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That's a great price for that area. Was the house intentionally priced low to encourage a bidding war or have prices come down in the last decade? We considered that area back in 2010 but ended up in Kentlands. We moved out of the area a year later.
There is a full-scale bidding war going on as we speak. I asked my agent why the listing prices are so low when they know that the sellers will not accept that price. He said they have no idea what the house will actually sell for and they are simply taking the highest bidder. Another thing is that the sellers are not accepting conditions like buyer inspections. All of this is done in complete secrecy of course.
Pretty much the whole DC area is like this right now. It's especially crazy in the inner suburbs like Bethesda and Arlington.
I've lived through the housing madness: Bought in the Mesa, AZ the house where I live (in 2005) for $210,000. This was peak bubble period. Ground Zero for the coming housing disaster No need to tell what a mistake that was. By 2010 it had dropped to 90 grand.
Today, it's worth roughly $310 grand. ...
That wasn't really a "mistake"; it was merely high volatility. Volatility is unnerving, but ultimatley not a life-altering blunder, unless one happens to panic and sell at the bottom. The volatility is converted into risk.
A true mistake would have been buying something for $200K decades ago, which had maybe $15K/year carrying costs (not including the mortgage... I mean just taxes, insurance, maintenance and utilities), and which today is worth around $90K.
Quote:
Originally Posted by Ultrarunner
Not a block in my city escaped and conventional wisdom was dump the house and rent... I picked up a few former homeowners with one literally crossing the street.
They cut the monthly housing cost by 60% simply renting instead of owning on the same block... each day they walk out the front door they see their old house.
For many years they kicked themselves for ever buying.
Now 12 years later seeing what homes are going for is a hard pill to swallow. ...
It's a "hard pill" because, again, of volatility. The persons in your vignette were caught at the bottom of a harrowing cycle of volatility. Now the cycle has turned. But just imagine the opposite situation, where the houses in question would be worth today, quite a bit less than 12 years ago... and say in another 12 years, less still, and so on. Then the persons swallowing the pills, would have been the ones who had held on.
It was never a case of not being able to afford but why stick with something dropping in value.
It's the same reasoning as people holding-on to stocks, through the March 2020 mini-crash... or the 2007-2009 maxi-crash. Certainly, it was luckier and more felicitous to have sold one's stocks in October 2007 and to have bought them back in March 2009. But outside of internet lore, such dexterity was rare. Nevertheless, even the schmucks who bought into the stock market in say the summer of 2007, are today doing quite well, assuming that they held on. The same can be said for real estate in the "bubble" markets. It can't however be said for all real estate markets. And therein lies a bit of, shall we say, consternation.
“The Fed, meanwhile, won’t raise rates until its goals of maximum employment and sustained 2% inflation have been reached—a scenario officials have described as a long way off.â€
Hmmmm... it seems like the low interest rate, low mortgage rate, demand fueled frenzy will continue
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