The real estate market is crazy right now

[XutvJet]

Housing prices are dropping in the Kansas City area. Lots of homes on the market sitting way longer and owners cutting prices. I'm seeing the same in the car market. A full on correction is coming in the next 3 to 6 months and I hope those that overpaid are prepared, especially if they find themselves without a job.

[OkieSnuffBox]

Prices are starting to drop here in OKC as well.

But still high enough there is no point in trying to upgrade the house. And we don't really need a 3000 sq ft house for 2 people with no children.

[shawnhayes]

Originally Posted by 0Jake0

We live in a shitty period. Prices are rising for anything.
With such success I will rent until the end of my life.

Be careful what you wish for. The correction for this is a recession. That has some pretty bad downsides for a lot.

Shawn

[pikkagtr]

Originally Posted by shawnhayes

Be careful what you wish for. The correction for this is a recession. That has some pretty bad downsides for a lot.

Shawn

Yes but it's also upsides for those who are fiscally responsible
Buy when things are low and sell when they are high
I am under the umbrella of those who are patient and can wait it out
i don't see it being as bad as 2008, but a 25-30% correction will do

[zx10guy]

So the house that I've been watching in my neighborhood officially sold. It went for more than asking. It went for $30k above asking and more than $159k from the last highest sold house in my neighborhood which was just under 3 months ago. There are no single family/detached homes for sale in my neighborhood and only 3 townhomes with two under contract. The third was just listed not long ago.

[spazzyfry123]

Market is still hot here. I live in a small neighborhood with nice homes, but I'm back on "poor street" with smaller lots and smaller homes but with similar finishes. Two homes currently under contract for triple what I bought mine for about 2.5 years ago before they were done taking pictures. Another is listed for almost seven times what I bought mine for - granted it is four times the size of mine, but holy cow.

[dreamingat30fps]

I'm always browsing the listings. Saw this house that looked pretty nice in the next town over where our NC house is. Listed for $850k. It's on 50ish acres so price didn't seem THAT crazy. I looked up the past sales history and the freaking thing sold in Jan of 2020 for $308k! Now, maybe they remodeled it, it's an old house so they certainly didn't build it in 2020 so I cannot think of any reason (other than the market is just fucking bat shit crazy) that this house would have appreciated half a million bucks in like 2.5 years!

[Joe T]

Originally Posted by Joe T

was in an open house today (a comp for ours that's going on the market in 7-10 days)

this is what you see when you walk into the front door. Built in '83 and is like a time capsule from that date. (needs SERIOUS updating)

I want 2 knights in shining armor greeting me when I get home too

listing price is 1.1mm and as mentioned needs a LOT of work (ours will be will under $1mm and has been updated int he last 10 years

The realtor was over last night. they got 3 offers on the above house, 1 over asking (but with some contingencies). She wants out listing and thinks we should list $100k above where we planned, and if we don't have an offer in 7 days, drop to where we/she thought it should be a week ago.

friggen crazy!

next issue is what to do with the dog during showings... she's not a fan of people that aren't family

[freakystyly]

We're already seeing houses go $250k under asking, it's laughable how stupid the market is/has been.

[dreamingat30fps]

Originally Posted by Joe T

The realtor was over last night. they got 3 offers on the above house, 1 over asking (but with some contingencies). She wants out listing and thinks we should list $100k above where we planned, and if we don't have an offer in 7 days, drop to where we/she thought it should be a week ago.

friggen crazy!

next issue is what to do with the dog during showings... she's not a fan of people that aren't family

When we listed our house (before all this craziness and ended up not selling) we would pack the dogs in the car and go to the park or just park at the club house and hang out in the car until they were done showing. PITA but it is what it is. In your case with all the extra $$ it's probably worth the hassle.

[Alfisti]

Yeah take roofus for a walk, you should never be home during a showing.

Over here, things have stabalised. Good houses in good areas are still going for high prices but without the absurd day to day escalation in prices we saw a few months ago. Speculators throwing out huge asking prices, especially on properties that have older houses, are not getting anywhere.

[zx10guy]

When I sold my townhouse just before the crazy housing boom in early 2001, I made showings by appointment only. It made things easier for me as to getting showings scheduled in a reasonable grouping and controls how often people are in/out of my house. This meant no realtor lock box in front of my house. Any showing would have to be coordinated with my realtor to go out and unlock the door for the potential buyers.

I actually got a call from one of the potential buyer's agent complaining about no lock box. Tough. It was still my house. Funny thing was I only showed it for a weekend and had 6 offers. One of them was from that buyer who's agent complained to me about no lock box. Other thing that helped was my townhouse was only two years old (new construction).

[virtualbong]

Are people still seeing this as a Sellers market even with the interest rates going up? I am planning to sell my house in Massachusetts (Metrowest) in the Spring 2023.

[chassis]

Originally Posted by virtualbong

Are people still seeing this as a Sellers market even with the interest rates going up? I am planning to sell my house in Massachusetts (Metrowest) in the Spring 2023.

Existing home sales are down and inventory is up.

Whether this means supply and demand are in favor of sellers or buyers is not clear.

What is clear is that the market is moving in favor of buyers.

[OkieSnuffBox]

Originally Posted by virtualbong

Are people still seeing this as a Sellers market even with the interest rates going up? I am planning to sell my house in Massachusetts (Metrowest) in the Spring 2023.

It's probably still a seller's market, but demand and pricing are pulling back finally. Even if it's only slightly.

[cmyx6go]

Originally Posted by virtualbong

Are people still seeing this as a Sellers market even with the interest rates going up? I am planning to sell my house in Massachusetts (Metrowest) in the Spring 2023.

I think it depends on the area and the price point. I constantly watch the listings. A lot of houses are hitting the market and are selling pretty quick in my area and are still selling for listing price or above. The price reductions seem to be on the lower priced/smaller houses. I’m guessing that people with a tight budget are pulling back as the interest rates increase, their budget is shot to shit. What was affordable a few months ago isn’t anymore. Those looking for larger, more expensive houses that have the money aren’t affected by the increase in interest rates. It’s a decision if they should, not if they could.

I have a lot of equity in my house but unless I see a perfect house house for me, I’ll wait. I have a 3% fixed mortgage. Even though I can afford it, it seems silly to make a move right now. I re calculated my purchase on my banks website (I bought 2 years ago) and the monthly payment jumped almost $1,000 for just principal and interest.

[dreamingat30fps]

I'm also always watching listings. I've noticed a lot more houses going up for sale in FL but like an hour north of us. I also see a lot of price reductions in the same area, but when you see a nice house for a decent price (even though still much higher than pre 2020) it goes pretty quick. What I think is happening is the good houses are still selling pretty fast for $$ but the shit houses asking for crazy $$ are sitting longer and getting price reductions.

I see less of this in our area of FL and further south. Prices still seem pretty insane to me, although I don't follow that area as much. In NC I still see shittier houses than ours on less land going for the same or more than ours although there is significantly less inventory here than in FL.

I think it's cooling off but nowhere near pre 2020. Seems similar to the used car market.

[OkieSnuffBox]

Originally Posted by cmyx6go

I think it depends on the area and the price point. I constantly watch the listings. A lot of houses are hitting the market and are selling pretty quick in my area and are still selling for listing price or above. The price reductions seem to be on the lower priced/smaller houses. I’m guessing that people with a tight budget are pulling back as the interest rates increase, their budget is shot to shit. What was affordable a few months ago isn’t anymore. Those looking for larger, more expensive houses that have the money aren’t affected by the increase in interest rates. It’s a decision if they should, not if they could.

I have a lot of equity in my house but unless I see a perfect house house for me, I’ll wait. I have a 3% fixed mortgage. Even though I can afford it, it seems silly to make a move right now. I re calculated my purchase on my banks website (I bought 2 years ago) and the monthly payment jumped almost $1,000 for just principal and interest.

Yep. The better half just got a new job with a nice raise, like $30k/yr. We could really use a larger house since we both work from home.

But my current mortgage is locked in at like 2.8% and even with our income and my credit score, just not worth it to upgrade. We've accepted we will be here for another 4-5 years and deal with it. Just save and see where things are. I'm only 40, so it's not like I need a walker just yet.

[RickFLM4]

Originally Posted by OkieSnuffBox

Yep. The better half just got a new job with a nice raise, like $30k/yr. We could really use a larger house since we both work from home.

But my current mortgage is locked in at like 2.8% and even with our income and my credit score, just not worth it to upgrade. We've accepted we will be here for another 4-5 years and deal with it. Just save and see where things are. I'm only 40, so it's not like I need a walker just yet.

My wife likes to send me listings of houses from Zillow and Realtor. We just spent over $50K on a roof, paint and gutters on top of the $65K for impact resistant glass and a master bath remodel in the last few years. Our mortgage is 2.375%, our property tax increases are capped, and it would cost as much in realtor fees and closing costs to sell this house as it would to remodel our kitchen. I keep telling her every dollar we put into this house is another day we add onto living in it. We aren’t going anywhere.

[OkieSnuffBox]

Originally Posted by RickFLM4

My wife likes to send me listings of houses from Zillow and Realtor. We just spent over $50K on a roof, paint and gutters on top of the $65K for impact resistant glass and a master bath remodel in the last few years. Our mortgage is 2.375%, our property tax increases are capped, and it would cost as much in realtor fees and closing costs to sell this house as it would to remodel our kitchen. I keep telling her every dollar we put into this house is another day we add onto living in it. We aren’t going anywhere.

Yeah, I probably should have waited a bit longer during the pandemic before refinancing, but under 3% is still good.

This house was a loss to smoke damage before I bought it. So EVERYTHING was new when I bought it 5 years ago. Floors, granite counter tops, paint, windows, wiring, roof, HVAC and water heater, etc.

Really the only thing it needs is for us to add gutters and get the front flower beds in shape. But we are on a corner lot with a "boomerang" shaped house so there is a TON of linear feet of flower beds to do.

[vreihen16]

Originally Posted by OkieSnuffBox

Yep. The better half just got a new job with a nice raise, like $30k/yr. We could really use a larger house since we both work from home.

What does the commercial office space market look like in your area? In these parts, it there is more than 50% vacancy. I could rent a small office for peanuts as a WFH space. If it's the same there, you could come out ahead by renting a work space and not upsizing your house.....

[OkieSnuffBox]

Originally Posted by vreihen16

What does the commercial office space market look like in your area? In these parts, it there is more than 50% vacancy. I could rent a small office for peanuts as a WFH space. If it's the same there, you could come out ahead by renting a work space and not upsizing your house.....

That's a good point. But not sure I could make it work for myself. My home office I have my laptop screen plus two 27" monitors. And I need it unless I'm in a meeting.