<p>[Business</a> & Technology | Puzzling plunge: 15% year-over-year drop in county home prices | Seattle Times Newspaper](<a href=“http://seattletimes.nwsource.com/html/businesstechnology/2016682452_homesales04.html]Business”>http://seattletimes.nwsource.com/html/businesstechnology/2016682452_homesales04.html)</p>
<p>Where we live, “sales” are down, but “pending sales” are up (figure that one out), and home prices continue to drop.</p>
<p>There’s a lot of “sale pending” signs up in our neighborhood. Sometimes they disappear, and the whole “for sale” sign disappears. Then magically, the “for sale” sign reappears again. What’s up with that? Meanwhile, still an empty house next door, and the price has been lowered 25 percent from original asking price, which was dirt cheap to start with. Too much work to be done on the outside, though only some on the inside. The house down the block, priced the highest, but was move in ready, is the only one that has sold, out of the ten for sale in the three blocks of our street, in the last year.</p>
<p>I think the appeal of the big house has waned and more people are just happy to buy what they need rather than a showplace.</p>
<p>Financing is the problem, banks are scared to death to finance a house and later on holding the bag when the home value decrease further. You will find the down payment is up, regardless they advertise 20% or whatever. In today’s market, you will need a house move in ready, in good area and have a price so low that will attract all cash buyers, that is probably 20% lower than the market.</p>
<p>Although it does not apply to some hot markets, such as the area vball is looking.</p>
<p>
</p>
<p>In an environment where people are cautious about buying things that they don’t really need (even if they want them), houses are undoubtedly the most scrutinized potential purchase.</p>
<p>And speaking of hot markets, we’ve watched a couple of homes just outside of our target area be snapped up within days of going on the market, one over the listing price with 5 offers, and the other slightly under list price with at least 2 offers. The winning buyer on the 2nd house was all cash, close to $1 million. </p>
<p>We’re still the unofficial backup offer for an off-market house that we looked at with our architect 2 weeks ago. Contingencies on the current contract were due to be removed today and haven’t yet been removed, so it might fall through. Not sure what we’ll do if the house becomes available.</p>
<p>So vballmom, what happened?</p>
<p>Lots of foreclosures are now listed in my city which has not suffered during this housing bust. 30% price cut is now the norm for most starter homes. The realtors even advertised to suggest any price.</p>
<p>No word from our Realtor. I’m guessing either the contingencies were removed or the seller has granted an extension.</p>
<p>DrGoogle are you in CA? Starter homes in my area are being snapped up by investors who are coming in and paying all cash.</p>
<p>Both people do not have their bank statement for the month ready yet. One uses a cashier check, showed only the deposit slip as a proof of funds, loan officer accepts it. Another person in same situation, bank statement not ready yet. Wire transferred the money, sent a FTRA, federal transfer request and authorization form, with much more detailed information than deposit slip, and yet loan officer says this is not a good enough proof??? I even sent an account activity showing account number. Still not good enough. I tell them how about sending a prior months official statement so she can compare the account # and verify address, etc. Not heard anything yet from her. </p>
<p>Anyone would like to explain why??</p>
<p>Well as the attorneys slowly work through the issues towards a contract, though there are still challenges with it, in comes a second offer on the house today :)</p>
<p>Wow…nice…jym626…</p>
<p>Thanks, dstark. About time some luck turned this way.</p>
<p>It is finally going to happen…you did wait a long time…:)</p>
<p>Well the second part… thats for sure. It has been a long time. My dad passed away 9 mos ago. Time flies. The house hasn’t been on the market that long, but still, I am ready to get this finished and want someone to enjoy the house.</p>
<p>Does the buyer who actually bid have a lot of contingencies?</p>
<p>vball, yes I’m in Southern CA.
That was 2-3 years ago. Lately some of these starter homes are now listed around $450K-$500K that were going for $670K-$780K a few years back. Mostly 3BR, 2 bath, under 2000 square feet.</p>
<p>There were stupid things their atty wanted in the contract that are not reasonable. And their financing may be difficult to work with. Will tell more when its appropriate, and when we hear back from the folks withthe second offer. The walls may have ears…</p>
<p>BTW, your PMs are full, dstark. Was gonna ask you a question…</p>
<p>Ok…I cleared my pm…</p>
<p>jym, I am so happy that you’ve got two offers to work with! What a load this will be off your mind!</p>