Real estate going crazy.

[GeauxLSU]

I'm in the middle of trying to relocate (out of state). It's a mess. The agent I'm working with told me."We have the same number of buyers on the market but only 1/4 to 1/3 of the inventory."
I'm sure similar everywhere.
The homes there have doubled in the last 3 years and we're going to pay twice what we thought we'd ever pay.
The other thing adding to the problem is with so many people able to work remote now, homes on acreage in rural areas have gone up even more. Which of course is what I'm looking for....

 

[webicknell]

I am in a 62 house subdivision. Most homes are on an an acre. There are 5 Ranch homes like mine on full basement.
The home across the street is the same style as mine and sold for 226,000 2020.
I was offered 278,000 from a company and 284000 from Zillow last July. I turned then m down.
Now I just saw this week a ranch style home is 387,000 for sale by open door. The company that offered 278,000 now e mailed 334000 and have called everyday asking if I got the e mail or the letter with the increased offer.
We are looking up in Chattanooga and Blueridge. Evey home we see at the same price as ours that we like is under contract or crap. Homes I see that are in my price range don't appeal to me.
I realize that the fed is going to increase rates and home loan rates are going to go up. I see rates are a little over 3%. When they go up to 7% or more home values I expect will fall.
I hope they will but it may take a while for prices to settle.

We are up in the Young Harris... Only owe $15K and our home is increased almost $300K in value over the last 18 months... We get so excited and then realize that everything has gone up like this... So where would we go....

 

[lostchild]

Real estate has gone crazy everywhere. Bidding wars over prime properties.
A little 2 br 1 bath on a decent size lot in an older development just went for $459,000

 

[yardboss1]

I think there is more going on here beyond the surface..
private equity groups are buying up real-estate like its going out of style.
and in our area we are seeing apartments go up where you would have never thought they would..

I live in Warner Robins and a company bought up land and is building a single family home subdivision that they are going to RENT out and not sell. A state rep from Macon that is a realtor has introduced a bill that is being discussed now in the state legislature that will make it easier for corporations to do this by bypassing local building codes and county zoning ordinances. His argument is a private property owner should be able to do what they want to with their land regardless of the impact it has on current property owners , traffic , school zones etc. If this is the new trend, add this dynamic to the price of homes.

 

[lostchild]

I live in Warner Robins and a company bought up land is building a single family home subdivision that they are going to RENT out and not sell. A state rep from Macon that is a realtor has introduced a bill that is being discussed now in the state legislature that will make it easier for corporation to do this by bypassing local building codes and county zoning ordinances. His argument is a private property owner should be able to do what they want to with their land regardless of the impact it has on current property owners , traffic , school zones etc. It this is the new trend, add this dynamic to the price of homes.

Seems better than another 600 unit apartment complex. Those can kill an area quickly.

 

[coolformula]

We are up in the Young Harris... Only owe $15K and our home is increased almost $300K in value over the last 18 months... We get so excited and then realize that everything has gone up like this... So where would we go....

If your in a built up area and/or willing to downsize house or land this is a decent time to sell and downsize.

But if you not in that boat well then your out of luck.

I see a lot houses was 150-200k (still seemed high to me) people wanting 250-400k for the same house. I see people selling houses only have a year or two. Not for sure if their downsizing or what.

I just don't see demand going down anytime soon, I think that is going to be key to see the craziness calm down. Lots of people are afraid if they wait another 3 years what will the prices be?

 

[lostchild]

People are buying and flipping down here like crazy. Bidding wars on prime property. Easy way to make a quick 100 thousand if you’ve got the nerve to chance it. Saw one listed recently with a $500k markup.
When this latest bubble bursts, gonna be be 2009 all over again. Anybody caught standing when the music stops…

 

[TommyT]

I am a manager for home loans in Georgia and work for a large direct lender mortgage company located in 48 states . What you have found when looking for a home and showing you may get less house, or worse condition than yours at high prices, are why the market inventory is short. People are afraid to sell their home because they know how hard it is to find a house to buy and win a bid against so many other buyers making offers at the same time! The houses that are for sale are usually at elevated prices going under contract often with multiple offers and everyone bidding OVER ASKING PRICE just to hopefully finally win a bid! Sometimes the houses don't appraise for the higher offers and there is another issue! Some of my customers get frustrated because they can't find a house they want to buy, so decide to try building a new home. The builders can't guarantee a price on materials during construction to be able to give the final completed price for the home, so the new construction home often costs far more than expected for less square footage so many back out! WHAT A MESS

 

[TommyT]

Another issue is, the Real Estate Commission is discussing now making Buyers pay their agent's commission instead of the Sellers. The Sellers usually pay the Listing Agent AND the Buyer's Agent. Some of my clients can barely afford the down payment and it's even harder if forced to pay all closing costs too because Sellers don't want to offer any assistance on the costs like the good ole days. Even on FHA loans, the down payment minimum is 3.50% and then closing costs can be another 3% (or more) depending on the loan size. Now if buyers have to pay 2.50%-3.00% commission on top of these costs, it will make it even harder for some to qualify. Thankfully we have down payment assistance programs and veterans get loans with no down payment, but it will still be tough for some to buy!

 

[Jeddak]

It’s delusional to think people should be able to buy a house when just starting out. I was 31 years old before I ever had my first mortgage. Took years of saving and planning to get into my first home ownership experience.

Why does everyone expect it to be so much easier for young people today?

My wife and I rented for a few years, th3n house sat for a year, living out of suitcases, to save up for a down payment. Then bought a condo, before we could afford to buy a house.