I think so, I'm not sure what houses are going for (I'm not tracking it, I'm trying to stay in my house despite DHs job loss) but I know they're going fast. We get a note/letter from real estate agents maybe 2 times a week saying they would love to sell our house for us. Im 30 min north of Ann Arbor, MI.
My mom in Loudoun County, VA said a house up the street just sold for $750k. They bought for $230 back in 1989 😭 and the past 10 year houses are usually around $550 in their neighborhood.
Maybe a rhetorical question, but how in the hell is all ^ this sustainable? And how do solidly middle class folks, for example, a dual-income household, making $100K, with 2 kids, able to afford these insane house prices?
If there isn’t a correction, only the wealthy will own - developers, high income households, people buying second and third homes for vacation or investment properties. More and more people will be forced into renting.
Post by sunshine608 on Apr 1, 2021 12:53:36 GMT -5
Yes, particularly starter homes and under about 500K. Low inventory, high demand. Lots of cash offers and multiple offers with stuff going over asking. I'm in an Atlanta suburb.
It's about to get worse with the Spring/Summer. We have toyed with selling b/c our equity is $$$, but I don't want to have to get caught up in finding a place to buy and paying more.
Maybe a rhetorical question, but how in the hell is all ^ this sustainable? And how do solidly middle class folks, for example, a dual-income household, making $100K, with 2 kids, able to afford these insane house prices?
Post by jennistarr1 on Apr 1, 2021 12:56:50 GMT -5
yes and we actually decided against moving right now because while we might benefit from selling our house at a higher price, I think what we would have to overpay in the second house would be more and I don't want to make quick decisions or compromise what we want.
I'm waiting until the sellers/buyers market is a bit more neutral
The market is insane near me - which is usually a regular MCOL area. But the insanity is because there are way fewer homes being sold than usual. I think it’ll adjust once things really open up again.
It's hot here. I'm in a ruralish touristy area, we have almost no inventory, zillow lists 20 SFH in my city of 15,000, about half are foreclosure or auction in need of serious repair. My house sold for asking on day 1 a few months ago. My house was a 1950s ranch in need of pretty decent repairs (rewiring, roof, plumbing issues, leaking pipes). No repairs were requested, appraisal was waived and the didn't even flinch regarding my driveway being on my neighbor's property. We got over 35k more than we paid 3 years ago. Most houses in my city pre-pandemic were 150-200k, they are now in the 200-250k range. City dwellers are coming out here because they can live cheaply and remote work, yet they are still making their HCOL salary. The rental market is also tight for the same reason. I hope things will start to calm down post pandemic, I really want to re-buy!
Absolutely. I'm on long island, 25 min train ride to penn. city people are flocking out here for the space after being cooped up during covid with a serious lack of outdoor space.
Yup. I feel like real estate has been tight in my area for years, but lately it seems even more insane. I'm curious about the sustainability too. But the fact is that there is huge demand and very low supply for the desirable Boston suburbs. There is no more land to build, so all the small homes are being bought by developers, bulldozed, and then replaced with a $1M+ new construction. It kind of sucks. We got lucky and bought in 2009, so we've appreciated considerably. I'd love to upgrade, but to get what we'd want (one more bedroom and a garage), we would have to more than double our mortgage. I feel kind of stuck unless we move to lower COL.
Post by pinkplasticdoll on Apr 1, 2021 13:12:29 GMT -5
Yes, there was an open house in our neighborhood on Sunday and the line to see the house was down the front path, down the sidewalk and the street was lined with cars. It was showing in active contract on Tuesday...
Yes. We bought our fairly nice but nothing special condo just before the pandemic hit. It has gone up a ton in value since. I'd use that as leverage to upgrade to a townhouse or a house but what would be the point? We'd never be able to afford either, even if we made a bunch on the sale because all the houses and townhouses are also going for 50k-100k over asking.
Houses in my Seattle suburb are going for $100-$200k over asking within days of listing. These aren’t high end by any means, just cookie cutter houses built in the 70s, 80s, and 90s. Many are selling for close to $1M. New builds are more like $1.5-$2M. We bought in 2011 for $250k and would be very much priced out of the area if we were looking now.
Maybe a rhetorical question, but how in the hell is all ^ this sustainable? And how do solidly middle class folks, for example, a dual-income household, making $100K, with 2 kids, able to afford these insane house prices?
this is my problem right now. We are UMC with a slightly higher income and one kid, but we can't afford anything in our area. The houses that are for sale would already stretch our budget (thanks high property taxes) so there is no way we could go 10-20% OVER asking. We are basically stuck in our small 2 bedroom condo, just riding it out for now. It totally sucks though.
I think so, I'm not sure what houses are going for (I'm not tracking it, I'm trying to stay in my house despite DHs job loss) but I know they're going fast. We get a note/letter from real estate agents maybe 2 times a week saying they would love to sell our house for us. Im 30 min north of Ann Arbor, MI.
My mom in Loudoun County, VA said a house up the street just sold for $750k. They bought for $230 back in 1989 😭 and the past 10 year houses are usually around $550 in their neighborhood.
These exponential rises are true even in the next county over from Loudoun. When we bought 6 years ago, our sellers made 100% on what they paid when they built the house in 1997. 100% increase in 18 years. I was pretty WTF about that when we bought the place. And at the 6 yr mark, it has further appreciated 25%. Real estate is NUTS.
It’s bonkers. Up 29% year over year and it was up 15% the year before. We built and moved in 2019 and paid $695 for our house. Neighbours are selling very similar houses for $950-$1.1M. It’s madness.
we live in a moderate to high COL area (very town dependent).
We sold our house a year ago for far more than we paid for it. It just sold again last week, after being on the market for less than one day, to an all cash offer, for 100K more than we sold it for a year ago. No updates done. From one of the most affordable towns in our area. It is INSANE.
We are trying to move my mom into something smaller--a condo even. But the condos here, that 4 and 5 years ago were closer to 200K are now 500K. I am hoping we get a good amount for her house but still, I do not want her to spend so much as a single woman in her 70s on a fixed income.
Our area has always had a pretty strong and steady market. Being this close to DC there is too much constant industry here. That said, things are now flying off the market and not always closing for way over asking, just selling crazy fast. Covid has people wanting either single family homes or town homes; gaining private outdoor space and not living with shared touch points. DC condo market is hurting.
My sister is in the process of selling due to her divorce, and the offer they accepted involved a buyer flying to Utah from California just to go to her open house. It went for almost $100,000 over asking, and their asking price was almost $150,000 over what they paid for it less than two years ago.
There's no inventory here, which is at least partly what's driving the prices. We bought our home almost exactly a year ago and I had a saved search on realtor.com for almost a year before that just to get a sense for what the market was doing. During those 12 months there were consistently 30-50 homes meeting our price/size parameters that weren't under contract yet. I just checked again--there are currently THREE total homes that we would have been able to consider buying if we were looking right now.
Our area has always had a pretty strong and steady market. Being this close to DC there is too much constant industry here. That said, things are now flying off the market and not always closing for way over asking, just selling crazy fast. Covid has people wanting either single family homes or town homes; gaining private outdoor space and not living with shared touch points. DC condo market is hurting.
Ouch. My BIL put his DC condo on the market a month ago and it is not selling. I feel so bad for him. He's relocating for work so he needs to sell. Pre-pandemic it would have flown off the market. At this rate, I'm worried they are going to take a loss on it.
Post by expectantsteelerfan on Apr 1, 2021 14:18:21 GMT -5
Yes. We have been saving up for a downpayment for the past 1.5 years to get ready to upgrade from our starter home, and we have been watching the market since then, but weren't ready to really start looking until December. Through the fall here, there was little new inventory, but things weren't insane until Jan. That's when things started selling within a day or two of hitting the market for well over asking. We have a healthy budget and never dreamed we'd have any trouble finding/buying a house when we were ready, but our experience has been so depressing. There have been 2 houses we loved and lost out on both (went over asking and people waived inspection. At least we aren't dealing with all cash offers here). We've been going back and forth over building new instead, but if we do that, we pay inflated prices for lumber and other supplies right now, and then miss out on listing our house for the inflated price it would go for right now.
Our area has always had a pretty strong and steady market. Being this close to DC there is too much constant industry here. That said, things are now flying off the market and not always closing for way over asking, just selling crazy fast. Covid has people wanting either single family homes or town homes; gaining private outdoor space and not living with shared touch points. DC condo market is hurting.
Ouch. My BIL put his DC condo on the market a month ago and it is not selling. I feel so bad for him. He's relocating for work so he needs to sell. Pre-pandemic it would have flown off the market. At this rate, I'm worried they are going to take a loss on it.
It is really sad. Can he try renting it? I do think, once covid settles down and all that, people will be moving back in to town. There are so many people who move her, especially military, I would suggest he try to list it on sites geared to them. With the Marine barracks in town and the navy yard, I could see a single person or a couple wanting to be in town. I would try listing it now because people will be moving this summer.
We bought our house in 2015 and our offer was $100k over asking. It’s what was required to be competitive even then. It’s since increased over 40% in value. It’s insane.
Ouch. My BIL put his DC condo on the market a month ago and it is not selling. I feel so bad for him. He's relocating for work so he needs to sell. Pre-pandemic it would have flown off the market. At this rate, I'm worried they are going to take a loss on it.
It is really sad. Can he try renting it? I do think, once covid settles down and all that, people will be moving back in to town. There are so many people who move her, especially military, I would suggest he try to list it on sites geared to them. With the Marine barracks in town and the navy yard, I could see a single person or a couple wanting to be in town. I would try listing it now because people will be moving this summer.
They really want to sell because they want to buy a house where they are moving. I am worried for them, I'm afraid they are going to sell at a loss and then buy high. But they have been dying to buy a house for years. Your idea is a good one though since it is a 1 bedroom condo. If it doesn't sell soon I'll mention it to them.
I don't think we'll see a crash like in 2008/2009, but I do think things will cool off as interest rates go up and things settle down after this weird pandemic rush to the suburbs.
This is likely what will happen.
Inventory is LOW - historic, record lows. A stable market has ~ 6 months worth of inventory (meaning, if no new houses came on the market, that is how long it would take for ALL homes to sell). Right now inventory is at about 1.5 months, give or take the market.
But there won't be a crash like 2008 because lending standards are MUCH better, and people can afford the houses they're purchasing now. Interest rates are still very low, and that makes buying more expensive homes much more affordable.
You also need to remember that there is still a moratorium on foreclosures until at least June. Once that is lifted, then there will be a huge influx of homes on the market - some by people trying to sell BEFORE the banks foreclose, others will end up bank-owned.
(I'm a Realtor who has lost a LOT of sleep losing out bid after bid after bid after bid for my buyers and hopes this all ends soon).
Post by starburst604 on Apr 1, 2021 14:32:06 GMT -5
The town we live in (burb of Boston) is bonkers right now. Literally no inventory and anything that goes on is sold in a day, way over asking. We are looking to move to a new house in the same town next spring and really hope things have changed. We have friends who sold their house and moved into an apartment around Christmas so they could buy with no contingencies and still NOTHING. Their 3rd kid is due in June and it’s looking likely they’ll still be in the apartment, which is not at all what they wanted.
ETA: the house our friends lived in before was too small for their expanding family, but in a great neighborhood with enough property to grow. I really thought they should just do a reno and addition but they didn’t want to deal with it. I think they’re kicking themselves now.
Our townhouse right now would sell for about $130K more than we paid for it in 2014.
It is really sad. Can he try renting it? I do think, once covid settles down and all that, people will be moving back in to town. There are so many people who move her, especially military, I would suggest he try to list it on sites geared to them. With the Marine barracks in town and the navy yard, I could see a single person or a couple wanting to be in town. I would try listing it now because people will be moving this summer.
They really want to sell because they want to buy a house where they are moving. I am worried for them, I'm afraid they are going to sell at a loss and then buy high. But they have been dying to buy a house for years. Your idea is a good one though since it is a 1 bedroom condo. If it doesn't sell soon I'll mention it to them.
They should and then honestly, I would not rush to buy a house right now. I would rent for a year and see what the market does because right now, if this is their starter house, they might end up spending way more than they should.