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Old 05-05-2021, 01:12 PM
 
Location: Sandy Eggo's North County
3,588 posts, read 1,340,854 times
Reputation: 5061

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Yes, demand.
We all know that the RE market is a fine point balance, with literally tons of factors, depending upon

location worldwide. (And the Moon, and possibly soon, Mars.)

This is what defines pricing/value. (Demand.)

So, whom is responsible for this alleged demand? Is there a particular age group, that has decided it's time

to "shoot for the American Dream?" (Home ownership.)

I'm thinking the "baby boomers" have pretty much achieved this goal, already.

The next group are the "Millennials." This group has strived for this goal, with many achieving, and many not

achieving. These are the people that have been renting for 10,15 or 20 years, and have began to look at

what all those rent payments hath brought.

The "Gen. X" group has really done well, with their future, for the most part. Many Gen. X own their own

houses. Some are "influencers" and this pays very well.

I don't know enough about the Gen Y & Z bunch, but I know they may be the most lost.

What say you? Am I all wet in my thoughts?
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Old 05-05-2021, 02:02 PM
 
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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.
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Old 05-05-2021, 02:18 PM
 
Location: Sandy Eggo's North County
3,588 posts, read 1,340,854 times
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Then, by proxy, if supply is low, then demand is high.

As you say, "more buyers chasing fewer homes."

Also, I'm hearing of more and more, 1st time home buyers are "settling."

This has been going on for generations.

It looks like we agree, after all! (And that's ok. )
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Old 05-05-2021, 02:35 PM
 
Location: Austin
7,237 posts, read 19,581,553 times
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Rates dropped. Rates were the main driving factor as people could finally afford house prices they could never afford before. However, at the same time, there were less houses because many didn't/don't want to sell during this covid time, especially if they have health issues. With the less inventory because of fears, but rates still low, people are now paying more than ever for houses... so it has kicked out those buyers who couldn't get something early on.

Overall, there is no one specific group. It's all groups. It's first time buyers, but also move-up and move-down buyers. When rates drop, everyone wants to take advantage.
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Old 05-05-2021, 02:38 PM
 
3,067 posts, read 1,076,562 times
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There's no 'by proxy.'

Supply and demand, fueled by low costs of borrowing. Sure, some geographic and generational external forces, but it's supply and demand.
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Old 05-05-2021, 03:47 PM
 
Location: NC
7,870 posts, read 10,409,498 times
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My guess is that
a) some buyers are moving away from high cost areas since they think they will mostly or completely be able to work from home in a more affordable location

b)some buyers are staying in the same hometown but with low interest rates they figure they can get a bigger/newer/or nicer home for the same monthly payment

c) investors are seeing the rising prices and wanting to cash in by buying low and later selling high. Some are flippers. Some are worried the markets are getting unpredictable and think housing is the more stable option

d) foreign investors are as usual paying attention to our markets and like the idea of buying houses and condos to rent out. They can raise the rent later if prices keep increasing

e) some are retiring and want to downsize but can't find a suitable place that's priced right for them. But if they have a lot saved, they just go for it.
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Old 05-05-2021, 06:39 PM
 
Location: under the beautiful Carolina blue
20,560 posts, read 30,688,529 times
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Lots of city people have fled for the suburbs...a pandemic is no time to be stuck in a 1000 square foot apartment, especially in cities that REALLY locked down. Imagine being in NYC and having NOWHERE to go. The whole point of living in NYC is that there's always somewhere to go. And they didn't all flee for the close in suburbs. Some made a complete break, either retiring, transferring or realizing they could work from home forever. And those people have tons of cash to spend.
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Old 05-06-2021, 07:29 AM
 
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Quote:
Originally Posted by twingles View Post
Lots of city people have fled for the suburbs...a pandemic is no time to be stuck in a 1000 square foot apartment, especially in cities that REALLY locked down. Imagine being in NYC and having NOWHERE to go. The whole point of living in NYC is that there's always somewhere to go. And they didn't all flee for the close in suburbs. Some made a complete break, either retiring, transferring or realizing they could work from home forever. And those people have tons of cash to spend.
Don't underestimate the crime/rioting in the big cities as a reason.
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Old 05-06-2021, 07:38 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
34,973 posts, read 63,664,847 times
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Quote:
Originally Posted by Grlzrl View Post
Don't underestimate the crime/rioting in the big cities as a reason.
This, and the declining quality of the big city schools are driving more people to look for homes in suburban areas where there is less disruption, less crime, and better schools. Meanwhile many of us are remaining in our large homes after the kids have moved out, rather than downsizing. We have 2 millennial kids that have bought houses, as have many of their friends, before the market got so tight. Now it takes cash and extreme competition for the few available. Need a loan, or have a contingency and you are out of luck.
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Old 05-12-2021, 11:14 PM
 
Location: Sandy Eggo's North County
3,588 posts, read 1,340,854 times
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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....
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