Another article showing concern in the housing market- yet the author may have lacked critical thinking

[alarmguy]

There is no housing crisis, its social media crisis. Everything is wrong with the world, nothing right. Pandering to complainers never works out good for anyone, except the corporations that run these sites and their advertisers.
Understand this now, in the new world of Social Media NOTHING will ever be right in the world. Those days are over and you will be convinced of it every waking day.

As an individual pick yourself up and make it happen or sink. No one else is responsible for you, thinking otherwise is a slippery slope towards a subject not allowed in here/

 

[CanAmAndMore]

I have my own rule for real estate.
If it sells in less than 3 days you sold it too cheap.
If it hasn't sold in 30 days you're asking too much.

 

[Hillbilly Deluxe]

I have my own rule for real estate.
If it sells in less than 3 days you sold it too cheap.
If it hasn't sold in 30 days you're asking too much.

You might have a valid point for the first line.

I sold my mother's house in March 2022 without even listing it. But here's the details-

1. My stepfather had died 3 weeks prior.
2. My mother wanted to be gone from the house ASAP and moved into an Independent Living complex because she didn't want to be in the house anymore due to memories/etc.
3. We bought the house in June 2020, it was in good shape except for HVAC. Had a new water heater, new roof, fairly good paint inside and out, etc. I did replace the 15 year old HVAC system with a state of the art system. A good bit of stuff was still packed up but since we had moved them just 20 months prior, a lot of purging had gone one also.

We moved her in a couple of days and had the house cleaned out in a week. During that week, I called the RE agent I used to buy the house and told him I was about to sell it. He immediately said "I probably have a buyer". We talked about what the list price should be if we were going to list it, we raised it $5k. He told the person who had told him they were looking and they came back with an offer $15k above that, with no inspection, no appraisal, no wanting anything fixed, etc.

4. I agreed and we closed in 3 weeks. The sale price was 46% over what we had paid 20 months prior. There were no skeletons in the buyer's closet and it turned out they were putting 55% down, hence the reason for no appraisal, no inspection, etc.

I could have "gone public" with the listing and possibly got another $10k. I might have also had to deal with 4+ other buyers with financial issues and here I had a buyer that was no trouble. Bottom line, I had a check in my hand in 3 weeks, made 46% in less than 2 years and couldn't have happier.

 

[CanAmAndMore]

You might have a valid point for the first line.

I sold my mother's house in March 2022 without even listing it. But here's the details-

1. My stepfather had died 3 weeks prior.
2. My mother wanted to be gone from the house ASAP and moved into an Independent Living complex because she didn't want to be in the house anymore due to memories/etc.
3. We bought the house in June 2020, it was in good shape except for HVAC. Had a new water heater, new roof, fairly good paint inside and out, etc. I did replace the 15 year old HVAC system with a state of the art system. A good bit of stuff was still packed up but since we had moved them just 20 months prior, a lot of purging had gone one also.

We moved her in a couple of days and had the house cleaned out in a week. During that week, I called the RE agent I used to buy the house and told him I was about to sell it. He immediately said "I probably have a buyer". We talked about what the list price should be if we were going to list it, we raised it $5k. He told the person who had told him they were looking and they came back with an offer $15k above that, with no inspection, no appraisal, no wanting anything fixed, etc.

4. I agreed and we closed in 3 weeks. The sale price was 46% over what we had paid 20 months prior. There were no skeletons in the buyer's closet and it turned out they were putting 55% down, hence the reason for no appraisal, no inspection, etc.

I could have "gone public" with the listing and possibly got another $10k. I might have also had to deal with 4+ other buyers with financial issues and here I had a buyer that was no trouble. Bottom line, I had a check in my hand in 3 weeks, made 46% in less than 2 years and couldn't have happier.

That is wonderful.
And I wish they all sold that well.

But my 3 or 30 day rule is for a listed for sale place.

When I sold my home last year, I sold it myself, no realtor involvement, and it sold in 12 days, which to me was about perfect.

 

[BMWTurboDzl]

I have my own rule for real estate.
If it sells in less than 3 days you sold it too cheap.
If it hasn't sold in 30 days you're asking too much.

Those are bad rules because certain price ranges for individual markets can take longer. It took my mother a year to sell her WNC house for $1..2MM and the buyers were from Calif.

 

[BMWTurboDzl]

Interesting development: I've been buried in new construction for the past few days and builders are paying a lot of money to buydown rates for buyers. Buydowns are either temporary or permanent.

 

[Hillbilly Deluxe]

Interesting development: I've been buried in new construction for the past few days and builders are paying a lot of money to buydown rates for buyers. Buydowns are either temporary or permanent.

I have seen/heard about this for the last year. It goes back to what used to be available/go on when interest rates were in the 6-8% range (and higher).

The thing is/was, that requires cash in hand and most people who are financing a house don't have extra money laying around that they WANT to spend on buying down points up front.

The builders are sitting on un-sold inventory and their banks/investors are glaring at them with raised eyebrows over their reading glasses.... I'm starting to see a lot of $100k pontoon boats for sale, I can only imagine it's smaller contractors of some sort trying to get out from under that payment or raise cash for things like this.

 

[BMWTurboDzl]

I have seen/heard about this for the last year. It goes back to what used to be available/go on when interest rates were in the 6-8% range (and higher).

The thing is/was, that requires cash in hand and most people who are financing a house don't have extra money laying around that they WANT to spend on buying down points up front.

The builders are sitting on un-sold inventory and their banks/investors are glaring at them with raised eyebrows over their reading glasses.... I'm starting to see a lot of $100k pontoon boats for sale, I can only imagine it's smaller contractors of some sort trying to get out from under that payment or raise cash for things like this.

Builders are paying the buydown via seller concession.

 

[Hillbilly Deluxe]

Builders are paying the buydown via seller concession.

LOL....

I fully understand this.... I knew this was going on for close to a year.

 

[BMWTurboDzl]

LOL....

I fully understand this.... I knew this was going on for close to a year.

Ya I started seeing it at the beginning of the year but it has become more common which would mean beginning end of last years and beginning of this year (I'm 6 months behind). The WSJ has an article saying that new construction is back up because existing homeowners can't afford to sell due to the higher rate environment. Obviously there will be regional differences since all markets are local.

 

[SC Maintenance]

Those are bad rules because certain price ranges for individual markets can take longer. It took my mother a year to sell her WNC house for $1..2MM and the buyers were from Calif.

Yes I wondered about this because every market has an average days on market, and its also by price range. I am not a real estate professional but I would say if your below average you priced it about right. Am I wrong?

 

[BMWTurboDzl]

Yes I wondered about this because every market has an average days on market, and its also by price range. I am not a real estate professional but I would say if your below average you priced it about right. Am I wrong?

Generally speaking you're not wrong. Location and time of year, imo, have a larger impact. I work in fraud rather than sales so take my opinion with a grain of salt.

 

[zzyzzx]

https://finance.yahoo.com/news/loan-officer-m-seeing-middle-000641114.html

 

[zzyzzx]

 

[zzyzzx]

 

[zzyzzx]

 

[KrisZ]

The crisis is massive government overspending since 2020. How that shakes down is yet to be seen.

 

[Dave Hess]

The crisis is massive government overspending since 2020. How that shakes down is yet to be seen.

It takes a while and certain conditions to get the hurricane winds in motion.

 

[alarmguy]

Ya I started seeing it at the beginning of the year but it has become more common which would mean beginning end of last years and beginning of this year (I'm 6 months behind). The WSJ has an article saying that new construction is back up because existing homeowners can't afford to sell due to the higher rate environment. Obviously there will be regional differences since all markets are local.

Yeah regional. In our area our national builder is buying down rates but it's just marketing, meaning switching from one sale promotion to another sale promotion due to "hot keys" of marketing. Meaning interest rates are the hot topic, so what has happened, in our case.
We got $20,000 off our purchase price last summer and $5000 in closing costs, that promotion is now gone, BUT the new promotion is buying down rates, net cost to the builder is $0.
Also they have held the line a little bit but not offering like I said the discounts AND some free smart home perks are now gone and well as some optional things previously thrown in at no cost (part of the marketing) like wood veneer floors throughout are now becoming carpeted bedrooms. Some of the following is also gone ... Ring alarm system and doorbell is gone, the wifi connected garage door is gone, possibly the wifi locks and thermostats... I say "some" because I like to be accurate I have noticed some of these things no longer in homes that literally have just closed in the last week.

So we have the interest rate buy downs but not the price mark downs to the same extent, prices have held yet they are now only building a mix of more expensive homes (because they are selling faster then they can build, close to or at now one year back log)
It also seems more selective homes being selected and not blanket buy downs for homes that maybe taking longer to sell in other areas but not this one.

WIth that said, VERY true, depends on area and IF the need to promote in order to move homes.

Edit = A few nice deals on homes in the Myrtle Beach area keeping in mind these are homes that haven't sold... We weren't big on this area, there wasnt much value for what you were getting compared to other areas on the NC coast ... which there are no promotions.
https://www.lennar.com/new-homes/south-carolina/myrtle-beach/promo/crslen_national_sales_event

 

[GON]

Just read an opinion article implying single family home ownership is not the future. Major corporations/private equity are buying 25 percent of the single family homes. Home buyers can't compete with these cash corporate buyers , that buy as as for full price.

The end state according to the opinion article is Americans are going to be renters paying corporate America and private equity firms rent, and the property appreciation is going to go to the corporations, not individual Americans. Much if the world uses a model where individuals are unable to own the home the live in.