Posts
95
Joined
1/9/2016
Location
USA
So the housing market is on a tear right now... remote work, low interest rates, millennials that have kids no longer want to live in apartments etc etc.
We are looking right now as well and it is really hard to justify paying all time high prices (houses have jumped $50-$100k in the last 6 months in my area) for a starter home, especially with a pretty uncertain future.
Anyone else in this boat or have advice? Don't want to rent anymore and need space for the kids but man, this area is expensive - but near family and work.
We are looking right now as well and it is really hard to justify paying all time high prices (houses have jumped $50-$100k in the last 6 months in my area) for a starter home, especially with a pretty uncertain future.
Anyone else in this boat or have advice? Don't want to rent anymore and need space for the kids but man, this area is expensive - but near family and work.
think the 3% Mortgage interest rates are really helping. although I think it’s been strong since 18. I sold my house in 4 days. I polished it up like a vet owned 450 and got multiple offers in the first 3 days.
Here’s something to consider. When I bought my second house in 2018 the mortgage rates were 5%. Economy way booming. I just refinanced to 2.99% and it dropped my mortgage payment $600 a month!!!! That’s a lot of savings, so makes that house hike a little more palatable knowing the finance charges aren’t as high. They compound and kill you where as your 50k buying price doesn’t.
The current buyers don’t want fixer uppers or put any sweat equity into the house. They want turn key to the point where they don’t even have to paint.
Laborers and tradesman won’t be able to keep up with the new construction that’s happening as well. Shits booming around me.
There are subtle differences like the school districts, driveway/garage vs off-street parking, lot size and the like that do matter to me.
I guess my concern is the value of the house - we are in a pandemic and there are A LOT of people that don't have jobs and aren't paying mortgage/rent right now. What happens when that forgiveness program ends and there is a glut of houses on the market? Do properties lose that value? How long before we regain that value? My parents took a hit in 2008 and we able to barely break even in 2011, and the houses in that neighborhood have been stagnant since. Prices are so high because there is no supply right now, and I'm curious where you see the market going.
We lived in a more rural part of the state about 3.5 hours away and bought down there in 2017. We are selling and will get a nice return on the place when we close. Like I said - the sticker shock is killing me up here - the house we are selling is 1/5 the price of the ones we are now looking at for the same size. BRUTAL!!
apartment buildings and town homes are going up like crazy in Utah right now, it seems like every vacant corner lot from Brigham City to Provo has a new apartment building under construction. it's fuckin' nuts.
Covid, unemployment, people moving out of California... I don't see this ending well here in this state. We'll see what happens elsewhere but I'm not buying again until prices fall. And they will.
The Shop
Free shipping: VITALMX
DeCal Works Huge Plastic Inventory of UFO and Polisport kits.
Luxon 4-Post Bar Mounts
$189.95 - $239.95
The price is the biggest driver. $350k duplex (fixer upper) vs $550k single family in the same neighborhood.
I think I'm at the point where we'd rather own something and not risk prices going up and up to the point of never being able to buy, vs waiting for prices to drop. The low interest rates are appealing and once we clean this place up there will be instant value to keep up with the neighborhood and maybe a stepping stone to the next house in 3-5 years.
I think the housing boom is going to continue for a long time and that its a bad time to own rentals apartments/condos.
Each half are individually owned. We would be buying our half of the duplex. The other side has already been renovated by it's current owner.
@motoman617 we have been outbid multiple times. Housing getting 3+ offers within 24 hours, some $25K over. It's insane. This bubble is going to pop eventually but it could be 5 years from now, or never. Who knows!
You may be able to bank a little cash but with all the headaches and cost of moving it basically comes out net net zero.
We are probably 20 years from retirement. So really you hope you can sell your home for x dollars when you retire and then buy a smaller cheaper house paid off for half of what you sell current home for. So that way you can bank way more money.
During this shutdown, most of the mortgage relief or forebances that went into effect only accounts for 6-8 percent of the market(here in CA) and out of those, they have 70% of them have 50%+ percent equity. Also commercial properties, really on fire as well (as long as it's priced right)
Even great dual six figure earning households can be house poor 500+. That’s insane.
Pit Row
Owning a home is expensive so you have to factor that all in as well. Having a house that is paid off when you get older and closer to retirement is huge though. In my area rent is more than A mortgage so it really makes sense to own if you’re comfortable with the debt.
The big boys with the direct line to the federal reserve printer are jumping into housing with both feet. These are the institutions you could be bidding against.
You're witnessing the financialization of the single family home
Excited to start cleaning out cat sh*t and who knows what else this guy has been living in.
Lotta nights and weekends ahead of me getting it livable but excited to start the process (once we close of course - still negotiating per the inspection).
This was a couple weeks ago. Pretty much the same scenario for the house we bought. Really can’t take time to think about it. Tried it with other houses and they sold immediately
I am currently looking for a place around the Tehachapi area. Trying to Find something single story with a little bit of land. Hopefully no close neighbors.
Buddy just sold his house.
Listed it on the MLS on Monday, asked for all offers by Friday.
Got an offer on Tuesday that was for “$10,000 higher than any other offer you get.”
Got another offer that was similar on Friday.
Told them both the scenario, and told them to submit their “Highest and Best” offer within 48 hours, and he got $40,000 over ask.
I don’t know how reliable the Zillow machine is, but my property has gained over $25,000 in the last 30 days.
I haven't done any deep digging, and I'm certainly no expert, but I feel like there's going to be a correction.
I am going to wait a while before I do anything and see what the housing market does.
Post a reply to: Housing Market