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Just lol at 750k+ to live in a Lancaster condo.
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Apr 26, 2022 03:34
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NONE OF THIS HELPED ME AT ALL IN LOSING MY CURRENT OFFER. The current market is absolute batshit.
1st_Panzer_Div. fucked around with this message at 04:30 on Apr 26, 2022 |
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Apr 26, 2022 03:35
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We lost a house that was listed for $440,000 and sold for $570,000 and yeah I feel like whoever spent that much is a bit of an idiot.
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Apr 26, 2022 03:47
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There’s no one thing to blame, it’s a hundred things and it’s very dependent on your market and larger social trends, i.e. continued urban migration, younger generations favoring smaller homes closer to urban centers, people moving from HCOL to LCOL areas, impacts of WFH, pent up demand from the pandemic (which also drove excess savings), people fleeing perceived market instability into safe investments, historically low interest rates, investors moving to SFH, retirement changing home purchasing needs, zoning problems limiting new construction, etc. etc. etc. There’s no single factor to blame and at the end of the day what you’re running into is that the same place that’s desirable for you to live in - because of amenities or job prospects - is desirable to many other people, including some that have money than you.
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Apr 26, 2022 04:03
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Like, to the poster in the Boston area who is frustrated at home prices: what you like in a home is probably similar to what most other people like in a home, so the homes that you're interested in will also attract interest from other people, many of whom may be willing to spend more than you because of [insert reason: more urgent need to buy a home; more money available because of many possible reasons; poorer impulse control, etc...] and in long settled East Coast and West Coast cities, there is not much prospect of significant new development, especially of SFHs in desirable areas, to help eat up that excess demand.
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Apr 26, 2022 04:08
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I blame the Ivy leagues
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Apr 26, 2022 04:58
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Upgrade posted:Like, to the poster in the Boston area who is frustrated at home prices: what you like in a home is probably similar to what most other people like in a home, so the homes that you're interested in will also attract interest from other people, many of whom may be willing to spend more than you because of [insert reason: more urgent need to buy a home; more money available because of many possible reasons; poorer impulse control, etc...] and in long settled East Coast and West Coast cities, there is not much prospect of significant new development, especially of SFHs in desirable areas, to help eat up that excess demand.
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Apr 26, 2022 05:03
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Redfin claims that my house has gone up in value by $500k in the last 6 months so it's hard for me to discourage people from buying a house right now, but at the same time surely this bubble is going to pop soon?
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Apr 26, 2022 05:42
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Slugworth posted:Exactly this. You'll note that "lots of people want desirable houses" is a completely new market trend that perfectly explains why the market is ballooning uncontrollably. It’s a part of it! And why predicting market conditions is very hard because local demand is so variable
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Apr 26, 2022 05:53
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moana posted:Yeah, here's a 2/2 with the same square footage near me: https://www.zillow.com/homedetails/243-Ada-Ave-Felton-CA-95018/16150241_zpid/ Tarp roof house just went for $850k. Haven't met the people yet but they claim to not be flippers so that's good I guess
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Apr 26, 2022 05:57
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There's also a whole lot of people rushing to get in now because they believe interest rates are going to keep rising; and there's a lot of people who don't understand what inflation really means when it comes to the value of the dollar. Prices that rose by 8.5% over the past 12 months are actually flat after adjusting for inflation. If you see a price that is $100k more than that, that $100k is actually only $85k more in April 2021 dollars. I know everyone here theoretically understands inflation but it can be really hard to adjust your gut sense of "how much money is this amount, really." And you know what?  It was 7% the prior year, too. Hot areas are definitely going up by more than inflation, though.
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Apr 26, 2022 06:27
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raggedphoto posted:We lost a house that was listed for $440,000 and sold for $570,000 and yeah I feel like whoever spent that much is a bit of an idiot. yeah this one was entering the price range of investor/flipper playing some risk. a much nicer 2018 construct, 800sq ft larger sold in fall 2021 only $50k above this one - which was very 90s. If it keeps going up they'll make bank still. As far as competitiveness - in total 5 other others (2 others at deadline besides ours), about, far less than the bungalow market, that being "average" competition still feels bad. We at least outbid 2 others.
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Apr 26, 2022 06:37
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me: all these updates to the house i'm making are nice, and they'll help if i ever sell it me: lmao why would i sell i'll never find another one as long as i live
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Apr 26, 2022 13:56
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One of the best threads in the forum is the Canadian housing/debt thread in D&D because it’s ten years running of “the market is about to crash and the bubble will pop! It’d be crazy to buy now, you’ll regret your purchase in six months!”
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Apr 26, 2022 14:34
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Lost our first house bid. Listed at $408K, no updates, located right across the street from the elementary school. No tours until Saturday and all offers in by Sunday at 5 PM. Location was fantastic, but we needed to make an addition for living space and we wanted to talk to the village. Offered $415K. Wasn't even close, agent suggested bids were going for $430K plus. We were fine with walking away.
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Apr 26, 2022 14:49
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I know every market is different, people have to only spend what they're comfortable with, etc. But most people are not going to get a contingent, house inspection, 10% over asking offer accepted. Thats the minimum in cities right now it seems. Hate it all you want but thats reality. We looked for 6 months, had to go non-contingent, forgo inspection, and went 20% over for the house we finally got.
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Apr 26, 2022 14:59
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So are house inspectors going out of business left and right now?
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Apr 26, 2022 15:21
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We still paid for one post purchase just to see what we got ourselves into. So I think they're still plenty of busy. We'll have him run a radon test, scope the sewer lines, etc. Our town also requires a "safety inspection" that the seller pays for that basically seems like an FHA style overview of whats going on with the house. Not sure how common that is though.
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Apr 26, 2022 15:23
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BaseballPCHiker posted:Our town also requires a "safety inspection" that the seller pays for that basically seems like an FHA style overview of whats going on with the house. Not sure how common that is though. Depends on where you are, but requiring a new CofO (Certificate of Occupancy) either on sale or as a condition of sale is definitely a thing in a lot of cities and even small towns. It's really the only way to get into a resi property to do any sort of baseline safety enforcement (smokes, egress, etc) outside of it's initial build, major permitted additions or a fire/other really bad event.
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Apr 26, 2022 15:34
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SpartanIvy posted:So are house inspectors going out of business left and right now? fwiw you should hire an inspector even if you don't have an inspection contingency The few I spoke to during last summer, when literally no one was submitting offers with contingencies, were still slammed with requests QuarkJets fucked around with this message at 16:09 on Apr 26, 2022 |
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Apr 26, 2022 16:07
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A new neighbor in my new construction community closed on their house yesterday. Long story short they drained their garden tub in the upstairs master bathroom and found out the plumbing was blocked up with construction debris. 50+ gallons of water backed up out of their downstairs toilet all over the floors of their brand new house. I beg the folks in the local facebook page to pay for a 3rd party inspector before closing, but none of them want to spend the 400-450 bucks on a new construction home because they think everything is going to be done right and the builder will take care of them. Makes no sense to pay 400K+ for a house and not spend another 400 bucks to have an impartial independent 3rd party check out the house.
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Apr 26, 2022 16:42
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QuarkJets posted:fwiw you should hire an inspector even if you don't have an inspection contingency
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Apr 26, 2022 16:59
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BaseballPCHiker posted:I know every market is different, people have to only spend what they're comfortable with, etc. But most people are not going to get a contingent, house inspection, 10% over asking offer accepted. Thats the minimum in cities right now it seems. Hate it all you want but thats reality. How new was your property? Fwiw - even in PDX which is rather hot, skipping an inspection is not normal (just waiving the inspection contingencies except the right to kill the sale for any reason), our hottest zip codes are 5-7% above listing on average, not 10%. The national average is only 2.4% (last 12 months) and city:rural volume bakes an urban bias into that figure. Now if you're talking Seattle/SF/NYC, then 20% over sounds about right.
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Apr 26, 2022 17:14
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The property is 120 years old! Located in northern MN. We put in offers on 6 houses over 6 months before this one was finally accepted. This house was up 3 days, got 12 offers 8 of which, including ours, skipped inspection.
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Apr 26, 2022 17:19
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Leperflesh posted:There's also a whole lot of people rushing to get in now because they believe interest rates are going to keep rising; and there's a lot of people who don't understand what inflation really means when it comes to the value of the dollar. I mean you are right in terms of real value and inflation, but peoples wages aren’t necessarily keeping up anyway so houses are de facto still more expensive. When is the housing crash let me buy a home 
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Apr 26, 2022 17:22
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BaseballPCHiker posted:The property is 120 years old! Good god, I had no idea there were parts of MN that were that insane - the data definitely backs it. Some neighborhoods averaging 15% over. 
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Apr 26, 2022 17:34
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BaseballPCHiker posted:We looked for 6 months, had to go non-contingent, forgo inspection, and went 20% over for the house we finally got. The issue is that a lot of people don’t have the luxury of just going “20% over”.
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Apr 26, 2022 17:42
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same here in the greater boston area - 75K-100K over list is normal, everything waived with 8-20 offers depending on the house,
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Apr 26, 2022 17:45
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Ornery and Hornery posted:The issue is that a lot of people don’t have the luxury of just going “20% over”. Over ASKING, not over BUDGET. This is a matter of dealing with the realities of the market and how things are priced in that market. If one refuses to acknowledge that the listing price of homes in your area is typically 20% low compared to the successful purchase price and keeps looking at homes with a listing price at or near the top of your budget it's pretty much willful ignorance at that point.
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Apr 26, 2022 17:48
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skipdogg posted:A new neighbor in my new construction community closed on their house yesterday. Long story short they drained their garden tub in the upstairs master bathroom and found out the plumbing was blocked up with construction debris. Wouldn't this be something that you could try to get some kind of compensation for? I feel like "plumbing backed up with obvious construction debris" is pretty easy to point at who did it? I mean I know what the answer is but... well, drat.
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Apr 26, 2022 17:53
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skipdogg posted:A new neighbor in my new construction community closed on their house yesterday. Long story short they drained their garden tub in the upstairs master bathroom and found out the plumbing was blocked up with construction debris. I bought a new construction house and hired an inspector. He was worthless. Coincidentally, we also had construction debris blocking our master shower drain (the toilets just burbled thankfully).
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Apr 26, 2022 17:54
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Johnny Truant posted:Wouldn't this be something that you could try to get some kind of compensation for? I feel like "plumbing backed up with obvious construction debris" is pretty easy to point at who did it? It's going to be covered under warranty of course. Now their new home is going to be a construction zone for who knows how long after they have already moved in rather than someone catching this early on, before finishings and furniture were installed. A pre-acceptance inspection from a third party should be the MINIMUM for a new build. Even better if you can get someone in there periodically WHILE it's being built.
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Apr 26, 2022 17:56
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Motronic posted:Over ASKING, not over BUDGET. This is a matter of dealing with the realities of the market and how things are priced in that market. My point is that the ASKING amount is at the top of, or over, the BUDGET amount for many people.
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Apr 26, 2022 18:00
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Ornery and Hornery posted:My point is that the ASKING amount is at the top of, or over, the BUDGET amount for many people. And those people need to deal with reality: you can't afford that house in that area. If there are less expensive homes in that area maybe you can afford one of them. If not you simply aren't in a financial position to own in that market. This isn't a thread about fairness, housing policy or economic theory. There are many of those to choose from. This is a thread about the mechanics of buying a house.
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Apr 26, 2022 18:03
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Yeah it sucks and was a rude awakening for us. I was pre-approved for $450k and quickly realized I needed to be looking at houses $100K under what I was approved for to have any chance. If you cant afford to do that than you are poo poo out of luck at the moment unfortunately.
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Apr 26, 2022 18:06
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Part of this calculus is that the broad marketplace of seller's agents (and I guess by extension, sellers) all have realized that they can induce a bidding war by underpricing the house, and get more money in the end than if they listed at the actual expected sale price. If your buyer's agent is worth a drat, they should have explained this to you. If your absolute max budget is $500k, you need to be shopping for "$400k" listed houses. Because those are the $500k houses. Open up Zillow or Redfin and filter by recently sold, those are your comps, assume prices have risen a bit since last month or whatever, and that's how you can figure out what neighborhoods, square footage, etc. are actually in your budget.
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Apr 26, 2022 18:15
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TheWevel posted:I bought a new construction house and hired an inspector. He was worthless. Coincidentally, we also had construction debris blocking our master shower drain (the toilets just burbled thankfully). Mine was pretty good. I had him do a pre drywall and pre closing inspection. I've had no major structural or mechanical issues with my house. All my issues were cosmetic/build quality stuff that took forever to get addressed during the warranty period. Motronic posted:It's going to be covered under warranty of course. Yeah Warranty will cover it, but like you said, they're living in a construction zone now instead of their brand new house. The laminate flooring in the majority of their downstairs has been ripped up, baseboards removed, and they have like 8 industrial fans blowing trying to dry the place out. Giant pain in the rear end for someone who just moved in yesterday. skipdogg fucked around with this message at 18:27 on Apr 26, 2022 |
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Apr 26, 2022 18:18
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Housing insanity has been driven by market valuations, driven by the central banks. Especially the major metro areas with tech. We’ve all seen the real inflation, but it’s now clear none of the 60 year old plutocrats running central banks actually ever gave a single gently caress about long term consequences. So housing is insane, but we don’t know when gravity will be turned back on. Maybe the private market will buy -every- SFH once dual incomes suffer dual layoffs and have to sell. Maybe. When does Capitol start to flee the home rental companies? Will that ever happen?
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Apr 26, 2022 18:18
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Leperflesh posted:Part of this calculus is that the broad marketplace of seller's agents (and I guess by extension, sellers) all have realized that they can induce a bidding war by underpricing the house, and get more money in the end than if they listed at the actual expected sale price. And it makes it super annoying come appraisal time. In our case they relisted way over what the original price was for the MLS and surprise surprise the appraiser came back with the updated listing price not the original one. I can not wait to be done with all this poo poo!
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Apr 26, 2022 18:19
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street doc posted:Housing insanity has been driven by market valuations, driven by the central banks. Especially the major metro areas with tech. This goes well beyond the purview of this thread, but: capital seeking better returns because bonds have been poo poo for decades and stocks seem severely overpriced (very high P/E) has been a thing for a while now, and that also seems to be a factor. There's a lot of wealthy people who have concentrated the world's money in their hands and they can't find reasonably safe good returns, perhaps because of an increasing efficiency of the market or perhaps because it's been too long since we had a good solid recession (in the strict sense of the word, a sustained contraction of the economy) or perhaps other reasons I don't know or understand. If it is the case that capital has sought real estate as its safe harbor, that implies that real estate's real long-term returns has been beaten down to nearly nothing or will be soon, e.g., prices are either as high as they should be or way higher and we're in a speculative bubble. But. I'm not at all sure about that last bit. I haven't done any sort of analysis on what the current return on capital is for residential real estate. So take this navel-gazing with a lot of salt.
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Apr 26, 2022 18:28
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