Wondering if other people are in this market. We just bid $200,000 over asking price on a house , waiving inspection and appraisal and offered a wide range of closing dates. We didn’t get the house. F’in insane.
OT: Is this the most insane real estate market?
- Thread starter Morrischiano
- Start date
Yes. It’s like that all over. I just sold my house for asking, cash offer from the neighbors day 1 of listing so no realtor commission and had to cancel 10 showings we had planned for the weekend
My sister just bought a house in the middle of friggin Maine for 150k over asking. They had 30 showings the first weekend it was listed
My sister just bought a house in the middle of friggin Maine for 150k over asking. They had 30 showings the first weekend it was listed
Perhaps it's not a good time to buy? :)
Sell or stay put.
Sell or stay put.
Did you buy another house? Do you plan to?
The market is not cooling down with the rising interest rates?
It’s a total shit-show. I’ve been looking to upgrade for a few years. Of course, I was waiting for the “perfect house” and pre-COVID I had passed on so many good ones. But, again, had my checklist of what I was looking for (ugh). Also wanted to pick up second home down the shore or on a lake. Considered a few but didn’t pull the trigger. At this point, it’s basically a lost cause on both fronts. The market is worse than before the Financial Crisis. I seriously considered buying land too but aside from land prices being sky-high the cost of building materials and supply chain bottlenecks scared me away. IMO it’s the NYers that are driving up prices in NJ because they will pay almost anything especially if they are still pulling NY salaries and can WFH.
It’s insane. Supply super low, demand very high. Combine that with people selling 7 figure places in the cities but moving to NJ and paying $800k for what should probably be $600k.
Maybe the rising interest rates will level things off a bit, but it doesn’t feel like that yet.
Edit: just realized this was my 10,000th post. Sort of anti-climactic....could’ve been better.
Maybe the rising interest rates will level things off a bit, but it doesn’t feel like that yet.
Edit: just realized this was my 10,000th post. Sort of anti-climactic....could’ve been better.
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Rising Interest rates are only f’in the lower/middle class. Someone coming from NYC to NJ will pay 5%+ mortgage without hesitation - barely factors into the equation. And like you said, they think NJ is a steal compared to what they were paying in Manhattan or Brooklyn. Another factor is that corporate relos are at record lows. Companies just aren’t moving employees around anymore. It’s housing gridlock and almost seems to be getting worse when you’d think it should be getting better.
A 6 acre lot next to me in West Amwell sold for $180k three years ago. They cleared the land, laid a gravel driveway and drilled a well before deciding not to build. Listed it last week for $375k. The buyer is going to end up paying $900k+ to build a house that in a reasonable market is worth $750k.
totally insane market. My daughter and her husband have been outbid on 5 or 6 houses in Lancaster, PA. The last one, in one weekend had: 22,000 social media views, 85 showings, 22 offers and went for $100k over asking. They are going to rent for another year. A friend in Sparta sold his house for $120k over asking in 1 weekend. Buyers waived inspection, wanted a 30 day closing and are letting my friend and his wife stay in the house, rent free, until July 1.
My brother, who does real estate in Manhattan was interviewed on Fox5 last week. He said the rental market in Manhattan is the craziest he's seen in 25 years of real estate. He now has bidding wars on rental apartments. Had a 500 sq ft apartment listed for $4600/month...ended up going for $5700 a month. Had a Finance Secretary from a foreign country look for an apartment in the $20k/month range. Guy lost out on 10 apartments until he finally bid an extra $1000 over asking AND had to sign the lease for 2 months before he actually wanted to move in.....at $23,000 a month!
insane!!
My brother, who does real estate in Manhattan was interviewed on Fox5 last week. He said the rental market in Manhattan is the craziest he's seen in 25 years of real estate. He now has bidding wars on rental apartments. Had a 500 sq ft apartment listed for $4600/month...ended up going for $5700 a month. Had a Finance Secretary from a foreign country look for an apartment in the $20k/month range. Guy lost out on 10 apartments until he finally bid an extra $1000 over asking AND had to sign the lease for 2 months before he actually wanted to move in.....at $23,000 a month!
insane!!
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The price psf to build a house these days is off the charts assuming you can even get building materials. And there are some materials that now require 6+ month lead time meaning you better plan it right because delays in a rising interest rate environment are a financial disaster waiting to happen.
The lead time on windows from Marvin last June (2021) was about 10-12 weeks.
The cost of Andersen Green vinyl boards to trim around windows we ordered from the local lumber yard were nearly triple the price they were in 2017 when ordered in October for material to arrive in December. It took the carpenter we have worked with for yours 3-4 months to get here to complete the work because he is so busy.
I'm going to buy more windows and trim this weekend, and looking forward to price and lead times.
I’ve read articles about consolidation in the real estate market driven by hedgefunds and big money buying up everything from SFHs to MFHs to vacant land to keep supply low and drive prices and rents sky-high. I can envision a scenario where they do this for a few years and then when prices simply can’t go any higher they start dumping inventory leaving sucker buyers holding the bag. If you want a good laugh go look at LBI or Stone Harbor. There are people that are trying to make 200-400% returns on houses they just bought 6-12 months ago.
We did. Got word of an upcoming listing from my daughter who is a realtor, offered asking price and they accepted before any showings. They probably could have got more but they weren’t interested in the parade of showings and made $400k in 2 years so they were happy
Crazy thing on our sale is that we originally sold it on a contingency that we find a house last spring but we couldn’t so they backed out. 6 months later we sold it for an extra $400K
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Still close to the beach?
Is the market in Linwood hot? Not interested in that market, but just curious as that area came up in a conversation today, and was wondering what it is like off the beach area.
Not an empty seat at any Beach Haven restaurant that’s open tonight. Business booming on a Tuesday
Actually closer to the beach, about 100 yards away but smaller house now that my daughters both moved out and bought their own. Linwood is a funny market. Some really nice homes and relatively inexpensive compared to some other areas but property taxes are really high
I’ve noticed that around here too. Places are packed midweek like never before
So follow up on my OP. Our agent spoke to the listing agent (they are good friends) to see how close we were. We bid $2.15M on a house listed for $1.95M. She asked the listing agent if $2.2M would have done the trick. The listing agent said no. It was above $2.2M - all cash.
Insane.
Insane.
We've been planning to buy a house in Stone Harbor with all cash, but we definitely need to delay for a bit (which is fine). Houses popped a good 40-50% in list price. We'll wait a year or two and see where the market is at. Our daughter is only in 4th grade, so we have time.
A
anon_ivydyf0amkzay
Guest
With interest rates shooting up and likely never coming back down to where they were, recession a very real possibility and uncertainly at every turn, it will soon be a buyers market again. If you can wait, there will be some sweet deals out there. Of course, if you can put a bid like OP did, it’s probably moot…first world problems
Some realtors act like a house is still for sale, when it has already received and accepted a bid. People bidding on it won't get it.
I think in a few years people who paid such high prices for houses won't be able to afford to keep it. An emergency bill here, a new roof or hvac there, maybe their income changes. I think a lot of people over extend getting caught up in trying to win a house. Meanwhile my town reassessed everyone's house and increased their value by a lot, potentially increasing the property tax.
Don’t be fooled. That market is hot like any other town. I sold the second most homes in that town last year (unofficially).
We bought our current home in the summer of 2007. Nice 25% discount compared to the peak in 2005'ish. No need to rush buy something now.
But what’s the catalyst for a housing bust? I’m not a real estate expert but seems like supply/demand/huge price increases are a combo of (1) big city money making big city wages moving to the burbs where they think everything is cheap, and (2) people diverting money from other investments/sources into real estate and borrowing from family members. How else can you explain all the cash deals? I’d love to see a stat on new mortgage balances now vs. pre-COVID.
As interest/mortgage rates go up, prices will come down. Happens all the time. The home listing/buying process just takes a while to correct. Likely 6-12 months.
This market is crazy. And much more crazy then the pre 2008 bust. My wife has had a lot of her clients offer cash purchase and then go for the mortgage after the offer is excepted. Very risky move by buyers.
Personally- we thought we got lucky to sell our house in Jan of 2020. We did ok on the sale but not quite what we had hoped for. And the killer is that when it sold and then COVID hit, our first thought was "Wow- we are lucky, no one is going to come out to look at houses during this pandemic" Little did we know, we most likely would have made an additional 300-400k if it hadn't sold in Jan.
And then we decided to rent a house at that time rather than try to purchase. Figured we would take a year and find our perfect downsized home and pocket some cash on the side. Little did we know, homes that were 2500-3000 sq ft were going to go for what we sold our larger home for.
So, here we are. 2 years and just signed the lease for another year of rental. And paying pretty much what we had thought our new mortgage would have been. Went to a couple of open houses this past month and it was crazy. First home we went to see had a line out to the road. They told us they had over 100 viewings the day before and already 20+ bids. Said they would only except new offers up to the end of day that monday. It ended up going for 150k over asking. And it was listed for 940k. Same with the 2nd house we went to see. 3rd house that day...we drove up- line out to the road again and we just called it a day.
Personally- we thought we got lucky to sell our house in Jan of 2020. We did ok on the sale but not quite what we had hoped for. And the killer is that when it sold and then COVID hit, our first thought was "Wow- we are lucky, no one is going to come out to look at houses during this pandemic" Little did we know, we most likely would have made an additional 300-400k if it hadn't sold in Jan.
And then we decided to rent a house at that time rather than try to purchase. Figured we would take a year and find our perfect downsized home and pocket some cash on the side. Little did we know, homes that were 2500-3000 sq ft were going to go for what we sold our larger home for.
So, here we are. 2 years and just signed the lease for another year of rental. And paying pretty much what we had thought our new mortgage would have been. Went to a couple of open houses this past month and it was crazy. First home we went to see had a line out to the road. They told us they had over 100 viewings the day before and already 20+ bids. Said they would only except new offers up to the end of day that monday. It ended up going for 150k over asking. And it was listed for 940k. Same with the 2nd house we went to see. 3rd house that day...we drove up- line out to the road again and we just called it a day.
"5% mortgages are no problem"
My parents bought their first house in 1981 with an 18% mortgage. When the price of money is that high, the price of the asset has to come down.
If the Euros implement a Russian Oil embargo, and Russia pivots to only accepting gold or rubles for their oil, and China & India play along, we could slip back into that frighteningly high inflationary environment.
technically I had it listed on MLS, but being that my daughter was the agent and the guy across the street walked over on day 1 and asked me to sell it to him and cancel all showings. If I had it listed with any agent, I'm guessing I would have had to pay at least 50% of the 5% commission, but since it was my daughter, I didn't have to.
That was my fear when we decided to downsize and considered renting for awhile, what do you do if housing prices keep going up and you are priced out, rentals are really hard to find down here, almost impossible. On the flip side if you can find a decent rental until things come back down, you win.
I read in a later post that your daughter was a realtor and it made more sense.
If it were with any other agency, you actually would have had to pay the full commission. They wouldn't have negotiated. But most agencies are going to ask for an Exclusive right to sell contract
Where is all this money coming from?? I understand the wealthy NYers moving out of the city to other locations but its quite insane.
I live in Colts Neck and my house has def appreciated a lot in value the past 2yrs but no way I could afford to sell and buy something else or even contemplate buying a summer house
I live in Colts Neck and my house has def appreciated a lot in value the past 2yrs but no way I could afford to sell and buy something else or even contemplate buying a summer house
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