All Real Estate is Local
Rodney Johnson | April 25, 2019 | My home is in a bit of disarray. We’re spring cleaning, but it’s more than that. We’ve decided to move, so going through clutter takes on new meaning. We don’t need to move, but as I wrote a few weeks ago, we’re looking to the future and trying to determine how best to position ourselves. Two hundred feet from open water in one of the more expensive homes in the neighborhood looks less attractive when I consider rising taxes and higher flood insurance. As many of you commented, it might be time. But now I’m a bit anxious. Other high-end homes in my neighborhood aren’t moving. After making a tentative decision to sell, I have that nagging worry that I won’t be able to get the price I want. The National Association of Realtors recently reported that existing home sales dropped 4.9% in March, following an 11% gain in February. Combining the two gives a monthly average gain of about 3%, but that’s misleading. Over the past year, existing home sales are down 5.4%. New home sales are moving the opposite direction, up 4.5% in March to a 16-month high, and up 3% over March of last year. Still, the details give a more precise picture of what’s going on. The median new home sales price fell 9.7%. It’s possible that home builders were discounting their inventory to get it out the door, but it’s more likely that they’re building what’s selling, which are moderately-priced homes. In March, The Wall Street Journal ran a big story on the problem homeowners are having as they try to sell McMansions. Boomers built them in the early 2000s, and now they can’t find buyers as they try to downsize. Or at least, they can’t find someone willing to pay their price. It’s not a new story. The Chicago Tribune ran a similar article in 2016, and Harry has been talking about this issue for years. The situation will get worse before it gets better, and it’s all about demographics. READ MORE » | It has nothing to do with the shortage of affordable housing, or the lack of new home building, or anything else you're hearing in the mainstream media. Because the housing story that's NOT being told is also the single greatest threat to our economy right now. Click here now to find out what this crisis is… and what you can do today to not only protect yourself, but grow your wealth faster than you thought possible when this crisis hits. |
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