DNA Property

The world is healing as home prices tumble

During the 2008 housing crash the mortgage backed security ETF had a 6% drop. This is what the movie The Big Short is based on. Currently we’re sitting on a 16% drop and more to come. Seeing massive price cuts to top end homes here in NH and still zero buyers. Last pic is for all the “no inventory” people it’s there and will come to market.

Existing home sales are absolutely tumbling at a drastic rate. Expectations were 1.1% the drop was 5.4% in one month. This doesn’t mean prices are headed down as quick it’s a leading indicator. Sales bottomed in 2009 but prices didn’t for a year+ or so after that. Real estate is a slow grind. It’s like turning the titanic, it takes time but once it’s in a new direction there is no going back. Prices will follow by 2023 as per my previous posts.

👇👍🤌

Knowing future prices is impossible, however knowing if current prices are cheap or expensive is the key to real estate investing. Right now is the time to batten down the hatches, take some profits, lower leverage and have some cash on the sidelines in order to buy when prices are cheap historically. When everyone is buying you should be selling.

Knowing future prices is impossible, however knowing if current prices are cheap or expensive is the key to real estate investing. Right now is the time to batten down the hatches, take some profits, lower leverage and have some cash on the sidelines in order to buy when prices are cheap historically. When everyone is buying you should be selling.

Update for home sales absolutely cratering nation wide 🤙 prices to follow

Existing home sales absolutely cratering. With the west coast dropping first and the hardest. Rising rates are providing some serous buying opportunities in 2023 and forward. Northeast fell 1.2% m/m; Nov. fell 0.1%

Midwest fell 3.7% m/m; Nov. fell 6.1%

South fell 1.8% m/m; Nov. fell 1%

West fell 10% m/m; Nov. fell 2.1%

New home sales numbers are out, and it’s UGLY folks. September numbers revised (September's +14.1% MoM spike smacked down to +7.1% MoM). This month only up 0.4% a staggering decline. The trend is down, stay patient and you will be rewarded in 12-18 months.

It’s getting ugly out there folks. Latest housing data is out:

Mortgage rates ⬆️
Housing starts ⬇️
Mortgage applications ⬇️
Forclosure activity ⬆️

The signal was Zillow shutting down, the turn has already happened.

The housing bubble has officially popped! With Zillow’s stop of home flipping the algos are picking up what we have been waiting for. Manchester area homes are down 1% month over month (12% annualized), inflation adjusted home prices nationwide are peaking and have slightly passed the 2006 top, investors are PILLING IN just like 2006, and sentiment for good time to buy is at all time lows, mortgage rates are up. The top is in, if you’re selling sell NOW, if you’re waiting another 18-24 months will have some extreme discounts available.

Brady has now been in more super bowls then there are active homes for sale in the greater Manchester area.

Small lesson learned this week. Details matter! We were about to close on this property but our COC lapsed recently. Luckily the Manchester Building Department was available to quickly come out, we rectified a small issue by building this handrail, and now we’re clear to close. Taking the time to go through a home first can save you a headache latter. Great full that we were able to finish on time and as scheduled.

Onto the next one!