Americans are canceling deals to buy homes at the highest rate since the start of the Covid pandemic.

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"Housing starts in the US sank 14.4% mom in May of 2022, the most since April 2020, as the housing market is facing high pressure from rising inflation and mortgage rates, which coupled with elevated building material costs and supply constraints weigh on consumers' affordability."

Last Edited by Mithradates on 07/12/2022 09:42 AM

Yup. I'm a Realtor in FL. Watching the tides turn as we speak. No more multi-offer home sales. Most homes are sitting on the market for days now. Some sellers still think they can get top dollar and are listing them way too high, so I see price drops constantly.

For the cash buyers, this is a good thing because the prices are coming down to something rational and reasonable.

Good info Sir...thanks

We are sitting back thinking some nice deals will come up for land.

It's the interest rates

We were having a house built. Took about a year to build it. We did the drywall inspection and that same day they came back and wanted $40,000 more for “material costs”. When we asked them for some examples, they sited lumber, concrete and roofing supplies…..the house was already standing!?!? We walked. Overall, they raised the price $100K over the course of a year. Started at $320K, final price when we walked was $420K.

This happened to other people we knew. We had friend that were at final walk through phase, where you go through and mark all the little nit picking stuff. The builder said those nit pickings (like scuffs in the paint) for irreconcilable and canceled the contract. Then turned around and relisted the house for substantially more.

The housing market is a scam right now. If you can wait it out, I suggest you do that. That house we had built. It’s was $320K 18 months ago. They same model is now $496K. And the interest rates are almost 3 points higher than they were 18 months ago. F ‘em.

Thanks for updates

Horrible scenario

Glad you didn’t choke some one

My son bought one about a year ago and a few day before they moved in the general call and offered the 20K to not take the house. CRAZY

I bought a house for 70k in 2011

Just watching all this shit go down

Stay strong

No doubt

Went up to fast

I also here there is a glut of realtors

In many rural areas

Maybe when it goes to the bottom some younger people can afford a house. I'm trying to see a bright side to all of this.

Good God.

I know a few people getting new homes built. Shoddy work is an understatement. These folks thought a new home would be problem free and are getting a huge reality check. I'd be super pissed shelling out big $ for such junk. Better off buying something built 10 years ago.

Most of the new housing developments that are already under construction will be completed or at least the first phase anyway but anything that’s still in the lines on paper stage will be shit-canned.

Around here most new construction has slowed down all I see here still going up are the very high end homes.

All we can do

In 2008 homes flat out crashed

Which is how I got my cheap house

Ooh, even the most out of touch people in the world in the United States, are realizing truth? This is better than good

Truly sad because they could aquire a new car with just a 1099a, money from their trust fund, thru the dealership acting as the trustee. See Christopher Hauser on youtube.
And then resell it to pay your mortgage

Last Edited by Weatherb on 07/12/2022 01:23 PM

A few around me as well here in the western piedmont of NC.

New construction everywhere and people buying them up like crazy and now nothing but roughed in and unfinished houses, like work literally just stopped on them over the last 2 months I would say.

Honestly I would bet a whole lot of people don't see anything bad coming. They are stuck on FB and the little world they live in. Several of our friends and people I work with have no idea of the trouble that is coming.

My daughter was about to sign a lease and buy a new car, thankfully we talked her out it and said chill here for a while no need to grow so fast.

I have a question for you. I’ve been looking to purchase a property in North Florida (Around five acres). When do you think it’s going to hit bottom? I only ask because a few years ago I was finding many decent properties at around five acres for under 50k. Now, people want 35k for 3 acres in a flood zone with 75% of the property wetland. Insane.

In addition, is there any way to get around impact fees? Does changing the zoning make any difference?

Some people are still delusional. My idiot neighbors here in CT are mortgaged to the max with a VA loan with 10% down and are now upside down on their McMansion. They had to move for her job so in April they listed it for sale at $1.1M against advice of the best local realtor who is their agent.

It is still on the market, they dropped price to $1M then $950k and still...no buyers and nobody even looking anymore. Two open houses with ZERO buyers, not even any lookie-lous.
People now see "days on market" data and assume there's something wrong with it.

The house was legitimately worth $800-850k at the time they originally listed it but now with higher interest rates, they will be lucky to get $800k.

These people were the biggest idiots in the neighborhood, causing trouble for everyone for years, so it is interetsing to see karma biting them in the ass.

Per usual

High markets are screwed

Never go that deep on a home

Ever

Is the out of thin air credit created funny money for blackrock drying out?

Yup. The housing market is a huge scam.
Now more than ever before.
Sit tight everyone.
Do not buy or sell right now.
Make yourself comfortable and wait.
Something is coming our way.
Be ready for action.
When the time comes.....it is close now.

Part of what happened is that people hear about these hot wealth pockets then local realtors try to market places that have no major market appeal. Those places will drop. Most Florida markets will drop because so many areas of Florida are undesirable and devoid of any culture.

Nashville slowed down because all they built was ultra luxury homes. It's still red hot and there is no inventory. The average home price in my neighborhood is 1.5 million.

Central NC here and all I see is new 'luxury' apartment complexes going up like gangbusters. Upcoming housing/RE crash is gonna' leave a mark, just like 2008 did.

And rising costs on everything.