Posted on 04/27/2021 12:41:34 PM PDT by thegagline
Cities like Dallas, Texas are benefiting from homebuyers from high-tax states with deep pockets. Real estate executive Rogers Healy weighs in on the 'new reality' of the business.
U.S. home prices in February rose at their fastest pace in 15 years as the COVID-19 pandemic accelerated the urge to move from urban apartments to suburban homes.
Home prices climbed 12% year over year in February, according to the national Case-Shiller index, making for the fastest increase since February 2006. Prices are now 29% above their 2006 peak.
"The housing market is running full steam ahead," said Selma Hepp, deputy chief economist at CoreLogic.
The 20-City Composite rose 11.9% in February versus a year ago, up from 11.1% in the previous month.
All 20 of the index’s cities saw percentage gains over last year, led by Phoenix (+17.4%), San Diego (+17%) and Seattle (+15.4%). The smallest gains were in Chicago (+8.6%) and Las Vegas (+9.1%).
Every region recorded double-digit percentage gains, paced by a 13% increase in the West and a 12.9% rise in the Southwest.
The price increases have been bolstered by continued signs of a strengthening U.S. economy, in addition to low mortgage rates and a shortage of homes available for sale.
However, surging prices won’t last forever, cautions Hepp.
"More for-sale inventories and a narrowing pool of potential buyers will likely slow the speeding train, providing a clearer vision of what’s ahead," she said.
Rich chicoms are buying the CA homes, desperately trying to get money out of Chine.
Ah yes, property taxes. Remember folks, paying off your mortgage means you’ve got one less landlord! Don’t know what I mean? Try not paying your property taxes on your “paid off house” and see.
When it comes to coffee, black is beautiful. :)
https://nypost.com/2021/03/31/inside-a-rundown-washington-d-c-home-that-got-76-cash-offers/
“A home that got 88 offers — 76 of which were cash offers — must be really something, right?
Well, this four-bedroom, two-bathroom abode 30 minutes outside Washington, DC, and only a mile from the local metro sold for $460,000 — about 70% above the original asking price of $275,000. But it might not meet your expectations for a hot house.”
Long story short, the house is garbage and the location is garbage, but people are insane and throwing money at anyone selling property.
I wonder if it has to do with the rapid increase in lumber prices in particular and commodity prices in general. My house is your typical softwood lumber construction with plywood and insulation. Everything is mass-produced. It's all commodities. Maybe what we're looking at is the "commodification" of housing prices?
I have friend in NJ who does home inspections and he tells me his business has fallen off a cliff the last few months because sellers are getting so many offers that they are refusing any that have home inspections attached.
Man, that place is a dump!
“I drive around my neighborhood, however, and nothing’s for sale. Makes no sense. “
The sense is no supply so bidding wars on what is available.
Over three years of lunatic high prices in my area, five times what they were five years ago, houses, rentals, apartments, ranches, enormous ranches, tiny former railroad shacks, frightening private palaces, from here to the Canadian border.
I've been here for three real estate booms now, all of which ended with one thing: a bust just as big as the boom.
“”The housing market is running full steam ahead,”
Then came 2007.
In my little backwater town 900Sqft is going for over $300k in a mostly white neighborhood.
I am certain that will not sustain.
Median household income is about $63k.
At current interest rates that’s a payment of around $1300 after-tax with $60k down.
That family of 4 is bringing home about $3,800 per month.
I think people are very worried about extremely high inflation coming soon and real property is about the best way to protect you from that. Cash is obviously the worse. People expect real property to appreciate at the general inflation rate or better, hence the surge in demand.
“Who would buy for such high prices when everybody is leaving ?”
As others have posted, foreigners.
Virtually all Indians and Chinese, probably more of the former now then the latter in NorCal. Mexicans buy the bottom end in LA and Santa Clara County.
As a white escapee I knew said, “we left when they put the fifth language on the garbage cans”.
People are fleeing California, but that doesn’t mean that housing prices aren’t skyrocketing. Any home is selling in 3-5 days for well over asking prices. Case in point - last weekend they advertised 18 townhomes in Santa Clara (Silicon Valley) starting at $1.2 million - they had people camping out for the chance to buy one.
The Republican Texas legislature has capped local property tax increases to 3.5%. Of course Austin is claiming an emergency and is demanding an exemption.
With unemployment going up, and Biden/DEMs prohibiting banks from foreclosing on homes, we have ~3 million people that are 30 days late and about 2.5 Million that are more than 90 days late
Add to that the rapid building going on, due to COVID pandemic relaxation and demand for houses with increasing demand
When those 30+ days behind on payments, plus those unemployed, plus many businesses hurt by the lock down are allowed to foreclose - many are too far behind on payments to catch up
Eventually there will be a huge surge of foreclosures to hit the market
Uh, Selma...what about the role of interest rates in real estate sales? The fed is no longer working to contain inflation and that is going to lead to higher interest rates (which is going to be a disaster for the federal government with its staggering debt load).
I suggest switching your creamer to Irish Cream. It tastes better and it makes the world a happier place.
I know a young couple, who will soon be relocating to the Orlando, FL area for a career move. They have put bids in already on 5 or 6 homes, at or above asking price, and have not succeeded yet in having their offers accepted. They are having to put in offers on homes they will not see until “closing”. The prices being asked are mostly 150-200% of the most recent past sales price for each property.
2008 Redux? Great.
Not quite the same. It’s a mass relocation. Eventually the prices will have to either moderate or the buyers will drop out.
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