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Where I'm looking, I don't even have time to look at homes they sell so fast. Literally they are sold in less than 24 hours. I'm not sure if I should just delay my search or what, but I'm not looking to have a rat race to buy a home.
We experienced this recently as well. We would make appointments in the morning to look at houses after work, and 3 out of 4 would get cancelled by the time we were leaving work. Weekend showings we were almost always overlapping with other people. It was frustrating but we stuck with it and kept trying. Ended up getting an offer accepted on a great house.
Markets under these stresses are certainly extremely difficult for buyers.
Some have to keep pounding away.
Some walk away.
Some are fortunate, able to raise their price range out of these messes, but that is not always possible, either for the buyer or because the market isn't any friendlier at the top of what they can afford.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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It's the same way here, and there are two reasons - very short supply of homes for sale, and historically low interest rates. People are hesitant to sell due to the pandemic social distancing restrictions, and despite the layoffs/furloughs the people making a lot of money (tech) are still working, from home, and saving commute costs. Many are also hitting the age where they want to start a family and looking for a house, so demand is high.
We would usually see 20+ homes on the market in my school district. Now, however, there are 8. AND, 4 of those have languished on the market at much too high prices. So, that's really 4 out of 20 properties. That is about 20% of usual supply. Of course this is anecdotal, but with such low supply, if people NEED to move, or want to move and can really afford to do so, they will.
I was looking until last week. Saw another place (probably the 10th in the last couple of months) and thought "I feel like these are all overpriced by about $50K." I have kept a close eye on the market over the last 5 years, and never have I so consistently felt prices were so much higher than they should be. I'd rather stay put and wait it out. If prices continue to go up, I figure I don't have much to lose. If they drop, though, and drop precipitously, I really don't want to buy at the top of the market.
All that said - the above poster is correct. Record low interest rates and record low supply coupled with high demand. It's a recipe for high prices.
We would usually see 20+ homes on the market in my school district. Now, however, there are 8. AND, 4 of those have languished on the market at much too high prices. So, that's really 4 out of 20 properties. That is about 20% of usual supply. Of course this is anecdotal, but with such low supply, if people NEED to move, or want to move and can really afford to do so, they will.
I was looking until last week. Saw another place (probably the 10th in the last couple of months) and thought "I feel like these are all overpriced by about $50K." I have kept a close eye on the market over the last 5 years, and never have I so consistently felt prices were so much higher than they should be. I'd rather stay put and wait it out. If prices continue to go up, I figure I don't have much to lose. If they drop, though, and drop precipitously, I really don't want to buy at the top of the market.
All that said - the above poster is correct. Record low interest rates and record low supply coupled with high demand. It's a recipe for high prices.
Me? I'd rather refi.
Problem is if you wait interest rates will likely go up also. I didn't know the Chicago suburbs were having inventory problems also. That housing market has been soft for a while. The thing is rents seem to be falling right now because low income people can't afford it, while housing is going up.
You need an agent who has lived in the area a long time and knows enough residents in your target area that they get tipped off when homes are about to go on the market.
Dealing with a shadow market is no fun. Know exactly what you want and exactly what you can afford, be ready to make an offer immediately, cash preferable and no contingencies.
Problem is if you wait interest rates will likely go up also.
I sure hope so, and not just because I am a cash buyer... Problem for some, great for others. Rates are WAY too low, driving up the cost of everything normally financed, esp homes. Particularly crazy for auto shopping where they just extend payment terms, to "keep muh payment low"... 8 friggin years on a rapidly depreciating object? YEP, madness, not to mention a nice bump in interest rates for savers would be welcomed... But good luck with that in this countries state of economic policy, and culture. Also, from what I am reading mortgages are getting tighter, with credit scores north of 750, with 20% down being golden... This should get interesting.
Rates are totally out of whack relative to the current economics, and IMO, a very hard rain is gonna fall... Don't wish ill on anyone, but you can bet your A$$, I will buy it up with cash at a discount when things at least try to revert to the mean... That is unless BlackRock gets all of them again, buying in 100-500 unit tranches or foreclosed homes.
You need an agent who has lived in the area a long time and knows enough residents in your target area that they get tipped off when homes are about to go on the market.
Dealing with a shadow market is no fun. Know exactly what you want and exactly what you can afford, be ready to make an offer immediately, cash preferable and no contingencies.
Yep, and exactly what I tell any prospective agent I might use... I need you to talk to folks at church, an empty nest neighbor on the fence, word on the street of unfortunate economic problems in the area, their large network of ears on the grapevine... You tell me who you would rather have at closing; me writing a cashiers check for x with no B.S., or with someone who barley qualified for a loan, waiting till the last minute to make sure nothing falls through, didn't lose their job, etc... Talked with enough realtors who have had the deal fall apart at the closing table, for just what I mention.
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