. I live in Broward County and you just have to go onto zillow & look at "days on the market" to see that there are plenty of properties out there languishing.
Properly priced, they sell. But there is still too much aspirational pricing.
Isn't Broward one of those markets in which institutional investors are artificially pumping up prices at the low end, causing people and Canadians to drive up the market beyond any sense in their rush to "invest"? I know the cover stories always point to Phoenix, but I assume SoFla is the same.
with crooks keep writing money and debt like this , we'll see higher housing price in the afternoon than the morning soon
I haven't seen that happening here - when property sells you can see who buys it online, & of the ones I've looked at not one was sold to an institution.
One house by me just listed at $1.1 million. Sold for $850k at the peak of the boom; the exact same house one block over sold for $650,000 a few months ago.
Price drops are measured in $100,000 increments.
But if properties are properly priced, they do sell quickly, and more foreclosures are now coming on the market.
I don't know what's getting into people's minds with these prices - the properties won't appraise for what they're asking, and all the comp and sales and listing information is on zillow. They must think it's still 1967.
Sorry, I wasn't clear. Institutional investors at low end (<$150K) create media frenzy, causing individual speculation at the med-high to high end.
Can you tell whether much of it is for owner-occupancy? I'm guessing no.
I'm surprised houses (whcih I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
I doubt most of the institutional investor stories unless they're buying whole foreclosed developments or apartment complexes, principally because of how capital- and labor-intensive property management is. With single-family homes it's even more capital- and labor-intensive, and riskier: no onsite property manager, tenants destroying the property, not paying, having to be evicted, etc.
I think that that story is basically a lot of hooey, except for whole developments or apartment complexes.
Broward is a big place - there are post-WWII homes, new homes, new developments, etc. The closer you go to the coast the older the homes tend to be, though tear-downs - as is happening in Nassau County - are common, replaced with larger homes or, especially, luxury town homes with private elevators, etc.
A lot of town home developments went under from 2005 - 2008; those are being bought by institutional investors and being rented out and/or completed and sold and/or just held. But again, town homes are easier to manage than single-family homes: I find that story impossible to believe.
Prices vary a lot in Broward County - a home that would cost you, say, $400,000 in Oakland Park on the water would cost you $800,000 without the water in Victoria Park. If you go further south, toward the airport, you get huge areas recently developed, such as Cooper City, next to established towns like Davie.
StreetEasy has 5,774 listings in Broward County, top price being $74 million, lowest price being $15,000. I know which one I'd pick.
Gibberish.
Sorry, I wasn't clear. Institutional investors at low end (<$150K) create media frenzy, causing individual investors from afar to bid up prices in the upper-mid to upper range ... beyond any rationally supportable price level. That's Phoenix (media-featured for the past 6-9 months), and I believe Vegas also.
I'm surprised Broward houses (which I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
It doesn't like the less than symbol. Take 3.
Sorry, I wasn't clear. Institutional investors at the low end (below $150K) cause media frenzy, bringing hordes of individual investors running up prices at the mid-upper to upper end. I'm surprised Broward houses (which I assume to be of the post-WWII tract variety) are selling for as much as $600s, or anywhere close ... are these on canals, or east of the Intracoastal, or something value-added like that?
I no longer understand.
that has never been the point.
You have a point?