I am benefiting from the combination of low interest and low inventory. I have been working on my house since March to get it ready to sell. It got listed for about 20K over where I thought it would when I started the process and I got an offer for 5K over asking in 2 days. Has shown 7 times in less than a week. If you have a home to sell it is a good time.
Tight Lines,
Andrew
Naa, no where near the top. Prices are around where they were before the collapse in 2008. Market corrected down then and has been a steady climb since. If you adjust for 13 years of growth prices are right where they should be.Originally Posted by DennisMH&F
People need to realize that real estate is supposed to appreciate in value. Land is a limited resource. Values will always go up. $50-100k increase over 13-14 years isn't all that dramatic. It's when prices shoot up $100-200k over 2-4 years that you need to worry.
lol no way, we only at the top if one circumstance happens and I don’t think it will.
We were already planning to buy this summer before COVID hit. We had a rough estimate time-frame in mind. Once we started the process we felt like we might have trouble finding the right place without getting into bidding war. It took about a month to find tge place we wanted and were pleasantly surprised to get it for $14000 under asking price. It also appraised at $19000 over asking price. The super low interest rate was icing on the cake. We feel extremely fortunate right now.
Not 100% just interest rate. The inventory levels are stupid low right now. In my market, we have maybe 2 or 3 decent homes listed at 1 time.
People over paying now are really gonna feel it in the next 3-4 years if they go to sell and will take a huge loss. Careful for what you wish for, you might get it. The house next door to me sold for 130k, it's a 95k house at best. The neighborhood doesn't support the price they paid. Not because the neighborhood is bad, the houses are not just that big. Sellers market.....
1999 Stratos 273 DC
1999 Johnson 115
2021 Ram Limited
Rates are making it easy to afford a home. Refinance are just insane right now.
Even if they drop in value it will be a short period. Overall real estate keeps rising.
To not buy because the fear of a short term drop in values, well, that concern is always there.
Bryan McDonough
2023 Nitro Z21 XL
Nitro Team
I think many want to believe prices will keep going up and this is normal but the country is trillions in debt not to mention consumer debt is climbing. I also think many are financing all the new toys with the estimated equity in their homes.
We have seen this before what goes up must come down.
We sold our home of 40 years in the S.F. Bay Area last year, it was on the mkt. for 9 days and got several offers and we got $20K over asking in a very hot sellers mkt. The home we purchased in the Central Valley we got for right at asking. There was a little dip in prices for a couple months right after we bought but 16 months later the prices are up about 20% with inventory low.
1987 Ranger 373V 150 Yamaha proV still going strong.
Amen
1999 Stratos 273 DC
1999 Johnson 115
2021 Ram Limited
once the govt lets up on helping folks and businesses, the crash is gonna be ugly....
People are definitely moving from the bigger cities to the rural and mountain areas. They are flocking here to the beautiful north Ga. mountains from Atlanta by leaps and bounds to get away from the hustle, bustle, crime, pollution, protesting, traffic, etc. It used to be the Florida people coming up but now they appear to be coming from all directions, especially south.
For those thinking the prices will come back down. To what level do you think they'll come down to? Seriously curious as to your thinking around this.
Just looking at housing market pricing data for the past 40 years says you're wrong. There will always be dips, but the market has trended up since the forever.
In my area the rule of thumb has kind of been 5.5% annual appreciation. I think that's maybe a bit high but now much. So to your point about 15%-25% above prices from 2-3 years ago, it sounds similar in your area as well. $100k in 3 years at 5.5% is over $117k, so a 17%+ increase.
We put our house up for sale a couple of weeks ago and it sold in 3 hours. Now trying to find a place to rent is crazy.
2001 ChampioN 206 Yamaha 225
Housing around here is crazy. Has been for a couple of years. Same day sales, above asking. New construction, not so much.
HOWEVER.......
I saw that 30% of mortgages went unpaid in June. I imagine July will have been close to that. I am guess August will be worse than that (since the free government cheese has stopped).
If this is indeed the case, I see things changing for the worse, very quickly!
Our mortgage broker told us that she is getting 40-50 deals across her desk per week. She said 1/2-3/4 are refi's.
Our housing prices are up 23% in a few years. They sell quick below 450,000. Nashville is coming this way. We priced new housing at 150.00 a square foot three years ago, 250.00 a square foot is not uncommon in Nashville. Even with all the work on our 1990’s house we are tens of thousands ahead of buying new. The house we bought was on the market for a hour, they go FAST in my neighborhood. Low interest rates drive prices up, 100 people a day have been moving here for several years.
On the flip side thousands of eviction notices are going out for renters. They were hit hardest by Covid shutdowns.
1/2 of my company (we have about 30 people) refinanced this year. Fortunately, our initial rate was low enough when we bought in 2015, it does not make sense to. No to mention, our estimated home value has increased roughly 60% since purchase. That is without having it appraised. Once I finish all the new trim work, we will have it appraised and I am sure it will be above that 25%-30%
Crazy
Last edited by Bassin_7; 08-04-2020 at 09:31 AM.
Lots of folks have gotten it right in this thread, so I won't repeat them, but this line makes me think you may want to consider a different realtor. While no one can predict the future, it's very much her job to understand these trends. Otherwise, what's the point?
In terms of local observations, prior to the pandemic houses in my area routinely had multiple offers over asking price within a week of being on the market. $50k+ over asking was pretty common. In a covid world, asking prices have gone up, as has the amount over asking it sells for; houses are now routinely going for $100k+ over asking. Even crazier than the prices is that offers are often coming in from people who have not seen the house in person. They are just going by photos, and a video walk-through from their agent. Agents/lawyers are writing special contingencies into contracts to prevent people from walking away when they do see it in person.
Reply With Quote