Real estate market. Smokin' hot.

HardDrive · 09:43 PM

We put our house on the market last week, and got a full price offer today. Our house is on an arterial street, steep hillside, no yard to speak of. We thought it might take some time. Nope. Houses around here are gone in a week tops. Crazy. Our agent said to expect back up offers and agents showing the house even though we are in contract.

genrex · 05-22-2013, 08:43 PM

According to the Seattle Times, there is a flood of wealthy buyers from Mainland China, especially in the eastern suburbs. We live in interesting times.

Best wishes in all your travels, Josh.

Rog

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Zeke · 05-22-2013, 08:45 PM

L.A.Times reports SoCal smokin' too. Not talking about the recent fires.

aigel · aigel's Garage

There is a new bubble, most definitely. It is made by investors again. Just the other day someone posted here that they were taking out a loan on their home that they own outright to re-invest the money. One of the targets: buy a second home.

The number of people living in their own home has been on a steady decline, and this recent blip has not changed it.

Let's just hope this one won't go as crazy and pull down the economy with it again.

G

pbs911 · pbs911's Garage

Everything will crash as corporations replace employees with technology and there are no workers earning wages sufficient to buy anything aside from their daily necessities. Enjoy it while you can.

Rick Lee · Rick Lee's Garage

I'm told my place in VA will just about go for enough for me to get out from under it. I'm holding out a few more months, but really hope to sell this year and get that monkey off my back.

911boost · 911boost's Garage

I close on the place I've been renting next week. Got a great deal on it since it needs a little cosmetic TLC. My next door neighbor put his house on the market and had a full price offer in less than 24 hours.

The market is crazy here as well.

Bill

look 171 · 05-22-2013, 09:28 PM

Homes are estimated to go up an other 12% in LA for the next year. People are in a buying frenzy. If they don't get it now, they will be left out with interest rate going back up. Plus, there is no inventory on the market. Anything in good condition is gone with over the asking buyers fighting for it. Crazy. As long as interest rates stay low, there will be plenty of buyers. Many of these people have experienced losing the deal 10 years ago when they did not buy then over night, prices sky rocketed pricing them out of the market. some are buying out of fear. This has been going on in many large cities on both coasts.

look 171 · 05-22-2013, 09:31 PM

Hard drive,
your sister's(?) place in Highland Park should have been going up. Talk about on fire. Homes are sold there within the first week of listing.

911boost · 911boost's Garage

You moving HD?

genrex · 05-22-2013, 09:41 PM

Does anyone know any good Columbus Ohio jokes?

aigel · aigel's Garage

This is very unhealthy IMHO. The feds need to up the rate pronto.

I would much rather pay more interest on a lower principal than the other way around. People are buying over market now, thinking they still get a good deal while they can. Plus, the whole "OMG, soandso made 15% in the last year on their home, we need to get in" is starting again too.

G

look 171 · 05-22-2013, 09:57 PM

Lots of the investment groups are leaving the stock market with deep pockets and investing heavily in real estate. The market had to go back up so these guys will go back to do what they do best, make money over there. So many people are buying and holding hoping the market will go back up then sell and make some $$$$, and the market will.

George,

How low is low? Once home value goes up, they almost do not come back down where they were. Never.

aigel · aigel's Garage

Quote:

Originally Posted by look 171

George,

How low is low? Once home value goes up, they almost do not come back down where they were. Never.

Right, just like they didn't in 2009 vs. 2005.

Again, nobody buys these to live in, only to invest. That's what got us in trouble last time.

G

pbs911 · pbs911's Garage

Quote:

Originally Posted by look 171

How low is low? Once home value goes up, they almost do not come back down where they were. Never.

Did you just wake up from a nap started in 2005?
The economy is in the worst position it has ever been in, unemployment is at its worst, more families are at the poverty level than ever in history, and any available jobs are at the lowest wages ever. There may be supply, but the demand is wearing very thin in the US as testified to by unprecedented number of foreign investors. What medical marijuana are you smok'in?

look 171 · 05-22-2013, 10:19 PM

No, there are many more people who buy them to live in then there are those who are investing. Its just seem that way, but not truth. these guys are buying them cash so how's a home owner to compete?

look 171 · 05-22-2013, 10:24 PM

Quote:

Originally Posted by pbs911

Did you just wake up from a nap started in 2005?
The economy is in the worst position it has ever been in, unemployment is at its worst, more families are at the poverty level than ever in history, and any available jobs are at the lowest wages ever. There may be supply, but the demand is wearing very thin in the US as testified to by unprecedented number of foreign investors. What medical marijuana are you smok'in?

So, where's third house?

I can't speak for the third house, but in many areas in Socal, the market is on fire and there are many desirable areas / cities where the pricing did not drop all that much compared to the rest of country.

I agree the economy is not in good shape, but we are talking about buying and selling homes or real estate. foreign invester? so what? We do it to their countries. let em bring back some of our money they make from us. BTW, I don't smoke marijuana, so lets stay on topic.

nostatic · nostatic's Garage

Quote:

Originally Posted by look 171

Hard drive,
your sister's(?) place in Highland Park should have been going up. Talk about on fire. Homes are sold there within the first week of listing.

two places down the street from me (Santa Monica) both went on the market at the same time. One of them the owner died, the other they moved. They both got a quick refresh but neither is impressive. They both sold the first day, probably for over their asking ($999K and $949K). These are 1400 sq ft homes on tiny lots, one of which didn't even have a garage.

A friend of my wife just sold her house in Highland Park. Asking was $429K and it got 16 offers and went for almost $100K over asking.

It feels like around 2003 again. The fallout for me is my landlord raised the rent $400/mo as sales are hot and rentals are feeling pressure. It'll likely crash again soon (though I doubt my rent will drop - we're out of here as soon as the boy finishes HS). People don't seem to learn. And many of the people looking at the two houses down the street were investors, not "buying to live in it", at least judging from the conversations I overheard while we were checking them out.

look 171 · 05-22-2013, 10:36 PM

Where would you go Todd? I am always curious for those who grew up in socal. I thought about it too, but still can seem to know where.

Echo Park is even hotter (but its no Santa Monica) then HP and its 10 minutes over the hill from there. A 1100sq home fixed up with a bit of style is in the high 6s. Crazy times again. I agree there will be a bubble, but if people time it well, they can make lots of money then buy and hold for rent. there will always be people that need to rent in LA.

Rent control in Santa Monica, right? 400 bucks? Must be a single family home so rent control does not apply?

aigel · aigel's Garage

This is a good read.

Will The New Housing Bubble That Bernanke Is Creating End As Badly As The Last One Did?

Indeed, rents are through the roof too, which of course gets people to look into buying as well.

G