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Where Are Housing Prices Coming Down The Most in the US?

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The housing market has been cruising up a one way street for some time. Even if you weren’t trying to buy or sell a home, you have unquestionably noticed the skyrocketing prices of real estate.

As the world shifted into the work-from-home paradigm, many buyers sought to change their surroundings while taking advantage of record-low interest rates. This combination of housing market trends led to a perfect storm of marketplace conditions that caused home prices to rise unmercifully month after month.

By the second quarter of 2022, house prices had risen to an average of $525,000. This represents a sharp climb from the average home price of $374,500 in the second quarter of 2020.

If you know anyone who was looking for a home last year, they can regale you with tales of fierce competition and all-cash bidding wars. But in the last couple of months, things have started to take a turn in a new direction.

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Where are housing prices coming down the most?

The American Enterprise Institute’s Housing Center reported that average home prices have dropped by 1.6% between July and August of this year. This slight decrease marks the first decline in average home prices since the early days of the pandemic.

Housing prices vary dramatically based on location, so it’s not surprising that housing prices are coming down unevenly.

According to Redfin’s 2022 report, the markets cooling off fastest are the expensive ones. Let’s explore the housing markets experiencing the most precipitous decline.

Seattle, Washington

The median sale price is still $774,950 in Seattle. But according to Redfin’s
RDFN
data, the price per square foot (PPSF) has dropped by 17.7% in the last year. Recently, more sellers have been dropping their prices in hopes of getting an offer.

Las Vegas, Nevada

In fabulous Las Vegas, the PPSF has dropped 14.5% in the last year. Homes aren’t moving as fast as they once did, but the median sale price is still a healthy $416,000.

San Jose, California

The beautiful weather has always drawn homebuyers to San Jose. Although the median sale price is still over $1.3 million, sellers aren’t getting as much for their square footage. Like Seattle, the PPSF has dropped over 17% in the last year.

San Diego, California

Although this coastal city is known to draw a crowd, the median sale price of $800,000 might be putting a damper on homeownership opportunities. In the past year, the PPSF has dropped by 15.8 percent in San Diego. Overall, pending sales are down almost 20% from this time last year.

Sacramento, California

In this capital city, median home prices of $575,000 have buyers pumping the brakes. Pending sales are down by 20.6% from last year, and PPSF has dropped by 17 percent in the last year.

Denver, Colorado

According to Redfin, Denver ties with Sacramento in terms of which market is cooling the fastest. In the Mile-High City, housing prices seem to be coming back down to Earth. The PPSF has dropped by 12.2 percent in the last year.

Phoenix, Arizona

People looking to move to Phoenix can expect a slower market. The median sale price has dropped to $455,900, and the PPSF has dropped by 14.5%. Pending sales are down 19.4% from last year.

Oakland, California

Back in the Golden State, Oakland is another previously hot housing market that’s slowing down dramatically. The PPSF has dropped by over 20% in the last year. Plus, pending sales are down 12.1 percent.

North Port, Florida

North Port is located just north of Port Charlotte. The average PPSF fell 11.1 percent in this area last year. It’s worth noting, however, that Redfin’s data doesn’t take the recent impact of Hurricane Ian into account. This major disaster wreaked havoc on the area, leading to extensive property damage. It remains to be seen how this will effect real estate values.

Tacoma, Washington

Another West Coast city is finding itself in a slow housing market. The PPSF has dropped by 12.8% in the last year.

Other cities that Redfin counts in the top 20 cooling markets include Austin, Raleigh and Dallas. Four more cooling housing markets in Florida include Cape Coral, Jacksonville, Tampa and Orlando. A few additional West Coast cities, like Stockton, Bakersfield and Portland, Oregon, also make the list.

What’s bringing housing prices down?

After witnessing an intensely competitive housing market for so long, it might be surprising that things are cooling off. Here are the driving factors behind these retreating house prices.

Higher interest rates

Trying to buy a home in late 2020 and 2021 was like entering a downright feeding frenzy.

As buyers braved the market, they found steep competition. Of course, demand for housing played a huge role in that competition. But the historically low interest rates drew in many buyers looking to lock in an affordable mortgage.

Today, mortgage rates are no longer historically low. In fact, as of October 2022, mortgage interest rates have shot past 6%, and many are expecting interest rates to head well past the 7% mark.

As interest rates rise, more home buyers are priced out of the market. After all, a lower interest rate can help home buyers lock in a lower monthly payment that works for their budget. But even a seemingly small rise in interest rates can lead to buyers paying hundreds of dollars more per month.

Ultimately, rising interest rates put a damper on demand because people simply cannot afford a home with that kind of an interest rate attached.

Uncertainty

A home is a major financial purchase. It’s one of the biggest purchases that many Americans make in their life. Understandably, it’s difficult to move forward with such a big ticket when there is so much uncertainty skulking around the economy.

Some buyers are hitting pause on their home search while they wait and see what happens to the economy. As buyers leave the market, that dropping demand can push home prices lower.

The bottom line

The housing market is slowing down across the country. But as an investor, this might be the perfect time to get your foot in the door. If you are looking for ways to invest in real estate, consider the modern real estate investment opportunities. A few include REITs, real estate mutual funds, ETFs, RELPs and REIGs.

Until the housing market cools off near you, most of us will look to the financial markets to invest and continue saving for the dreaded down payment. Q.ai takes the guesswork out of investing.

Our artificial intelligence scours the markets for the best investments for all manner of risk tolerances and economic situations. Then, it bundles them up in handy Investment Kits that make investing simple.

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Botched home sale costs Winnipeg man his right to sell real estate in Manitoba – CBC.ca

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A Winnipeg man’s registration as a real estate salesman has been cancelled after a family vacated their home on a tight deadline for a sale that never went through, then changed brokerages and, months later, got $60,000 less for their house than what they expected when they moved out.

A Manitoba Securities Commission panel found Reginald Wayne Kehler engaged in professional misconduct and conduct unbecoming a registrant when he signed a document on behalf of sellers without their knowledge, reduced the listing price of a home without their approval, and didn’t tell them for nearly a month that a potential buyer hadn’t paid a promised $100,000 deposit.

The sellers, identified as D.R. and P.R. in the panel decision released Wednesday, were awarded $10,394 from the real estate reimbursement fund. Kehler was ordered to pay $12,075 to cover costs of the investigation and hearing.

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The sellers were a military family who had to move in 2020 after the husband was posted to Ottawa.

They chose Kehler as their listing agent, because he had helped them find the home when they moved to Winnipeg in 2018, and they had a good relationship with him, the panel’s decision says.

They  listed their house in May and on June 15, 2020, accepted an offer of $570,000 with possession on July 15. A deposit of $100,000 was to be paid within 72 hours of acceptance of the offer.

Kehler was the salesperson for both the buyer and the sellers — but the sellers say he never told them that.

A form that indicated the sellers knew he was also representing the buyer, dated June 15, 2020, was filed.

While it appeared to be signed with the sellers’ names, they said they didn’t see it until March 2021. One of the two wasn’t even in Winnipeg on June 15.

“Kehler, in his interview with commission staff, acknowledges that the sellers never signed this document — we note that the purported signatures on the form look nothing like the actual signatures of the sellers on other documents,” the decision says.

Kehler told commission staff he’d been authorized to sign on the sellers’ behalf, which they denied. The panel found them more believable.

Once the deal was made, the sellers, believing they had just a month before the buyer would take possession of their home, quickly packed up and prepared to move with their two young children.

Buyer never made deposit

Meanwhile, the buyer hadn’t made the $100,000 deposit before the deadline — but Kehler didn’t tell the sellers.

Kehler told commission staff that was because he thought the deposit was still coming, and he didn’t want to cause more stress for the sellers.

On July 10, just five days before the buyer was to take possession and the day before the family was leaving Winnipeg, the sellers spoke to Kehler — but he still didn’t tell them the deposit hadn’t been paid.

Kehler “said everything was fine,” according to the decision.

It wasn’t until the evening of July 13, when the family arrived in Toronto on their way to Ottawa and just 36 hours before the scheduled closing, that Kehler told them he’d never received the deposit.

Eventually, they received $4,000 of the deposit, but the sale of the house never closed. The sellers scrambled to extend the insurance on their old home and make sure they continued to pay the utility bills, the decision says.

Home relisted

Kehler then recommended they relist the home, and it went back on the market at $574,900.

On Aug. 10, 2020, Kehler recommended the price be reduced to $569,900. Instead, the seller said he should reduce the price to $567,900.

But when the seller looked at the online listing on Aug. 22, it was listed at $564,900.

The sellers also asked Kehler about maintaining the property, since they were no longer in Winnipeg. He agreed he would, but friends ended up going and mowing the lawn, the decision says.

The sellers asked Kehler and his brokerage about what could be done to “make things right,” the decision says, but they never received any responses.

On Sept. 5, they hired a new brokerage to sell the home. Under the new real estate salesman, they accepted an offer on Dec. 13, and closed the deal Jan. 2, 2021, receiving $507,500 for the home.

Kehler’s actions were “contrary to the best interests of the public” and undermined “public confidence in the real estate industry,” the decision says.

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Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization – New York Post

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Dr. Phil spoke with property owners about how squatters are using legal loopholes to occupy properties, but one real estate agent argued it can be justified because of a history of “colonization.”

Wednesday’s episode of “Dr. Phil Primetime” featured one guest named Kristine, a real estate agent who “doesn’t think adverse possession is immoral,” but believes that “people with no housing dying from the elements is immoral.” According to the Legal Information Institute, adverse possession is where a “person in possession of land owned by someone else may acquire valid title to it, so long as certain requirements are met, and the adverse possessor is in possession for a sufficient period of time.” The requirements and period of time vary by state and city.

In her introduction on the show, Kristine argued that there are “multi-million dollar projects, and they’re just abandoned.” She added that she believes the land of those abandoned projects can be reclaimed.

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She also noted she is working with a client who is “trying to occupy a property” that’s around 300 or 500 acres.

“It’s something that’s so large that you wouldn’t even notice what 2 acres is compared to how many acres are on there,” she said. “Adverse possession is a law that’s left over from both Spanish and English colonization, it is how they took the land from the native people, and it’s a process we can use to take that land back.”


Dr. Phil
Dr. Phil’s guest explained that adverse possession is a law that’s left over from colonization. Youtube/Merit Street Media

“You said that if I’ve got 100 acres or 1,000 acres and somebody goes and gets in a corner of it and adversely possesses 5 acres of it, I’m not gonna miss it, I’ve got 1,000 acres anyway?” Dr. Phil asked Kristine.

“Well, yeah,” she responded. “Can you tell me, if you’re looking at 1,000 acres, could you tell me what 5 acres was?”

Dr. Phil’s jaw dropped, and he said, “Hell yes.”


Real estate agent Kristine
The real estate agent asked Dr. Phil he could pick 5 acres out of 1000. Youtube/Merit Street Media

A landlord named Tony argued with Kristine about how she believes the manner in which people inherit property should be taken into account when it comes to adverse possession.

“We’re not in 1776, we’re in 2024,” Tony said, sparking a wave of applause from the audience.

“Do you think that a corporation that makes over a billion dollars a year is injured by someone taking 5 acres of land?,” Kristine argued.

Another guest quickly interjected with “somebody is.”

Another guest named Patti confronted Kristine by arguing she does not use her car 24-hours-a-day.

“Playing out your scenario, then theoretically anyone on the street should be able to boost your car and drive it, because that car is just sitting around unused,” Patti said, sparking applause from the audience.

“I don’t have a billion-dollar net worth,” Kristine argued, which made Barry ask if having a billion dollars is where Kristine draws the line.

Dr. Phil concluded the episode by commending Kristine for her willingness to defend her beliefs, but said he “100%” disagreed with her.

“It is a lawful thing to do if you do it in the right way, I 100% disagree with your philosophy, but your facts are correct,” he said. “She’s not suggesting people go squat in someone’s home when they go on vacation, she’s talking about something completely different, at another level, and if you’re not a billionaire, she isn’t targeting you.”

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Botched home sale costs Winnipeg man his right to sell real estate in Manitoba – CBC.ca

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 on


A Winnipeg man’s registration as a real estate salesman has been cancelled after a family vacated their home on a tight deadline for a sale that never went through, then changed brokerages and, months later, got $60,000 less for their house than what they expected when they moved out.

A Manitoba Securities Commission panel found Reginald Wayne Kehler engaged in professional misconduct and conduct unbecoming a registrant when he signed a document on behalf of sellers without their knowledge, reduced the listing price of a home without their approval, and didn’t tell them for nearly a month that a potential buyer hadn’t paid a promised $100,000 deposit.

The sellers, identified as D.R. and P.R. in the panel decision released Wednesday, were awarded $10,394 from the real estate reimbursement fund. Kehler was ordered to pay $12,075 to cover costs of the investigation and hearing.

300x250x1

The sellers were a military family who had to move in 2020 after the husband was posted to Ottawa.

They chose Kehler as their listing agent, because he had helped them find the home when they moved to Winnipeg in 2018, and they had a good relationship with him, the panel’s decision says.

They  listed their house in May and on June 15, 2020, accepted an offer of $570,000 with possession on July 15. A deposit of $100,000 was to be paid within 72 hours of acceptance of the offer.

Kehler was the salesperson for both the buyer and the sellers — but the sellers say he never told them that.

A form that indicated the sellers knew he was also representing the buyer, dated June 15, 2020, was filed.

While it appeared to be signed with the sellers’ names, they said they didn’t see it until March 2021. One of the two wasn’t even in Winnipeg on June 15.

“Kehler, in his interview with commission staff, acknowledges that the sellers never signed this document — we note that the purported signatures on the form look nothing like the actual signatures of the sellers on other documents,” the decision says.

Kehler told commission staff he’d been authorized to sign on the sellers’ behalf, which they denied. The panel found them more believable.

Once the deal was made, the sellers, believing they had just a month before the buyer would take possession of their home, quickly packed up and prepared to move with their two young children.

Buyer never made deposit

Meanwhile, the buyer hadn’t made the $100,000 deposit before the deadline — but Kehler didn’t tell the sellers.

Kehler told commission staff that was because he thought the deposit was still coming, and he didn’t want to cause more stress for the sellers.

On July 10, just five days before the buyer was to take possession and the day before the family was leaving Winnipeg, the sellers spoke to Kehler — but he still didn’t tell them the deposit hadn’t been paid.

Kehler “said everything was fine,” according to the decision.

It wasn’t until the evening of July 13, when the family arrived in Toronto on their way to Ottawa and just 36 hours before the scheduled closing, that Kehler told them he’d never received the deposit.

Eventually, they received $4,000 of the deposit, but the sale of the house never closed. The sellers scrambled to extend the insurance on their old home and make sure they continued to pay the utility bills, the decision says.

Home relisted

Kehler then recommended they relist the home, and it went back on the market at $574,900.

On Aug. 10, 2020, Kehler recommended the price be reduced to $569,900. Instead, the seller said he should reduce the price to $567,900.

But when the seller looked at the online listing on Aug. 22, it was listed at $564,900.

The sellers also asked Kehler about maintaining the property, since they were no longer in Winnipeg. He agreed he would, but friends ended up going and mowing the lawn, the decision says.

The sellers asked Kehler and his brokerage about what could be done to “make things right,” the decision says, but they never received any responses.

On Sept. 5, they hired a new brokerage to sell the home. Under the new real estate salesman, they accepted an offer on Dec. 13, and closed the deal Jan. 2, 2021, receiving $507,500 for the home.

Kehler’s actions were “contrary to the best interests of the public” and undermined “public confidence in the real estate industry,” the decision says.

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