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We seriously bought at the right time. End of Jan 2020. With bidding wars we can actually get over 100k more than what we paid for.
That will end some day.
The high cost of home construction is driven by the high cost of lumber. The high cost of lumber is driven by the Canadian coronavirus shutdown, which includes all the big lumber yards.
Someday Canada will open back up, and the price of construction will go back down.
That could absolutely be the case yes. Some exceptions would be moving to a new area, or significantly downsizing.
Are you looking to sell your current place and downsize due to impending reitrement?
I may or may not sell (I don't have to in order to buy another), I may keep it and rent it out, but it's definitely discouraging to see prices of retirement homes I would consider doubling in just one year...
More buyers than sellers will continue to cause an increase in prices which is strengthened by current material costs and an overall labor shortage in the construction industry.
It will take a major shift in this trend to lower prices or a major disruption in the financial markets which could have an impact on this real estate feeding frenzy.
WHY have real estate prices -- seemingly everywhere at once -- suddenly gone sky high? They're fully double the price I was looking at just two or three years ago, and I'm kicking myself for not buying then! How long can we expect these inflated prices to continue?
There are many opinions on this subject, with no one having a crystal ball. Prior to all the forbearance extensions, one could have expected prices to start to level off (no bubble in sight), as foreclosures started, then inventory would go up, and some dip might even occur.
However with the government going all socialist with no end in sight, expect prices to keep rising with low interest rates, and very few homes on the market.
People want to lock in great rates now, which gives them more purchasing power.
Supply and demand my friend, supply and demand.
Demand is high, and supply is very low.
The bottom line is buy now, before prices go even higher. That is especially true if you are hoping for a crash, because nothing like we went through in 2008 will be happing, since the dynamics are very different.
More buyers than sellers will continue to cause an increase in prices which is strengthened by current material costs and an overall labor shortage in the construction industry.
Again, how are there so many "more buyers than sellers" unless most of the buyers are now either renters or young people just leaving the nest? And, again, whether you sell low and buy low when prices are down or sell high and buy high when prices are up, isn't it six of one, half a dozen of the other?
More buyers than sellers will continue to cause an increase in prices which is strengthened by current material costs and an overall labor shortage in the construction industry.
It will take a major shift in this trend to lower prices or a major disruption in the financial markets which could have an impact on this real estate feeding frenzy.
the more buyers then sellers thing is really a moot point as well as the reverse .
homes are so different that there can be 100 homes for sale but the only one that counts is the one my wife likes ..all the others are a moot point when someone does not like those other homes . wife factor determines which homes count .
there are loads of homes for sale near my sons but there are not enough quality homes or homes that have wife factor it seems . so the number of people looking for turnkey homes is higher than the supply of turn key homes regardless of the great numbers of sellers .
my son had a bidding war on his house he was selling in westchester ...other homes sit unsold to this day from back then .
Last edited by mathjak107; 04-30-2021 at 08:16 AM..
That will end some day.
The high cost of home construction is driven by the high cost of lumber. The high cost of lumber is driven by the Canadian coronavirus shutdown, which includes all the big lumber yards.
Someday Canada will open back up, and the price of construction will go back down.
Location: In a perfect world winter does not exist
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I think its going to be going up for many many years to come. The buyers who will just bid with abandon are mainly tech workers who fortunes are sky high. Most simply write a check and pay off the house or get a 2nd house to rent out.
Again, how are there so many "more buyers than sellers" unless most of the buyers are now either renters or young people just leaving the nest? And, again, whether you sell low and buy low when prices are down or sell high and buy high when prices are up, isn't it six of one, half a dozen of the other?
WFH and remote learning has motivated a lot of folks to move, that wouldn't have otherwise moved. A house of 1500 sf that was satisfactory for a family of 4 when one or both parents commuted to work, and both kids were in school on site, is suddenly a lot "smaller" when Mom and Dad are both working from home, and both kids are remote learning.
Heck, there was a time when my wife was mostly remote at the beginning of COVID and I was too...while not unbearable, if that were the situation when we were LOOKING for a house I'd have insisted on a place that was at least 600 sf bigger than what we're in right now.
The problem is, that that desire isn't universal. It stops at some point. Folks that are already in a large enough house, aren't as motivated to move.
Location: Stuck on the East Coast, hoping to head West
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In my area, sold prices are public. The average SFH, 3bed, 2bath goes for around $450,000 (needs some work) to $600,000 +.
Houses are selling within hours and at about list price. However, one house has been sitting for 3 weeks because it's overpriced.
Additionally, houses that are not completely updated are also selling slower.
I'm also seeing micro markets:
condos are not selling. At all.
Townhouses are selling faster, but the prices seem to be stable.
Houses over $700,000 are taking a while to sell. The ones listed for a million + are also sitting, but I would think that's normal at that price range?
The super competitive market seems to be single family homes, updated, priced between $450,000-600,000. Once you leave those parameters, it seems a bit easier.
Finally, I'm in the DC/MD/VA area. Our market is being flooded with buyers from California.
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