Posted on 05/03/2021 7:20:47 AM PDT by ChicagoConservative27
They are all flooding into Idaho. There is lots of concern that they are bringing their horrible social pathologies with them.
Houses in the Thousand Oaks CA area that are listed for around $800K often sell for around $100K over the asking price after the ensuing bidding wars. Very low supply + very high demand + very low interest rates = the best seller’s market I can remember.
Been looking in the Scottsdale AZ area and see that properties are selling for over 20% higher than they were a year ago. Decided to ride this out and wait for a correction.
This past weekend, I set up an appointment to look at a nice house, that just came on the market. Hours later, I got a call from the broker saying that the house was now going to contract, that there were six backup offers on the house and that the owner no longer needs additional showings.
I have been looking in Scottsdale also. Its insane the prices. Two years is my goal of getting out of IL.
“most will just walk away”
Many will not walk away because they got a cheap interest rate (3% instead of the California Bush-era 7% introductory rate that was meant to get refinanced at 6% but couldn’t be because the mortgagors were underwater).
They will however get tied-down for a number of years.
Near beach property here in NC has gone up $100K since last summer.
Realtors and out of towners are buying up the properties sight unseen.
I’ve been priced out of the market I had planned to retire in next year.
Mortgage rates are far lower now. But I think people are thinking of the qualifying income needed to beget the mortgage to buy a house. It makes me wonder how do people afford these homes? Do they make huge down payments somasmto reduce the mortgage needed, are families giving them money for all cash sales, or how exactly the houses are paid for?
Based on traditional mortgage criteria, such as rules of thumb that you can afford a house costing 2 1/2 times your income, and support a mortgage of twice your income, there is no way that the vast majority of middle class people can afford these houses.
Of course, if they have cash somehow, none of the mortgage calculations matter.
Those that aren't leaving the state entirely are flooding the burbs is correct. I decided to stay in my townhome because I'm just not willing to pay the $300+/sf to buy a reasonable move-in ready home anywhere in this state at this point.
My townhome that I purchased 3 years ago is going for $75k more than I purchased it for. You know something's way outta whack in housing prices when you say to yourself "I like where I live, I like my townhome, my neighbors, etc.. but I'd damn' sure not pay $300k for this thing."
When this bubble pops -- and it will sooner or later -- it's gonna be ugly. The only two things that can stop it right now as best I can see are lumber prices and interest rates, which have to go up sooner or later to battle the oncoming double-digit inflation. We see it in food and commodity prices already. It's just a matter of time until EVERYTHING ELSE is hit also.
Oh I do hope it is a bubble and fools will take a bath. What is going on makes me sick and anxious. I should not be though, all bought and paid for and no need to move but I hate to see these greed / panic driven frenzies.
As for loaf from home,I can’t see the majority of it lasting all that long but that is my boomer view of things. Only if the lowered normal is acceptable to the new generations who live it and accept it as normal can it go on. Productivity is diminished for the most part from what I can see.
Supervisors and managers are necessary because most people are not self-motivated and can’t manage themselves.
Where are people getting all the money?
I know stocks and IT jobs, but there just seems to be a lot of people with a lot of money.
I don’t see it.
It is insane up here in Ontario cities.
I’m just south of Hamilton and we’re listing the house next week. Bought it for $323,000.00 in 2009. Realtor says it will go for $1M, possibly more. It is NOT a million dollar home, trust me. It’s a raised ranch, with about 1500 sq. ft. on each floor. The downstairs is a fully finished large 3 bedroom unit. We’re hoping because it’s actually two good-sized living quarters, with separate entrances, it will fetch a few more dollars. It was appraised at $750,000.00 last year, but things have gone nuts up here.
Out of plain curiousity, what your plans are for housing after the sale?
And should be about 6% or so in the mean now.
My mortgage in 1979 was over 13% and was a special deal for first time home buyers.
There is nothing normal about 2 to 3% mortgages. I’d never risk or loan my money for such a paltry return with inflation like it is now or at any other time.
The problem is, 2 to 3% is what new generations expect. Anything else will send them into tailspins.
A LOT of the buyers up here, paying these high prices, are Asian. Lots of China money flowing into real estate.
I have said for years the following regarding “the housing market”
The rent market is a Rio market completely covered by market forces
The two by market is a complete bubble all of the time and makes no sense whatsoever
I live in Marin County California and your standard little box on a post card stamp size lot sells for over $1 million
I’m sorry but neither that house nor the dirt it sits upon is worth $1 million
Now I rent one of those $2 million boxes for $4600 a month
To me it’s worth every penny
And so you trade one over valued house for another?
All the while the price being driven up nets higher taxes, insurance and real estate fees.
Who won?
Why?
They want to move to the US?
Or are they just driving up prices?
If you can’t afford housing with mortgage rates at sub 3%, you’re doing something wrong.
That is what I hope and then the market will fall.
One slight correction is from wants to move to desperate to move.
I am wondering what happens when loaf from home is reversed? the reduced cost of an office just goes so far when productivity and communication fail.
The concerns are real.
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