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November 3, 2021 at 8:22 AM in reply to: Zillow bought a house in a neighborhood where I’m active #823496November 2, 2021 at 6:33 PM in reply to: Zillow bought a house in a neighborhood where I’m active #823495
sdrealtor
ParticipantZillow charges 5-7%. Sellers typically pay 5% and have other fees like pre sale fixes, staging, termite and repairs they don’t with Zillow. So call the prices Z pays basically the same net if price is the same. But Z was paying 3-5% above. Seller was getting above market net with no work or uncertainty. It was a gift to sellers while it lasted. That’s why agents were selling they’re homes to Z
Stocks are valued on future expectations not past performance. C’mon man! You know that
Zillow ibuying has no future expectations anymore. Done
November 2, 2021 at 3:53 PM in reply to: Zillow bought a house in a neighborhood where I’m active #823493Participant[quote=XBoxBoy][quote=carlsbadworker]Sean Gotcher, a Las Vegas real estate agent, offered a conspiracy theory that iBuyer companies are manipulating the market by intentionally overpaying for some homes in order to sell others that they’ve already bought in nearby areas for a higher price.[/quote]
As always, I would stay away from conspiracy theories. Zillow is losing money on the houses they’ve bought and are now trying to sell. Simple foolishness on the part of a large company is all there is to see here.
Here’s an example of their efforts, bought for 790k, now listed for sale at 741k
https://www.zillow.com/homedetails/1538-Missouri-St-APT-C-San-Diego-CA-92109/70597152_zpid/Personally, I’m glad to see them exit the market and I hope other big companies learn from their mistakes. Buying and selling homes at a profit isn’t as easy as it sounds on those reality shows.[/quote]
I agree and dont see a conspiracy. I think they figured the market would go up a little, they had free wall street money and they wanted to see if they could play this game and win. I think they were hoping to breakeven and figure out a new business model but got burned because the local real estate markets are much more efficient than anyone gives them credit for
November 2, 2021 at 3:51 PM in reply to: Zillow bought a house in a neighborhood where I’m active #823492Participant[quote=carlsbadworker][quote=sdrealtor]Was gonna post this morning that the layoffs would come soon but they came much harder and faster than I would’ve thought. Really surprised they are cutting that deep. 25% on the way out the door[/quote]
Bloomberg reported Monday that Zillow is looking to sell about 7,000 homes, and is seeking roughly $2.8 billion for the houses. Will we see any of those in the market?[/quote]
Many of them already are and others will be. The own a couple hundred here. It wont have any impact on the market. They will sell at market value. Zillow paid too much and will lose money.
I noticed this a few months ago whn I saw experienced realtors selling their homes to Zillow. Those realotrs can sell their homes themselves and at most pay a buyers agent commission. They know what their homes are worth. Zillow was charging 5 to 7% fees in the prices prices paid. That means they were paying well over what the agents could themselves on the open market by around 5%. Zillow was also buying homes as-is and paying fixed up retail prices. It made no sense to me but I didnt know enough about it to really call them out here until I knew more. In early August it was getting obvious they were paying too much and thats when I first posted something.
Its not that I have a crystal ball, its just that I know agents wouldnt sell them to zillow unless they were making out better than selling themselves on open market even after paying zillow hefty fees
November 2, 2021 at 1:37 PM in reply to: Zillow bought a house in a neighborhood where I’m active #823486ParticipantWas gonna post this morning that the layoffs would come soon but they came much harder and faster than I would’ve thought. Really surprised they are cutting that deep. 25% on the way out the door
November 1, 2021 at 7:47 PM in reply to: Zillow bought a house in a neighborhood where I’m active #823485Participant[quote=sdrealtor]Zillow just bought this one in MM for $787,500. That is full retail on it. It may even be a touch high for this one in that condition. They put it back on at a price that is no better than breakeven if they get that price.
https://www.zillow.com/homes/10842-Whitehall-Rd-San-Diego,-CA-92126_rb/16788569_zpid/%5B/quote%5D
Funny I noticed this about a month before this post in early August. Ten days later they paused. Now two months later what I wrote about is out in public. The prices they were paying here just didn’t make sense back then
Participant[quote=flyer][quote=sdrealtor][quote=flyer]Have a friend who is a Vice Chancellor at UCSD, and they have never seen this level of enrollment. The good news is all of those potential homebuyers may want to stay in San Diego, which bodes well for our market.[/quote]
Had a UCSD Vice Chancellor apply for a rental once. Have never seen that level of credit card debt before. Your friend?[/quote]
As in all professions, there will always be those who have financial problems. I’ve run into lots of financial train wrecks over the years–it’s sad, but nothing new there.
The person I mentioned wrt an enrollment comment is a neighbor, and is doing very well.[/quote]
Cool so you’ve seen their credit report
ParticipantBuying an iPhone 11 today is like buying spoiled milk. It’s depreciation not deflation now that it’s not the newest technology. When comparing phone prices you should be comparing the difference between buying top of line them and now. There was no $1200 phone then. The bar to current technology is higher cost now
Participant[quote=teaboy][quote=sdrealtor]And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it[/quote]
“Transitory” inflation could mean one of three scenarios:
1.Prices rise and plunge.
2.Prices rise and stay where they are.
3.Prices rise and continue to rise, but more slowly.
https://www.globest.com/2021/08/25/when-transitory-inflation-really-means-dont-worry/#:~:text=Inflation%20has%20wreaked%20havoc%20on,apartment%20materials%20are%20no%20different.&text=%E2%80%9CTransitory%E2%80%9D%20inflation%20could%20mean%20one,to%20rise%2C%20but%20more%20slowly%5B/quote%5DI agree but I was using gzz”s def
ParticipantI bought a TV recently. It was quite expensive. Far more than I ever paid before. Sure you can get a cheap one several generations of technology older but current technology tv’s have gone up a lot. I also looked at the car I drive last night. I got a new one in December with one week delivery. Now I’d have to wait until June or buy a used one for more than I paid ten months ago. Or I order today, wait until June to get it and pay 9.3% more for the exact same vehicle without 1 year free use of the superchargers.
I’ve got a 3 year old iPhone but I know a current replacement of new release will be substantially more than I paid for a new one 3 years ago.
You keep discounting inflation but never post a real actual current example of you going out and actually buying something. That leads me to think your very frugal and dont spend much else you would experience much more of it
And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it
ParticipantRevisionist history. Your credibility is waning. Running out of things to do in St George?
And good job leaving $1.5m on the table for the rest of us.. Much appreciated
Participant[quote=flyer]Have a friend who is a Vice Chancellor at UCSD, and they have never seen this level of enrollment. The good news is all of those potential homebuyers may want to stay in San Diego, which bodes well for our market.[/quote]
Had a UCSD Vice Chancellor apply for a rental once. Have never seen that level of credit card debt before. Your friend?
ParticipantNew listings 17
New Pendings of 14 – less and less to buy
Thats +3
Closed sales at 23 –
Price reductions at 5 (all very high priced homes)
Total houses for sale 55 with median of $2.5M
Should slow down here also if seasonal patterns hold.
Market here for a house is now $1M if not $1.2M. How did we get here?
Participantsorry got sidetracked posting but ran numbers on tuesday. I wonder if we will revert back to our typical seasonal pattern as I expect or if things will rage through year end like last year.
New listings 9 –
New Pendings of 9 –
Closed sales at 13.
Price reductions at 0.
Current inventory at 12 with median price of $929K.
For now new inventory has kept coming but should slow the next couple months if seasonality reigns. Generally speaking Im seeing nicer homes hit the market over time and flippers are active here which bodes well for continued appreciation
Participant[quote=deadzone]Well UCSD just announced record enrollment this year. Although I wonder how many of those kids are from out of state (or more specifically out of Country, China I’m looking at you!) as that has been the trend for UC schools.[/quote]
My kid is one of them. Also record number of latino and minority students. That campus is booming
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