That’s going to hurt them over time. Current RE values assume abnormally low interest rates in their valuations. Over time, reversion to the mean in both interest rates and valuations will eat away their equity.
Further, not letting the property go to market is just bizarre. It’s saying they think they can’t get a better deal by letting more people bid on it. That’s categorically false unless the seller knows the value of their property is below current market conditions. Being that they’ve probably not transacted much in the current market this is erroneous. Let the property go to market and take in bids over at least a couple weeks.
Any bidder saying their bid evaporates if the property goes to market is not worth believing.
Of course, maybe I’m wrong and there are serious buyers who make true highest offer off market. But that probably signifies something truly and even bizarre - and possibly a tendency towards market failure.
Re:Savings and Loan Crisis 1980–1989
by ChuckNorris89 on Tuesday May 02, 2023 @05:31AM
(#35785149)
Do you think we're gonna see another real estate crash?
They said the largest generational group buying and selling houses pre-COVID were the Millennials.
Now?
Its the Baby Boomers. They can pay cash so they are immune to the interest rates and they tend to have more equity in their properties so they're in a very advantageous position to take advantage of really bad time for real estate.
I live in Minneapolis. The inventory here has been historically low since Covid hit. Normally we should have around 15K properties for sale in the seven country metro area here. Right now, its closer to about 4,200 which is crazy. A lot of people are not even putting their houses on the market. They find an agent and within days they have several buyers. We've had three families just POOF move out of our neighborhood. No "for sale" sign, no showings, just gone.