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2nd Home Market Is Crashing In The U S

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http://www.realestatejournal.com/buysell/m...blumenthal.html

Wall Street Journal

Second-Home Housing Glut;

Real-Estate Bubble Losing Air

It would seem to have it all: four bedrooms, a guest house, a pool and a rock waterfall. But the vacation home in Naples, Fla., hasn't been drawing much interest from buyers, so the seller recently threw in that most modern of amenities: the $1 million price cut. That's brought the asking price down a full 25%. "If you want to sell, you've got to go back to '04 prices," says Chip Harris of Coldwell Banker Previews International, which is handling the property.
The market for second homes could use a second wind. After a long string of double-digit annual price increases, a number of second-home meccas across the country are suddenly suffering from plunging sales volume and burgeoning inventories of unsold homes. Result: Naples-style discounting is starting to spread.
"People don't believe in the laws of supply and demand anymore," says Alan Skrainka, chief market strategist at Edward Jones. "We're not saying it's a bubble, but we're saying prices are overstated and will likely correct 20% to 25% over four or five years."
He rejects a notion advanced by housing bulls that shore communities in Florida and California will be protected because of the limited supply of coastline. "Japanese real estate and land prices went down for 15 years and Japan is an island," Skrainka says.

It can't happen here because of limited supply and land? The example cited of Japan is a good one.

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"We're not saying it's a bubble, but we're saying prices are overstated and will likely correct 20% to 25% over four or five years."

On top of 25% price cuts taking place now and they aren't in a bubble!? :blink:

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Having spent some time in California I have never seen so many houses been built. While the exclusive places like Beverly Hills or Malibu have their own little market seperate from most places, all these new houses they are building everywhere will lower prices. And they have masses and masses more space to build.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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