I got a flyer on the doorstep with stats for SFH sales in Q4 2016. 17 homes closed in Q4 and although I don’t have it in front of me I’d say 60-70% of those homes closed under asking.
It may not be much but but a 2-5% savings is better than seeing homes closing “as-is” above asking.
I’ve been writing a lot about these crazy asking prices. Every time I think the mania is taking a break we get a new sense of wackiness. Maybe I’m wrong. Real estate could go up ~5% forever. That $1.2 mil “livable” home will cost $1.26 next year and rates are going up so act now! It will be $1.32 mil in two years and you’ll have $100K in equity!
I could go on and on about these greedy real estate agents but it’s just part of the supply and demand equation. It makes me angry seeing these agents price homes higher and higher. It also makes me angry to read about 9%/year rental increases and it makes me angry to see how many homeless tent towns are popping up all over LA but it’s just a symptom of the disease.
How does this end?
I read an article comparing President Hoover to Trump. A rich business man coming in at the peak of a stock market bubble with promises of protecting american business with tariffs and infrastructure spending….The bubble popped, tariffs backfired and the great depression set in. Could we repeat that horror?