Housing market update

[BigFishSteve]

You guys let us know and the prices start plummeting.

[Tigercat]

New build's are about to come to a screeching halt when the raw materials used for insulation run out in the very near future.

Fiberglass? First I’ve heard of it, which means nothing. But it is my family’s (dad/uncle/etc) business.

[nightbasser]

That’s sure but the case here in Texas. Houses are selling like crazy and still getting multiple offers. One of my wife’s clients from California just lost a home from another buyer this morning. I’m amazed at what people are paying for houses, a lot are very old and need a lot of work, but they are selling like crazy at ridiculous prices. I’m also shocked at how $300,000-$350,000 will not get you much at all here in this area of Texas right now with all of the multiple bidding. We just looked at a very nice house priced at $300,000 but realistically it’ll sell for probably $350,000 at least.

Another buyer from California came looking at a home my wife has listed at around 1 million, they are all cash. It’s sucks for those having to get loans.

Also sucks for people that are long term residents of Texas and other states that people are moving to in droves!

[Smalliehunter91]

My fiance and I are closing on our first home the beginning of next month after about a year of looking. Can't tell ya how many times we have been outbid by cash offers going well over asking price. And our limit on what we can afford was getting smaller and smaller with the increased interest rates. Pretty much got likcy I guess with the one we are now going to buy, as we got it for asking price. The market right now is ridiculous though, with many people from out of town , mostly from the west side of the state moving here after selling their houses and then buying places here with cash.

[stratofast]

12537379[/URL]]They started 5 houses on our quiet rural road 3 months ago, their building permits are only valid for 6 months. They tore out all the trees, busted out the rock and leveled, poured footings, and there they sit. No foundation walls, no activity... It will be interesting to see how long these footings sit in the ground without foundations.

It really depends on who all has stake in the buildings and land. There are some footings on lake front property still vacant from 08 around here.

[Mark Perry]

Also sucks for people that are long term residents of Texas and other states that people are moving to in droves!

Well it is the United States and people are free to move and live where the hell they want. Its not like each state is a tribe at war with one another. We are all Americans first.

[PsuHntr]

Well it is the United States and people are free to move and live where the hell they want. Its not like each state is a tribe at war with one another. We are all Americans first.

it's true...be thankful you live somewhere that other people would want to live or move 2

[BassAllYear96]

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[jigman51]

It’s a return to reality without the Fed artificially propping up housing values. Slowing inflation will require some pain. My first mortgage was 15% interest and houses were still selling in a day.

I remember when I bought my first house in the 80s I was tickled to get 8% on a 15 year mortgage.

[NitroZ7]

Just wait until the "investors" start dumping under performing properties.

There are alot of those type investors in South Florida. Many are foreign investors and bought condo units just as a store of value in USD. The second home and investor market usually start first.

[lakebouef5]

I remember when I bought my first house in the 80s I was tickled to get 8% on a 15 year mortgage.

Yes , but in the 80's...the house was probably a $70-80,000 house.

[NitroZ7]

It is anecdotal but there are so many posts on reddit in the financial section talking about re-evaluating purchasing a home. Now most of these users are younger first time buyers and the rise in interest rates is something that is really impacting them. The stock section is even worse. I thought older people were more prone to panic in a market downturn but these former diamond hand guys are talking about where to put their cash. Absolute 180 from where we were a year ago. I guess this is a rite of passage of sorts as it seems to happen every 10 years.

[magfluker]

Home value is subjective, you are really only overpaying if it is a temporary stay. As long as you out-reside the cycle, haha.

7.5 acre place down the road from me with a house and barn and makeshift pastures that currently have sheep, sold for 319k in a day last week. We tried to have our clients buy it, they board horses with us and take lessons and training, they couldn't act fast enough and were first time buyers themselves. For the amount they pay in rent, they would have saved money on the mortgage. I'd rather overbuy than rent.

[like2fish2]

Listed my place. First day offer over list and closed in three weeks. I'm lucky.

[Riccochet]

It's all about supply and demand. You can't lump the entire country together. You can't even lump an entire state together. Some markets within a state are simply hotter than others and will remain hot regardless of the economy.

If you have a house in the middle of nowhere with virtually zero reason for someone to move there don't expect to sell it any time soon. Meanwhile someone selling their house in a market that has very low inventory and growth rates that are still exceeding supply will have no issue selling their house in days for higher than market value.

This won't change. If anything hot market pricing will flatten off, while cold market pricing will plummet.

[C130]

Couple things I’m learning from helping my wife is lots of sellers don’t care for VA loans and it’s most likely a big disadvantage for the buyer if they are using a VA Loan. You might find the seller that’s a veteran and doesn’t care but overall they are a disadvantage. You can’t buy crap for $275,00-$300,000. Well, you can buy crap but it’s literally crap with multiple bidders paying way too much to get the home. Some people will pay $300,000 for a home needing a ton of work but won’t pay $350,000 for a much nicer home needing little to no work, and yes they are approved for over $350,000.

People will buy any home if it’s what they can afford. It doesn’t matter the shape, age, foundation issues, termites, it’ll sell in this market.

[Duece22]

Couple things I’m learning from helping my wife is lots of sellers don’t care for VA loans and it’s most likely a big disadvantage for the buyer if they are using a VA Loan. You might find the seller that’s a veteran and doesn’t care but overall they are a disadvantage. You can’t buy crap for $275,00-$300,000. Well, you can buy crap but it’s literally crap with multiple bidders paying way too much to get the home. Some people will pay $300,000 for a home needing a ton of work but won’t pay $350,000 for a much nicer home needing little to no work, and yes they are approved for over $350,000.

People will buy any home if it’s what they can afford. It doesn’t matter the shape, age, foundation issues, termites, it’ll sell in this market.

As primarily a listing agent, I talk to my sellers about the benefits of each type of loan. It cracks me up when they say, we don't want VA or FHA loans. Why I ask? 99% of them typically can't answer. Just like anything else, the mortgage company you use is 99% of the issue. Hell, I can close on a VA loan in 21-24 days with my buyers.

[n2ratfishin]

I have owned 14 houses in my life. Seven of them were bought using a VA Loan without an issue. I have never lived in Texas, the sellers there may be leary because with the military? Here, most sellers are expected to cover closing costs. The houses I have owned near a military base have all been this way. Get away from the military and VA loans and the seller has very few closing costs. I could see those cost being an issue to a seller in this hot market.

[TampaJim]

In the current market, why sell to anyone with a conventional loan, if you're in an area where inventory is moving?
Take the best cash offer and keep the closing date short, done and over. And especially now, get out while possible.

[billspence]

I bought my first house with a VA loan, not in anything close to today's market. There were requirements then for things that may not apply to other types of loans or certainly not to a cash buyer who is willing to pay cash, sight unseen, with no contingencies. As long as there are people willing to buy under those conditions, why deal with VA or any type of loan that will, at least, need an appraisal or inspection. Both of which could possibly lower the perceived value of the house and/or slow down the process.