Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Why You Should Wait Out the Wild Housing Market
The Atlantic ^ | MAY 28, 2021 | Derek Thompson

Posted on 05/30/2021 3:36:50 AM PDT by Mr. Mojo

How wild is the U.S. housing market right now? So wild, half of the houses listed nationwide in April went pending in less than a week. So wild, one poll found that most buyers admitted to bidding on homes they’d never seen in person. So wild, a Bethesda, Maryland, resident recently included in her written offer “a pledge to name her first-born child after the seller,” according to the CEO of the realty site Redfin. So wild, she did not get the house.

Pick a housing statistic at random, and it’s probably setting an all-time record. Home prices: record high. Inventory: record low. Percentage of homes selling above asking price: record high. Average time on market: record low.

With prices headed to the moon and listings blinking in and out of existence like quantum particles, nobody seems to know exactly when this is going to stop. “In my time studying housing markets, I’ve seen bubbles and I’ve seen busts,” says Bill McBride, an economics writer who famously predicted the 2007 housing crash. “But I’ve never seen anything quite like this. It’s a perfect storm.

(Snip)

You’ve put in several offers, promised sellers everything short of a shrine to their descendants, but you keep losing out. Do you recommit yourself to the Zillow chase, throw in the offspring shrine, and raise your max price in the expectation that things will only get crazier with time? Or do you wait?

“It’s so hard to say without knowing the city, but generally, if you’re in a market where you consistently have to spend significantly above listing, I wouldn’t buy right now,” McBride said. “I think when you put everything together, the odds are that things get more normal in a year.”

(Excerpt) Read more at theatlantic.com ...


TOPICS: Business/Economy
KEYWORDS: housing; realestate
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-94 next last
A realtor friend of mine told me that buyers have been so desperate they’ve resorted to not only buying sight unseen, but offering to waive inspections. The latter is particularly risky.
1 posted on 05/30/2021 3:36:50 AM PDT by Mr. Mojo
[ Post Reply | Private Reply | View Replies]

To: Mr. Mojo

If I sell, where do I invest the proceeds?


2 posted on 05/30/2021 3:42:19 AM PDT by tired&retired (Blessings )
[ Post Reply | Private Reply | To 1 | View Replies]

To: tired&retired

Real Estate Investment Trusts (REITs).


3 posted on 05/30/2021 3:51:28 AM PDT by Mr. Mojo
[ Post Reply | Private Reply | To 2 | View Replies]

To: Mr. Mojo

We have received multiple offers to sell, from people we have never met.

We check them out and yes they are legit.

House has never been up for sale, and yet. . .


4 posted on 05/30/2021 3:52:43 AM PDT by M.K. Borders (All I require of my government is the liberty my Grandfathers were born to.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. Mojo

Shame my kids and grand kids who are just getting started will now be life long renters....


5 posted on 05/30/2021 3:53:53 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: M.K. Borders

M.K. Borders wrote: “We have received multiple offers to sell, from people we have never met.”

We’ve received at least two cold calls from realtors asking if they could list our house.

We cancelled our plans for a modest renovation that would have expanded a bathroom and bedroom adding about 120 sq feet to our house. Housing prices in this area are running 150/sq. The two bids we received on the renovation were both over $1000 per square.


6 posted on 05/30/2021 4:02:57 AM PDT by DugwayDuke (Most pick the expert who says the things they agree with.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Mr. Mojo

I have a long term friend who does home inspections and he told me business has dropped off a cliff the last couple of months. Sellers are telling buyers to go fly a kite if they insist on a home inspection and the sellers are getting multiple above asking price offers with no home inspection required.


7 posted on 05/30/2021 4:08:39 AM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 1 | View Replies]

To: tired&retired

In a large rural lot and a Kadafi size tent. Live their for 2-3 years and then rebuy your home for 40% cheaper... lol


8 posted on 05/30/2021 4:12:56 AM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 2 | View Replies]

To: Mr. Mojo

I’m looking to leave NJ. Easy as pie go sell my house, The problem, using on the other end. I’m worried about not having a place to live.


9 posted on 05/30/2021 4:15:03 AM PDT by FlipWilson
[ Post Reply | Private Reply | To 1 | View Replies]

To: BiglyCommentary

the sellers are getting multiple above asking price offers with no home inspection required.”””

THAT is going to bite a lot of people in the ass in the fullness of time.


10 posted on 05/30/2021 4:15:05 AM PDT by TalBlack (We have a Christian duty and a patriotic duty. God help us.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: DugwayDuke

over $1000 per square.

Did that include Trump 5th Ave style gold guilding on all walls and flooring?


11 posted on 05/30/2021 4:15:22 AM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 6 | View Replies]

To: BiglyCommentary

Yup. And sellers are often getting as much as 10-20% over asking, depending on location. Insane.


12 posted on 05/30/2021 4:15:32 AM PDT by Mr. Mojo
[ Post Reply | Private Reply | To 7 | View Replies]

To: Mr. Mojo

PERUSE LATER.


13 posted on 05/30/2021 4:15:41 AM PDT by NetAddicted (Just looking)
[ Post Reply | Private Reply | To 1 | View Replies]

To: central_va

“ Shame my kids and grand kids who are just getting started will now be life long renters....”
*************

A bit early to make such a dire prediction 🙄


14 posted on 05/30/2021 4:22:52 AM PDT by snoringbear (,W,E.oGovernment is the Pimp, )
[ Post Reply | Private Reply | To 5 | View Replies]

To: FlipWilson

I’ll sell you my lawn tractor utility shed and the land it sits on for a modest $40,000. Would make a nice studio apt. Better jump on that. Some millennials from CA just offered $75k and offered to cut the lawn weekly. Lol


15 posted on 05/30/2021 4:23:38 AM PDT by BiglyCommentary
[ Post Reply | Private Reply | To 9 | View Replies]

To: Mr. Mojo
Mr. Mojo :" Yup. And sellers are often getting as much as 10-20% over asking, depending on location. Insane. "

as someone just suggested, sell now, buy a yurt or a tent, and in 2-3 years you can buy your own house back at 40% less than value.
Like all bubbles, ..this one will burst, maybe a little bit longer due to inflation/ stagflation.

16 posted on 05/30/2021 4:24:47 AM PDT by Tilted Irish Kilt
[ Post Reply | Private Reply | To 12 | View Replies]

To: FlipWilson

You may want to sell high while the selling’s hot and then rent in your new location (state) of choice until things get back to relative normal. That’s what I’m doing now — just waiting it out.


17 posted on 05/30/2021 4:24:59 AM PDT by Mr. Mojo
[ Post Reply | Private Reply | To 9 | View Replies]

To: Mr. Mojo

I can think of another reason to hold off in blue states: soaring property taxes.


18 posted on 05/30/2021 4:26:13 AM PDT by mewzilla (Those aren't masks. They're muzzles. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: snoringbear
A bit early to make such a dire prediction

This is the reset. A nation of renters like the EU. Soon only corporations will be able to buy houses and rent them back. We wonder WHY our youth don't want to have kids. I get it...

19 posted on 05/30/2021 4:28:04 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 14 | View Replies]

To: BiglyCommentary
Have you seen the price of lumber lately?


20 posted on 05/30/2021 4:30:27 AM PDT by FreedomPoster (Islam delenda est)
[ Post Reply | Private Reply | To 11 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-94 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson