The amount of homes listed for sale and then delisted – taken off the market without selling – is rocketing to all-time highs.
Why it matters: Rising delistings are a sign of a pricing imbalance, with asking prices higher than what buyers are willing to pay.
National delistings, as a percentage of total listings, are roughly double the normal rate, bucking seasonal trends, and accelerating rapidly.
It all starts with pricing – and new listings coming to market are being priced very high.
The median price per square foot on new listings is at record highs.
Another sign of a pricing imbalance are price drops, the number of which are also rising.
The percentage of active listings with price reductions is higher than it’s been for years, and is increasing.
And for the houses that are selling, it’s taking longer.
The median amount of days on market is slowly increasing and is higher than past years.
The bottom line: The surge of new listings coming to market are overpriced, leading to a rapidly increasing number of delistings and price drops.
This is the start of a price correction; sellers are bringing more inventory to market, but with “aspirational pricing” that buyers are not willing to pay.
The record number of pricing corrective measures will likely lead to an overall correction – lower prices – as supply and demand continues to rebalance.
Mike is a global real estate tech strategist, and a scholar-in-residence at the University of Colorado Boulder. He is internationally recognized as an expert and thought-leader in real estate tech. His evidence-based analysis is widely read by global leaders, and he is a sought-after strategy and new ventures consultant. His research and insights have featured in the New York Times, Wall Street Journal, Financial Times, and The Economist.
Over my years as a real estate agent, several home buyers have asked me about buying and fixing a house with one loan. The best method for doing so is an FHA 203k loan. 203k FHA loans are also referred to as FHA construction loans. If you want to buy a home that you can fix up, a regular loan will not give you the funds to complete the work. An FHA 203k loan, however, is designed to help you buy a home that needs some repairs and provide you with the money to fix it up. It's a rehab
Thomas Mastromatto. Office: (602) 888-7073 | Mountain Lake Realty. MLS #: 6708889. Welcome to 6964 E Red Bird Rd, Scottsdale, AZ 85266 - an exquisite desert oasis that perfectly blends luxury and tranquility. Nestled in the heart of Scottsdale, this stunning property offers a serene escape with breathtaking views of the Sonoran Desert and majestic mountains.
As you approach this elegant home, you are greeted by a beautifully landscaped front yard featuring native desert plants and a charming pathway leading to the grand entrance. Step inside to discover a spacious and open floor plan that boasts high ceilings, expansive windows, and an abundance of natural light, creating a warm and inviting atmosphere. The gourmet kitchen is a chef's dream, equipped with top-of-the-line stainless steel appliances, custom cabinetry, granite countertops, and a large island with a breakfast bar. The adjacent dining area and living room, with a cozy fireplace, provide the perfect space for entertaining guests or enjoying a quiet evening with family.
Retreat to the luxurious master suite, complete with a spa-like ensuite bathroom featuring a soaking tub, dual vanities, and a walk-in shower. Additional bedrooms are generously sized and offer ample closet space, ensuring comfort for family and visitors alike.
Step outside to the expansive backyard, where you'll find a covered patio ideal for alfresco dining, a sparkling pool perfect for cooling off on hot Arizona days, and plenty of space for outdoor activities. The property also includes a three-car garage and a dedicated laundry room for added convenience.
Located in a peaceful and prestigious neighborhood, this home provides easy access to top-rated schools, fine dining, shopping, and outdoor recreational activities. Experience the best of Scottsdale living at 6964 E Red Bird Rd - where luxury meets the beauty of the desert.
Redfin has announced the expansion of its Redfin Next agent compensation plan to 25 additional markets. This plan, which originally launched as Redfin Max in San Francisco and Los Angeles in late 2023, offers a more competitive commission-based pay structure compared to the company's traditional salary-plus-bonuses model. The new markets include major cities like Chicago, Miami, New York, and Washington, D.C. (RealEstateNews.com) (MarketScreener).
Under the Redfin Next plan, agents can earn commission splits as high as 70%, with the potential to go up to 75% in some markets. This plan also covers virtually all business expenses, including benefits, mileage, payroll taxes, and listing expenses, allowing agents to retain more of their earnings. Additionally, Redfin provides agents with leads and customer introductions, helping them meet over 100 potential clients per year (RealEstateNews.com) (MarketScreener).
Redfin's goal with this expansion is to recruit top-producing agents and enhance their competitiveness in the market by combining high commission rates with comprehensive support and benefits. The company plans to roll out this compensation model nationwide by 2025, depending on the continued positive reception and success of the program (MarketScreener).
In other markets, Redfin agents will continue to operate under Redfin?s existing plan, earning a base salary and bonuses for every closed transaction. Nationwide, Redfin agents earn more than double the typical real estate agent and the company?s best agents have earned more than $750,000 under the existing plan. Redfin expects top agents to earn even more with the Redfin Next plan.
Redfin is actively recruiting experienced agents to join the company in markets around the country.
On today’s episode, Editor in Chief Sarah Wheeler talks with Lead Analyst Logan Mohtashami about the recession signals we’re seeing in the economy and what they mean for housing and mortgage rates.
The greater Phoenix area is not at 2019 levels with inventory and pending contracts are 30% lower. In 2019 Sales prices were flat. Is that where we are going?
Buying a house just became even more expensive as high mortgage rates continue to create a "lock-in" effect for many would-be sellers, according to Redfin.
MLS #: 6709959. Come home to this beautiful 4 bed 3 full bathroom home! Fully renovated with new flooring, fixtures, electric, HVAC (2 years old), appliances, blinds and lighting / fans! Landscape has been refreshed with 10 tons of fresh stone. Save money on high summer electric bills with the solar panels that are installed via lease transferred to the new owner at closing. Solar panels have a 10 year pigeon abatement warranty. Wash and dryer is included along with a bonus fridge in the garage! Large loft for kids to enjoy. Come check this house out! In the beautiful Senita neighborhood you can enjoy parks, sidewalks and maintained common areas.
This surge in sales of high-end homes changed the mix and thereby skewed the median price. By Wolf Richter for WOLF STREET. Sales of existing homes of all types were still dogged by the 7% mortgage rates, but a shift has been taking place that took amplitude in April: Many more higher-end homes...
Section 1031 of the tax code allows owners of qualified real estate to sell the property and defer paying taxes on the gain from the sale, as long as the sale proceeds or exchange value is used to acquire like-kind replacement property for investment or business use.
What is a like-kind replacement property?
Generally, all real estate is like-kind to other types or kinds of real estate. For example, an apartment complex exchanged for a cell tower easement; an office building for farm land; or a rental home for water rights. Generally speaking, the only real estate that does not qualify under a 1031 exchange is a vacation home and personal primary residency.
Use of a Qualified Intermediary
To successfully complete a 1031 exchange, there are certain requirements necessary, and one of those includes the engagement of services from a professional Qualified Intermediary (QI). First Integrity 1031 Exchanges LLC is your industry partner for providing QI services in Colorado and nationally. First Integrity 1031 Exchanges LLC is supported by First Integrity Title Company, a full service title company with over 25 years of service and over 200,000 successful transactions closed.
Time Limits & Identification Requirement
A taxpayer is required to identify the target replacement property within 45 days after the transfer of the relinquished property. A written document that recognizably identifies the replacement property must be signed by the taxpayer and received by the Qualified Intermediary on or before the 45th day. Properties acquired within the 45-day designation period are deemed to be identified.
A taxpayer has 180 days from the date of closing (or the due date for filing of taxes for the year the property was sold) to acquire the replacement property. For example, if the relinquished property is sold in December, the due date for the filing the tax return for that year would be less than 180 days. In such case, it would be necessary for the taxpayer to file for a tax-filing extension in order to utilize the full 180 days.
Does it make sense for me to do a 1031 exchange?
Do you, or your entity, pay US taxes? If yes, then you may be eligible for a 1031 exchange.
Is the SAME taxpayer that is selling the property also buying the replacement property? If yes, then you may be eligible for a 1031 exchange.
Is the property you are selling “real property” that has been held for business or investment use (The property must be shown on the Schedule E of your tax returns)? If yes, then the property may qualify for a 1031 exchange.
Is the property to be sold and purchased must be like-kind real property. Making sure that either property is or will not be a primary residence or vacation home. If yes, then you may be eligible for a 1031 exchange.
Are you planning on reinvesting the full sale proceeds from the sale of your property into another property that will be held for business or investment use? If yes, then you may qualify for a 1031 exchange. However, if the answer is no, perhaps you plan to reinvest your proceeds into a second home for yourself, then the transaction would not qualify for a 1031 exchange.
Do you plan on reinvesting all the proceeds from the sale into a new business or an investment use property? If yes, or if you plan to reinvest the majority, then a 1031 exchange might be a good fit. If you need or want to keep most of the proceeds rather than reinvest, then a 1031 exchange wouldn’t provide a ton of value.
Have you already sold your property and received the proceeds? If yes, then you no longer qualify for a 1031 exchange because you already received the gain, which is now taxable.
From the close of the sale on your property, will you be able to identify a potential replacement property within 45 days? If you think you can achieve this, then a 1031 exchange could be a great option for you.
Is it feasible to sell your property and acquire your new property within a 180-day period? If yes, then a 1031 exchange should be considered.
Mortgage rates have had a great month of May so far with almost every day being a winner up until yesterday and today. Even then, the 2 day losing streak began from the lowest levels in just over 5 weeks. Perhaps more importantly, apart from the past 2 days, today's rates would still be the lowest in more than a month. In other words, rates have pulled back only slightly after a solid winning streak. Granted, you could take an even longer term view and say rates only managed the winning streak because they were at their highest levels in more than 5 months by the end of April, but nobody likes a party pooper. The fact is that everything is almost always relative when it comes to assessing whether rates are doing well or not. In the biggest picture, little has changed. Rates are close enough to the highest levels in decades, but they still have a chance to look back at October 2023 as being the long-term high. Our ability to avoid revisiting last year's highs relies on incoming economic data. This week's Consumer Price Index (CPI) was palatable enough to keep hope alive, but it will take a better showing in June (and probably July and August) if we hope to see true confirmation of a shift.
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About the author: Mike DelPrete (email me)
Mike is a global real estate tech strategist, and a scholar-in-residence at the University of Colorado Boulder. He is internationally recognized as an expert and thought-leader in real estate tech. His evidence-based analysis is widely read by global leaders, and he is a sought-after strategy and new ventures consultant. His research and insights have featured in the New York Times, Wall Street Journal, Financial Times, and The Economist.