Bidding on New Construction Home Lots because of demand (homes, buyers)

[remirosie123]

Can anyone explain to me why there are so many buyers and not many sellers? What does "housing bubble" mean? I am just curious. I thought that last people were not buying/selling due to covid, then I thought that there would be so many sellers after the big lockdowns were over in Florida, but I was wrong. Anyone clarify this for me? Thanks

[Igor Blevin]

Originally Posted by remirosie123

Can anyone explain to me why there are so many buyers and not many sellers? What does "housing bubble" mean? I am just curious. I thought that last people were not buying/selling due to covid, then I thought that there would be so many sellers after the big lockdowns were over in Florida, but I was wrong. Anyone clarify this for me? Thanks

Housing Inventory Hits a Record Low: What It Means for Buyers

"A big reason why housing inventory is so low is that sellers have been hesitant to list their homes during the pandemic. And while part of that boils down to the health-related implications of welcoming strangers indoors for open houses and showings, it's also due to not wanting to make any major moves during a period of extreme economic uncertainty."

https://www.fool.com/the-ascent/mort...ns-for-buyers/


Where Have All the Houses Gone?

“The supply side is really tricky,” said Benjamin Keys, an economist at the Wharton Business School at the University of Pennsylvania. “Who wants to sell a house in the middle of a pandemic? That’s what I keep coming back to. Is this a time you want to open your house up to people walking through it? No, of course not.”

A majority of homeowners in America are baby boomers or older — a group at heightened risk from the coronavirus. If many of them have been reluctant to move out and downsize over the past year, that makes it hard for other families behind them to move in and upgrade.

This reluctance can take on a life of its own in a tight market, said Ralph McLaughlin, the chief economist at Haus, a housing finance start-up. When there aren’t a lot of options out there to buy, would-be sellers get skittish about finding their own next home and back out of the market themselves.

https://www.nytimes.com/2021/02/26/u...uses-gone.html


Buyers and sellers are substantially more pessimistic about the housing market, as Covid cases surge again

“The sell-side component fell for the first time since April, reversing most of the increases of the past three months and implying to us that, at least temporarily, potential home sellers might wait to list their homes,” said Doug Duncan, chief economist at Fannie Mae. “If so, this could have the effect of perpetuating already-tight inventory levels and supporting additional (albeit lesser) home price growth, which could contribute to a further moderating of home sales.”

Consumers are feeling less confident about the housing market because they are also feeling less sure about the U.S. economy. More respondents said they were concerned about keeping their jobs, and fewer said their household income had increased substantially.

https://www.cnbc.com/2021/01/07/buye...ng-market.html

[Igor Blevin]

Originally Posted by remirosie123

Can anyone explain to me why there are so many buyers and not many sellers? What does "housing bubble" mean? I am just curious. I thought that last people were not buying/selling due to covid, then I thought that there would be so many sellers after the big lockdowns were over in Florida, but I was wrong. Anyone clarify this for me? Thanks

What Is a Housing Bubble?

A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. Housing bubbles usually start with an increase in demand, in the face of limited supply, which takes a relatively extended period to replenish and increase. Speculators pour money into the market, further driving up demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices—and the bubble bursts.

https://www.investopedia.com/terms/h/housing_bubble.asp



What is a real estate bubble?

A real estate bubble, also referred to as a “housing bubble,” occurs when the price of housing rises at a rapid pace, driven by an increase in demand, limited supply and emotional buying. Once speculators recognize that housing prices are on the rise, they enter the market, further driving up demand. The phenomenon is called a bubble because at some point it will burst.

https://www.bankrate.com/glossary/r/real-estate-bubble/

[ShakenStirred]

Originally Posted by Igor Blevin

Signs of a sure housing bubble. It is becoming a very dangerous time to buy a home. House prices could rise another 2 years or more, but all the signs are pointing to a near future when prices snap back between today's prices and those 10 years ago.

Most people should have learned their lesson in 2008. I expect many didn't.

This blatantly incorrect. The situation in 2008 was created with very loose lending standards, with the Feds basically forcing the banks to make loans to people that weren't qualified. Today the people getting mortgages are doing so under much stricter requirements and are solidly qualified purchasers of their homes.

I'm not saying this run can continue indefinitely, but we are not headed for another housing crash like the one is 2008-2012. It's apples and oranges to back then.

[ShakenStirred]

Originally Posted by remirosie123

Can anyone explain to me why there are so many buyers and not many sellers? What does "housing bubble" mean? I am just curious. I thought that last people were not buying/selling due to covid, then I thought that there would be so many sellers after the big lockdowns were over in Florida, but I was wrong. Anyone clarify this for me? Thanks

It's pretty simple. People are moving away from high tax oppressive states to move to places like Florida. Better economy, better weather, better governor.

Couple that with a massive labor shortage in the construction industry, and the builders simply can't keep up with demand. In the past, the big production builders would build lots of spec homes and keep inventory high. They learned their lesson in the 2008-2012 crash, and do not build like that nowadays.

An average size 3500 sq. ft. home that used to take 80 days to build, now takes 120+ if everything goes smoothly. That's why you see so many jobs sitting empty for days on end on new construction sites sometimes. They're simply waiting on the subcontractors to show up. The skilled labor shortage they've been telling you is coming is here, and it's real.

[Gromicide]

Originally Posted by ShakenStirred

It's pretty simple. People are moving away from high tax oppressive states to move to places like Florida. Better economy, better weather, better governor.

Couple that with a massive labor shortage in the construction industry, and the builders simply can't keep up with demand. In the past, the big production builders would build lots of spec homes and keep inventory high. They learned their lesson in the 2008-2012 crash, and do not build like that nowadays.

An average size 3500 sq. ft. home that used to take 80 days to build, now takes 120+ if everything goes smoothly. That's why you see so many jobs sitting empty for days on end on new construction sites sometimes. They're simply waiting on the subcontractors to show up. The skilled labor shortage they've been telling you is coming is here, and it's real.

It's funny when someone tries to disagree with such an obvious statement like you made in your first sentence. It's like when a kid tries to tell their parent about something and they are so sure in what they're saying.

[remirosie123]

Hi there, Thank you for all of this great information! I really had no idea! We got into a condo and feel blessed that we got into anything at all being that so many people out there seem to be able to pay cash for property, which we don't have the luxury of....anyway, I am looking for jobs now, what areas in Jacksonville are considered "more unsafe than others" , I heard not to rely on the crime map??

[Ivan Putski]

Originally Posted by remirosie123

anyway, I am looking for jobs now, what areas in Jacksonville are considered "more unsafe than others" , I heard not to rely on the crime map??

Hopefully this helps somewhat:

//www.city-data.com/forum/jacks...ville-map.html

[orca17]

Originally Posted by zerp

2020/2021 is caused by various governors’ and teachers unions’ responses to a bad flu season.

Totally inaccurate characterization. More than half a million dead is more than a bad flu season.

[lovetotravel15]

Maybe with the uptick in rates, in 2022 builders will bring back some incentives, like a certain amount off design upgrades . Many have said if you don’t have to move, watch and wait.. who wants to get involved in crazy bidding wars, only to know that you have overpaid and bought at the top. The”honeymoon” of a new home May wear off quickly and you could windup with buyers remorse.