[NYTimes] Something Has to Give in the Housing Market. Or Does It? Real Estate |
- [NYTimes] Something Has to Give in the Housing Market. Or Does It?
- Two Major Insurers Are Not Renewing Policies With California Homeowners
- Interest Rate Hike
- Offer isn’t considered desirable if <20% down?
- Grandparents house in a trust but uncle resides within
- Do we buy & how do we get rid of fomo?! (Fear of missing out)
- Are new constructions really that bad even if you get inspections?
- Best bang for your buck oceanfront property?
- Major market sell of this month.. will it spill over to the housing market?
- Listing agent wanting us to increase our offer after highest and best offers made?
- Should I walk away
- Trying to figure out the decline in housing price. Help would be appreciated
- renovation estimate
- Question about Joint Tenancy with Rights of Survivorship FL
- New Real Estate Agent
- Expanding shed in FL
- Sewage vs Septic, Well vs Municipal? First time buyers in Canada.
- Where do the sellers go?
- Pre-show jitters - likelihood of offer
- My wife and I own a home in AZ and have moved to OR. When can I sell there and buy here with as little penalty as possible?
- As-Is after inspections come back
- Land Purchase From Neighbor w Mortgage
- Paying off mortgage completely
| [NYTimes] Something Has to Give in the Housing Market. Or Does It? Posted: 21 Jan 2022 10:51 AM PST https://www.nytimes.com/2022/01/20/upshot/home-prices-surging.html Something Has to Give in the Housing Market. Or Does It? There appears to be no quick reprieve coming for rising prices: "It's not a bubble, it really is about the fundamentals." By Emily Badger Jan. 20, 2022 Two years into the pandemic, rundown bungalows command bidding wars, buyers keep snatching up places they've never seen, and homebuilders can't find enough cabinet doors for everyone who wants a new home. The median price for an American home is up nearly 20 percent in a year. The for-sale inventory is at a new low. And the hopeful buyers left on the sidelines have helped drive up rents instead. All of this may feel unsustainable — the tight inventory, the wild price growth, the dwindling affordability. Surely something's got to give. But what if that's not exactly true? Or, at least, not true anytime soon for renters locked out of homeownership today or anyone worried about housing affordability. There's probably no quick reprieve coming, no rollback in stratospheric home prices if you can just wait a little longer to jump in. "It's not a bubble, it really is about the fundamentals," said Jenny Schuetz, a housing researcher at the Brookings Institution. "It really is about supply and demand — not enough houses, and huge numbers of people wanting homes." Neither side of that ledger has a quick fix. More than six million existing homes sold in 2021, the highest number since 2006, according to data published Thursday by the National Association of Realtors. But that was still well short of satisfying demand. And there's little evidence to suggest the nation is in a hurry to correct the imbalance between supply and demand. "My pessimistic view is that the economy is perfectly capable of running with unaffordable housing," said Daryl Fairweather, the chief economist at Redfin. This was evident over the last decade, she said, when affordability worsened even as the economy continued to grow. And that reality has enabled politicians and the public to largely neglect the issue of housing affordability. "Another way to phrase that is people will still get up and go to their jobs, even if they're housing insecure," Ms. Fairweather said. "That's one reason to think we'll still just keep letting this problem get worse." You might also expect home buyers to get fed up with soaring prices. But that answer falters in, say, Salt Lake City when asking prices that look absurd to local buyers seem reasonable to someone moving in from Seattle. Today, first-time home buyers in once-affordable markets have competition from all kinds of sources that didn't exist a generation ago: from global capital, from all-cash "iBuyers" that size up homes by algorithm, from institutional investors renting single-family homes, from smaller-scale investors running Airbnbs. "It's really hard for an owner-occupier to compete with the amount of money that's flowing into this region," said Dan Immergluck, a professor at Georgia State in Atlanta. There, even in a Sun Belt market with robust new housing construction, supply still can't keep up with demand. Perhaps at some point in the medium term, the geographic reshuffling of remote workers will settle down, calming price growth in places like Boise, Idaho, and Denver that have been most jolted by it. But the investor purchasers aren't going away. Nor are new technologies that enable homes to sell at a much faster pace. Rising mortgage rates should help slow the growth in home prices. But they won't affect anyone paying cash. And higher rates will make home owning even less affordable. "For first-time home buyers, they're going to find it very, very difficult to get a home in the next two, three years," said Mark Zandi, the chief economist at Moody's Analytics. And in the meantime they'll be paying higher rents, cutting into their ability to save for a down payment. Working-class households on the cusp of homeownership before the pandemic may now need another five to 10 years to play catch-up, said Ralph McLaughlin, the chief economist at Kukun, a company that tracks real estate investment activity. The days of one-earner households buying a decent-quality starter home anywhere in the U.S. may be over, he said — unless that one earner is a high earner. "As a housing economist, it's kind of depressing to think that there may not be an undoing of the hardships that have been brought upon young households trying to get their foot in the door of the housing market" during the pandemic, Mr. McLaughlin said. Those hardships have been remarkably widespread across the country. The last time such home price growth occurred was in the years leading up to the housing crash. But even at the height of the bubble in 2006, only about 40 percent of metro areas experienced greater than 10 percent annual home price growth. In the past year, 80 percent of metros have seen such spikes. And a quarter of all metro areas have had price rises of more than 20 percent. Widespread pain in the rental market has followed. In 2021, communities across the country experienced the kind of double-digit rent growth seen only before the pandemic in small oil or fracking boom towns, said Igor Popov, the chief economist at Apartment List. Now, he said, "it's going to be challenging to imagine a world where the affordability concerns start to wane." None of this is rooted in the kind of risky borrowing that inflated the housing bubble. Rather, home buyers flush with pandemic savings and strong credit have been taking out conventional loans (if they're taking out loans at all). The rental market has experienced a rise in higher-income households, too, at a time when new household formation has also surged with young adults who began the pandemic by moving back home. Add to all of this a few more forces stressing the housing market even without a pandemic: Baby boomers who own a lot of housing stock are sticking around in their primary homes longer than previous generations did, at a time millennials have reached peak home-buying age. That ties up existing supply. Local governments have further stymied new housing supply with zoning and building restrictions that will remain a problem even when home-building supply chain kinks resolve. And looking forward, climate change means that a growing share of housing supply that exists today may be uninhabitable or require expensive retrofits in the future, said Ms. Fairweather, the Redfin economist. That is a lot to be glum about — unless, of course, you already own a home and are happy to see its value skyrocketing. But that brings us back to Ms. Fairweather's point about whether there's much public appetite to curb housing costs at all. [link] [comments] |
| Two Major Insurers Are Not Renewing Policies With California Homeowners Posted: 21 Jan 2022 08:15 PM PST |
| Posted: 21 Jan 2022 04:13 PM PST How are the rates rising so quickly if the Fed has only announced that the first hike would be in March? [link] [comments] |
| Offer isn’t considered desirable if <20% down? Posted: 21 Jan 2022 07:58 PM PST We're starting the search for our first home in the Bay Area (Oakland and surrounding) with a 1M budget. Trying to be reasonable and look in areas where we consistently see homes selling for at or slightly below that. Our agent is essentially telling us not to bother because our down payment is less than 20% (conforming loan) and therefore makes us less desirable than a lower offer but with >=20% down. Is this really true? After years of saving and raising our credit to excellent scores this unfortunately for us is the best time in our lives to try to buy a home. Feels like such a gut punch to be out of the race before it's even started. [link] [comments] |
| Grandparents house in a trust but uncle resides within Posted: 21 Jan 2022 10:55 PM PST In California. My Granddad passed away about 5 years ago. He left his assets to myself and 2 cousins in a trust. Including a house he owned that an uncle lives in. There was never any formal contract between my uncle or grandad about him living there, he was just allowed to live there. Since the house was left to my cousins and I in the trust, are we allowed to kick him out and put the property of up for sale? I know Ca has stringent renter protections, but there's no contract in place. Squatters rights maybe? [link] [comments] |
| Do we buy & how do we get rid of fomo?! (Fear of missing out) Posted: 21 Jan 2022 02:02 PM PST We currently love a house we saw yesterday and it has everything we need. It's a fixer upper type but huge pool/ spa, and sq footage we want in our budget and with our must haves in the location we like (Huntington beach). However, I get fomo that something better will come along. We just started the process a month ago and haven't put any offers yet but we feel good about this one. Husbands a GC so we are comfortable with things to fix up as that's what we do, however, we have first buyer jitters…we can't decide if we should put a offer on it but the open house is tomorrow and we feel that will raise the price and be gone quickly. In this market jitters aren't helping us because every house we look at here in So Cal is gone in a day! Ughhh help our anxiety! The market is tough and little is on the market right now, but we are paying $4k in rent so it makes sense to buy and pay that in mortgage. Any thoughts or helpful tips during this process? [link] [comments] |
| Are new constructions really that bad even if you get inspections? Posted: 21 Jan 2022 11:20 AM PST Planning to get my first home in Q3/Q4 this year, so apologies if I sound naïve/uneducated about this subject. I'm jumping back and forth between getting a new construction or waiting to get a resale. I really like the design of newer constructions (more modern/minimalist), but I see so much negative feedback regarding how they are low quality and poorly built compared to older homes. I also know one of the big negatives to constructions is plot size, but personally I tend to prefer smaller yards and I find that new constructions typically have equal sqft in the actual house itself to resales, plus the open concepts usually makes them feel larger too. I have considered getting a cheaper older home and paying for renovations, but it just seems like a massive undertaking that would be really overwhelming. I've seen enough house flipping shows to know that I am way out of my league to try it. Additionally, I spoke to two real estate agents and they agreed with me that massive renovation projects can be often risky and with the current market it'll be tough to find a home under-market to renovate. I've done a bit of research and found that people genuinely recommend you to get inspections on new homes pre-drywall, pre-closing, and then pre-warranty expiration.
[link] [comments] |
| Best bang for your buck oceanfront property? Posted: 22 Jan 2022 01:09 AM PST Hi everyone! My partner and I love the ocean but we live in TX. We have been looking into selling our condo to buy an investment property/vacation home that we can Airbnb and stay at when we want. My issue is, everywhere on the ocean in the US seems super expensive. We don't have to be right on the ocean even though it is preferable. I've looked at real estate so far in Cabo, Rosemary beach, Long Beach, and South Carolina. Where can I get the most bang for my buck buying an oceanfront (or near the ocean) property? Our budget is 300-750k. We're considering condos and homes. Is this even doable? [link] [comments] |
| Major market sell of this month.. will it spill over to the housing market? Posted: 21 Jan 2022 11:23 PM PST |
| Listing agent wanting us to increase our offer after highest and best offers made? Posted: 21 Jan 2022 11:18 PM PST Heres my question: Do you guys have any advice on how we could have handled the situation better or if you think we did the right or wrong thing? EDIT: I'm a brand new agent buying a house for my significant other and I. Here's the story behind the text messages: We made a cash offer but there are other offers so she went to everyone and asked for highest and best. We decided to do $1.35 million cash as our highest and best as that's what we are most comfortable with. The next day she contacted me if we can match a mortgage offer of 1.42 with cash. When decline she asking if we would go higher and never gave me a real counter offer just asking how high we will go. We were perfectly fine negotiating with the seller if we knew he was close to selling to us but a matching offer isn't a counter, especially when we declined it. That's just us biding against ourselves when we don't know if he'd take it if we increased our offer. For all we know the seller has zero intention of going below 1.42 and is just trying to get a higher cash offer to use agasint the morage offer to increase their offer. We were fine going up to 1.375 or if we found the house truly compelling and our forever home potentially to pay 1.4 mil cash after seeing it a second time. Which I'm certain the sellers would take as their previous deal wasted 3 months as the buyers fell through on their mortgage and they were already packed to leave the country even. However at this point we don't find it smart to just keep biding against ourselves when the seller never gave us real counter offer or shows seriousness to our offer. He never countered our 1.3 or even an earlier offer that was 3 days before any other offers from other people came in. Infact from our original offer 3 days she said she that she just got new offers later and will negotiate and was planning on countering our offer in the next day, so I just told her we will automatically go to 1.3 to save time never getting to hear the next day counter offer. And then came the highest and best request another 3 days later. At this point we just stayed at 1.35 and if they really want to meet in the middle and have interest in our offer maybe the they will come to us. However we have considered this house a loss even though we would have gone potentially thigher but my partner feels like he's just getting used a little and bidding against himself constantly. I hope we made the right decision however I really do like the house. We ate not in a rush to buy I'm sure with patience we will find and okay deal and a home we like. [link] [comments] |
| Posted: 21 Jan 2022 11:01 PM PST House: 2 bed / 1 bath elevated ranch. 940 sq ft. 5ft tall crawlspace basement. Large back yard but on a hillside with retaining walls. Current contract: 305k 10% down. Mortgage 30 year 2.75% estimated payment ~1650 month/ 1600 after PMI fall off. Location: North Bergen NJ. 30 minute public transport commute to midtown NYC. Neighborhood has seen home values increase 50 percent in the last 6 years. Planned use: Living until major life change forces a move. Problem: House is old with structural issues and outdated kitchen and bath. Maybe 65k to fix all issues and update spaces to my liking. The school system sucks and the place is small so it'll never draw families, neighborhood isn't super hip either. Given those factors I wonder if it will ever recoup the repair and update costs if I need to sell. [link] [comments] |
| Trying to figure out the decline in housing price. Help would be appreciated Posted: 21 Jan 2022 10:44 PM PST https://www.zillow.com/homedetails/7818-S-Muskegon-Ave-Chicago-IL-60649/4026189_zpid/? I am looking to purchase this house. The house was sold in 2018 for $442,500. Now it is listed for $100,000? What could be the reason, this house depreciated this much? [link] [comments] |
| Posted: 21 Jan 2022 10:33 PM PST https://www.zillow.com/homedetails/5722-W-Fulton-St-Chicago-IL-60644/3807991_zpid/ how much would it be to renovate this house? [link] [comments] |
| Question about Joint Tenancy with Rights of Survivorship FL Posted: 21 Jan 2022 10:09 PM PST Suppose their are 2 joint tenants and one of them decides to sell their interest to another person. If the new person who bought the ex joint-tenant's interest becomes a tenant in common with the remaining joint tenant, how do we now classify this? What kind of effect does this have on the remaining join tenant's interest? Florida, Thank you [link] [comments] |
| Posted: 21 Jan 2022 10:08 PM PST I started real estate in the beginning of November last year. I'm with a team under a large broker and have yet to find a lead a home. I understand it's a difficult process, but I feel like I'm striking out left and right. My team is great, the process they've come up with is great, and there is an abundance of resources. Yet I feel like I'm getting ghosted all the time and finding a serious buyer is a needle in the haystack. To be honest, I know it's only been a short period of time but I'm not sure that I love doing this. I graduate college in May so I'm giving it until them to find my groove. I guess what I'm asking for is advice on what my future should entail. [link] [comments] |
| Posted: 21 Jan 2022 09:46 PM PST I'm thinking of buying a house with a small wooden shed. I would love to make it brick and expand it substantially, like double its size to 300sqft. I wonder if I could get in trouble (and how) if I do this without any permits/contractors. Has anyone done this and gotten away with it? Is the only risk that neighbors complain with the county? I wouldn't plan on selling the property anytime soon. I'm in Orlando, FL [link] [comments] |
| Sewage vs Septic, Well vs Municipal? First time buyers in Canada. Posted: 21 Jan 2022 09:25 PM PST My fiance and I are currently on the hunt for our first home, and have found the market overwhelmingly empty. We have been doing our research to try and decide if it is worth it to sacrifice municipal services for a much bigger yard and generally bigger (and often nicer) home. I would love to get any advice or anecdotes for worst and best case scenarios when it comes to buying and owning a property with a septic bed and a well. My fiance is very wary at the thought of possible water contamination or having to deal with any type of septic problems, but I'm hopeful to be able to ease his mind, or cross this option off our list for good. Thanks guys! [link] [comments] |
| Posted: 21 Jan 2022 09:20 PM PST I'm curious. Which all the crazy selling going and crazy high prices.. where do the sellers live? Most of the sellers in the market currently are single family owners so it's not like they have 2-3 vacation properties they can go live in. So while they put their property on the market with a 5000% markup, I'm assuming they are also in the market for buying another property. So are most of the offers contingent on the seller finding another property? [link] [comments] |
| Pre-show jitters - likelihood of offer Posted: 21 Jan 2022 05:32 PM PST We listed our house today (in NEPA), and have about 23 showings this weekend. Our realtor thinks we'll have plenty of offers by the end of the weekend. This was kind of sudden, so I never really looked to much into the housing market, but is it really that competitive (even in this area?). Everyone tells me there might be a bidding war. I was happy when we originally got 2 showings. Now I feel overwhelmed! [link] [comments] |
| Posted: 21 Jan 2022 01:46 PM PST We purchased a home in AZ in Jan of 2021. We were unhappy in AZ and my wife got a new job in Oregon. We have owned the home in AZ now for a year as our primary residence, but will be moving to Oregon in early Feb and planned on using our AZ home as a vacation rental. We are renting in Oregon and have no plans to move back to AZ. My question is...when can we unload the AZ house with the least penalty? I thought 2 years, but if we only lived in it for one year and never go back, will we ever get the tax free profit or are we subject to capital gains, no matter what because we only lived in the house for one year? [link] [comments] |
| As-Is after inspections come back Posted: 21 Jan 2022 09:12 PM PST Currently in escrow in CA. There was no mention of as-is until the inspections came back with sewer issues and a major termite problem. Asked for a 15k credit and thought they would meet us in the middle but they arent willing to credit anything. We are still waiting for appraisal to come back but we fear it might fall short of our offer. Of course with the market our Agent thought it was best to waive it. Would you walk away? [link] [comments] |
| Land Purchase From Neighbor w Mortgage Posted: 21 Jan 2022 01:38 PM PST Tricky one: My fiancé and I are under contract for our first home, and we need some advice. The neighbors lot lines cut through our backyard which takes up the back half of the yard, and if a fence were installed it would block the view of the lake. The neighbors have agreed to sell us the land, but they own a mortgage with Mr Cooper and apparently it is a long-shot to get a partial release of their mortgage given that the land is tied to their mortgage. To be safe, we have had them sign a contract that our intention is to purchase the land, but we are also placing a view and use easement on the same land (in case the purchase falls through) with the same terms (land is to stay grass/natural unless written consent from both parties). We have explored other options, such as a land lease, but it has an expiration whereas the easement and land purchase can be tied to the properties in perpetuity. Has anyone had experience with something similar? Any tips to finding success with Mr Cooper to allow the land sale and partial release? Thank you! [link] [comments] |
| Paying off mortgage completely Posted: 21 Jan 2022 05:00 PM PST live in Southern California. Bought in 2011 build 2005 4 rooms 2 bath for 89k. The question now is what is the best option to do with the home in investing wise. Should I rent it out and get cash flow or rehab it and sell it. ? [link] [comments] |
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