Real estate going crazy.

[Grub Master]

The folks that have been waiting for another 2008 have lost many opportunities. Sure there will be a correction, but timing the market isn't easy. Buy what you can afford and get in the game. Many will go broke sitting on the sidelines and others have found the market has moved beyond what they thought they could afford. It's close to or more than $200 a square foot to buy and we are around .5 million fewer new housing units being built that we need. Just realize that in the last crash mortgages were not easy to obtain and some couldn't get a mortgage at all.

 

[GFB]

Just realize that in the last crash mortgages were not easy to obtain and some couldn't get a mortgage at all.

When was that?

 

[hikingthehills]

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?

I was 24 years old when I bought my first house. It's about to go on the market. I've completely gutted it and completing renovations are only a week or so out. Looking at potently making 200% profit on the sale. It was rough for a few years but determination kept a roof over my head.

 

[NWSharpshooter]

When was that?

Not 2007/2008 for sure. They were giving stated income loans with zero verification back then.

 

[rightway1974]

I see the signs everyday offering 100% financing, thats the same thing they were doing before 2008. I have a friend that does pest control and he said that a lot of these $500k houses he goes into have the mattress on the floor and nothing but plastic outdoor furniture inside. It sure sounds like people are overextending to get the pricey house and two new cars.

 

[Glock 21]

I don’t see housing prices going down significantly anytime in the near future. House prices were the first to be effected by inflation and with folks like black rock capital snatching up property for rentals it will be a long time before the regular guy can get a decent deal.


This is the result of the fed making the money printer go brrrr for way to long. $5-$7 a gallon gas prices are in our near future

 

[MRH]

I still have my house in Douglasville, but I mostly stay in Social Circle these days. I bought my house for $80k, paid it off at 31 y/o and it is now appraised at $250k. It will be going to market this year.

My parents have this farm in Social Circle and the new electric car plant wants to build right here, on top of us. Our neighbor directly across the road just sold his little place to them for $2 million. My parents place is much bigger, and they have railroad tracks to cross to get up their driveway. The car company wants their own train station. They want to talk to us so who knows what is about to happen here. Honestly, we could care less. We would rather keep it beautiful here and tell them to pound sand, but money talks and they will get their friggin plant anyway. Might as well cash in and move on. We expect the offer and negotiations to be intriguing, to say the least. This place was already worth a fortune, before all this growth...

Real estate guys around Lagrange and Columbus have contacted me with serious offers for my place in Marion county. I bought it in 2014, and I have been offered 2.5x what I paid for it. I kind of hate to part with it, but it would put more money in my pocket, and I am already sitting pretty with zero debt...I can always sit on the cash and wait for the market to bust, then pounce on something else. I'm considering it...

 

[Fish Fry]

The ability to deduct property taxes and mortgage interest for most folks removed a bit of incentive for home ownership over rental living.

Sent from my BV4900Pro using Tapatalk

 

[NWSharpshooter]

I see the signs everyday offering 100% financing, thats the same thing they were doing before 2008. I have a friend that does pest control and he said that a lot of these $500k houses he goes into have the mattress on the floor and nothing but plastic outdoor furniture inside. It sure sounds like people are overextending to get the pricey house and two new cars.

That’s because those houses are USDA eligible rural properties. That program is 40+ years old and had nothing to do with 2007/2008.


Our first house was purchased USDA. Zero money down and zero PMI. It’s a great program if you can qualify.

 

[Alphacpa]

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..

It’s really simple. Demand far exceeds supply and new construction material and labor cost is very expensive. Home prices will move up another 7% or so in 2022 even with a 4% mortgage rate (this rate is still very low from historical perspective). Many people will be relegated to renting for many years.