Real estate rant..... ************!

[GeauxLSU]

Blackrock and other groups are the buyers, running prices through the roof. Sight unseen is how it's done. The realtors changed their ethics quickly as the cash is rolling in. JMO.

I own a rental home in Louisiana. Investors are calling offering MORE than we can get on the open market. Just nutz......
If those realtors are caught, they won't be realtors long. And can wind up in the pokey.

 

[hikingthehills]

I just sold my house last week after renovating it for 6 months. They didn't blink at offering 20K over my asking price. Right now I'm in a rental. That's where I intend on staying till this blows over. The market is insane right now. I'm just looking to buy the land and build the house. Prices are up over 100% from where they were last year.

 

[yardboss1]

Is it like this in most housing markets or just the most desirable housing markets ?

 

[Glorfindel]

My parents sold their house for a quarter mil about 2 months ago. Now can’t afford to buy a new one. They had the same dream as you. Smaller house with some land in a rural area. Can’t afford what they want.

 

[rbstern]

I've been attempting a relocation for the last 6 months. I assumed at the time the RE market had peaked. WRONG! It's gotten steadily worse.
Real kick in the gut this week. Put another offer in on a home. NOTHING like what we initially said we wanted (home on acreage in the boonies) but at this point, I'm just tired of it all and want to get there and get it done.
So we offered, all cash, $16k ABOVE asking, NO inspection/option period or inspection contingency, free leaseback, etc... etc.... I couldn't believe I was actually doing that but here is the stats from the listing agent.
We ended up with 35 showings and 17 offers in 3 days.
The lowest offer we received was $11k above asking.
11 offers were $xxx,xxx ($55k above asking) or more.
8 offers were cash.
Only 3 offers included a home warranty
The highest option fees were $500
Only 1 offer had a 10 day option period, the rest were 3-7 days.
4 offers waived the option period
10 offers included buyer paying title policy (expensive there)
all 17 offers included buyer paying for survey
4 offers had full appraisal waiver
3 offers had partial appraisal waiver
2 offers had no appraisal waiver.

Stuff I passed on 6 months ago because I thought it was too expensive is now another $100k. Insanity doesn't begin to describe it.

Don't give up on your dream. For any big life decision, patience is very much a virtue.

 

[Stampede]

I know a young couple that got "outbid" by someone offering $50K over list price. It's crazy....

Where does it end? Will the average (modest) house be worth $2.98 million in another year or so?

It can't go on this way. At some point higher interest rates will cut people out of the market - since they can't afford homes anymore. The couple above had their expected payment increase by $300 per month, as interest rates quickly rose.

 

[GeauxLSU]

Adding to this is the fact that most large companies went to telecommuting during COVID and realized (or their employees have made them realize) that you don't have to be in the office all the time to run a business. So now you have out of staters fleeing taxation hell holes and urban dwellers fleeing those hell holes, running to the rural areas to work remote, in the gulf coast states. It's the perfect storm. And it sucks.

 

[GeauxLSU]

Don't give up on your dream. For any big life decision, patience is very much a virture.

It took me three years to get the job so I've got patience. But there are other things making the move pressing so I can't wait around. I'm going to have to bite the bullet real soon. First world problems I guess.

 

[GeauxLSU]

I know a young couple that got "outbid" by someone offering $50K over list price. It's crazy....

Where does it end? Will the average (modest) house be worth $2.98 million in another year or so?

It can't go on this way. At some point higher interest rates will cut people out of the market - since they can't afford homes anymore. The couple above had their expected payment increase by $300 per month, as interest rates quickly rose.

This is different than the 2008 debacle brought on by giving financing to people that should have never had it. A lot (most?) are paying CASH. They aren't getting booted out of their homes so the supply isn't going to regulate itself that way. Granted the supply chain will eventually but I'm not sure this ever 'resets' like it did back then. This may be the new normal, unfortunately. Can't imagine being a young first time buyer having to move. Hell, I'm having problems being an old 4th time buyer.

 

[GeauxLSU]

I just sold my house last week after renovating it for 6 months. They didn't blink at offering 20K over my asking price. Right now I'm in a rental. That's where I intend on staying till this blows over. The market is insane right now. I'm just looking to buy the land and build the house. Prices are up over 100% from where they were last year.

A guy I work with sold his house at the beginning of COVID assuming the market would crash and has been renting ever since. He will never be able to afford the house he sold. I really feel horrible for him. Here's hoping it has peaked.... finally.