My friend said her friend bid 660 on this place and didn’t get it. Which seems crazy. This house is barely bigger than my house which like I said we paid 315 for in 2009 and I guess now is worth 500+?!
So now the little capes are 600 and it’s 800 for a 2k square foot colonial and to top it off people tear down the capes and build 4000 square foot houses that are 1M +
Post by Velar Fricative on Apr 2, 2021 8:48:42 GMT -5
This is the article I posted on CEP a while back talking about why inventory is so low and what's being forecasted. Whatever happens, I don't think any of this is sustainable either. There are only so many households that can afford more $$$ homes and even get into the market in the first place especially with the pandemic exacerbating the divide between the haves and the have-nots.
I assume folks waiving inspection are getting one pre offer so they know what they are getting into. Maybe wrong assumption. Heh
How on earth is there time for that? A true home inspection takes 3-4 hours. Around here, you get a 30 minute slot. Covid restrictions mean you can’t overlap anyone else. Houses list of Thursday or Friday. You hope to get a slot before Sunday (and it seeems to run about a 25% chance you can’t get one). Offers due by 5pm on Monday. Oh, and up the $500 inspection schedules 7 days in advance. So basically, logistically impossible.
We are just relying on what we know about foundation cracks and other things. And what we can see in 30 minutes.
eta: so my MO is that I stay up til 1am, so I can catch all the listing that hit the MLS at mightnight. I schedule tours before pictures his the MlS, based on neighborhoods and Google street view. And I’ll cancel if I find it unacceptable (eg split foyer, no walkout basement) one the pictures hit. And even with this strategy, there are houses I can’t get in.
He can't afford to move because of property taxes. He could easily clear $3M, but finding a cheaper place wouldn't make it work, with the tax issue. I hope that prop 19 does what it is intended to do, but I think setting the tax basis when people buy is a shit law to begin with, as much as, it would benefit us. There are other ways, such as senior school tax exemptions that are more fair.
once we get through this initial insane turn over, prop 19 will be good for the state. It will open up housing stock as seniors will be able to move more freely. (Which still has negative unintended consequences. they will be doing so with a shot loaf of cash so all cash sales will continue to be have a chilling effect the ability of everyone else to buy). Ending the inherited basis will also be good for the state (even though it is causing conniption fits among my brother’s friends who all want to inherit their parents houses and rent them indefinitely without a step up in property tax basis). We also need to stop prop 13 from applying to commercial properties.
I assume folks waiving inspection are getting one pre offer so they know what they are getting into. Maybe wrong assumption. Heh
How on earth is there time for that? A true home inspection takes 3-4 hours. Around here, you get a 30 minute slot. Covid restrictions mean you can’t overlap anyone else. Houses list of Thursday or Friday. You hope to get a slot before Sunday (and it seeems to run about a 25% chance you can’t get one). Offers due by 5pm on Monday. Oh, and up the $500 inspection schedules 7 days in advance. So basically, logistically impossible.
We are just relying on what we know about foundation cracks and other things. And what we can see in 30 minutes.
eta: so my MO is that I stay up til 1am, so I can catch all the listing that hit the MLS at mightnight. I schedule tours before pictures his the MlS, based on neighborhoods and Google street view. And I’ll cancel if I find it unacceptable (eg split foyer, no walkout basement) one the pictures hit. And even with this strategy, there are houses I can’t get in.
I know someone who waived inspection on a 100 year old house and it was not a great decision. There was an illegal extension that wasn’t to code and they almost had to cancel the sale and lose earnest money. Also after moving in, they’ve discovered all kinds of plumbing issues and leaks in the roof.
I assume folks waiving inspection are getting one pre offer so they know what they are getting into. Maybe wrong assumption. Heh
How on earth is there time for that? A true home inspection takes 3-4 hours. br]
Around here, sellers are doing inspections before they go to market and including that with disclosures. It encourages all cash no contingency offers and keeps things moving fast.
Post by downtoearth on Apr 2, 2021 10:57:16 GMT -5
Our housing market is still affordable for middle to upper middle class people, but has gone up >15%-19% in one year in the western half of the state (the eastern half is a totally different world). Our property taxes are already higher than many states (not like CA or MA, I think we are in the top 20 in the nation), but housing costs are slightly lower (like 18th highest in nation) - so that is pretty compatible. The only issue is that our median income is actually lower compared to other state (like 14th lowest in nation), and so our incomes are not keeping up with the rising costs of housing for residents.
I personally know 2 families from Denver (metro), CO, two from NYC, and two from Seattle, WA who have moved here in the last year and purchased houses (several without inspections). Most everyone kept their jobs outside MT and are teleworking and plan to for the foreseeable future or are self-employed (writer, consultant, etc.). One works for a federal agency and if they are called back to the office, I think they are planning to switch to the office in our town... even though there isn't their direct group there, it's the same agency and they think they will be accommodating.
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).
Do you really think people “can afford the homes they are buying now”? Maybe some people sure but I bet many, many folks are still seriously overextending themselves, especially first time buyers who likely don’t have 20% to put down. In a city like mine where the median household income is 80k and property prices have probably increased 20-30% in two years (which income has not) how can we assume people can suddenly afford these homes, even with lower interest rates? When it’s 500k for an 1100 square foot starter home and there are so few of them available due to the million + homes being built to replace them but the median income hasn’t increased .. I guess I don’t agree that people now at least in my area “can afford the homes they are buying” as a general assumption.
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).
Do you really think people “can afford the homes they are buying now”? Maybe some people sure but I bet many, many folks are still seriously overextending themselves, especially first time buyers who likely don’t have 20% to put down. In a city like mine where the median household income is 80k and property prices have probably increased 20-30% in two years (which income has not) how can we assume people can suddenly afford these homes, even with lower interest rates? When it’s 500k for an 1100 square foot starter home and there are so few of them available due to the million + homes being built to replace them but the median income hasn’t increased .. I guess I don’t agree that people now at least in my area “can afford the homes they are buying” as a general assumption.
If we hadn't bought our current home using proceeds from our last home we couldn't have afforded to put 20%. When we bought our first house in 2015 we put down 5%. That was all we could afford and even that was a stretch.
macmars45 we put 10 percent down on this then a year later we refinanced and got rid of our PMI, now when we sell we will easily have 20% for the next place but we’ve been here 12 years.
Putting 10% down on a 300k house is a lot different to 10% on a 500k one that’s for sure! Plus with the competitive market now sellers may not be interested in buyers who only have 5-10 percent to put down.
Also I hate that as a seller trying to also buy it presents something of an ethical dilemma. In order to afford a house that we want to buy we need the biggest down payment possible both to make our offer attractive and to be able to afford our new giant mortgage. This means that I would have to allow some first time homebuyer to pay vastly more then I consider my house to be actually worth, probably overextending themselves in the process.
But what is the solution I guess? I can’t give someone a nice deal on my little cape when the next step up is vastly overpriced.
It's still pretty crazy around here (NW Indiana, about an hour from Chicago). There is no inventory and everything is selling so fast and for so much.
We built our house a little over 3 years ago for 340k and we've seen similar or identical houses in our neighborhood sell for 390 to as high as 450 over the last year. DH has talked about selling a few times but we'd have nowhere to move! My friend and her fiance have been looking for their first home and keep getting outbid on everything so they've just stopped looking for now.
My mom has a home staging business and it's been hard for her because there isn't really a need for staging when everything is going so fast!
Post by jillybean222 on Apr 2, 2021 12:07:53 GMT -5
Our neighbors bought their house in 2014 and put it on the market yesterday for 450k more than they paid 7 years ago! Makes me want to sell my house.....
I knew it was pretty crazy in my town, but I just took a look and there are barely any houses for sale, so inventory sucks. There is a house listed that is 1000 square feet smaller than mine and it is listed at 60K more than what we bought ours for 10 years ago.
How on earth is there time for that? A true home inspection takes 3-4 hours. Around here, you get a 30 minute slot. Covid restrictions mean you can’t overlap anyone else. Houses list of Thursday or Friday. You hope to get a slot before Sunday (and it seeems to run about a 25% chance you can’t get one). Offers due by 5pm on Monday. Oh, and up the $500 inspection schedules 7 days in advance. So basically, logistically impossible.
We are just relying on what we know about foundation cracks and other things. And what we can see in 30 minutes.
eta: so my MO is that I stay up til 1am, so I can catch all the listing that hit the MLS at mightnight. I schedule tours before pictures his the MlS, based on neighborhoods and Google street view. And I’ll cancel if I find it unacceptable (eg split foyer, no walkout basement) one the pictures hit. And even with this strategy, there are houses I can’t get in.
I know someone who waived inspection on a 100 year old house and it was not a great decision. There was an illegal extension that wasn’t to code and they almost had to cancel the sale and lose earnest money. Also after moving in, they’ve discovered all kinds of plumbing issues and leaks in the roof.
Well, yeah. 100 years old... we are looking at things in the 70s-90s.
Please know, I’m not suggesting others do this if they don’t know what they are looking for. But, I work in codes and standards, H is a master electrician who has worked on a ton of construction sites. Not saying we know all, but enough to recognize dangerous foundation cracks vs probably normal settling, electrical fire hazards, and stuff. And I have a structural engineer in my back pocket if needed. We’ve also had really bad experiences with home inspectors in the past, which clouds my view.
We also know we won’t cancel the deal or ask for repairs on little things. It would only be for something major like foundation issues, a failed septic, etc. Roof leaks would depend on the damage done.
my horror story: One guy missed polybutylene pipes. I followed the instructions in his contract, to send him a certified letter documenting what he missed. He responded by showing up to me front door, confronting me in my driveway, causing me suing him (bc... you know, I sent a certified letter), and throwing a refund at me. It was ugly and I was about to call the police if he didn’t stop threatening me.
Also I hate that as a seller trying to also buy it presents something of an ethical dilemma. In order to afford a house that we want to buy we need the biggest down payment possible both to make our offer attractive and to be able to afford our new giant mortgage. This means that I would have to allow some first time homebuyer to pay vastly more then I consider my house to be actually worth, probably overextending themselves in the process.
But what is the solution I guess? I can’t give someone a nice deal on my little cape when the next step up is vastly overpriced.
It’s all just fake money isn’t it, I hate it.
I feel you. I was seriously contemplating a buyers letter that said something like “Stop the insanity! I know capitalism suggests taking the highest price. But think back to when you bought this house to raise your family. Would you have been able to buy it if someone came in flashing $700,000 in cash?” Or something along those lines.
and once we move, my heart will want to take an offer from normal people.
Also I hate that as a seller trying to also buy it presents something of an ethical dilemma. In order to afford a house that we want to buy we need the biggest down payment possible both to make our offer attractive and to be able to afford our new giant mortgage. This means that I would have to allow some first time homebuyer to pay vastly more then I consider my house to be actually worth, probably overextending themselves in the process.
But what is the solution I guess? I can’t give someone a nice deal on my little cape when the next step up is vastly overpriced.
It’s all just fake money isn’t it, I hate it.
I feel you. I was seriously contemplating a buyers letter that said something like “Stop the insanity! I know capitalism suggests taking the highest price. But think back to when you bought this house to raise your family. Would you have been able to buy it if someone came in flashing $700,000 in cash?” Or something along those lines.
and once we move, my heart will want to take an offer from normal people.
With the last offer we put in, we couldn't afford to go above asking, so we put in an asking price offer, but offered 2 months free rent-back for them to get to the date they wanted for move out. We also weren't comfortable waiving inspection (a lot of that happening here too), but we put in our offer that inspection would be for information only, so we could walk away if it turned up some HUGE hidden issue, but we wouldn't be asking them to fix little things. And then I wrote a personal letter about how we've been looking for months, have our heart set on staying in our neighborhood but need a bigger house than what we have, and how the houses on their cul de sac are really our only option and how moving there would be a dream come true. And they still turned us down for an offer that was way over asking. I get it, but it still sucks.
macmars45 we put 10 percent down on this then a year later we refinanced and got rid of our PMI, now when we sell we will easily have 20% for the next place but we’ve been here 12 years.
Putting 10% down on a 300k house is a lot different to 10% on a 500k one that’s for sure! Plus with the competitive market now sellers may not be interested in buyers who only have 5-10 percent to put down.
For sure. We originally were going to buy then sell to avoid the rental in between, but factoring in bridge loan costs/the amount we could put down while still owning our TH... it was a non starter for us. Plus house hunting 2.5 hours away from the city you're moving to in a competitive market was never going to be feasible.
I also think people often operate under the misguided belief that a “newer” home won’t have big problems so it’s fine to waive inspection. Unfortunately a lot of newer houses are much more shoddily built than older homes so buying a “newer” house is no guarantee there won’t be major issues. I am personally more suspicious of a home built in 2000 than I am one built in 1950!
How on earth is there time for that? A true home inspection takes 3-4 hours. Around here, you get a 30 minute slot. Covid restrictions mean you can’t overlap anyone else. Houses list of Thursday or Friday. You hope to get a slot before Sunday (and it seeems to run about a 25% chance you can’t get one). Offers due by 5pm on Monday. Oh, and up the $500 inspection schedules 7 days in advance. So basically, logistically impossible.
We are just relying on what we know about foundation cracks and other things. And what we can see in 30 minutes.
eta: so my MO is that I stay up til 1am, so I can catch all the listing that hit the MLS at mightnight. I schedule tours before pictures his the MlS, based on neighborhoods and Google street view. And I’ll cancel if I find it unacceptable (eg split foyer, no walkout basement) one the pictures hit. And even with this strategy, there are houses I can’t get in.
I know someone who waived inspection on a 100 year old house and it was not a great decision. There was an illegal extension that wasn’t to code and they almost had to cancel the sale and lose earnest money. Also after moving in, they’ve discovered all kinds of plumbing issues and leaks in the roof.
Yep, my bf has friends who planned to remodel a house anyways so they didn't get the inspection. It has been a total nightmare. A lot of things found after would have been found on inspection. Oh well.
I don’t know if I can say the real estate market in Philly is hot because there is just literally nothing hitting the market. Although my friend listed her house last weekend, had 10 offers, and sold over asking in 5 days.
I’m so, so, so glad we bought when we did. There was a tiny slump at the beginning of fall and our house sat for a few weeks and we were able to get it for under asking. I feel like if it went up now we’d have been outbid.
Post by pinkalicious on Apr 2, 2021 21:49:28 GMT -5
I am a Realtor. I put an offer in for a client today at $25k over list price and $5k of sellers closing costs to be paid by the buyers. So just about 9% over list price. Waiting to hear about this one. A 2nd client put in an offer today, only $6k over list price, but we were the only offer as of 6:40pm. Fingers crossed! Another client put in an offer last week for $30k over list, about 6% over. My clients got this one. So, yeah, we are in a crazy market. I’m doing everything I can to help my clients win their dream home, and my sellers get the best offer for their home.
Yes. And we are a week away from getting our rental house on the market. Our realtor said there are less than 100 homes in that price range in the entire city on the market right now. He said we should expect between 50 and 75 showings in the first 72 hours, and likely in the neighborhood of 20 to 30 offers in that timeframe. That is what is making the fact that we've now pulled our second 10-hour day in a row doing yard work because our tenant never raked a leaf or picked up a pine needle in years worth it.
Oh yeah. We are actually looking now but won't list our house until we find something. Inventory is so low. We also made sure we could be approved to buy before we sell because you just can't be contingent
The 2 houses on my street just sold within days and they were both small 1200 Sq ft capes. Unless your house just sucks or it's on a busy road, everything is selling fast
Well... Some things are flying, some things are sitting on the market forever (granted - they usually have massive problems with them if they've been sitting around). There are a ton of houses in the 1 million+ category, fwiw.
I have noticed that a lot of the houses I have been interested in are closing for less than ask. However, two of the three we put offers in on, we put in offers of 25k over and 50k over respectively and didn't get either one. FWIW - both were underpriced. The third was overpriced, we went under and although the dumb house had been sitting on the market for like 6 months, the week that we put in our offer, so did someone else. Grrr...
There were two we missed out on (that I'm kicking myself about) for not being fast enough.
I am in the Chicagoland area. Apparently people are trying to flee from here because of the taxes (and winter). If that was totally true, there'd be a ton more properties on the market than there are. It's slim pickings if you are even remotely interested in getting something more custom. We've been compromising a lot on location and what we are looking for.
I have seen the inventory definitely increase in the past two weeks though.
I’m in the Chicago suburbs, and I have seen slightly more inventory come on the market. What I’m seeing a lot is that people want to sell, but are afraid they won’t find something, so they hold off on listing their house. Is your agent checking the private listing network for you? That’s a way to see a home before it is shown to the public.
This is the article I posted on CEP a while back talking about why inventory is so low and what's being forecasted. Whatever happens, I don't think any of this is sustainable either. There are only so many households that can afford more $$$ homes and even get into the market in the first place especially with the pandemic exacerbating the divide between the haves and the have-nots.
How on earth is there time for that? A true home inspection takes 3-4 hours. br]
Around here, sellers are doing inspections before they go to market and including that with disclosures. It encourages all cash no contingency offers and keeps things moving fast.
I experienced this very thing in our last real estate transaction. We had to waive our own, but the sellers had one, that they made available to both bidders (I thought it was COVID-related, but maybe not?).
ETA: and that inspection didn't turn up the 83625 cosmetic issues that the house had, which have been $$$ to fix. It's insane all around.