Housing Market

[JoePa]

I know a person that put their house up on the market for 520K - got a offer for 540K same day - person making offer wanted the house to be taken off the market - but seller didn't accept offer because bank may not appraise the house for that much and not give buyer a mortgage - so what is happening - the housing market is going crazy right now - pricing are really high but banks don't want to get caught in the same situation that they were caught in back in the 80s when the bottom of the market dropped out and they were caught with overpriced mortgages and a lot of foreclosures - people owing money stopped paying because mortgage was higher then value of house - so what it boils down to is the banks are trying to keep the prices of homes down

[js4fn]

Yes and here money seems super easy to get even when buyer gets in bidding war
Example one place nice newer house with detached garage couple acres
Bought 5 years ago 590,000. Couple called a realtor she suggested listing it at 790,000. Sold 5 days 880,000

[greatwhite]

Joe here Houses are going tens of thousands over asking. I figured my house was worth about 300K right now under normal conditions but I have had a few people tell me I could probably get 400 as is.

[trimmer21]

We bought our house in 2008 (4 level backsplit 1900 sq.ft. on larger lot) for $280K. The exact same style and size house three doors down just sold for $930K. One slightly different (just a tad larger at 2100sq.ft on smaller lot) across the street sold yesterday for $1.1M. Everyone of them went for $200K over asking in bidding wars. Nuts,I tell ya,just nuts.

[JoePa]

Back in the 60s we bought our first house - it was in New Jersey - bought it for 25K - sold it for 45K - 4 years later - moved back home to Pa. - that same house is now appraised at 880K according to Zillow

[JBen]

We lucked out.

When we bought in 2016. Back then it was bad, not as bad as today. I don’t know how many places we went to see. Had lost out on three other places, because I refused to get caught up. That almost cost us though. The house I sold was closing May 26. We came to see this place May 12. A Friday night.
Offered what the sellers were asking. Thankfully no other offers came in and they accepted. We had to spend 8 weeks in a tiny 1 room BnB, before we got possession. I can certainly understand why some buyers get so desperate they throw everything they have at a place. Back in 2016, statistically the average buyer would lose out 10-12 times before winning..

The banks appraiser, pegged the house at exactly, what we paid for it. That’s rare. It’s almost always lower.

As far as the banks go, do you blame them? It’s their money. I doubt anyone here would lend a stranger $500,000 if the house was appraised at $400,000.

People/buyers, should have the common sense. Or at least have a very basic understanding of financing. Many don’t.

I have three family members that are real estate agents, including my fiancé now ( though she at for now is specialized in investment stuff)

The “stories” are something. From the bizarre to the utter stupidity.

A tiny bungalow in Brooklin, one of the original homes built decades ago, just sold this week for 1.7 million. All the agents at Keller Williams (where the 3 family are) are shaking their head. Who knows how much equity the buyers have. Must be a ton, else they wouldn’t get financed. But still. Even if they paid cash, and didn’t finance a penny. 1.7mm, hundreds of thousands over ask.

Some seem to think this is good. Because they are sitting on gold mines. I don’t see any good coming from it.

[Bowjob]

ha sounds about right.

an amazing film about the housing market plummeting

"the big short"

[oaknut]

Just sold my place in this wee backwater. It was a perfect storm for me, in a sense. Basically doubled what I spent on the house for purchase and renos which allowed me to walk into a nice chunk of off grid land without having to finance it.

Land is only going up and it really won't crash like the housing market will.

Folks talk about how bad they feel for the kids coming up, they say they won't be able to afford a home when it's time. Alot of this is driven by the younger folks. I've talked to a lot of younger people who are clueless as to reality of their situation about a home. Kids now believe they should be able to walk in to 3000 square feet of freshly built home and shouldn't have to go about it by way of a starter home. "I wouldn't live in that dump" is a common phrase.

Me, I bought that dump! I took that dump and turned it into a home by working at it with any spare penny and minute. Luckily for most that has now allowed me to progress in life. Moving on to something healthier, both mentally any physically. No neighbors to look at is good, especially when my neighbors came from the big sh**ty and forgot to leave their ignorance at the city limits.

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[MikePal]

Something to be said for 'owning nothing and being happy'....very few people will ever really 'own' their expensive $500+K homes, it will belong to the bank for many years before you start to build up an equity. All you're doing it paying them 'rent' to live in it.

[Birdbuff]

Just sold my place in this wee backwater. It was a perfect storm for me, in a sense. Basically doubled what I spent on the house for purchase and renos which allowed me to walk into a nice chunk of off grid land without having to finance it.

Land is only going up and it really won't crash like the housing market will.

Folks talk about how bad they feel for the kids coming up, they say they won't be able to afford a home when it's time. Alot of this is driven by the younger folks. I've talked to a lot of younger people who are clueless as to reality of their situation about a home. Kids now believe they should be able to walk in to 3000 square feet of freshly built home and shouldn't have to go about it by way of a starter home. "I wouldn't live in that dump" is a common phrase.

Me, I bought that dump! I took that dump and turned it into a home by working at it with any spare penny and minute. Luckily for most that has now allowed me to progress in life. Moving on to something healthier, both mentally any physically. No neighbors to look at is good, especially when my neighbors came from the big sh**ty and forgot to leave their ignorance at the city limits.

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Did the same here. Got married and bought a starter home, a 2 bedroom bungalow. House was listed as is, so I knew it would need work, but it was the right price. Worked all day, then went to the house and worked all night. Many nights spent on the floor. It took us 1.5 years to complete but we made it our castle. We finally grew out of it (3 kids) last year and sold the place. Upgraded to a bigger home and lot, but nothing fancy. I will still be working at it to make it my own.

I think kids these days need to understand that living in big urban areas isn’t worth it. They should at least be willing to travel, strike out on their own and make a new life somewhere else. Family and friends will always be there for you, wherever you are.

As far as these price wars go, it just doesn’t add up. I don’t think wages are keeping up with these inflated prices. Not sure where ppl are getting the money, but if you’re borrowing a bunch from the bank, it’s going to be a long road.