Posted on 01/19/2022 9:42:08 AM PST by Browns Ultra Fan
Massive Federal stimulus (both fiscal and monetary) have led to bidding wars among the wealthiest Americans. Despite clamoring for The Fed to increase rates and speed-up the shrinking of The Fed’s balance sheet, nothing has happened … yet.
(Bloomberg) — Home buyers willing to spend almost a $1 million are competing the most for a piece of the red-hot U.S. housing market.
Homes priced between $800,000 and $1 million saw the highest rate of bidding wars at 64.6%, followed by 62% for homes between $1 million to $1.5 million and 61.7% for homes above $1.5 million, according to December data from Redfin Corp.
Prospective buyers are competing for homes as relatively cheap mortgage rates and a proliferation of remote-working opportunities in the wake of the Covid-19 pandemic boost demand for homes in smaller cities. The number of available homes in several of the hottest markets continue to shrink.
Nearly 60% of home offers written by Redfin agents across the U.S. faced competing bids in December, the firm said. It was the lowest rate in 12 months but an increase from 54% in December 2020 as pandemic-driven demand for housing remains strong.
Vacation homes, which are often pricey and have increased in popularity due to Covid-19, may have contributed to bidding wars in the high-end market, Redfin said. Townhouses had a bidding-war rate of 62% followed by 61.3% for single-family homes, the firm said.
Now its a race against the clock as potential home buyers try to beat Powell and the Gang as they raise mortgages rates.
Yes, Federal stimulus has made the top 1% increase their share of total net worth that includes $800,000+ homes.
Try to calm down and listen to Torquay by The Leftovers. Or listen to Danse Fed.
(Excerpt) Read more at confoundedinterest.net ...
Our home price jumped up over $100,000 in less than a year. It’s no wonder people are selling from liberal states and moving to cheaper homes in others states. Sell a shack in Cali, buy a castle in Texas.
“the 1% benefited from the COVID stimulus and are fighting over home prices. Animals.”
True but what is happening in this country is we are now haves and have nots and it started 25 years ago via globalism.
50% of the country are doing great- record stock market returns over the last 10 years...the other 50% not very well.
The next civil war or revolution will not be left or right but between the haves and have nots.
Poor struggling conservative whites will side with poor liberals to get their share of the pie.
“Our home price jumped up over $100,000 in less than a year”
Ours has dropped. We also never had the housing boom of 2005-2008.
Poor rural Appalachia no jobs. All the young people moved away. Lots of empty homes run down. Rural Detroit as we call it.
We have noticed an uptick over the last year or so of people from the large urban areas buying up farms and properties with acreage. People buying bolt holes to escape to when everything collapses??
This is why the Trump/Sanders party is in the ascendant.
Almost all the new homes in our area are $1,000,000+. Nothing for the middle class, even in the outermost suburbs. The average household income here is $56,000.
Not these days. Any invading CA coming today missed the boat by 20 years. That was when 50 percent of our neighborhood was on the market and home prices doubled or more. Their high bidding drove our property tax up so much the only way to keep original ownership was to turn everything into vacation rentals and delay retirements. Of course, the buyers brought their goofy lib ideas with them and ruined TX.
Housing in Austin rose 25% this year.
I am not sure where in Appalachia you are ? WV, KY, TN but I would think that area may be the best investment in real estate left in the country.
As satelite internet becomes more available, there will be less reason to live in and around suburban/metro areas. Unless you really want to live in the city. Less and less jobs are going to require you to come into the office. The employers are not going to have a choice IF they want to be able to staff their companies.
This will eventually equalize real estate values around the country. Especially, in the interior of the country. The coasts will still be at a premium. Just like lakefront will always be a premium.
My Mother sold a 2001 Doublewide on rented land in Campbell, CA for 350k.
Turned around and got a 2001 doublewide on 1 acre of land in Idaho for 250k.
The house across the street from us sold for $770,000. I think ours is worth less. But since theirs sold for a hundred grand more than I thought it was worth...why shouldn’t I put ours on the market for $800,000? Seems to be the sweet spot.
We’re still seriously considering WV...especially with the New & Improved Joe Manchin.
Read later.
Who is buying?
Who is wanting to invest in these hellholes like California?
Chinese?
Yes.
Compared to China, California is a bastion of freedom.
There is no discussion in the press about who the west coast and NYC buyers are.
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