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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
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To: blam

Our first house was bought in ‘83 at about the same interest rate.


41 posted on 05/30/2021 5:36:48 AM PDT by FreedomPoster (Islam delenda est)
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To: tired&retired

Well with that big lot, you have lots of places to bury your new gold and silver bullion holdings. Just make sure you spread lots of leaves back over the dig holes.


42 posted on 05/30/2021 5:37:40 AM PDT by BiglyCommentary
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To: MulberryDraw

““If I sell, where do I invest the proceeds?”

“A thought, buy grave sites.”

Have them and will never use them. A friend of mine owns the crematorium. Total cost <$1,000 for everything.


43 posted on 05/30/2021 5:38:04 AM PDT by tired&retired (Blessings )
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To: FreedomPoster

Does Lowe’s sell that deck in kit form? My wife’s been pestering me for a deck replacement.


44 posted on 05/30/2021 5:40:05 AM PDT by House Atreides
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To: MinorityRepublican
"Depends on where they are. If they’re in California, specifically the Bat Area or L.A., then they need to get the **** out"

My son owns four houses in LA county. Two in Glendora and two in Sierra Madre.

He said he's sitting tight.
Also, said he'd made offers on two houses in Redondo Beach but was out bid by Chinese investors.
He said, a year or so ago, that the Chinese were buying everything that comes on the market there.
Escaping Hong Kong money he thinks.

45 posted on 05/30/2021 5:47:29 AM PDT by blam
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To: Mr. Mojo

People don’t realize that the only reason the mortgage rates are low is that it is the Federal Government’s money being lent. Virtually every mortgage is purchased by Fannie Mae or Freddy Mac. Banks are merely acting as loan agents.

And all this additional debt is off the books and not considered a part of our National Debt.

We are in far worse shape than people are aware.


46 posted on 05/30/2021 5:51:31 AM PDT by tired&retired (Blessings )
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To: tired&retired

No bank would lend 30 years at 3% to 4%.


47 posted on 05/30/2021 5:52:26 AM PDT by tired&retired (Blessings )
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To: House Atreides
Does Lowe’s sell that deck in kit form? My wife’s been pestering me for a deck replacement.

They do...but you have to ask for the flat box "Romeo and Juliet Mini Balcony Kit" they keep hidden in the back.

;>)

48 posted on 05/30/2021 5:54:46 AM PDT by Covenantor (We are ruled...by liars who refuse them news, and fools who can not govern. " Chesterton)
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To: Covenantor

Thanks. I’ll demo the current deck and surprise her with the new one. She’ll be so happy.🤗


49 posted on 05/30/2021 5:59:34 AM PDT by House Atreides
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To: BiglyCommentary

I just did a science project for work that needed a lot of wood. What should have been maybe $200 turned out to be $700.


50 posted on 05/30/2021 6:04:13 AM PDT by CodeToad (Arm up! They Have!)
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To: Mr. Mojo

WAY back when we wanted to buy our first home, interest rates were through the roof and required down payments were extremely high, we just decided (or it had been decided FOR US) that we just couldn’t buy a house NOW and would just have to wait until the housing market/economy turned around.

We did, it did, and the rest is histoire.


51 posted on 05/30/2021 6:04:51 AM PDT by faucetman (Just the facts, ma'am, Just the facts )
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To: Mr. Mojo

Listing my house Thursday. I hope to get 20% over asking!

C’mon people, buy, buy, buy.

I’m just glad we bought our other home in 2019 and our other, other home in 2020. A big enough bid on this NJ house and I’m paying the other two off! Can I get 40% over!!


52 posted on 05/30/2021 6:11:46 AM PDT by Malsua
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To: CodeToad

You’ll know we are hitting peak lumber when they start quoting it per linear inch rather than foot.


53 posted on 05/30/2021 6:20:55 AM PDT by BiglyCommentary
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To: BiglyCommentary

Yeah, I showed off and bought the entire length of 2x4.


54 posted on 05/30/2021 6:23:15 AM PDT by CodeToad (Arm up! They Have!)
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To: Mr. Mojo
"offering to waive inspections"

I do not want to hear of any Freeper doing this from either end.

If you force a buyer to waive inspection, if the amount of problem$ exceeds small claims you will be sued anyway, and it won't help that the realtor/realty will be sued as well.

If you offer to waive inspection to make the sale, you will make your lawyer rich. See above.

55 posted on 05/30/2021 6:23:39 AM PDT by StAnDeliver (Eric Coomer of Dominion Voting Systems Is The Blue Dress)
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To: StAnDeliver

“If you force a buyer to waive inspection, if the amount of problem$ exceeds small claims you will be sued anyway, and it won’t help that the realtor/realty will be sued as well.”

Nope. You cannot sue.


56 posted on 05/30/2021 6:27:05 AM PDT by CodeToad (Arm up! They Have!)
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To: CodeToad

It’ll be the new way of flauting wealth, driving around with an 8ft 2x4 showing in the back of the truck.


57 posted on 05/30/2021 6:29:36 AM PDT by BiglyCommentary
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To: central_va

I felt that way trying to buy my first house in 06. The prices here in central Jersey were ridiculous and it was apparent. I had the money to buy but decided this would have to collapse eventually. Come 2012 I bought my fist house in the same area for half the going 06 prices with a sub 2% interest rate. Tell the kids to hold tight!


58 posted on 05/30/2021 6:30:46 AM PDT by Jim Pelosi
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To: StAnDeliver

Why? “As is” sales are normally totally legal. The buyer is not forced to buy. If they don’t like that term they don’t bid/consumate the deal.


59 posted on 05/30/2021 6:33:21 AM PDT by BiglyCommentary
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To: BiglyCommentary

We are in suburban Atlanta. The houses in our neighborhood are selling in one day in bidding wars. Up to 20 backup contracts. We are selling our house and my Mom’s house across the street and buying land in the mountains. We are ordering a complete turn key prefabricated tiny 600 sq ft cabin delivered and camping out in that until prices come back down then build our house and put the cabin on Airbnb.


60 posted on 05/30/2021 6:35:40 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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