Real Estate Market

[PandaBear]

Not sure of the point.
Foreclosure, your credit is ruined for some time to come. Penalties are future high risk interest rates on anything you are able to buy, high insurance costs on anything you are able to insure and rejection of new credit lines until you prove yourself worthy.
Not sure why the “not many banks come after you” statement. You just lost everything, banks will not go after something that doesn’t exist unless there is something to go after and it is cost effective for them to do.
I wouldn’t make it sound so easy and simple, people lives can be a living h**l and the future expense as a penalty nothing to take lightly, never mind the stress and self respect.

I once rent to a foreclosed family. They knew they were up side down for a while so they save up cash instead of paying for the mortgage. They end up having to pay rent up front for 1 year to convince me they are trust worthy. They are good tenants though.

Took them about 5 years to finally bought another home, not sure they got a good rate or not but that's something they were able to do, and were getting into the market right before the next boom. So in the end it really depends (probably because they had car loans and they were paying that on time, so that sorts of repaired their credit scores).

 

[PandaBear]

Property taxes are following increase in RE value, and so it goes.

Except in California due to Prop 13.

 

[mightymousetech]

The market here has officially hit ridiculous levels.

 

[ArrestMeRedZ]

I hear there is a lot of Hong Kong money and owners fleeing to Canada. I suspect that will impact real estate prices in The Great White North until the PRC cracks down.

 

[Zee09]

I just fielded an offer for a 30 acre parcel I own today that wasn't even on the market. No realtors involved.
I wanted to sell but never got around to it. The price was great and I will sell...

 

[Malo83]

Crazy here in the central valley, my daughter is house shopping and all the listings are Pending, all her offers were outbidded, only thing decent price wise are mobile homes, double wides, but who wants to live in a trailer.

 

[JC1]

The market here has officially hit ridiculous levels.

Yes I saw in Ottawa some house sold for 400k over asking price. The market is too hot. Banks don't care they are making a killing. Some people are going to get burned, I cannot see this cycle remaining positive. Wait until interest rates go up......

 

[Wolf359]

I just fielded an offer for a 30 acre parcel I own today that wasn't even on the market. No realtors involved.
I wanted to sell but never got around to it. The price was great and I will sell...

I get those all the time from the properties I own. Only I'm a realtor so I know that whatever they offer, I can always throw it on the local MLS and probably get a little more. Most of the time those direct offers are below market.

 

[Zee09]

I get those all the time from the properties I own. Only I'm a realtor so I know that whatever they offer, I can always throw it on the local MLS and probably get a little more. Most of the time those direct offers are below market.

I have been lucky.
This offer is way above market value and I would know as i own most of the area.
I still get offers for property I sold years ago.

 

[Dave Hess]

Yes I saw in Ottawa some house sold for 400k over asking price. The market is too hot. Banks don't care they are making a killing. Some people are going to get burned, I cannot see this cycle remaining positive. Wait until interest rates go up......

Folks need a place to live. They know they’re overpaying but need a roof over their heads.

 

[wildcatgoal]

I'm refinancing. I thought about moving, but I'd want to move states and right now moving anywhere means buying a house for more than it should be and any maintenance would cost more that it should be because wood, metal... it's all more expensive now. No inflation my ass.

 

[JeffKeryk]

Crazy here in the central valley, my daughter is house shopping and all the listings are Pending, all her offers were outbidded, only thing decent price wise are mobile homes, double wides, but who wants to live in a trailer.

Try Silicon Valley or Santa Cruz...
I have been trying to help a friend get into a property. Entry level for a decent 2 bedroom condo is close to $600K or more.
Put property tax and HOA on top of that. Sheesh.

The lowest priced house in Los Gatos has a $1.8M asking price. You won't get it for that...
Poor Part of Los Gatos

 

[Just a civilian pilot]

Low interest rates, not enough inventory and bidding wars now even where I live ( never seen that before, even in a pandemic ).

I keep hearing people warn interest rates will go up but I am skeptical. Great time for spenders, not savers.

Homes ( primary residences ) are tax exempt capital gains in Canada but there is talk about how they are discussing the possibility of taxing it for a variety of reasons which would cool the housing market. I do not support it, not at all.

Its great to sell you home in a bidding war but you are a victim of it if your buying another home. I sold one of my homes last march when the first bidding wars started where I live but we already owned a second home and just kept one.

Even though I benefited from the bidding war, I feel sorry for people who have to go through it.

 

[SZR48207]

Does anyone here recall a time in the past decades when the market was like this?

 

[JeffKeryk]

Does anyone here recall a time in the past decades when the market was like this?

I believe the overall market is at an all time high. At least it is here.
There have been times of rapid growth. Pretty crazy.
It is nice to have the equity, but I believe if you are willing to work and get ahead, you should be able to buy a property.
My wife and I together could buy our house now, but it would be a stretch.
With a $500K down payment I would be at $8K payment plus $2K property taxes.
And the new laws only allow for $10K writeoff. Sheesh.

Glad I married up!

 

[SevenBizzos]

Property taxes are following increase in RE value, and so it goes.

This is not the relationship. If your house depreciates in value by 30%, your taxes do not going down 30%.

Government budgets can't fluctuate like that. Nearly every service they provide costs more this year than last and their levies will provide them that revenue. If you go back far enough to look at the last real market drop, the taxes on the property were stable or had a slight increase.

 

[PandaBear]

Does anyone here recall a time in the past decades when the market was like this?

2003-2008.

 

[PandaBear]

This is not true. If your house depreciates in value by 30%, your taxes do not going down 30%.

Government budgets can't fluctuate like that. Nearly every service they provide costs more this year than last and their levies will provide them that revenue. If you go back far enough to look at the last real market drop, the taxes on the property were stable or had a slight increase.

This is highly local to your state and county.

When my home price went down in 2008 I did file an appeal to lower my property tax by that much (although it only drop 15% not 30%). The county did reduce it but didn't use the lowest, so I end up providing my version of market value and lower it even more, and I won the appeal.

The problem is if the local go into a downward spiral: lower tax leads to lower spending and services and then leads to even lower property value.

The opposite is true when a local drive up property value by replacing their low end residents with higher income ones, and the leads to an upward spiral of property value, better services, better property values. Of course you could argue that the lower income residents deserve better too but as of now this is how the US property tax funded services (school, safety, etc) work.

You do not see this in Singapore because they mandate a lot of hard quota in every single neighborhood, high and low income, ethnicity, education level, etc. They are like a big HOA in city scale. They have a lot of annoyance but they also prevent some people from doing "cool things" that will trash the neighborhood, like spitting chewing gums on the sidewalks (chewing gum is illegal) or graffiti (get you whipped and jailed).

 

[Just a civilian pilot]

Sure makes it an extremely stressful, unpleasant experience trying to buy a home. Its even worse when you have to compete with buyers who do not insist on any conditions. The person who won the bidding war with my place didn’t list any conditions , not even a house inspection. Her offer wasn’t contingent on her selling her place either. People are so desperate , I received ( through my agent ) several letters from people who pit in offers trying to compete against others sending in letters ( their agents must have told them to do it ). You certainly do not need an agent to sell today and make sure you get one that charges a low commission if you go with one. why should a real estate company make more money just because your home went up in value? I used an agent but he charged only 1.5%. They are handy in a bidding war as lots of bids come in fast.

Once again, a horrible way to have to buy a home. Can you imagine trying to buy a car and having to outbid other people and the price on the car means nothing really?

”Drive until you qualify“ for a mortgage as homes near the city are too expensive.

When I was a kid, we moved a lot and my parents sold/bought many homes ( work transfers ) and a house was treated as a “home” more than an investment to the degree they are today and nobody was into renovating ( no Reno snows back then on TV ).

 

[Wolf359]

Sure makes it an extremely stressful, unpleasant experience trying to buy a home. Its even worse when you have to compete with buyers who do not insist on any conditions. The person who won the bidding war with my place didn’t list any conditions , not even a house inspection. Her offer wasn’t contingent on her selling her place either. People are so desperate , I received ( through my agent ) several letters from people who pit in offers trying to compete against others sending in letters ( their agents must have told them to do it ). You certainly do not need an agent to sell today and make sure you get one that charges a low commission if you go with one. why should a real estate company make more money just because your home went up in value? I used an agent but he charged only 1.5%. They are handy in a bidding war as lots of bids come in fast.

Once again, a horrible way to have to buy a home. Can you imagine trying to buy a car and having to outbid other people and the price on the car means nothing really?

”Drive until you qualify“ for a mortgage as homes near the city are too expensive.

When I was a kid, we moved a lot and my parents sold/bought many homes ( work transfers ) and a house was treated as a “home” more than an investment to the degree they are today and nobody was into renovating ( no Reno snows back then on TV ).

I've run into those letters and pass them onto the seller. I remember getting one before and mentioning to the seller but I never even sent it to the seller as we had other offers that were higher and the seller didn't really care to see it.