And then there's Northwest Indiana...the hot market I can see since a lot of Illinois people are trying to get out of the state before it sinks completely, but I have seen multiple houses go up on the realtor site already contingent. What boggles my mind is how ridiculous the prices are, and people appear to be buying with no qualms.
Real Estate Market
- Thread starter The Critic
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Sold up north a few months ago, got into a bidding war in a few days of showings. Sold at 12% over what we thought we would have gotten before the Covid pandemic started.
Once the market cools off some people are going to get a big reality check. Ones that hold off thinking they will be in a bidding war may be on the losing end.
I think the building materials costs will still be high in 2021.
I think the building materials costs will still be high in 2021.
Here in my small town (actually a village) the population is 300, give or take. But, people are building around here like crazy. The land that has been farmed for generations is being taken over by the younger generation. Their elders are passing away and the young uns that now own the land are splitting it up into lots. A lot of the buyers are from the Baton Rouge area and are getting land to build on here at great prices.
I bet our population will be 400+ by this time next year.
Love these threads. Locally, market is pretty flat. The number of foreclosures have slowed (for a few reasons), so inventory is probably a little lower. I live in a border county, so there isn't much of any demand for housing on this side as we have more people leaving than arriving. My home value has maybe gone up 20% in 10 years, while prices have nearly doubled in the same time frame in the county next to me. Not going to get into why this is happening because you can figure that out on your own.
Reminds me of the last overheated mess buying like drunken sailors. Quite understandable as the metros flee the decline zones. I see myriad license plates like never before from all over the country. The trillions being printed to keep the shutdowns afloat are classic lots of dollars chasing limited product. the economic reckoning is coming and the time to buy for $.01/$1 will come after that.
I see a huge bubble. People selling now are making huge profits.
Like anything else the market goes up and it goes down, fools buy when the market is high and then cry when the market goes down. The Real estate market is jumping here now time will tell when the bottom falls out like in did in 1979 and the late 1980s 2008 etc.
Honestly, hope the market does get checked. It's way to high right now, but people are buying! Even in the small AZ town I live in, way overpriced and homes go as soon as they're listed.
I just sold a house inherited, not my primary residence for more than my asking price. Zillow reports my beach house is appreciating about 10K/month. It's crazy. I'll be selling my primary residence soon and moving to another town. I hope the rates stay this low. 
There's probably a lot of factors that people aren't taking into account. Many of the unemployed are in the retail sector which tends to pay much less. Those working from home are not going on vacations and have a lot more income save up. Credit card debt has been paid down. When restaurants are shut down and people eat at home, that's much cheaper than going out to eat. Home prices are up. If you can't afford the mortgage, instead of getting foreclosed on, you just sell the property and take your 10-20% gain over the last few years and just rent instead. Foreclosures happen when the real estate market is down and you're upside down on the house. Since 2008, it's much harder to get a loan, liar loans were a well known type of loan to get back then and those are basically gone. Also construction is probably down so you have demand but no new supply coming on the market. Maybe the market won't implode, but it'll stop going up at some point. When people see their neighbor getting a record high price, they're not going to sell for less. It will probably have to sit on the market for 3-6 months before they get around to really lowering the price. So the decline in prices will take a little while if it even happens. On the other hand, if the end of the pandemic makes people happy and want to go out and spend money, who knows where it'll end.
Getting crowded too maybe, I moved from San Bruno California 20 years ago because it was getting crowded and it really sucked the last time I visited there in 2017. Though I will admit the peninsula is beautiful. In 2015 I sold my last house there for a million and a half ,the buyer paid cash and it is probably worth a few hundred thousand more now.
I'm one the third house I bought and use as my primary residence.
First two I bought into "hot" markets. Within months of buying the market tanked. It was years before I would have been able to sell and break even on the purchase price. Factor in property taxes and that time frame stretches out a lot further.
First two I bought into "hot" markets. Within months of buying the market tanked. It was years before I would have been able to sell and break even on the purchase price. Factor in property taxes and that time frame stretches out a lot further.
My sister's condo in central San Francisco is getting hard to rent out. Rent prices have dropped by about a 1/3. She's had if for a few years now so she's not close to upside down on it yet but they are going to hold onto it and see what happens. She thinks the price dip will be temporary and looking back historically, its pretty likely prices will go up again.
In rural southern Ontario we have had quite a few city folks with kids move here raising house prices quite a bit. The neighbor to the south of us sold 10 acres of his place on a pretty steep slope for over asking around $180k in a couple days! Got us thinking about severing too as we have a nicer larger severance. That 15 acres might be worth 5 times what we paid for the whole 100 acres 18 years ago... On the other hand if the kids want to live in the area when they are grown, gifting them building lots maybe the only way to have homes without mortgaging 10 times the average income around here...
In rural southern Ontario we have had quite a few city folks with kids move here raising house prices quite a bit. The neighbor to the south of us sold 10 acres of his place on a pretty steep slope for over asking around $180k in a couple days! Got us thinking about severing too as we have a nicer larger severance. That 15 acres might be worth 5 times what we paid for the whole 100 acres 18 years ago... On the other hand if the kids want to live in the area when they are grown, gifting them building lots maybe the only way to have homes without mortgaging 10 times the average income around here...
The prices in the city are way down, the suburbs. It remains to be seen what happens if it comes back or not. Several major companies are allowing people to work from home which will cut commercial real estate demand and if you can work from home, you can go live anywhere. I sold a home not too long ago from someone who moved to Texas because he could get a new home built with about double the size of his old condo and it cost him 2/3's of what his condo sold for.
From what I can tell the market is just frozen
There are very few houses for sale and few sell for the same reason
AKA compared to 5 years ago inventory is about 1/5 what is was.
Nobody is building and you have a perfect storm of zero available homes driving bidding wars for the couple there are,
There are very few houses for sale and few sell for the same reason
AKA compared to 5 years ago inventory is about 1/5 what is was.
Nobody is building and you have a perfect storm of zero available homes driving bidding wars for the couple there are,
I feel like we're going to see a period of urban flight which will tend to reduce demand. With all the recent chaos in urban centers, combined with a huge surge of remote white collar working, people will start to realize that they can do their jobs from say, rural Nevada instead of San Francisco.
As examples of this flexibility, all of our company's recent hires have been geographically dispersed around the US. Also, our neighbor's son who moved to LA to take a job this spring just moved back home as it's way cheaper to live with mom and dad than to be locked down in a studio appartment that costs over 2K a month.
As examples of this flexibility, all of our company's recent hires have been geographically dispersed around the US. Also, our neighbor's son who moved to LA to take a job this spring just moved back home as it's way cheaper to live with mom and dad than to be locked down in a studio appartment that costs over 2K a month.
JTK
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It's been nuts in my area for some time now too, although the home that sells for $1M there, is more like a $200K home/property here. There's very little on the market and those that actually make it to a realtor aren't on the market long.
Coming from 12% or 200k over, 3-5% over seems like a cool off to me.
The cooling happens already, but this can also be seasonal as SFH tends to be in market in the summer. Families want to move when the school year is off.
The rental market has cooled quite a bit for both the renters (looking for deals) and landlords (being picky about tenants because of eviction ban fear).
I am going to have a deep discussion with my family to see what to do when next year Prop 19 starts and how it will impact our tax base, and whether it is time to sell or inherit them early.
What you said about 1% owning 38.5% is part of it, another part is the traditional international market is flooding into USD as a safe haven currency. When you have a lot of money flooding in and low interest (because you don't need to worry about people dumping USD for higher interest rate elsewhere), your interest becomes even lower and people need to buy something.
So, at the moment investment are flooding into anything that won't depreciate against inflation, anything that can break even with inflation is up.
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