Property Market is going WILD

[FAH1223]

As a society we have never fully unpacked just how much that crash affected (and continues to affect) ppl who lived through it.

I know people who have never recovered mentally/emotionally from what you just described - experiencing making so much money so easily, then for it to go away almost overnight. And even worse is when it's someone who didn't grow up with money (or even middle class for that matter). A lot of those people for whom the early 2000s mortgage industry was their first professional experience/memory, end up never recovering bc they just keep chasing the ideal "easy money" job - which for all intents and purposes really doesn't exist (legally).

Yep, especially here in PG County where so many people got underwater on their homes so quickly. Home prices have recovered only cause of this crazy market but in 2019 the market was still noticably more depressed than anywhere else in the DMV due to the amount of foreclosures and short sales that happened from 2008-2014.

Luckily for us, my pops was able to bounce back with a corporate gig and even went back to driving Taxi in DC on weekends (he kept his license for emergencies like that 2007-08 period) while I was still in undergrad and my moms was only working part time. The hustle he had to do now he's trying to build off the assets he inherited in Somalia from my late grandpa.

 

[NZA]

the bay area has always been a tough market for buyers but what i'm seeing now is unbelievable. i'm hoping that once construction for new homes get back up the real estate market will cool down.

it seems like the issue is just low inventory so people are bidding up like crazy and foreign investors buying whatever they can. or is there another factor now driving prices up?

i can imagine that covid job losses and wages are probably worse in the outskirts of the bay, so more people are forced to go deeper into the bay for work and more "affordable" real estate in the area is now dealing with more competition from internal migration. i dont have any data to back that up, but i infer it from the reporting on jobs lately.

 

[rightfultoefinger]

Yo, I need this to crash so I can afford an investment property. It’s ridiculous out my way. Whoever bought pre pandemic has probably made 50-60% in a year and a bit. Literally, houses sold for around a million are going for 1.5 million plus now easily. A few homes that have closed in the last few weeks were listed at 1.3 million have been sold for 1.6+. Thats 300k over list and that’s not just one house but every damn house. Sure I’m making a killing on mine but I wanted an investment property and thought I’d get one during the pandemic but I was dead wrong. This is way worse than pre 2008.

 

[Geek Nasty]

I've been seeing some listing price decreases lately on my redfin alerts.

Yeah I'm sensing things are starting to turn. I see ads for interest rates at 1.75% now and I'm not seeing properties flying off realtor.com like before. Could be a blip, but could be the beginning of the pop

Now here's something weird, 2 properties I saw that sold not too long ago (I always search with a specific filter) appeared back on the market this week. I'm seeing usually 20 or so houses, so it's real obvious when something like that happens

 

[Geek Nasty]

As a society we have never fully unpacked just how much that crash affected (and continues to affect) ppl who lived through it.

I know people who have never recovered mentally/emotionally from what you just described - experiencing making so much money so easily, then for it to go away almost overnight. And even worse is when it's someone who didn't grow up with money (or even middle class for that matter). A lot of those people for whom the early 2000s mortgage industry was their first professional experience/memory, end up never recovering bc they just keep chasing the ideal "easy money" job - which for all intents and purposes really doesn't exist (legally).

Had a cliche of friends (more like associates) involved in pre 2008 real estate, they when from laughing at how much they were making and the shady industry tricks going on (forging credit approvals and shyt) to people hitting me up for money. On the other side people I graduated with were buying houses they couldn't afford thinking that flip was going to be a cake walk before the ARM flexed.

 

[FAH1223]

 

[NkrumahWasRight Is Wrong]

Yeah I'm sensing things are starting to turn. I see ads for interest rates at 1.75% now and I'm not seeing properties flying off realtor.com like before. Could be a blip, but could be the beginning of the pop

Now here's something weird, 2 properties I saw that sold not too long ago (I always search with a specific filter) appeared back on the market this week. I'm seeing usually 20 or so houses, so it's real obvious when something like that happens

Fixer upper/flip property? Some with enough capital are buying renovating and flipping to take advantage of the shortage

 

[Geek Nasty]

Fixer upper/flip property? Some with enough capital are buying renovating and flipping to take advantage of the shortage

I don't think they were but I only looked at the ads, one was a large plot of land others were 2 houses

 

[GnauzBookOfRhymes]

One thing to consider is that right now you have institutional investors buying up single family houses like mad. Are they doing so for long term rentals or bc they think values will continue to rise and they plan on quickly flipping them? The answer to that question will have a huge role to play in R/E prices going forward.

 

[FAH1223]

One thing to consider is that right now you have institutional investors buying up single family houses like mad. Are they doing so for long term rentals or bc they think values will continue to rise and they plan on quickly flipping them? The answer to that question will have a huge role to play in R/E prices going forward.

 

[GnauzBookOfRhymes]

I think about that question nonstop. I've asked around but no real consensus. I'm starting to think it's a long term strategy.

 

[Hood Critic]

This market is maddening, in the process of buying a home in TX right now and everything is devolving into a bidding war well over list price for homes that are already overpriced.

 

[Geek Nasty]

Watched a pretty good youtube video where a guy explained how the number of corporations buying houses is actually going down so that whole notion is based on anecdotes not evidence.

But something else I'd heard in several places was to watch for lumber prices to drop suddenly and that could be signs of problems.

 

[hu3ypdadon]

Me & Wifey just won a bid on a house on Long Island for 425..asking price was 390 ..Gotta do what you gotta do..Don’t think it’s going get better any time soon..We thought after the appraisal maybe the house wouldn’t be 425 but nope 425 it is(if not more)

 

[Dat Migo]

According to zillow, my house went up in value 16k in the past month. My area is bananas with homes being mostly 70+ years old.