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.
My sister left Colorado in Dec 2019 - bought a home in NH for $700k, put $300k more into it and moved in on 01 July 2020.
Put it on the market last week - received three offers for $100k above asking; all cash, no inspection, no appraisal.
Sold for $1.8 million without buyer even visiting. She’s going back to Colorado.
Realtors love to say “this is a great time to buy a home”.
The reality today is exactly the opposite. Buying at the peak of a frenzied market is a recipe for disaster.
I understand the fears of inflation, but inflation will not operate in a vacuum. It will crash the economy—so my advice to young people is to wait it out...
Buy low, sell high and you will live long and prosper.
“I’ve also been watching the homes near mine selling for extraordinarily high numbers. I don’t see how this can possibly be sustainable,”
These prices are caused by a strong demand and a limited supply of homes. Unlike the 2008-2009 crash in the housing market which was caused by super lax mortgage requirements such as no salary verification. today banks are far more strict in their lending guidelines.
Most of the price increases are happening in new construction but that doesn’t mean existing home sales are not affected. These homes are routinely selling from 1-3% over listing prices and seldom remain on the market more than a week or 2 with a surprising number selling within hours of listing as happened to 2 homes on my block.
Anecdotal but interesting. My sister in law lives in Northern NJ (Bergen County and is moving to a condo from the home she and my brother have lived in since 1960. He passed away 22 yrs ago and she just couldn’t bear to move despite her kids urging her. She’s now 81 and finally decided to move and her property is being sought after by builders who plan to demolish it and build a new home on the site which is 15,500 sq ft. She has been offered $675,000 for the home and that has been bid up from an original offer of $600,000. She is paying $16,000 in RE taxes.
People are running for their lives from the cities, in this case New York, Newark.
All the truth in homeownership right there. You still owe the tax man, albeit local tax man.
Better have a place to move to. You might get it.
When COVID is over there will be a flood of houses on the market the likes we’ve never seen.
It’s kind of like what happened with toilet paper.
Fed is printing money plus huge deficit spending, pumping up the stock market so people are flush with cash
Oh yeah, it’s insanity. It will not end well.
My wife joked about somebody offering us double the home value. I told her if they show up with cash, we’ll be out in 24 hours.
Her: “But it’s Saturday, how would we even do that?”
Me: “Yeah, which moving company won’t have crews here tomorrow if we’re offering $50,000?”
Since your sister lived there less than 2 years, will she have to pay capital gains tax on the $800K gain, or is the 2 year rule no longer in effect?
Yeah, I could sell my house and buy a mid-range Ferrari now, but where would I live? It would have to be in the Ferrari.
We purchased a home in late 2003, Fairfield Ca. 299,000. Tiny but newer home. Left California late 2005. 425,000.
The new owners lost the house -foreclosure- a year and a half later. It’s had 4 owners since then.
We got out just in time.
Banks will own it all, Klaus has spoken.
You will own nothing and you will be happy.
And it’s all a house of cards.
President Trump was awesome but even his economy couldn’t justify the rapid rise in home prices.
Now, toss in material costs, which will be here for a while, are only making it worse.
GCS are canceling contracts due to the rise in material costs.
I don’t know. A lot of places have made work from home permanent
I guess a lot of things all lead back to these POSs
When Wall Street Is Your Landlord
https://www.google.com/amp/s/amp.theatlantic.com/amp/article/582394/
A $60 Billion Housing Grab by Wall Street
https://www.google.com/amp/s/www.nytimes.com/2020/03/04/magazine/wall-street-landlords.amp.html
Why Are Hedge Funds Buying All the Real Estate in CA?
https://samsrealestateclub.com/why-are-hedge-funds-buying-all-the-real-estate-in-ca/
Been going on for quite some time.
If your house was in any of the NYC suburbs, you’d probably get it and they’d be bidding on the sidewalk out front. Houses are selling in hours and the buyers are showing up with nothing more than their clothes. Opting to leave everything shine in NYC.
It’s pro-rated so she’ll owe something.
Home prices started skyrocketing last year, everywhere, including in blue states. It was a domino effect: When the pandemic hit last year, no one wanted to buy a house. So, mortgage rates dropped to 1%-2%. Then more people wanted to buy homes. Suddenly, buyers outnumbered sellers. Homes started selling within a few days of being on the market, with buyers trying to outbid each other, and sellers asking for higher and higher prices. The housing market has been on fire since last year.
No human in the past, present or future will ever be able to justify your property taxes being tied to the county’s perceived estimate of your homes worth.
Just another way for the government to steal out money.
Value goes up, taxes go up, the cops and firemen aren’t getting raises. Nothing more than armed robbery.
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