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Old 05-14-2021, 06:33 PM
 
3,549 posts, read 1,661,842 times
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Quote:
Originally Posted by Grlzrl View Post
Disagree. The reason demand seems unusually high now is because supply is so limited. More buyers chasing fewer houses. Supply is down because if you sell your house, where are you going to go? You could be one of the lucky ones who finds the house you want first. We had to settle for a house we didn't love because we need to be in new house by a specific date.
Did most of the houses just vanish into thin air over the past year for supply to be low?
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Old 05-16-2021, 11:33 AM
 
13,078 posts, read 4,061,935 times
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Quote:
Originally Posted by Bluefox View Post
People are OVERESTIMATING the supply of buyers that can actually afford to buy in today’s next to impossible market. Sure you have foreign buyers and corporations buying up property. But it’s not a net win for the latter unless you can rent those properties out profitably. Right now it looks good because property values are skyrocketing. But eventually the masses of people that sellers depend on for demand are going to dry up because they’ve bought all the homes.

Home ownership is at historically high levels as it is. I expect it will inch up even more but eventually you’re going to run out of prospective buyers because most people will be either qualified and unwilling (like me) to buy or unqualified and thus unable (lower/lower middle class) to buy. Especially in markets where the home value to income/rent ratio is unsustainably high.
Don't kid yourself. A LOT of people are making a LOT of money in the stock market right now...not just super wealthy people.
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Old 05-16-2021, 11:35 AM
 
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Quote:
Originally Posted by mathjak107 View Post
Running out of buyers only means appreciation slows down ..it does not mean prices must fall
I don't think they are going to run out of buyers because there is clearly pent up demand. I do think there will be an impact if interest rates go up but they are SO LOW now, that I think it would take a while to absorb the demand. Heck, my dad was a realtor when mortgages were 18% and people still bought. It wasn't the feeding frenzy that it is now, but they bought.
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Old 05-16-2021, 11:37 AM
 
13,078 posts, read 4,061,935 times
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Quote:
Originally Posted by Bluefox View Post
Okay tell that to Toronto.


https://m.youtube.com/watch?v=p5U9mV7ombQ&t=236s

Yeah, Canada is a different country I get it. It’s the most similar country to the US. But IMO Canada has been a bit of a bellwether for the US in the past 10 years or so and since there’s less people things happen more quickly there in terms of ups and downs. Demand is down AND home prices are down, despite historically low interest rates in that country and during what is normally the hottest time of the year for home buying. Why? All of the buyers that were willing and able to buy in the Greater Toronto Area already did. And nobody is willing or able taking their place.
I think the shift that is happening in the US is significant. People can move from cold to warm now because a lot of them went remote. That isn't an option in Canada.
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Old 05-18-2021, 02:06 PM
 
Location: Round Rock, Texas
12,356 posts, read 12,249,917 times
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Quote:
Originally Posted by NORTY FLATZ View Post
Anyone think the cost of $$$ may rise enough to soften the demand?

Maybe make pricing soften, too?

I'm hearing the "inflation" word being bandied about lately.

10-year note got stronger, on inflationary news, today....
In my neighborhood and much of Texas, nah. Not when there are so many out of staters relocating.

People keep asking for more and more seemingly each month and the sold prices bolster their asking prices. There are still people paying 800k for a home that was listed at 685k. In their eyes, 800k is small change for a home over 3000 sq ft with a half acre or more lot, when compared to a similar home in Colorado/Cali/etc.

Probably the next round of homes (whenever those become available, as I can count on my hands the number of homes up for sale) will now ask for 800k as a start.

That being said, some of the out of staters are starting to realize that when you also factor in the property taxes, it isn't all that inexpensive after all.
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Old 05-18-2021, 02:57 PM
 
7 posts, read 3,778 times
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Quote:
Originally Posted by Berteau View Post
Did most of the houses just vanish into thin air over the past year for supply to be low?
I've been thinking the same thing. Maybe someone can explain.
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Old 05-18-2021, 04:28 PM
 
Location: Sandy Eggo's North County
3,646 posts, read 1,367,527 times
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Quote:
Originally Posted by Berteau View Post
Did most of the houses just vanish into thin air over the past year for supply to be low?
Nope, no "vanishing" occurred. However, the DEMAND has spiked. Millennials/Gen X'rs are sick and tired of being renters and paying someone else's mortgage. They're trying to move into the housing market, in a HUGE way. (Like millions of 'em.) No, not ALL of them, but enough to cause bidding wars for existing real estate.
They see this as a golden opportunity to buy, due to the current loan interest rate. (There's a very good chance, that the mortgage interest rates may begin to trend upward.)

I see the demand waning, due to the raising of interest rates having a negative impact on affordability, in the future. When? I don't know. But, I DO see rates moving upward. Slowly, maybe, but still moving.

The one benefit to waiting this out, is that property taxes should be based on a lower value, once this loan interest rate increase comes to fruition.
Hopefully, this "decrease" in tax cost, will help the new owners to afford their homes. As we've seen in Texas, there's no "free lunch" anywhere in the USA.

Then again, some never intend to buy, and that's ok. Landlords across the USA will love them...until they can't pay their rent, then out-the-door they go!
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Old 05-18-2021, 09:59 PM
 
83 posts, read 35,755 times
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People have to be really really desperate to put themselves through the home buying experience now. It almost seems as though the worse that's being offered, the more people seem to want it and be willing to pay.

Ever since the pandemic started, people all over lost their collective marbles. I suspect those buying houses over the last few months are probably the same ones who stripped the grocery shelves back last March and still have stockpiles of toilet paper.

The panic shopping never stopped, only the things people bought.
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Old 05-20-2021, 08:47 AM
 
Location: No Man's Land
335 posts, read 237,682 times
Reputation: 770
Lots of buyers remorse with millennials.
https://www.foxbusiness.com/lifestyl...se-first-house
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Old 05-20-2021, 10:14 AM
 
3,090 posts, read 1,089,811 times
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Quote:
Originally Posted by NORTY FLATZ View Post

The one benefit to waiting this out, is that property taxes should be based on a lower value, once this loan interest rate increase comes to fruition.
Hopefully, this "decrease" in tax cost, will help the new owners to afford their homes.
Where do property taxes/assessments go down based on increased interest rates? The assessed values don't get adjusted like that.
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