California home for sale gets 122 offers in 3 hours

Houses equivalent to the one in the article around here, the starting price is about $450K and we're not even that close to Sacramento. However, the town of Paradise where they had the Camp Fire in 2018 was near here and that drove prices up and the prices have stayed up and are expected to stay up forever.
 

A house like the one described in the article would probably be double that or more anywhere between a few miles south of downtown San Jose northwards past San Francisco and all the way up to Marin or Novato in the north bay. It would probably be close to double most of the way up the east side of San Francisco Bay as well although there are areas of Oakland and Richmond where it would only be about 50% more than what it sold for in Citrus Heights.
 
Yep not just the USA either.. house prices have sky rocketed here especially here in the expensive south of England... just ridiculous prices for homes that are not nearly worth the asking price...
 
Don M. said:
Housing prices are getting very high in many places....almost to the point where a younger home buyer can barely afford the payments. In many respects, conditions are starting to look like what happened in 2006-2007....which led to the housing "bubble" bursting in 2008.
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Somebody, somewhere down the line is gonna be holding the bag

I refurbed an old house in 2006
Put about $20K into it, in materials
Doubled our money when we sold it in 2007
Right before the bubble burst

The kids that bought it, put another $50K into it
Then
Had to walk away

Thing is, interest rates are incredibly low right now
Once those climb, and they will, those with variable rates will get hurt pretty bad

Funny thing, just a couple months after buying the place, my broker would stop by and urge me to refi with a lower interest rate (and lower house pmnt) and hand me $20K or so in cash
This happened two or three times

It was nuts
 
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Don M. said:
Housing prices are getting very high in many places....almost to the point where a younger home buyer can barely afford the payments. In many respects, conditions are starting to look like what happened in 2006-2007....which led to the housing "bubble" bursting in 2008.
Click to expand...
Imagine if interest rates were even just a bit higher? Of course that would drive house prices down some.
 
This uptick in housing prices is yet another "side effect" of this CV pandemic. New home construction is down, due to higher prices for lumber and a shortage of construction workers....so existing home prices are climbing. Then, with more people allowed to work from home, suburban housing is looking more attractive to buyers who want to leave the crowded cities. However, this "spike" could be short lived, as the economy begins to recover from the virus, and shortages of many consumer items begins to drive Inflation higher. Some of the Federal Reserve predictions call for inflation to rise at 2%, or more, for perhaps the next 10 years. This will impact consumer spending, and drive home loan interest rates much higher....thus leading to a decline in home prices, as demand begins to lag "supply". Those who are speculating that these home prices will continue to rise, may be disappointed in another year, or two.
 
I just listened to an hour long program on Friday (CBC Radio - The Current) related to the housing crisis here in Canada, and it was eye-opening to say the least.

I won't violate forum guidelines as to getting political with this post, but as Canadians, we can thank our fearless leaders for unaffordable housing.

https://www.cbc.ca/radio/thecurrent/the-current-for-march-30-2021-living-conditions-1.5969479

As the established homeowners that hubby and I are, I seen Red when the suggestion was made to start dinging homeowners with a Capital Gains Tax at sale time.
 
BlissfullyUnawareCanadian said:
Where I am houses sell for at least $50K over asking. One went for $100k over. It’s insanity. If we sold today we would get not far off double what we paid four years ago. I can’t imagine trying to buy our first home right now.
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Just checked our house on Zillow. The Zestimate said it went up over 5% in the last month!

We knew so many people who refinanced and took cash out or took out a 2nd mortgage when prices were so high around 2006. Then when the market crashed, they owed so much more than the house was worth.
 
Jules said:
The ones who will win from this frenetic buying are the realtors. Little work, lots of profit.

Many people will be entering the field so sellers will have to be careful who they choose to represent them.
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When the times comes for us to downsize, we'll be listing our home privately (NO REAL ESTATE AGENTS).

We've worked hard for our money and have no plans on padding the pockets of any real estate agent.
 
The pandemic could change some lifestyles big time for the foreseeable future though. Son closed their company software office in Ohio and has saved over 10 grand a month rent! Questionable on what office facilities they may or may not opt in or opt out for. He has a big home so has employee meets there when needed.

Also, lots of people love working from home and have adopted dogs. Heard that some companies are offering employees "pet bogies" to get them back to the office schedule...permitting them to bring their pooches to work!

Possible a big switch, who doesn't love that "sweet commute" of working from home, to say nothing of the bucks saved on
lunches and clothes. Maybe its a new twist "how do we keep them in love with Gay Parie, after they've been working "down on the farm"?!

Some have put in big vegetable gardens and completed long overdue home improvements as bogies, too.
 
Eventually I would miss the social interaction of the office place.

If I’d been one of those people who had been trapped in a high rise with no balcony at the beginning of Covid, I’d have gone mad and been ready to buy in the suburbs.
 
There definitely are pluses to this pandemic.
It’s forced a lot of people to work from home who wouldn’t otherwise have considered it and in this realization people now can see that they can work from home. Since they can work from home, it saves in gas mileage, car insurance, rental offices if it’s their own business. They no longer have to live near where they live so can move to less populated areas which are usually cheaper to purchase. All of this leads to less pressure. Peoples lives are slowing down. Maybe it’s the push we needed?
There’s a silver lining to this pandemic.
 

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