Softness for the rest of the year and then price strength next year. Its the way it traditionally goes.
As an aside I have just seen two examples of something I used to write about a couple years ago here that would help the higher end markets. I’m taking about the upcoming wealth transfer and here are the two examples.
I have a really nice townhouse listing in Laguna right now. It is an awesome property by far the nicest location, lot (has a yard) and upgrades far and above others in complex. Its much nicer than any comps and we needed a strong cash buyer who would recognize that. Just got an offer, the buyer is about 60 years old and has lived in a working class neighborhood in Long Beach his whole life. Owns his house nearly free and clear. His 83 yr old mother just passed away and he inherited $1.2M as well as her free and clear house worth about $700K. I saw the death certificate, brokerage statements and will so I know this is all accurate. He offered all cash (about $800K). He’s selling her house and keeping his as rental which will generate about $2K net income. He could have gone alot bigger but he’s getting a great place and will retire comfortably now.
Second example, spoke to friend whose neighbor (late 40’s) is moving. Sold their house just under $1M and netted a couple hundred K on the sale. They got rid of the $700K mortgage and are buying a $1.8M house all cash. They just sold a beach house up in LA that was left to them when father died last year as well as a couple $M more.
Not saying this is going to save the market but I just saw this twice this week. The wealth transfer from our paretns generation to the baby boomers is very real and it is coming as we speak.
