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re: Are real estate companies colluding to drive up the price of houses?

Posted on 8/8/22 at 6:42 am to
Posted by LSUFanHouston
NOLA
Member since Jul 2009
40278 posts
Posted on 8/8/22 at 6:42 am to
Summer is still the most active selling season.

Prices by me aren’t dropping but inventory is growing.

We may be in a technical recession but jobs arent yet dropping… yet. Mortgage rates growing will eventually drive prices down.
Posted by MrLSU
Yellowstone, Val d'isere
Member since Jan 2004
29066 posts
Posted on 8/8/22 at 10:21 am to
quote:

One out of every four homes purchased over the past three or so years have been by investment firms.


Well this depends on the area of the country (Phoenix, Atlanta, Charlotte, Orlando, Tampa, etc) those stats may be +/- 10% but overall across the US it is far, far less.
Less than 1% of the housing stock in the US is currently unoccupied. We have a shortage of over 7 million houses right now and at the same time we have over 3 million people coming into the US annually.

The total number of single family residential real estate owned by institutions/corporations (i.e. Apollo, Black Rock, etc.) is less than 200,000 single family homes nationally or roughly less than 1% of the entire US housing stock.
This post was edited on 8/8/22 at 10:24 am
Posted by SlidellCajun
Slidell la
Member since May 2019
16095 posts
Posted on 8/8/22 at 1:33 pm to
There is built in conflict

There would have to be collusion between the buyer agent and seller agent and that generally does not happen

Buyer agents want lower prices
Seller agents want higher prices
.
There are safeguards against agents working in bad faith.

Also, many of these agents don’t like each other…
This post was edited on 8/9/22 at 7:01 am
Posted by boogiewoogie1978
Little Rock
Member since Aug 2012
19472 posts
Posted on 8/8/22 at 2:03 pm to
quote:

What is “overpaying” , the market is determining what a house is worth.

People offering above asking after interest rates have doubled.

"The market" was also determining what a house was worth 2008 as well. Different circumstances I know but the root of the problem is still the same. People buying homes the banks say they can afford but in reality they can't.
Posted by oneg8rh8r
Port Ludlow, WA
Member since Dec 2003
2942 posts
Posted on 8/8/22 at 9:23 pm to
buyer and seller agents both want the max that the other party is willing to accept. It's more money for all 4 parties.

If you list a home and it sells within 2 days and you haven't had an offer review date about 5 days post listing, you are probably selling your house short of potential.

Most selling brokers want to list on a Tuesday or Wed, open house on the weekend and review on Monday.

Regardless of asking price whether it be too high or low, the market will quickly dictate true value, you just have to give it a week to work itself out.

Desirable, well maintained and updated homes and properties are worth their weight in gold due to limited or no supply.
Posted by llfshoals
Member since Nov 2010
20663 posts
Posted on 8/9/22 at 9:40 pm to
quote:

Seems like more expensive houses are on the market right now.
No, I’m a top 10% in my MLS agent, if anyone would know it’d definitely be me.

There’s a good bit of building in the 400-700 range that’s coming available in my MLS. Custom builders (though a couple of them do build quite a few) I don’t class them in the “bulk builders” like Rausch Coleman or DR Horton. They’re still selling, but slower.

I’m seeing a LOT of price reductions for DR Horton lately.

Anything decent that pops up in the 170-220 range is still getting swarmed, but I can see everything else slowing down a bit.
Posted by SlidellCajun
Slidell la
Member since May 2019
16095 posts
Posted on 8/10/22 at 7:19 am to
Makes sense

The lower end is going to be more susceptible to the increase in rates

Posted by Chucktown_Badger
The banks of the Ashley River
Member since May 2013
35898 posts
Posted on 8/10/22 at 8:46 am to
quote:

Got his 6% with almost zero effort.


That gets split between buying and selling agent.
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