The Housing Market (2021)

[sheridany]

@murphysranch I’ll put money on the table it goes over ask with multiple offers all cash no contingencies 15-30 day close.

 

[sheridany]

It’s not just in California. On a separate note The Fed said today while rates are unchanged they foresee rates rising soon.


The housing market is so hot buyers are paying $1 million over asking price

 

[Texas Clodhopper]

I just became aware of a new issue here in the Texas Hill Country, appraisals. Since there is a huge backlog, it is taking 2-3 months to have the property appraised. This is only a problem for buyers buying using a mortgage company. Some buyers are paying a "bonus" of several hundred dollars to get moved up a week or two on the waitlist.

 

[murphysranch]

There have been people wanting to see inside, since they see work being done and our OR license plates. Realtor says NOPE. No lookie loos. Around here the folks from Asia and India pay cash for a home like this. @sheridany is absolutely right.

 

[22MrAir27]

Hi neighbors, my short story. I bought a condo 23 years ago in San Diego/Pacific Beach. I became unemployed on my 61 birthday 12-31, company shut the doors on 608 people that day do to company wanting a smaller foot print in California after 30+ years, I saw a condo unit in my complex had sold for 25k over asking in 5 days so I called (Fri) the realtor to just "ask" if she could give some idea what my place could be worth. She agreed to view my place the following Tuesday and gave me something to think about and said call me in a couple weeks. I called the next day and said "why wait'? I grew up here in San Diego County. Yes, it does have the Best climate hands down, and it used to be awesome till it got crowded and expensive and Californiaized! Any ways, we showed my place by appointment Fri/Sat/Sun, and I received an offer on Mon 30k over asking, AS IS! I said, where do I sign. Fast forward to today, I decided to set forward my dream of touring America at my leisure a year earlier than planned. I turn the keys over this Friday.? It has been tough going thru my stuff and deciding what is really worth keeping.? An earlier post mentioned storage, I realized I had spent 12k in 10 years to hold 7k worth of tools and misc. Now I am discounting to be done with it. I get my new home, Winnebago View 24V Dec time. I will start my journey next March. Bottom line the market made me do it ? I forgot to mention, the appraisal was done on line.

 

[Bill68]

My wife is a Real Estate Agent, and she could explain this phenomena better, but it's something to investigate. Here in North Florida, when a home goes on the market, you better be packed because it is not only going to sell, it will sell at a higher than asking price....and quickly! Wife investigates the buyers, because her customers keep losing out on bids. So whose buying....Conglomerates with billions of assets. Why? Because they are taking advantage of super low financing. What do they do with the homes? Rent them! Wife maintains that some kids hoping to buy will be hard pressed to buy a home in the $300K range because the homes are in the rental market. There is hope, however, as government is cracking down on these low cost loans in a couple of months. High end homes, while still desirable to these companies, are different in that people with affluence are able to bid high enough. We are still waiting delivery of our Tiffen in September (I know...maybe a bad time to buy new but I wanted it and I want it now! Almost 70.) Anyway, were I in the OP position, I would take advantage of the market, sell the VA home and sit on the dough. Maintain the great RV lifestyle until the real estate market craps out, which it will due to the same insane lending habits of several years ago. Then pick up a great home in the location that best suits at a great price. Just food for thought.
Like I tell my wife....what'd I know?

 

[Neal]

I listed my Porsche 911 yesterday, I have an offer at asking already to come get it tomorrow. Same situation as everything else, Porsche is in a low inventory situation. My asking was 20K over KBB and over all other listings on autotrader for higher level Porsche Carrera's. Pit in my stomach about this but I've tried to sell it before with zero interest, it's a niche item. So it's going to go if this goes through.

Lesson is if I go to sell my coach in the fall I better be prepared for someone to actually buy it, it's not a joke. I'd probably list my 2017 VTDP around $290K+. Same advice as above, better be prepared for what you list to sell and fast so be emotionally and financially ready and ready to give up your coach for a while if you do this. Self!!!

 

[Skipper N Martha Bishop]

My wife and I live 15 minutes from all our doctors and hospitals. It is just her and I in a very nice 4 bedroom house. The housing market here in Central Texas is very good for sellers and buyers. We are right in the middle of our two grown kids about 2 1/2 hour either way. If we sold we would have to relocate and buy another home. We talked about selling but decided there was no real advantage for us to do so. We will stay where we are at. Texas is a great place to move to for anyone taking the jump.

 

[L884593]

Lumber futures dropped almost 45%, in June, so some softening is being 'seen' but you'd be hard to tell it in Lowes/Home Depot yet. Does it mean it will continue? Possibly but ---the demand is still so high all across the country, mainly, states that are not considered 'crowded'. My cousin in Meridian, outside Boise, bought his home ~7 years ago for $250K, sold it last month for $600k. Some portions of Texas, from where i hale, are seeing spikes but nothing of that magnitude. As with the RV market, the vehicle, and housing market will correct itself. Covid didn't shutdown the house builders-just most of the lumber mills in/around Texas a surrouding states(not all but a lot). Next couple years i suspect we will see a lot of used RV's hit the market, maybe next years, as a lot of folks bought to get out from their houses after being quarantinned so long.

 

[Rod]

I had 6 realtors searching for a property over the past two years in beautiful Colorado. All of them report we are in the midst of a crazy real estate market.

Recently reported was a story of a couple from CA who (like us) had been searching for a property meeting their punch list and were getting outbid when they did occasionally come across a property they liked. This reporter stated the couple paid $1 million over asking and secured their new home. Reports of $20k-$35k and up to $100k over asking for nice properties are not uncommon. Mind you, I did not say "top properties".

I believe we are witnessing a new reset in real estate prices...higher prices. This so called crazy real estate grab is happening nationwide, everywhere.. The economy and the housing markets were quite strong nation-wide during the last administration and has continued to the present. With mortgage interest rates continuing at record lows (for how long?). Millineals have saved their money during the past year and have now entered the market and began to purchase homes. Inventories continue to be at record lows and homes are commanding record prices...everywhere.

Each of these buyers will eventually sell and with these numbers of buyers, at these prices, "their" selling prices will dictate the new norm in home real estate. When the next downturn occurs, I do not believe housing prices will return to the "old normal". If you are waiting for a pullback, that pullback can't retreat too far. Large numbers of people have bought into this market at record low interest rates. When ever could you could borrow one million dollars for 2.25-2.5%? These interest rates won't last much longer due to the current administration's anti-capitalistic and economic policies...Q1 of 2022 maybe.

So if you're waiting for a pullback, you may find yourself priced out of the market by higher interest rates and "the new norm".

Just my take...