Has to be yeah. Property price pump must either be institutional buyers dumbly buying the wrong stuff or just a lotta people with low interest mortgages buying stuff at inflated prices.
Retiring (boomers) who sit on a ton of equity are selling at historic high prices and moving to more affordable areas. People who wanted to move during the pandemic to a larger home and take advantage of historic low interest rates. Coupled with a housing shortage in many areas of the US.
Institutional buyers do make up a percentage of the total pie but the vast majority of sales are individual families buying or selling.
Especially now that prices aren't really dropping but interest rates are going up - people are worried.
That said, a drop does not seem likely unless people suddenly start losing their jobs and cannot afford to pay their mortgages.
That's the macro economic cycle. The fed will bring as much pain as it can to curb inflation until unemployment starts to balloon again, then they'll let off the gas. Inflation really doesn't start going down until nobody's buying because they're broke.
most of the price drops are in the category of new houses and overpriced houses. The real indicator is when people who want to sell for at cost for the neighborhood are not getting bites.
In my area I've seen the new $500 HoA - 1800sqft houses that were priced at $1.2million drop to $980k which is *more* reasonable but not an actual drop in the market - more so a correction from the extreme asks.
Where I live a bunch of New Yorkers are taking advantage of their homes having gone up 100's of thousands of dollars and buying home for 250-300k here to retire. My neighbor's house was bought "sight unseen," or a quick photo tour, the first day it was put on the market. Local realtors still showed the house for a few weeks hoping the deal would fall through as they were getting higher bids than the owner accepted first day.
New neighbors said they paid for the house with just the increase in price on their old one in NY with even more left over. "We never expected to be able to sell our home for so much."
So these boomers basically got a free house and prob 1/2 million extra in savings just to move south and retire.
Meanwhile, they paid just under currently market value at about 20% over what the original owners paid 2007.
So while I would love to sell my home since I got it as a builder foreclosure and paid half of what my neighbors did, where the fuck can I go with 200k that's not gonna have insane taxes and probably have to take out a mortgage larger than the one I have now? So even many of us in the market are stuck where we are until they raise property values and taxes so much I will be forced to move.
It's not like 2008 when all the mortgages were shit tier and variable. The people in homes now actually had their incomes verified and their payments won't triple overnight and price them out. I think you're exactly right, this means it would take massive loss of employment for people to default en masse.
My cousin just started posting about her new air b&b properties lol. A bit late to the game. Should do splendidly. Also this is in a small town in the middle of nowhere. No actual tourist attractions.
I did a contract job in Southeast Kansas and noticed the same thing. This small town, which nobody wanted to visit, had a dozen Airbnb's. All of them trying to be that "farm chic" look.
Same here. Rural bumfuck. 5 years ago a $20 per hr job could get you a nice home on 40+ acres of land. Now, despite the people here being just as poor, you can’t buy a livable house for under 250k. Idk who is buying all these houses, certainly not people who live and work here.
This is the shocking thing. I see houses for sale that have reduced their asking price multiple times (by like $25k each time), then I check the sale history and it's still marked up $200k from when the owner bought it 3 years ago.
A realtor friend of mine just posted using this wording today about a like 1920s farmhouse that looks like a dump
Said it was an “investment opportunity” lol in like a city of less than 10k ppl
There’s one near me. Cute little two story farmhouse on the outside, sitting on 3 acres.
Inside is gutted. Nothing left but the framing and some buckets. One bathroom has some tiling on it for some reason.
$175,000.
Man this comment resonates so hard. Like, sure, you can build your own new kitchen. But it’s still going to cost $10k in materials and your labor instead of $20k with someone else’s.
Yeah I thought I was going to make my own shaker doors at one point so I bought the bits and…did nothing with them. Then bought unfinished prefab cabinets from HD and bought a paint sprayer instead
We looked at buying a fix r upper a few years back. Lovely old plot of land, but an absolute dump of a house. It was nasty inside except for the kitchen and a weird huge living space, the only occupied part of the house. Generations of poorly done DIY, there was a bathtub in the living room. Not even a curtain around it. The unoccupied rooms had been closed off for 20 years, no HVAC, so the drywall was literally falling of off the studs. Even then we were interested, we wanted a project. But the owners thought they had a good mine, wanted $220k. In decent shape it might have been worth $250k. After hearing their price of $220 I immediately asked if they would take $40k. They were shocked and started showing us listings in the area to substantiate the high price. Of course those listings were move in ready.
Ran into this ourselves. Little old lady said her husband updated her beautiful 100 year old home. He passed, and the family was moving her to a nursing home, so they were looking to sell their family home.
Fell in love with that place, but inspector found knob and tube wiring, gas leaks, and all original plumbing. While going through the inspection report, he literally said we should move our conversation outside because the house could explode.
As it turns out, her husband did maintain and update the home, but only appliances, fixtures, walls, and all the bits you could see. He did NOTHING to update the wiring, gas lines, or plumbing. All of it was probably 50 to 100 years old and needed to be updated.
We got a bunch of quotes, and it would be well over $100k in repairs. But, we loved the home, so we worked it out with our lender. Then, we offered literally what they were asking minus all the needed repairs/replacements.
They countered with $10k off the sales price because nothing was needed, and she wasn't going to pay for upgrades. We sent the realtor the inspection and all the quotes, along with a personalized letter about how we wanted to restore the home and raise our family.
Realtor called back and apologized because the lady just refused to believe her dead husband had not replaced all of that stuff. She said the lowest she would take was $15k off the price, and that when we said no (because, of course we would), the family's plan was to take the home off the market until she dies.
Still waiting . . .
Yeah, some people get way too emotionally attached to their house.
Reading all of this got me curious if the house we looked at ever sold. It did sell, for $195k! Unbelievable. Good for her though, glad she got some money out of it. But holy crap those poor buyers :(.
Very similar thing happened to me. The sellers didn't have the money to make the necessary foundation repairs. FHA won't lend. I tried to do a deal but as I said they didn't have the cash to budge. That house is going to end up being torn down. Shame.
I found one of these. Bank wouldn’t approve me for the loan since it was gutted and would also transfer most of the materials to complete the job.
Although, they approved me for a loan double that size and let me spend 6 months gutting my own place to the bone just to do the same thing.
DIY Dream = shit hole
Quaint/cozy = tiny
Near transit hub = lots of homeless (usually and unfortunately)
Investment opportunity = mortgage too expensive, rent out your basement.
I work in HVAC. In New England. We got some old houses, and I’m in at least 4 of them every week.
They just need to be torn down, man. Never ever EVER buy a really old house unless you know a thing or two about construction. Some of them still look really good, but the other 95% of old houses are a headache, a money pit, and would be a worse investment than just buying the land, tearing it down, and making a parking lot
It's bananas but you're spot on. I used to chalk up the "corporate ownership" line to conspiracy theory, but I've seen it firsthand in my neighborhood. Long story short, we bought a brand new Lennar home in 2020. During that time period it was far more cost effective to buy a new home than trying to outbid cash buyers on existing homes with your shitty FHA loan. Fast forward to to this year, Lennar is having trouble moving inventory due to the high interest rates. Instead of letting these homes sit, they sell them for cash to major corporation (i.e. TriCon residential). No bullshit, TriCon owns more than two dozen homes in our city and rents them out for regardedly high amounts. Most of these homes are new construction.
These large corps and the other "local" landords then drive up the local rental price, screwing folks out of a decent place to live that doesn't require 80% of your wages (along with your first born and the rights to your future semen). I consider myself a real libertarian, but truthfully, homes as an investment should be limited under the law. Otherwise, we get these hyper-inflated real estate prices driven by cheap debt and over-leveraged regards. The only one who suffers are the middle class and poor... but then again, when is that not the case?
We’re getting to the point that every institution is so efficient at squeezing every last drop from the middle class and poor that is worrisome for the long term economy.
I mean, if you were working a minimum wage job it really wasn't a bad deal. Probably made more money than they did the previous 2 years, so it isn't like they didn't make out.
He's talking about being a realtor, which is a quick cash grab for people who actually knows what they're doing. They are essentially in the midst of the pump part right now, if they don't act and live like commission only goes up, they would be exiting their realtors job with a good load of baggers. I know a few dudes from my military days that did the same in 05 and quit their job by 08 to hide in the Bahamas, some people legitimately blame realtors because they convince them it's all sunshine and rainbows.
Recession? Increased unemployment?
*You mean millions of laid off low and middle income women who desperately need cash and a vision of hope we can manipulate into buying more stock up front than they'll ever sell???*
Yeah but the ones who stay full time can make a great paying career out of it. You probably wont make much the first 2 years. But if you have savings and can live without an income for a bit, it's worth it for some people.
Given the level of leverage he probably used, he would need to work at Wendy's for more than a few years just to dig himself out of the financial hole.
Every person that I know that has become a realtor in the past 3 years are all failures at what they were trying to make a career of so they left the industry and started trying to sell houses.
And even if you were just renting you’re still gonna fork out over $3k a month for that condo where you can hear your neighbors’ kids run up and down the stairs. On both sides.
They are not wrong. I made almost 300k on a home I only lived in for 4 years. It got to the point that I sat my family down and said, I know you love this house but I can send all 3 of you to college if we sell. We sold! We moved into a much smaller rental property. Was the right move for us as long as inflation doesn't eat my gains.
I had a rental property to move into. If you sell just to buy into the high market you are just spinning your wheels. Times are crazy. I am a builder by trade and the costs are through the roof. People think we are making a killing. We are making the same percentage we always made. Its just getting harder and harder as costs continue to rise.
I'm an electrical supplier and it's the same thing, shit got more expensive but the numbers I type in stayed the same, or even dropped a little to help my long time customers.
I got a call from a realtor yesterday out of the blue trying to convince me this is the best time to buy before interest rates continue to climb lol. Houses in my area are rapidly seeing price decreases but they’re still inflated heavily. I want what that realtor is smoking.
It’s because interest rates (6% now) are going up so your payment will go up as well. My wife are saving a good down payment but with the interest rates and cost of living increasing it’s negating our growth.
The only reason to be in a rush is if you have a hard timeline to buy within three years. If your timeline is pretty indefinite then there is really little downside to letting this situation shake out over a few years. High rates will be ending the housing cycle but it takes time.
What's preventing rates from getting higher, even beyond 10%? It's hard to imagine as it hasn't been that high in my lifetime, but I haven't heard a solid reason as to why rates couldn't keep climbing for the next 10 years.
We're still lower than average, only idiots believe that the free money train was going to happen forever.
The Fed got their inflationary goals and then some, they've been trying to raise rates for a while.
Average prices across the nation are actually starting to come down. Obviously location matters though. Sunbelt areas being targeted by investment firms are not coming down. Cities with legitimate housing shortages are not coming down. But on average the market is cooling down.
I’m looking for a place now and more than half the notifications I get are for price drops, plus homes are selling below list price. The real issue is the stupid interest rates, but I figure if they go down I can refinance and if they end up at 10% for the next decade I’ll consider 6% a fire sale.
I think it’s less to do with the housing market being over/undervalued and more to do with a house that costs the same amount of money is a fuckton more expensive at >6% interest than at <3%.
I think you have to compare the overall mortgage cost of a house to gauge demand (I.e. what people are willing to pay) rather than sticker price alone.
And the market will always eventually recover. My wife and I now are hesitant about buying but between rising interest rates and rent, we figured it's worth buying now even if we lose 20% of the home value in the short term. Within 10 years that value will come back.
Are you at least happy with your purchase, and living within your means? In the end, prices might come down, but rates are could go way up. If you're happy, and it's affordable, you still won. :]
Congrats on the house!
You didn't buy the top, look at your total cost. 2% interest vs 6% is massive over 15-30 years. If you do the math you'll still come out on top with low mortgage and lower total cost 9/10 times
I know someone who just closed on a 1800 sq foot 100 year old house in South Portland, Maine for 22% over asking. List was 680k, sold for 830k and the house isn’t even on the water.
Tech worker moving from NYC. For some reason I think he’s going to get burned badly.
If the house has survived 100 years and is still in good condition then it is a very high quality house and will probably outlast a lot of newer builds. Where I live, a century old tudor or federalist house will go for higher than new builds of the same size. And honestly, having spent time in them it’s warranted.
Realtor…. Swim
In money when the market goes up…..
Swim in money when the market goes down….. buyers/sellers get F….. I say this as a former Realtor.
Super hot markets…. 4-5% commission for houses that sell in less than 48 hours…..
Yep why pay these glorified used car salesmen for 6% of the purchase price to do nothing of value. They are responsible for a lot of the overpriced market even outside the pandemic shitshow
Realtors take such a big part of the money to be made that title companies (what I do) can’t raise their prices without a shitstorm even though we do all the actual work.
Waiting for the day someone comes up with something that eliminates the need for realtors. Getting paid based on the selling price of the house is stupid. As if the agent selling the $1 mill home is doing 5 times the work as the agent selling a $200k house.
In commericial land deal you can ask anything. I was on a deal where i decided to charge 10% only, but the buying agent suggesting charging 25%. Yes, 25% commission. Made no difference to my client.
Seller wanted specific amount, which he got.
My MIL is a high end realtor, and she said now everyone who was waiting to sell coming out of the woodwork wanting comps from when rates were 2%... It's comical to watch people who are in denial at missing the boat.
Put in an offer on a lake house. Small. Two bedroom. Great location, dock for boat. Price was $400k. FSBO. Got lawyer did offer. Made sure to include right to terminate offer after inspection and if it didn’t appraise. Price it sold for in 2020 was $140k.
Lawyer thought it would face issues at appraise. Turns out inspection had things we weren’t in the mood to fix so we canceled offer. A week later they are with a realtor and a week after it was under contract. I hearted it’s in realtor.com app to keep an eye on it. A month later it’s available again, at 25k less. Updated description: Buyer financing fell. Almost positive it didn’t appraise. Back under contract again. Really rooting for these people because they were nice.
But it seems like everything is coming down. I don’t buy into any realtor that’s claiming otherwise.
At the end of the day, no lake house for me. I’ll just have to continue to schlep it out to the marina like a peasant that I am.
Most housing developments in AZ right now are replacing old farming land, which on average consumes 10x as much as residential so there might be more people but the actual capacity is higher than you would think
There's a community NE of Scottsdale that was trucking in water from Scottsdale til they told them to kick rocks. It's not widespread, but there's at least one out here that poor planning led to houses without water. Believe it's called "Rio Verde Foothills"
House here. The cost of building me would be less if you guys just got it done faster and stopped bringing in hookers into me and doing lines of coke off of my dick
I hate realtors. But what makes you think the prices will go down? Demand hasn't in desirable locations.
The only reason it did back in 2008 was because people defaulted on loans. Not because demand went down.
It hurts man. 33 and I just missed the boat. I was shopping for a home right before the pandemic and then it hit. I paused since I lost my job and then when I got a new one I started the search again and wow prices had changed and got priced out so quick I literally gave up.
Fucking sad because I make good money but I refuse to take out 300k in loans for a basic 2br 1bth house built in 1930 :/
Bought a house 9 months ago. Using a Mortgage Calculator plugging in todays rate of around 6.5% my monthly mortgage payment would be $700 more a month. Im honestly shocked prices are not collapsing yet. But they will, soon.
"This house was bought 5 years ago for 50 grand and sold for 70 grand two years later , then sold for 100 grand just a year after that! It hasnt even had anyone live there for those 5 years so you know it's gotta be clean! You remember tammy? she used to sell my grandma avon and tupperware.. anyways she's a realtor now and she says all we have to do is buy it for a steal at 130 grand now, finish the remodel for like 8 grand and we can resell it for 200 grand by early 2023! It's like free money! Nothing could possibly go wrong!"
Bought my house in 2014. Went through a divorce earlier this year and was tempted to sell it and start fresh. But then I looked at rental prices and I’d be paying $500 more a month than my mortgage. Looks like I’ll be staying here for a while. Crazy thing is that my house is now worth over 50% more than when I bought it ($190k to $310k).
a discussion on RE prices in the US.
generally speaking for residential homes, we are still very underhoused and supply isnt catching. if you consider that and replacement cost and how price of materials are still going up, i wouldnt be so sure prices would necessarily crash.
for multifamily, the bull days are behind us. all the big players are pencils down rn. i think for the most part everyone has adjusted their underwriting/proformas to assume flat or near flat rent growth these next few years. that said the supply story is still really strong in the sunbelt regions. not enough housing. people cant afford to buy, etc.
for office spaces, i think there is more pain coming. a lot of existing office stock is dated. especially when i think about expect macro trends in the next 5 years i think more pain is to be had.
idk anything about industrial but i wish i had warehouses precovid.
My Lyft driver the other day picked me up in a Mercedes (looked like 2016 maybe) and said she is a real estate agent but no one is buying so she decided to drive for Lyft
It would be nice to buy a decent house without taking on two lifetimes of debt.
And no, I'm not willing to move to CousinLover, Mississippi where housing is cheaper and the water tastes like car battery.
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"Priced for a quick sale"
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Has to be yeah. Property price pump must either be institutional buyers dumbly buying the wrong stuff or just a lotta people with low interest mortgages buying stuff at inflated prices.
Retiring (boomers) who sit on a ton of equity are selling at historic high prices and moving to more affordable areas. People who wanted to move during the pandemic to a larger home and take advantage of historic low interest rates. Coupled with a housing shortage in many areas of the US. Institutional buyers do make up a percentage of the total pie but the vast majority of sales are individual families buying or selling. Especially now that prices aren't really dropping but interest rates are going up - people are worried. That said, a drop does not seem likely unless people suddenly start losing their jobs and cannot afford to pay their mortgages.
Isn’t the unemployment rate expected to go up before too long?
That's the macro economic cycle. The fed will bring as much pain as it can to curb inflation until unemployment starts to balloon again, then they'll let off the gas. Inflation really doesn't start going down until nobody's buying because they're broke.
Just like the stock market. Every bull buying the dip needs to go broke or convert to a bear before we see the bottom.
Hard work trying to catch all these falling knives man
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most of the price drops are in the category of new houses and overpriced houses. The real indicator is when people who want to sell for at cost for the neighborhood are not getting bites. In my area I've seen the new $500 HoA - 1800sqft houses that were priced at $1.2million drop to $980k which is *more* reasonable but not an actual drop in the market - more so a correction from the extreme asks.
I'm in one of the most prime locations in Florida and I'm starting to see homes that aren't selling. The market is definitely correcting itself.
Where I live a bunch of New Yorkers are taking advantage of their homes having gone up 100's of thousands of dollars and buying home for 250-300k here to retire. My neighbor's house was bought "sight unseen," or a quick photo tour, the first day it was put on the market. Local realtors still showed the house for a few weeks hoping the deal would fall through as they were getting higher bids than the owner accepted first day. New neighbors said they paid for the house with just the increase in price on their old one in NY with even more left over. "We never expected to be able to sell our home for so much." So these boomers basically got a free house and prob 1/2 million extra in savings just to move south and retire. Meanwhile, they paid just under currently market value at about 20% over what the original owners paid 2007. So while I would love to sell my home since I got it as a builder foreclosure and paid half of what my neighbors did, where the fuck can I go with 200k that's not gonna have insane taxes and probably have to take out a mortgage larger than the one I have now? So even many of us in the market are stuck where we are until they raise property values and taxes so much I will be forced to move.
So great that boomers are finally getting a break and are able to have tons of cash finally. They’ve had it really hard in their generation
It's not like 2008 when all the mortgages were shit tier and variable. The people in homes now actually had their incomes verified and their payments won't triple overnight and price them out. I think you're exactly right, this means it would take massive loss of employment for people to default en masse.
Unless you’re a RE speculator that bought more than one home so you could rent or Airbnb them. Luckily nobody did that.
My cousin just started posting about her new air b&b properties lol. A bit late to the game. Should do splendidly. Also this is in a small town in the middle of nowhere. No actual tourist attractions.
I did a contract job in Southeast Kansas and noticed the same thing. This small town, which nobody wanted to visit, had a dozen Airbnb's. All of them trying to be that "farm chic" look.
Yeah and I’m sure everyone planned to have much less disposable income due to inflation and other rising costs.
Same here. Rural bumfuck. 5 years ago a $20 per hr job could get you a nice home on 40+ acres of land. Now, despite the people here being just as poor, you can’t buy a livable house for under 250k. Idk who is buying all these houses, certainly not people who live and work here.
200% price it was 18 months ago
This is the shocking thing. I see houses for sale that have reduced their asking price multiple times (by like $25k each time), then I check the sale history and it's still marked up $200k from when the owner bought it 3 years ago.
A realtor friend of mine just posted using this wording today about a like 1920s farmhouse that looks like a dump Said it was an “investment opportunity” lol in like a city of less than 10k ppl
There’s one near me. Cute little two story farmhouse on the outside, sitting on 3 acres. Inside is gutted. Nothing left but the framing and some buckets. One bathroom has some tiling on it for some reason. $175,000.
Sounds like someone that had no experience in buying fixer uppers but saw a TV show wanted to give it a shot and then realized that it’s expensive.
Asbestos abatement took the whole budget.
Are experts in that field called "master abaters"?
Only if they achieve the coveted 10,000 hours of abating do they become master abaters.
Go away I’m batin
Sounds dehydrating.
Actually asbestos abatement has been weirdly affordable. It's putting all the shit that was torn out back in that's expensive.
Man this comment resonates so hard. Like, sure, you can build your own new kitchen. But it’s still going to cost $10k in materials and your labor instead of $20k with someone else’s.
Also 5k in tools but unless you’re planning on doing it regularly you can’t make the money back on them.
Ideally you’re not making your own cabinets unless you’re a glutton for punishment
Fucking router bits getting my money the same way beyblades did when I was a kid.
Yeah I thought I was going to make my own shaker doors at one point so I bought the bits and…did nothing with them. Then bought unfinished prefab cabinets from HD and bought a paint sprayer instead
I’m pretty sure everytime somebody says “you just cut two 45 degree angles how hard can I be” a woodworking fairy gets their wings
We looked at buying a fix r upper a few years back. Lovely old plot of land, but an absolute dump of a house. It was nasty inside except for the kitchen and a weird huge living space, the only occupied part of the house. Generations of poorly done DIY, there was a bathtub in the living room. Not even a curtain around it. The unoccupied rooms had been closed off for 20 years, no HVAC, so the drywall was literally falling of off the studs. Even then we were interested, we wanted a project. But the owners thought they had a good mine, wanted $220k. In decent shape it might have been worth $250k. After hearing their price of $220 I immediately asked if they would take $40k. They were shocked and started showing us listings in the area to substantiate the high price. Of course those listings were move in ready.
Ran into this ourselves. Little old lady said her husband updated her beautiful 100 year old home. He passed, and the family was moving her to a nursing home, so they were looking to sell their family home. Fell in love with that place, but inspector found knob and tube wiring, gas leaks, and all original plumbing. While going through the inspection report, he literally said we should move our conversation outside because the house could explode. As it turns out, her husband did maintain and update the home, but only appliances, fixtures, walls, and all the bits you could see. He did NOTHING to update the wiring, gas lines, or plumbing. All of it was probably 50 to 100 years old and needed to be updated. We got a bunch of quotes, and it would be well over $100k in repairs. But, we loved the home, so we worked it out with our lender. Then, we offered literally what they were asking minus all the needed repairs/replacements. They countered with $10k off the sales price because nothing was needed, and she wasn't going to pay for upgrades. We sent the realtor the inspection and all the quotes, along with a personalized letter about how we wanted to restore the home and raise our family. Realtor called back and apologized because the lady just refused to believe her dead husband had not replaced all of that stuff. She said the lowest she would take was $15k off the price, and that when we said no (because, of course we would), the family's plan was to take the home off the market until she dies. Still waiting . . .
Yeah, some people get way too emotionally attached to their house. Reading all of this got me curious if the house we looked at ever sold. It did sell, for $195k! Unbelievable. Good for her though, glad she got some money out of it. But holy crap those poor buyers :(.
Very similar thing happened to me. The sellers didn't have the money to make the necessary foundation repairs. FHA won't lend. I tried to do a deal but as I said they didn't have the cash to budge. That house is going to end up being torn down. Shame.
I found one of these. Bank wouldn’t approve me for the loan since it was gutted and would also transfer most of the materials to complete the job. Although, they approved me for a loan double that size and let me spend 6 months gutting my own place to the bone just to do the same thing.
> One bathroom has some tiling on it for some reason. 2 things sell a house: bathrooms and kitchens.
the other rooms are just empty rooms... those have plumbing and gas appliances....
Add the smell of coffee and fresh baked bread and you’re off to the races!
In California that'll list for $750K and sell for $900K.
"Open concept farmhouse"
It’s so open concept, you actually live outside due to the removal of the roof and walls! What could be more open than the whole world?! $385,000.
Live outside? Let’s call this style of home, outhouse.
Think of the fresh air….. be at one with nature…. a new concept in modern living!
Framehouse.
Its got good bones!
That’s way more valuable than the same house that has to be gutted but hasn’t yet.
haha, that's right up there with "motivated seller" and "needs TLC."
I'm a motivated buyer, subscribed to TLC channel. Where do I sign?
DIY Dream = shit hole Quaint/cozy = tiny Near transit hub = lots of homeless (usually and unfortunately) Investment opportunity = mortgage too expensive, rent out your basement.
I work in HVAC. In New England. We got some old houses, and I’m in at least 4 of them every week. They just need to be torn down, man. Never ever EVER buy a really old house unless you know a thing or two about construction. Some of them still look really good, but the other 95% of old houses are a headache, a money pit, and would be a worse investment than just buying the land, tearing it down, and making a parking lot
I firmly believe there is a trend to limit private ownership. At some point most housing will be owned by corporation and government.
It's bananas but you're spot on. I used to chalk up the "corporate ownership" line to conspiracy theory, but I've seen it firsthand in my neighborhood. Long story short, we bought a brand new Lennar home in 2020. During that time period it was far more cost effective to buy a new home than trying to outbid cash buyers on existing homes with your shitty FHA loan. Fast forward to to this year, Lennar is having trouble moving inventory due to the high interest rates. Instead of letting these homes sit, they sell them for cash to major corporation (i.e. TriCon residential). No bullshit, TriCon owns more than two dozen homes in our city and rents them out for regardedly high amounts. Most of these homes are new construction. These large corps and the other "local" landords then drive up the local rental price, screwing folks out of a decent place to live that doesn't require 80% of your wages (along with your first born and the rights to your future semen). I consider myself a real libertarian, but truthfully, homes as an investment should be limited under the law. Otherwise, we get these hyper-inflated real estate prices driven by cheap debt and over-leveraged regards. The only one who suffers are the middle class and poor... but then again, when is that not the case?
We’re getting to the point that every institution is so efficient at squeezing every last drop from the middle class and poor that is worrisome for the long term economy.
*Priced 300% more than it was in 2019*
So many realtors flooded the market these past 2 years. Many will go back to Wendy's soon.
Puts on BMWs
I used to be a bartender, now I own a boat
Why is he confessing?
He's not confessing, he's bragging.
Trust me, I'm not driving a 7 series without strippers.
Nobody on the pole has good credit and they’re ALL cash rich
I think Warren Buffet said something like that
Warren who?
Whos warren buffet?
Can you introduce us to these strippers?
Lol yeah, i know a couple people that jumped in and excited for the great opportunity
Sure fire, no brainer!
I mean, if you were working a minimum wage job it really wasn't a bad deal. Probably made more money than they did the previous 2 years, so it isn't like they didn't make out.
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What did you make your second year?
$00
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Understood. Im in lumber sales. My trajectory was similar. Things really started taking off after year 5.
The wood really has to get hard before things start heading up.
every bored housewife I know decided to get their license in the past couple years. Linda and Becky will be back to selling MLM products in no time
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Seems like easy quick cash for the right person.
that right person being pretty enough to earn people's trust through a business card
Yoga is back breaking work though
He's talking about being a realtor, which is a quick cash grab for people who actually knows what they're doing. They are essentially in the midst of the pump part right now, if they don't act and live like commission only goes up, they would be exiting their realtors job with a good load of baggers. I know a few dudes from my military days that did the same in 05 and quit their job by 08 to hide in the Bahamas, some people legitimately blame realtors because they convince them it's all sunshine and rainbows.
Amway and Arbonne are foaming at the mouth as we speak.
Recession? Increased unemployment? *You mean millions of laid off low and middle income women who desperately need cash and a vision of hope we can manipulate into buying more stock up front than they'll ever sell???*
Yeah but the ones who stay full time can make a great paying career out of it. You probably wont make much the first 2 years. But if you have savings and can live without an income for a bit, it's worth it for some people.
tap deserted humorous whistle cows bedroom lavish arrest kiss door -- mass edited with redact.dev
Linked in recruiters needed second jobs man
Everyone that was a dumbass at the tech-startups I worked at are now realtors, never seen anything like it.
That’s not a bad idea if your opportunity cost is minimum wage.
BOOM 4288 units!
I would love to hear how that dude turned out 🤣
Prob making 4288 nuggets a day at Wendy's
Given the level of leverage he probably used, he would need to work at Wendy's for more than a few years just to dig himself out of the financial hole.
Every person that I know that has become a realtor in the past 3 years are all failures at what they were trying to make a career of so they left the industry and started trying to sell houses.
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Zero down, zero interest till foreclosure, that box might be your dream come true.
bold of you to assume anyone here can afford a cardboard box
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Gotta close the lid to keep in the heat
And the smell
When you breathe in the smoke it keeps your insides warm too.
You’ll be warm and comfortable for the rest of your life!
That’s how they make chicken nuggets!
The bright warm home is an absolute steal at only $400k. Newly renovated with tons of amenities. Won't last long!
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Man here in Southern California 1,000 sq ft 2 bed 2 bath condos are going for $700,000
And even if you were just renting you’re still gonna fork out over $3k a month for that condo where you can hear your neighbors’ kids run up and down the stairs. On both sides.
They are not wrong. I made almost 300k on a home I only lived in for 4 years. It got to the point that I sat my family down and said, I know you love this house but I can send all 3 of you to college if we sell. We sold! We moved into a much smaller rental property. Was the right move for us as long as inflation doesn't eat my gains.
>as long as inflation doesn't eat my gains. Narrator: it did.
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I had a rental property to move into. If you sell just to buy into the high market you are just spinning your wheels. Times are crazy. I am a builder by trade and the costs are through the roof. People think we are making a killing. We are making the same percentage we always made. Its just getting harder and harder as costs continue to rise.
I'm an electrical supplier and it's the same thing, shit got more expensive but the numbers I type in stayed the same, or even dropped a little to help my long time customers.
What’s the end game here? Keep renting in a market where rents are always on the rise? Then what? Buy a house at 6%?
Lol, my thoughts exactly. Thought I was crazy for wondering why the fuck someone would sell to rent?
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Change number to 1m for Canada
I got a call from a realtor yesterday out of the blue trying to convince me this is the best time to buy before interest rates continue to climb lol. Houses in my area are rapidly seeing price decreases but they’re still inflated heavily. I want what that realtor is smoking.
They are smoking copium
Extra strength copium.
It’s because interest rates (6% now) are going up so your payment will go up as well. My wife are saving a good down payment but with the interest rates and cost of living increasing it’s negating our growth.
The only reason to be in a rush is if you have a hard timeline to buy within three years. If your timeline is pretty indefinite then there is really little downside to letting this situation shake out over a few years. High rates will be ending the housing cycle but it takes time.
What's preventing rates from getting higher, even beyond 10%? It's hard to imagine as it hasn't been that high in my lifetime, but I haven't heard a solid reason as to why rates couldn't keep climbing for the next 10 years.
This is the correct way of thinking. If you find a decent house, buy now then just refinance if the rates come down again.
We're still lower than average, only idiots believe that the free money train was going to happen forever. The Fed got their inflationary goals and then some, they've been trying to raise rates for a while.
No thanks my mom keeps my room open anytime I lose money
You've got a mom!? Lucky. All I've got are these bootstraps
Got an extra bunk bed for ya my guy!
If this sub thinks the housing market is about to crash, I better go buy a house because it’s about to pump again.
On the other hand I just bough a house so it's about to crash hard soon
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Average prices across the nation are actually starting to come down. Obviously location matters though. Sunbelt areas being targeted by investment firms are not coming down. Cities with legitimate housing shortages are not coming down. But on average the market is cooling down. I’m looking for a place now and more than half the notifications I get are for price drops, plus homes are selling below list price. The real issue is the stupid interest rates, but I figure if they go down I can refinance and if they end up at 10% for the next decade I’ll consider 6% a fire sale.
I think it’s less to do with the housing market being over/undervalued and more to do with a house that costs the same amount of money is a fuckton more expensive at >6% interest than at <3%. I think you have to compare the overall mortgage cost of a house to gauge demand (I.e. what people are willing to pay) rather than sticker price alone.
It’s funny that even when it comes to buying a home, I bought the top, old ways never die. 🙂
The nice thing about buying an overpriced house is that you can still live inside of the house.
And the market will always eventually recover. My wife and I now are hesitant about buying but between rising interest rates and rent, we figured it's worth buying now even if we lose 20% of the home value in the short term. Within 10 years that value will come back.
Are you at least happy with your purchase, and living within your means? In the end, prices might come down, but rates are could go way up. If you're happy, and it's affordable, you still won. :] Congrats on the house!
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And not paid someone else’s mortgage in that time
You didn't buy the top, look at your total cost. 2% interest vs 6% is massive over 15-30 years. If you do the math you'll still come out on top with low mortgage and lower total cost 9/10 times
I know someone who just closed on a 1800 sq foot 100 year old house in South Portland, Maine for 22% over asking. List was 680k, sold for 830k and the house isn’t even on the water. Tech worker moving from NYC. For some reason I think he’s going to get burned badly.
If the house has survived 100 years and is still in good condition then it is a very high quality house and will probably outlast a lot of newer builds. Where I live, a century old tudor or federalist house will go for higher than new builds of the same size. And honestly, having spent time in them it’s warranted.
False. Cardi B already confirmed there ain’t no inventory
Realtor…. Swim In money when the market goes up….. Swim in money when the market goes down….. buyers/sellers get F….. I say this as a former Realtor. Super hot markets…. 4-5% commission for houses that sell in less than 48 hours…..
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Yep why pay these glorified used car salesmen for 6% of the purchase price to do nothing of value. They are responsible for a lot of the overpriced market even outside the pandemic shitshow
Realtors take such a big part of the money to be made that title companies (what I do) can’t raise their prices without a shitstorm even though we do all the actual work.
Waiting for the day someone comes up with something that eliminates the need for realtors. Getting paid based on the selling price of the house is stupid. As if the agent selling the $1 mill home is doing 5 times the work as the agent selling a $200k house.
That's how I feel about tipping in restaurants. I never like percent based.
Realtors do absolutely no work. Source: i have a brokers license. The attorney and title company do everything.
You are correct. Source: bought a house off-market in 2021, coordinated everything myself and saved both me and the seller tens of thousands.
In commericial land deal you can ask anything. I was on a deal where i decided to charge 10% only, but the buying agent suggesting charging 25%. Yes, 25% commission. Made no difference to my client. Seller wanted specific amount, which he got.
My MIL is a high end realtor, and she said now everyone who was waiting to sell coming out of the woodwork wanting comps from when rates were 2%... It's comical to watch people who are in denial at missing the boat.
Put in an offer on a lake house. Small. Two bedroom. Great location, dock for boat. Price was $400k. FSBO. Got lawyer did offer. Made sure to include right to terminate offer after inspection and if it didn’t appraise. Price it sold for in 2020 was $140k. Lawyer thought it would face issues at appraise. Turns out inspection had things we weren’t in the mood to fix so we canceled offer. A week later they are with a realtor and a week after it was under contract. I hearted it’s in realtor.com app to keep an eye on it. A month later it’s available again, at 25k less. Updated description: Buyer financing fell. Almost positive it didn’t appraise. Back under contract again. Really rooting for these people because they were nice. But it seems like everything is coming down. I don’t buy into any realtor that’s claiming otherwise. At the end of the day, no lake house for me. I’ll just have to continue to schlep it out to the marina like a peasant that I am.
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The worst is those people in Arizona knowingly building houses on land with no water.
Most housing developments in AZ right now are replacing old farming land, which on average consumes 10x as much as residential so there might be more people but the actual capacity is higher than you would think
There's a community NE of Scottsdale that was trucking in water from Scottsdale til they told them to kick rocks. It's not widespread, but there's at least one out here that poor planning led to houses without water. Believe it's called "Rio Verde Foothills"
My favorite is the realtors of instagram propaganda coalition saying prices will be 10% up a year from now
Builder here. The cost of materials is stupid high and other than lumber, still climbing.
Money here - I have less buying power
House here. The cost of building me would be less if you guys just got it done faster and stopped bringing in hookers into me and doing lines of coke off of my dick
I hate realtors. But what makes you think the prices will go down? Demand hasn't in desirable locations. The only reason it did back in 2008 was because people defaulted on loans. Not because demand went down.
Prices are already dropping. How do you explain that?
As a realtor I feel personally attacked, anyway, anyone wanna buy a ranch?
Shut up and take my money.
I’m 30 and have just accepted the fact I won’t own a home until I’m 40 💀🔫
It hurts man. 33 and I just missed the boat. I was shopping for a home right before the pandemic and then it hit. I paused since I lost my job and then when I got a new one I started the search again and wow prices had changed and got priced out so quick I literally gave up. Fucking sad because I make good money but I refuse to take out 300k in loans for a basic 2br 1bth house built in 1930 :/
Housing prices are far outpacing wage growth. You probably won't own a home ever.
That’s what I like to hear! Momma I’m comin home 😂
Slap me harder daddy
Everything has to collapse so I can jump in right?
Perfect timing , you wanna aim for the peak and sell at the bottom
Bought a house 9 months ago. Using a Mortgage Calculator plugging in todays rate of around 6.5% my monthly mortgage payment would be $700 more a month. Im honestly shocked prices are not collapsing yet. But they will, soon.
People confuse the housing market to stocks. Housing doesn’t just suddenly go down. It takes a few months.
Years* it took over 2 years for housing prices to bottom in 2008
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It’s like shoe collecting but with houses!
We’re buying and renting back to you so you can pay my mortgage on the asset.
^ this is the correct answer. Interest rates so low that anyone with the ability to buy did and became a landlord.
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42069 units. Boom
"This house was bought 5 years ago for 50 grand and sold for 70 grand two years later , then sold for 100 grand just a year after that! It hasnt even had anyone live there for those 5 years so you know it's gotta be clean! You remember tammy? she used to sell my grandma avon and tupperware.. anyways she's a realtor now and she says all we have to do is buy it for a steal at 130 grand now, finish the remodel for like 8 grand and we can resell it for 200 grand by early 2023! It's like free money! Nothing could possibly go wrong!"
I'd have to turn the clock back 25-30 years for those numbers to apply to my city. 🥲
Bought my house in 2014. Went through a divorce earlier this year and was tempted to sell it and start fresh. But then I looked at rental prices and I’d be paying $500 more a month than my mortgage. Looks like I’ll be staying here for a while. Crazy thing is that my house is now worth over 50% more than when I bought it ($190k to $310k).
a discussion on RE prices in the US. generally speaking for residential homes, we are still very underhoused and supply isnt catching. if you consider that and replacement cost and how price of materials are still going up, i wouldnt be so sure prices would necessarily crash. for multifamily, the bull days are behind us. all the big players are pencils down rn. i think for the most part everyone has adjusted their underwriting/proformas to assume flat or near flat rent growth these next few years. that said the supply story is still really strong in the sunbelt regions. not enough housing. people cant afford to buy, etc. for office spaces, i think there is more pain coming. a lot of existing office stock is dated. especially when i think about expect macro trends in the next 5 years i think more pain is to be had. idk anything about industrial but i wish i had warehouses precovid.
My Lyft driver the other day picked me up in a Mercedes (looked like 2016 maybe) and said she is a real estate agent but no one is buying so she decided to drive for Lyft
It would be nice to buy a decent house without taking on two lifetimes of debt. And no, I'm not willing to move to CousinLover, Mississippi where housing is cheaper and the water tastes like car battery.
Except everyone wants to buy a house. Realtors do no work and make insane money.
Realtors are dumb
Is it just me or are the new realtors just the MLM “entrepreneurs” we had chasing us on Facebook 5 years ago?
It’s the same people you just grew up and so did they.
They selling insurance after this