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U.S. home prices rise 10.1% in December, fastest since 2014
- Thread starter Sqrt
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Currently in the process, first time home buyer. I put an offer 10k over asking price just yesterday on a house that WENT on the market same day and my realtor is saying not to expect anything. Market right now is nuts
If you looking in a neighborhood that's like a subdivision then it's pretty accurate as it will pull it's data from houses sold close by.
Yeah, I have been toying with buying SOMETHING in the Denver area but I cant get my head around what I am seeing. I am probably going to abandon.
In my area, I'm not even sure how people afford houses. I'd say its an MCOL area, but housing has skyrocketed. I bought mine for $170K in 2011 and it's worth $420K+ now. I don't see how a single income making around the national average could even comfortably afford something, unless it's small and in a bad area.
I'm looking to buy this summer / fall myself, and it's almost comical to see how quickly places get scooped up on the usual online sites.
We really hoped to buy this summer. The market we are looking at is expensive, and homes sell fast. A house just went up, and 3 days later was already Contingent.
Home prices are going up because there aren't any homes on the market and interest rates are low. It's pretty simple. Nobody wants to sell because of the pandemic. As soon as that wears off, prices will drop.
I hope you're right, because my goodness the market in AZ is insane. I feel like it's only going to get worse, especially as the low interest rates continue.
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Exact same boat here, any place "Bigger" would be double or triple the price (or prohibitively outside of town).
We are actually considering just additions to the house for any extra space
Those are going up as well, driven in part by the price of lumber right now. My wife and I recently got 2 quotes for replacing the existing deck with a sunroom. Both were in the neighborhood of $80k, which is absurd. We're just gonna wait on that idea.
The housing problem here in Oregon was made even worse last year from the wildfires that made about 8000+ people in my area homeless. It has impacted housing all over the state. It feels like my wife and I are in a race against time to buy a house, otherwise we'll be stuck renting forever and never be able to build equity. It's extremely frustrating. The housing in the town we live in now is an utter joke. Basically as soon as anything is built, some Californian buys it up as their vacation or retirement home.
This happened to my boss in Mountain View, CA (Silicon Valley) back in 2006 - two BR, smallish bungalow, listed for 900k (yes, prices were nuts then too) sold less than a week later for 1,200k. I can only guess what astronomical price it goes for now.
More like don't be upper middle class either. 800 is a beast of a loan when the house is appraising at 550 and there's an appraisal waiver. That's bring 250k cash to closing + the 20% down. A lot of cash to have sitting around, and you're immediately underwater on the house, and you're not investing that cash elsewhere making money.
It would be a terrible play except for ATX is the next SF and the house will probably be 1 mil in 5 years at this rate. And everyone knows it.
I just became a real estate agent in LA at the beginning of the year to do some extra money and i can tell you that this summer is gonna be brutal! We expect the home price to rise up another 20%. Pretty much southeast LA no longer has any home for sale under $450k...
I was telling a buddy to start his approval process to purchase a home and it sucks that he got priced out within weeks so now he has to look for homes at Fontana (about 120 miles RT to commute as a custodian/janitor employee) but even then Fontana is already creeping to $400k
I was telling a buddy to start his approval process to purchase a home and it sucks that he got priced out within weeks so now he has to look for homes at Fontana (about 120 miles RT to commute as a custodian/janitor employee) but even then Fontana is already creeping to $400k
It's just your typical market forces. There is very little inventory right now so the few homes that are on the market will be hotly contested which raises their prices. Nobody is price gouging. It's just how thing ma go when you more demand than supply.
I bought my house in 2012 for 339k.
Identical homes to it in the same town have been selling for 500k since prices starting shooting through the roof last fall.
I'm not moving but I could clean up if I was inclined to.
I don't think there are any signs of a looming housing crash. The 2008 crash occured due to unemployment and people getting subprime ARMs. They lost their jobs and their house payments went up hundreds of dollars a month. This led to a shitload of people that needed to sell their houses and all that inventory made it a race to the bottom. There is nothing like that happening now. Its much harder to get a loan nowadays and if COVID didn't kill jobs and force people to sell their homes the recovery wont.
Our mortgate is a quarter of what we used to pay in rent. Granted the appartment was super nice and everything, but still just goes to show it's easier to make money (save money) if you have money (for the down payment) to begin with.
Bought my home here in 2003, and I feel like that was just barely in time.
Market is complete madness in Sacramento area. We are closing in a few weeks on our house, and every house we looked at was sold within one weekend, with multiple offers between 30-50k over asking. The neighborhood we are leaving had a 3BR 1300sqf listed for 525k sell for 590k. The supply is so low.
Covid made work from home a reality and people are fleeing the Bay Area to somewhere more affordable, but still close to everything. My home inspector said 7 of the his last 10 inspections were people moving from the Bay.
Covid made work from home a reality and people are fleeing the Bay Area to somewhere more affordable, but still close to everything. My home inspector said 7 of the his last 10 inspections were people moving from the Bay.
A coworker here in SoCal went looking at a house in Riverside for $600k. An hour after they toured it, it sold for $700k to a buyer sight unseen.
It's insane.
Yeah. I graduated into the lowpoint of the Great Recession jobs market and just haven't been able to get ahead of all the California/tech money since finally landing a career job in 2014. Wish I could have been smart and chosen to be born at a different time.
Yeah, doesn't surprise me. In fact I was told by my realtor to mentally prepare myself to buy a house sight unseen. I told him hell to the no we are at least viewing it once. Wtf this isn't an investment property, I'm trying to live here long term.
Not to mention Millenials are the biggest generation since the Baby Boomers and many will be looking to become first time home buyers on a rolling basis for at least the next 10-15 years. Youngest Millenials are only what, 26? Gonna be an insane housing market in desirable locations for a while, especially at the entry level market
Yeah, well. American city planning has resulted in a situation where houses anywhere in the remote vicinity of urban centers are investment properties, whether you like it or not.
:(
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As someone who's looking, it's beyond demoralizing at this point. It doesn't even make sense value wise to compete with these offers 70-100k over asking in CA. And while CA gets most of the press, any quick look at any other metro in the country tells you it's basically the same.
We have a really old three seasons room that we were going to take down and put up finished space. Quote was just shy of 80k due to needing a bigger foundation poured. I suspect your price is a similar situation
whats insane is that you'd be stuck in riverside. I'd rather rent for the rest of my life than spend one year in that pit
To everyone here happy about the increased value in your homes, what good does it really accomplish? Maybe if you sell and move to another state or country with much lower prices and COL, but if not, youre not gaining anything if you buy back in to the same market.
My wife and I are looking to buy our first home outside the Seattle area and it is nuts. Stuff right now is gone in an instant and up to 65k over asking.
Started the home buying process late 2019. We thought the prices were ridiculous then, ended up getting significant raises and looking to purchase this past fall. All of our offers have been 40k above asking and we still get priced out. People waiving inspections/appraisals - paying cash.
It is nuts. May just have to wait a few more years. Who knows.
It is nuts. May just have to wait a few more years. Who knows.
Lack of homes for sale plus people that are qualifying for the some of the lowest mortgage rates ever, leading to pricing wars on each and every house that are sending prices to unsustainable pricing. It may really hurt when the bubble pops.
I helped a young couple buy their first home last year (I'm a REALTOR), they rent out two of the three bedrooms to friends so they can afford the home (1000 sq ft 3 bed 1 bath, .25 acre lot).
I am working with a few couples that are running into the same issue. Just have to tell them to keep looking. The average amount of homes people need to see before they get an accepted offer is pushing 15. I had to look at 11 homes back in 2009 for our first purchase. The appraisers are just going with the price hiking, and the lenders are backing the loans. These are some of the largest pricing discrepancies (more than what the home is worth) than I've personally seen since 2005 (when I started into trying to buy homes).
I hate how home ownership is seen as the most attainable forms of investment, we need to get people into homes, not cash into homes.
The COVID economic recession is really a tale of two recessions, one in which the more well off are generally unaffected and the poor are disproportionately affected.
Demand for single-family homes outside of cities exploded as remote work became normal across industries. While remote work has been somewhat common in some fields, other fields that had always been in-person realized that they could be done nearly as affectively remote, which helped contribute to a significant rise in people moving from city centers to suburban/ex-urban. I know 4 couples, three in NYC and one in Boston, who moved from the cities into the exurbs coinciding with remote work and a desire to have your own space outside of the city. Sure, it's just 4 couples, but ... these were "city lifers" prior to 2020, y'know people who condescendingly scoffed at anybody who lived outside of i95 or north of the Public Gardens in NY.
Combine this with historically low rates because of easy money supply and you have insane demand in many places.
We sold our old house for $270,000 in mid-2019, and the Zillow Zestimate is now between $286,000 - $346,000, and I suspect if they were to sell they'd get the higher end for that... Other properties similar to our old one that I know well sold recently for $325,000, and our old house had a few bonuses over that one. The house we moved to now has an upper range that's over $100,000 more than we bought it for mid-2019, and I'd guess that we'd get slightly below that if we were to sell today. We're not selling anytime soon because, like, if we sold we'd have to buy ... so any +/- we'd just sink into another house.
Demand for single-family homes outside of cities exploded as remote work became normal across industries. While remote work has been somewhat common in some fields, other fields that had always been in-person realized that they could be done nearly as affectively remote, which helped contribute to a significant rise in people moving from city centers to suburban/ex-urban. I know 4 couples, three in NYC and one in Boston, who moved from the cities into the exurbs coinciding with remote work and a desire to have your own space outside of the city. Sure, it's just 4 couples, but ... these were "city lifers" prior to 2020, y'know people who condescendingly scoffed at anybody who lived outside of i95 or north of the Public Gardens in NY.
Combine this with historically low rates because of easy money supply and you have insane demand in many places.
We sold our old house for $270,000 in mid-2019, and the Zillow Zestimate is now between $286,000 - $346,000, and I suspect if they were to sell they'd get the higher end for that... Other properties similar to our old one that I know well sold recently for $325,000, and our old house had a few bonuses over that one. The house we moved to now has an upper range that's over $100,000 more than we bought it for mid-2019, and I'd guess that we'd get slightly below that if we were to sell today. We're not selling anytime soon because, like, if we sold we'd have to buy ... so any +/- we'd just sink into another house.
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One thing I don't understand.
Yeah, you sell your house for a crazy price.
But then what? You have to buy a house for a crazy price too. What are you really benefiting?
Yeah, you sell your house for a crazy price.
But then what? You have to buy a house for a crazy price too. What are you really benefiting?
It's pretty crazy. The supply situation coupled with interest rates has sent everything into overdrive. We were lucky enough to be able to sell our old home and move to our current home right before the pandemic started, and we got lucky with the listing itself having to drop it's price a bit. This house would probably go for at least another 100k just 13-14 months later.
It also feels like the market catching up to where prices were heading before the Great Recession. It took a decade plus in most places for home values to get back to what they were in 2007, and in the interim a lot of people were not buying, and not enough construction was happening, so here we are again.
It also feels like the market catching up to where prices were heading before the Great Recession. It took a decade plus in most places for home values to get back to what they were in 2007, and in the interim a lot of people were not buying, and not enough construction was happening, so here we are again.
Not necessarily something to be happy about, but realistically no one wants to be in the position of their home being valued less than the mortgage/what they paid. You never know what could happen with personal finances, or life events, etc., that may necessitate selling the home or pulling out equity.
