Is there a housing bubble?

[☑︎#VoteDemocrat]

There’s a housing shortage because of zoning reform too

 

[ultraflexed]

I was looking to purchase a home but these prices had me like and it's not even the good neighborhoods. Broward county was never this expensive like Miami. A house in Lauderhill and pompano are like 300 ks.

300k is still a bargain especially with the lack of tax's in that state...just get your money up

 

[Ugo Ogugwa]

A lot of disingenuity in this thread. I'm not in real estate, so I'm not gonna pretend to know the ins and out of this shyt. However, to those of you who think the housing prices will never correct, how exactly do you see this playing out? Something will eventually have to give.

Housing prices in an area will always be tied to wages and employment opportunities of that area. There's literally no getting away from that. I see people use Silicon Valley as an example, but fail to understand the reason prices were crazy was because of the higher wages and employment being able to sustain the madness and they world saw value in what the area produces.

I'm seeing areas where housing prices have skyrocketed, but employment/wages in those areas can't sustain the increase in housing costs... and not just mortgages, rent too... so let's say wages don't follow and people manage to keep their homes or rent at these high prices(people have to live somewhere), or the new buyers that just bought at these ridiculous prices have less money to spend in said area due to more of their income going towards housing, how does that affect businesses in said area? The same businesses that will see a reduction in revenue due to housing cost increases, but remains the main source of employment for said people in the area who need their employ to cover said housing costs. What happens then? Some of you do understand how a consumer driven economy works right? One person's spending is another person's income. Unless you expect the COVID relief to be a permanent thing moving forward which would basically be UBI, I don't see how some of you can say with a straight face that this will be the new normal. It's literally unsustainable.

It's the new normal

Eat p*ssy

Or get ate, p*ssy

 

[Mr. Glass]

I live in LA, and I flip houses.

I sold a 1400 sq ft, 2 bed 2 bath, fully remodeled house in South Central for 610k (got it for 460k) in June, and I just sold another 1400 sq ft, 3 bed 2 bath, fully remodeled house for 755k last week (I only had this one since October when I got it for 520k). The areas aren't even good, but these houses are flying off the market out here.

I don't think it's a bubble in LA. People with money really want to live out here, bad.

 

[Bigb41513]

I hope so, but it’s looking very bad. Especially in the bay and valley.

 

[UberEatsDriver]

I was looking to purchase a home but these prices had me like and it's not even the good neighborhoods. Broward county was never this expensive like Miami. A house in Lauderhill and pompano are like 300 ks.

Cheap. Dorito chips money

 

[DuncanWebayama]

Bout to dish out 30k extra for a new home, hope it ain't a mistake. Yall real estate agents in here complaining can go head with that "ain't average a certain amount in your account" ish because yall ain't speaking for everyone. I ain't asking for no pity tho.

 

[itsyoung!!]

Imma be honest with you, it is definitely fueled in the beginning because of record low interest rates. I’m pretty sure the rate drops have afforded me an extra 100k I either would have been struggling to pay or wouldn’t have qualified for. If the rates were still in the 4s in this market I would have to buy a much smaller home which wouldn’t do me any good or wait it out.

For you to save 100k with 1% less interest over 30 years, your house would have to be like 850-950k but the actual worth of your house is probably really 500k in a stable market but the market is almost doubling your house price..

( I understand the math here is a little off, but its in the ball park)

if your house is like 200-300k then no way 1% saves you 100k over 30 years

 

[TEKBEATZ]

Florida is insane right now

 

[GzUp]

I think it’s the new norm unfortunately.


Supply and demand, and supply is very low.


Found this though, don’t know if will happen though.

 

[Azul]

I live in LA, and I flip houses.

I sold a 1400 sq ft, 2 bed 2 bath, fully remodeled house in South Central for 610k (got it for 460k) in June, and I just sold another 1400 sq ft, 3 bed 2 bath, fully remodeled house for 755k last week (I only had this one since October when I got it for 520k). The areas aren't even good, but these houses are flying off the market out here.

I don't think it's a bubble in LA. People with money really want to live out here, bad.

If I may ask, what funds did you use to start your venture? Hard money? You can PM me if you'd like.

Bout to dish out 30k extra for a new home, hope it ain't a mistake. Yall real estate agents in here complaining can go head with that "ain't average a certain amount in your account" ish because yall ain't speaking for everyone. I ain't asking for no pity tho.

What are you talking about?

Nonetheless, it won't be a mistake if you're gonna be there long term. If you planning on selling within 5-7 years it might be a risk.

 

[Json]

I just want to see what happens when the government takes it foot off the brakes because of Covid.

 

[Blessings]

A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.

D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.

The country’s most prolific home builder booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in the business of selling entire neighborhoods to investors.

“We certainly wouldn’t expect every single-family community we sell to sell at a 50% gross margin,” the builder’s finance chief, Bill Wheat, said at a recent investor conference.

From individuals with smartphones and a few thousand dollars to pensions and private-equity firms with billions, yield-chasing investors are snapping up single-family houses to rent out or flip. They are competing for houses with ordinary Americans, who are armed with the cheapest mortgage financing ever, and driving up home prices.

“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said.

The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. Investors’ slice of the housing market grows—as it does in other boomtowns, such as Miami, Phoenix and Las Vegas—among properties priced below $300,000 and in decent school districts.

“Limited housing supply, low rates, a global reach for yield, and what we’re calling the institutionalization of real-estate investors has set the stage for another speculative investor-driven home price bubble,” the firm concluded.

The bubble has room to grow before it bursts, according to John Burns Real Estate Consulting. But it is inflating fast. The firm expects home prices to climb 12% this year—on top of last year’s 11% rise—and increase at least 6% in 2022, a period of appreciation reminiscent of 2004 and 2005.

That boom was different, fueled by loose lending that enabled individuals to speculate on home prices by racking up mortgages they could repay only if home prices kept climbing. The money party ended a few years later when home prices stopped rising. The ensuing crash wiped out $11 trillion in U.S. household wealth and brought the global financial system to the brink of collapse.


Financiers stepped in starting in 2011 and gobbled up foreclosed homes at steep discounts. They dispatched buyers to courthouse auctions with duffel bags of cash. Smartphones and tablet computers—new then—enabled them to orchestrate the land grab and manage tens of thousands of far-flung properties thereafter.

 

[beejus]

Bought my house in 2012 for 380K. Putting it on the market in a little over a week for 889K and expecting to get at least 15% over asking.

Put my house up last Friday. Left town for the weekend so that we could have our house be shown and not be in the way. Offer review date was today at 11am. Got our first offer this morning right at 11 and an hour ago got a 2nd offer. Due to competing offers escalation kicked in and got 161K over asking.

Was pretty nervous this morning since we didn't have any offers, but feeling really relieved. Now just got to find a house to move into.

 

[djthegreat88]

Put my house up last Friday. Left town for the weekend so that we could have our house be shown and not be in the way. Offer review date was today at 11am. Got our first offer this morning right at 11 and an hour ago got a 2nd offer. Due to competing offers escalation kicked in and got 161K over asking.

Was pretty nervous this morning since we didn't have any offers, but feeling really relieved. Now just got to find a house to move into.

Good fukking luck finding something in this market