U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-22-2013, 10:48 AM
 
3,575 posts, read 5,597,999 times
Reputation: 1426

Advertisements

Quote:
Originally Posted by Species 8472 View Post
Yes. That is crazy and appears to be common in locations across that country that have reported. Can anyone indicate a reason other than low inventory that is driving this market? We've had low interest rates for years and in a matter of months this market has approached peek levels. Could it be the record highs on the stock market? Could it be pent up demand among buyers who are now panicking? Or, could it be just simple supply/demand fundamentals in operation right now combined with low interest rats? It is frustrating because as a buyer I feel like I have to overpay in what might be a mini-bubble that may not last once additional product comes on the market
Obviously real estate is always "local" and each market is different.

But to answer your question about low inventory. Couple of things to consider
1. Most of the distress homeowners who lost jobs/couldn't afford their homes anymore. Those homes for the most part have been sold as distress short sales and foreclosures in 2009-2012 (especially end of 2010/early 2011 was probably the best time to get the best lowest prices for distress properties).

Those homes are off the market
2. Homeowners who can afford to how onto their homes but still underwater. They will just keep trucking along. Most have refinanced and figure it's pointless to sell. Since their mortgage is affordable with the low refinanced. So unless they absolutely need to move for a job, there is no reason for them to sell for a loss if the mortgage is less than the current rents in the area.

So what homes are available? Not much. Builders are slowly starting new builds but they are still not building enough. They don't want to over saturate the market and compete with themselves.

Homeowners who need to move

Homeowners who purchased before the peak and figure they can break even or come out a little ahead with sales.

Plus where I live, banks are still holding on to inventory and slowly releasing foreclosures. There was this one house down the street that was officially foreclosured in October 2012. But finanally listed last week. That's over 7 months of the bank holding onto a property before releasing it for sale.
Reply With Quote Quick reply to this message

 
Old 04-23-2013, 01:37 AM
 
7,451 posts, read 4,347,340 times
Reputation: 4678
Speak of the devil, I was looking thru the sold list, last week there were exactly 100 transactions that closed. Of which, 77 went for over asking, 11 sold right at asking and 12 sold for under asking. So basically 88% of the home either sold at asking or more. Sometimes way more, a home was listed at $699k and sold for over $1.1 million.

The properties that sold for under asking are basically high end expensive type - condos in the one million bucks range or higher; or single family homes at $1.7 million or higher are still negotiable. For buyers who don't have that kind of dough, they are for sure going to be in multiple bids.

I'm in San Francisco.
Reply With Quote Quick reply to this message
 
Old 04-23-2013, 07:51 PM
 
518 posts, read 1,214,157 times
Reputation: 321
Where the heck is everybody getting all that money to afford such homes? I'm wondering when this is going to cool down. It seems like the best communities across the country are going for asking or above asking. And, those asking prices have been set about 2 to 5% higher than just a few months ago for quality product. This is crazy
Reply With Quote Quick reply to this message
 
Old 04-23-2013, 08:06 PM
 
Location: Asheville, NC
10,877 posts, read 23,718,447 times
Reputation: 3748
Low inventory with many homes under contract. Prices are creeping up. The market is definitely changing. I agree many that are selling aren't making a killing but are breaking even or making a small profit over purchase price.

I'm in the suburbs of Orlando, FL.
Reply With Quote Quick reply to this message
 
Old 04-23-2013, 10:56 PM
 
3,692 posts, read 3,903,294 times
Reputation: 4534
The greater Boston housing market is an absolute madhouse ! Guy on my street just listed his house on Craigslist & sold it in 2 days. It sold over asking & he had 5 people driving the price up.

They are doing Saturday & Sunday showings here & the streets look like a road race with all the cars flying around. Looks like 2006 again.
Reply With Quote Quick reply to this message
 
Old 04-24-2013, 11:55 AM
 
Location: Corvallis Oregon
81 posts, read 130,369 times
Reputation: 83
Lately when thinking about what is my market like, what shape is it in, where is it going, what impacts it the most at this time I find myself wondering about what I see not hear...


I ask myself
What about the basic things one thinks of as reasons to buy or sell and move?
Upgrading, better neighborhood, town, schools, hospital, schools, crime, services (Fire ect.), and more
So what's up with them? ...
State shortfalls, county shortfalls, city/town shortfalls, services cut back, meetings and concern about tax levy this, add charges to this/that, school bonds, jail cutbacks, police cutbacks, close the library, cut the...and all the while still waiting for final news on Fed cutbacks/taxes
So what businesses/organizations as a result of those cutbacks/taxes will be doing cutbacks and what businesses will cut back cause they cut back and and...

I think a lot of people hear recovery and think that's not what I see.....Time to Fort up
(I exaggerate...maybe)
Housing Market impacted the Economy and now..pay back time?
Reply With Quote Quick reply to this message
 
Old 04-25-2013, 02:12 AM
 
16,444 posts, read 17,356,504 times
Reputation: 9451
Quote:
Originally Posted by Species 8472 View Post
Where the heck is everybody getting all that money to afford such homes? This is crazy
Drug dealers?
Reply With Quote Quick reply to this message
 
Old 04-25-2013, 09:11 AM
 
Location: El Dorado Hills, CA
3,631 posts, read 7,395,097 times
Reputation: 3712
Quote:
Originally Posted by Species 8472 View Post
Where the heck is everybody getting all that money to afford such homes? I'm wondering when this is going to cool down. It seems like the best communities across the country are going for asking or above asking. And, those asking prices have been set about 2 to 5% higher than just a few months ago for quality product. This is crazy
I have 2 cash buyers now for homes in the $500 - $700K range. The bought a house (one in DC area, one in San Diego), lived in it for 20+ years, paid off the mortgage, did not use it as a credit card, did not overextend themselves, sold the house and had plenty of cash to "downsize" into these homes.
Reply With Quote Quick reply to this message
 
Old 04-25-2013, 11:03 AM
 
1,539 posts, read 1,760,676 times
Reputation: 1001
northern jersey Real Estate still hot.
Reply With Quote Quick reply to this message
 
Old 04-25-2013, 09:30 PM
 
Location: WA
312 posts, read 1,649,429 times
Reputation: 131
I can chime in for myself. We delayed purchasing until we saw the market hit bottom and go up. Plus in that time we saved up more down payment money. Plus we were in a lease until now. I guess we are one of the lucky ones in that we qualified for a mortgage and have stayed employed so we could put 20% down. I'm surprised how many cash buyers there are. I guess some people with cash were also waiting for the market to hit bottom?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top