Posted on 05/03/2021 7:20:47 AM PDT by ChicagoConservative27
The staggering rise of U.S. home prices is forcing thousands of aspiring buyers into grueling, often risky bidding wars, raising questions about whether the torrid housing market could be in a bubble.
For nearly a year, the combination of low mortgage rates, a flood federal stimulus, lockdowns and teleworking — all sparked by the coronavirus pandemic — has fueled a rapid increase in demand for houses.
At the same time, COVID-19 exacerbated an already severe housing shortfall by causing major delays in new home construction and kept some potential sellers on the sidelines because they were afraid to let strangers tour their homes during a pandemic.
(Excerpt) Read more at thehill.com ...
How would the monthly mortgage payments compare to monthly rent for similar properties?
It is insane and we are definitely in a bubble but home buyers are pulling money from the stock market. if the stock market falls, housing will plummet. The difference now from 2006 is people are using cash to buy house (or supplement the purchase price). In 06ish they were borrowing money.
New apartment building in my area are going from 1,700 to almost 3,000 grand depending on the unit you pick.
It’s the beginning of hyper inflation.
Nobody can afford Housing, yet prices keep going up & up
Somethings got to give
The demand is real.
People fleeing oppressive/dangerous Dem states and cities.
Very true. People are escaping Chicago and are flooding the burbs.
That range is about what similar size houses would fetch in my part of Florida.
In Florida our job market is rather limited - construction jobs for nostros amigos, inside home repair for gringos, medical jobs for our gals and doctors and legal work for our lawyers.
We are in some sort of economic equivalent of the Schrödinger’s Cat experiment. We have millions of people with their mortgages and rent in forbearance, yet any homes for sale are going for over asking price and prices are up 20% in a single year. The two events are contradictory.
“Nobody can afford Housing, yet prices keep going up & up”
In 1982, mortgages were 12%.
There flooding Florida...they have no houses to sell...there going in one or two days..
Homes in our area are getting multiple offers, within a day of being listed. So, going for over the listing price.
And, many of these sells are ‘as is’....as in, no updates, etc.
We keep getting mailers, from Realtors, saying someone wants to buy our home. I get that they do this, to solicit listings, but....it’s never been like it is, now (frequency).
Unreal.
Extremely dangerous time for first time home buyers. They could go 50 to 100 grand underwater in a blink. And of course most will just walk away and Fannie and Freddie (TAXPAYERS) will get stuck with the bill.
If I had been living in a large city, I’d probably pay anything I could to get out.
“The two events are contradictory.”
When crazy people run a country, crazy things happen.
Free markets work pretty well.
Government-manipulated markets end up hurting lots of people - such as homebuyers who overpay and get tied-down, rent dodgers that get evicted and have to stay with overburdened relatives, and landlords whose rental income needs are not met.
Absolutely. Houses listed in my neck of the woods are being bid up by buyers above listing price and above appraised value. I didn’t even see this before the last bubble. I don’t have a “feel good bone” about this.
“920 to 1,000 SQ foot houses fully remodeled in my suburban Chicago town are going for 235,000 to 269,000. Its insane. “
That’s nothing. In Kali that goes for $900k. In Colorado, it’s $400k.
Anyone looking to buy right now should be informed about the reality of the market. Any decent home is going to receive offers over-asking price within a day or two. Those thinking they can track several homes for a week before making an offer are in for a rude awakening.
We just put our house on the market - offers immediately came in and we accepted an offer 25% higher than we were hoping for a year ago...with an appraisal guarantee and requiring NO inspection. We asked for more than we thought it was worth and the bids were still over what we asked.
It’s nuts.
And at some point, everyone who can afford to move and who wants to move will have moved.
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