One of my snowbird friends decided to move back to PA full time to be close to kids and grandkids. He priced the house $200k above what the real estate agent advised, and the house sold in 2 days!

I still don't get where the money is coming from for all this, especially with CASH buyers.

I have a lawyer friend that says that a lot of foreclosures were bought up by hedge funds in 2009/2010. She also says that there are a lot of foreign money sloshing around the U.S..

Vancouver BC had a lot of problems with Chinese buyers jacking up the price but once people started talking about restricting foreign ownership, the prices started to stabilize. I wonder how much of that is going on here?

Even stranger is the situation in the UK. Middle East house owners buy homes there and only stay in them once a year when they visit. Otherwise, they're empty.

I also wonder if the banks learned anything about predatory lending after the debacle that was 2008. If not, it would be the pinnacle of human stupidity - I mean, people making the same dumb mistake again so soon.

V.

quote:

Originally posted by White Phosphorus:
I still don't get where the money is coming from for all this, especially with CASH buyers.

I have a lawyer friend that says that a lot of foreclosures were bought up by hedge funds in 2009/2010. She also says that there are a lot of foreign money sloshing around the U.S..

Vancouver BC had a lot of problems with Chinese buyers jacking up the price but once the government put a lid on that, the prices started to stabilize. I wonder how much of that is going on here?

I also wonder if the banks learned anything about predatory lending after the debacle that was 2008. If not, it would be the pinnacle of human stupidity - I mean, people making the same dumb mistake so soon.

V.

What I’m seeing locally is “cash” buyers happen to have enough equity when they sell to pay cash for the new purchase. My fiancé has a few investor clients that buy cash to do flips. The banks have been very tough actually. With Covid they are checking everything twice. We refinanced and I had to prove employment again. The company my employer uses for this confirmation only gives a statement accurate for a month previous. The bank didn’t accept that and made me email them from work. I’ve also seen one deal fall apart and another come close because the buyers made stupid decisions. The one that fell apart the buyer quit her job in anticipation of her husband getting a new job. The one that came close the buyer of new construction opened credit cards and bought all the appliances for the house. She had to get a family loan and pay it off before closing.

Speaking of lumber costs the new construction prices are skyrocketing. In some instances buyers are whining about upgrade costs and the builder is like, “Fine, let them walk. I want to re-list it for 50K more anyhow. Lumber yard will only give him quotes good for 2 weeks.

quote:

Originally posted by frayedends:

The one that came close the buyer of new construction opened credit cards and bought all the appliances for the house. She had to get a family loan and pay it off before closing.

Wow. That is REALLY dumb. Did they not have a competent realtor/mortgage person that told them to NEVER do that?

I recall just before putting in my offer on this unit I am now selling, the mortgage guy told me in no uncertain terms that between offer being accepted and closing day I was to NOT make any big purchases and to really watch my spending.

We actually looked at a very nice new construction townhouse a few years ago, it turns out the people who went to buy it rushed out and bought all new furniture and housewares before closing on it and it totally scuttled their finances and they did not get the house.

quote:

Originally posted by PASig:

quote:

Originally posted by frayedends:

The one that came close the buyer of new construction opened credit cards and bought all the appliances for the house. She had to get a family loan and pay it off before closing.

Wow. That is REALLY dumb. Did they not have a competent realtor/mortgage person that told them to NEVER do that?

I recall just before putting in my offer on this unit I am now selling, the mortgage guy told me in no uncertain terms that between offer being accepted and closing day I was to NOT make any big purchases and to really watch my spending.

We actually looked at a very nice new construction townhouse a few years ago, it turns out the people who went to buy it rushed out and bought all new furniture and housewares before closing on it and it totally scuttled their finances and they did not get the house.

Oh yeah. The realtor is my fiancé. She also got them the mortgage lender. Same mortgage person we used. They both are very clear about this stuff. The buyers do have a small language barrier but they did basically say they knew it was wrong but didn’t think it was a big deal. Crazy.

Oops edit. My fiancé is sellers agent not representing buyer. But the mortgage person is the same. Mortgage person called my fiancé to let her know there was a delay to mortgage commitment.

This message has been edited. Last edited by: frayedends,

On a local TV station here in central Alabama, during the 5 and 6 o'clock news, a commercial has been coming on since the first of April. The guy in it is offering to buy houses for cash, as-is, no repairs needed. He also says no realtors and no fees. Tempting in some ways, because my wife and I would like to move a little closer to one of our kids, and I didn't have a good experience with the last realtor 25 years ago. We built the house we are currently living in, but I won't do that again anytime soon. We have outstanding equity, so hopefully that will make it a little easier when we sell this and buy another. I'm going to research this guy's company to see what it's about.

quote:

Originally posted by Glynn863:
On a local TV station here in central Alabama, during the 5 and 6 o'clock news, a commercial has been coming on since the first of April. The guy in it is offering to buy houses for cash, as-is, no repairs needed. He also says no realtors and no fees. Tempting in some ways, because my wife and I would like to move a little closer to one of our kids, and I didn't have a good experience with the last realtor 25 years ago. We built the house we are currently living in, but I won't do that again anytime soon. We have outstanding equity, so hopefully that will make it a little easier when we sell this and buy another. I'm going to research this guy's company to see what it's about.

Don’t do it.

This person has to offer you a price for something that he can later fix and update and sell for market price. Cut out the middleman and sell it for market price instead, I’m 99% certain you will come out WAY ahead.

quote:

Originally posted by reloader-1:

quote:

Originally posted by Glynn863:
On a local TV station here in central Alabama, during the 5 and 6 o'clock news, a commercial has been coming on since the first of April. The guy in it is offering to buy houses for cash, as-is, no repairs needed. He also says no realtors and no fees. Tempting in some ways, because my wife and I would like to move a little closer to one of our kids, and I didn't have a good experience with the last realtor 25 years ago. We built the house we are currently living in, but I won't do that again anytime soon. We have outstanding equity, so hopefully that will make it a little easier when we sell this and buy another. I'm going to research this guy's company to see what it's about.

Don’t do it.

This person has to offer you a price for something that he can later fix and update and sell for market price. Cut out the middleman and sell it for market price instead, I’m 99% certain you will come out WAY ahead.

I agree. The “we buy houses” folks aren’t far from scammers. Get a good realtor to guide you through getting the most for your house. It will be well worth it. Just make sure your realtor does it full time and is a top agent. Interview a couple of them before listing.

As best I could tell, there have been eleven new listings in my parents area as of this morning. Zillow isn't even attempting to provide market valuations for most of them, and for the one's where Zillow did provide a market valuation, the listing amount is $30k to $40k over it. My bet, all of these will be under contract by the beginning of next week. Insane doesn't even begin to cover what's going on right now.

We are in the market to buy. We've lost 2 offers in the past 2 weeks. Both properties sold for 25% above asking price, all cash, and waived all contingencies/inspections etc. The market is crazy.

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The Florida market is beyond crazy as Bigdeal has said. I have lived South West of Disney for almost 22 years and the area has grown in ways I did not think possible in such a short time.

The roads around where I live are always backed up I4 is always a mess but they still keep building and people keep buying. Prices around here are just insane and it does not look like it is going to change any time soon.

Yep it's nuts, we're in NE Orlando area and homes are moving quickly, traffic is getting to be a PIA. What used to be a quick ride in the country that was a few minutes from my home is now filled with more cars, subdivisions and people.

It's out of control I could sell my house in a matter of days probably get in a bidding war, people circle the neighborhood all the time looking for homes, the massive amount of development around us is ruining the area....

Lolz, listed our second house for sale. 11 showings on the first day (on a Tuesday, no less). One offer $70k over asking on day one.

Two just sold in PA, one at 35k over and the other was 50k over asking.

Absolutely fucking nuts!

My floor plan 3 houses away from me just sold for $150k over asking price in one day.

$1.2 Million

Nuts is right...

SF Bay Area prices are insane.

Same here in our corner of East Texas. My wife and her sisters are getting ready to list their late mother’s house. Anecdotally, their realtor is reporting low inventory in the price range the house is in, this particular price range is the hot part of the market, houses have multiple offers, etc.

We’ll see how all that translates in the next few weeks.....

So what do you guys think, when will the next housing bubble happen? Can it continue to be this crazy?

We are having a house built in MO, we signed the paper work to get it started. The day after the builder raised the price of the same model on the lot next door 10k after he received the lumber quote.

quote:

Originally posted by BGULL:
Same here in our corner of East Texas. My wife and her sisters are getting ready to list their late mother’s house. Anecdotally, their realtor is reporting low inventory in the price range the house is in, this particular price range is the hot part of the market, houses have multiple offers, etc.



We’ll see how all that translates in the next few weeks.....

Great spot to be in..it’s all supply and demand. In our area homes over 1M tend to sit for awhile and lower priced homes further from amenities tend to sit longer...everything else in the middle ranges goes right away. Also, those who overprice initially usually have issues..you don’t want your house going “stale” in this market.

quote:

Originally posted by Bob RI:

quote:

Originally posted by BGULL:
Same here in our corner of East Texas. My wife and her sisters are getting ready to list their late mother’s house. Anecdotally, their realtor is reporting low inventory in the price range the house is in, this particular price range is the hot part of the market, houses have multiple offers, etc.



We’ll see how all that translates in the next few weeks.....

Great spot to be in..it’s all supply and demand. In our area homes over 1M tend to sit for awhile and lower priced homes further from amenities tend to sit longer...everything else in the middle ranges goes right away. Also, those who overprice initially usually have issues..you don’t want your house going “stale” in this market.

Very true here too. A1 earlier noted that inventory wasn’t an issue because sales are up 9%. That discounts the fact last year was Covid and it was not a good year at all. Just as an example, a few weeks ago the town my Fiancé works in had 9 listings. Usually at this time of year there are 60. We are lucky as she does a lot of new construction so as long as land is available she does well.

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A Seller’s Market For Real Estate!

But whatta ya gonna do if you have to buy?
You know like you are upgrading, downgrading or just want something different.
It's kinda the same pickle we are in with ammo today ~ we can shoot it or sell it but if you need to replace it then we are SOL.

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So what do you guys think, when will the next housing bubble happen?

It depends on the market area. Different markets will crash in different times, and with we're still a bit far out to see all the signs of the peak before the fall. What we do see are similar signs that happen commonly right prior to a crash/reset. Politically, there are lots of things that can make it worse or not as bad, I really can't predict what the current socialist regime will choose, I simply trust that they cannot be trusted and whatever "fixes" they propose will have more of their agenda laced into it.

Some markets never did reset in the last bubble crash. Some markets were barely even affected by it. Outside of housing, look at power sports & recreational vehicles. Talk to hardware & tool stores. Look at U-Haul numbers and migration patterns. The residential real estate markets of our country are but one small indicator of the larger situation, and doing a macro-level analysis of the country as a whole has economists speculating more than predicting. The one thing most agree on, is that change is coming as the current situation is unsustainable.

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Can it continue to be this crazy?

No. Not much longer. The how much longer depends on which type of market and location. I speculate that some markets like Northern Idaho, certain places in more rural Texas, and the Mat-Su Borough in Alaska may not see any reset and will continue to forge ahead boldly. There are probably a lot of others, but those are markets I have recent exposure to in this study.