29 and 40 offers on 2 different houses for sale (Phoenix, Mesa: rent, condos)

[FMurtz]

One house in Phoenix had 29 offers and one in Mesa had 40 offers.
Is this what it was like during the boom years?

What are you finding?

[slackjaw]

That would be unusually high number of offers even in the boom years.

Biggest difference then was price.

[azdr0710]

wondering what the asking prices were on these....

and also wondering if it's still only the <$150-200k-or-so houses that are getting the multiple bids as was happening a few months ago....

thanks

[FMurtz]

The 29 offers were for a 199,000 house in Phoenix and the 40 offers were for a $85,000 house in Mesa.

[FMurtz]

From what I understand there are only aproximately 10,000 single family homes available in the greater phoenix area. And from what I understand 7000 to 8000 homes are sold each month. (I learned this from the captain). This is only 1 1/2 months worth of inventory.

A normal supply is 6 months, so we would need 6 x 7000 homes or 42000 homes for this to be at all normal.

I can understand why people are panicking and bidding.
o
My question is: Was it like this in 2006, and how many competing bids are others coming up against.

[autism360]

It was similar but prices were higher and there were many more new builds back then. New build inventory now is only 318, there were probably 100x that in 2006. There were fewer buying all cash back then if I remember correctly and there were more owner occupants. Many of the new builders did not allow investors.

[Captain Bill]

Originally Posted by autism360

It was similar but prices were higher and there were many more new builds back then. New build inventory now is only 318, there were probably 100x that in 2006. There were fewer buying all cash back then if I remember correctly and there were more owner occupants. Many of the new builders did not allow investors.

During that time there were a lot of speculators, people who saw the rapid price increases and jumped in hoping to resell within a few months to make a profit.

[sablebaby]

Originally Posted by FMurtz

From what I understand there are only aproximately 10,000 single family homes available in the greater phoenix area. And from what I understand 7000 to 8000 homes are sold each month. (I learned this from the captain). This is only 1 1/2 months worth of inventory.

A normal supply is 6 months, so we would need 6 x 7000 homes or 42000 homes for this to be at all normal.

I can understand why people are panicking and bidding.
o
My question is: Was it like this in 2006, and how many competing bids are others coming up against.

I bought a house in 2006 and was my own realtor for the deal. For a few months shopping, I could barely drive to a NEW listing before there was an offer. You would see a swarm of cars to the next new listing. I got into a couple bidding wars with multiple offers and lost. It was insane. The vibe was that if you didn't buy NOW the price will be much higher SOON! I wish I would have given up knowing what happened later on.

[Zippyman]

Originally Posted by autism360

It was similar but prices were higher and there were many more new builds back then. New build inventory now is only 318, there were probably 100x that in 2006. There were fewer buying all cash back then if I remember correctly and there were more owner occupants. Many of the new builders did not allow investors.

No, there weren't more owner-occupants, and the "investor bans" were more talk than action. The speculators at that time were regular folks with no real money, but good credit, and they were buying "twosies" and "threesies" at a time.

My housekeeper bought three.

My former landlord bought eight in the same neighborhood, and rented them out at market rent, which was about $1000 less than his payment(each!).

The woman who owned my brother's current house had it nearly paid off, but she extracted $200k in "equity" and used those funds to buy two other properties.

The former "owner" of my current home signed three "owner occupied" mortgages with the same bank, on the same day - all three were "suicide loans", interest only for two years, then the payments would triple - but of course by then he just skimmed the rent & stiffed the bank. That bank was taken over by the FDIC, so now the taxpayers get to eat the $500k+ in losses from that one "investor".

Google "Casey Serin" if you want to know what caused the big banks to fail.

[khuntrevor]

we had a guy buy four condos for 540,000. He let his son "manage" them. Problem was that meth use and property management don't mix too well. The condos were liquidated for about 90K.