The housing market is fucked...

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Current Events » The housing market is fucked...
LinkDaLunatic
10/10/2021
11:43 AM
#1
Going all-in with the family trying to buy a home. Approved for 250k. We have been outbid by corporate investors on every single home we have bid on.
Feels like our only shot is to pick a really cheap, really shitty house (for the money that would have bought a luxury home a decade ago) and then bid up on it to the point that it's no longer a good deal for the investors, making it an even more awful deal for us. This is insane.

I'm sure we'll eventually luck out and snag one, but how is this going to look ten years down the road, or twenty? It's going to be impossible for new homebuyers. This isn't a housing bubble that's eventually going to pop, this is a housing crisis and is quickly being monopolized by banks and hedge funds. I'm worried about the future...
Fam_Fam
10/10/2021
11:44 AM
#2
my fiancee and i are not buying as we were planning to for the same reason (inflated costs)
whitelytning
10/10/2021
11:46 AM
#3
Do you have to buy? Its def not the best time to overpay for something that you dont necessarily need right now.
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Eramir
10/10/2021
11:47 AM
#4
There arent even condos or little studio apartments for sale below $250,000 where I live
KiwiTerraRizing
10/10/2021
11:47 AM
#5
Any person or entity that owns a 2nd house in the same state should have to pay a huge tax increase.
Trucking Legend Don Schneider!
Legato-and-Vash
10/10/2021
11:49 AM
#6
Don't forget about appraisals. If you bid 40k over asking price and the bank doesn't appraise it that high, you'd have to pay the difference out of pocket.
~Sincerely yours, Legato and Vash~
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Bleuets
10/10/2021
11:52 AM
#7
Bro people say the same shit all the time, oh this amount would have bought me a luxury home a decade ago! No shit Sherlock. Houses are always going to go up.
LinkDaLunatic
10/10/2021
11:55 AM
#8
whitelytning posted...
Do you have to buy? Its def not the best time to overpay for something that you dont necessarily need right now.
We are beginning to reconsider. But the concern is that there isn't a bubble that's going to pop - shelter is not an unlimited resource and is being swept up in large volumes. Homes are being appraised for ludicrous values driving property taxes through the roof. The cost of shelter is outpacing inflation at great rates and it is not going to get any better as population continues to grow and demand continues to outpace supply in record numbers.

Yeah, bubble isn't a good metaphor... it's more like a staircase where you can't see the top. And every now and then, you think you see the top, but after a few flights downward you see that it continues to climb again, even higher than you climbed before, toward a new peak. And that's just going to keep happening.
krazychao5
10/10/2021
11:56 AM
#9
KiwiTerraRizing posted...
Any person or entity that owns a 2nd house in the same state should have to pay a huge tax increase.
if your home is not your principal residence, your property taxes are higher.

and with the rates as low as they are, you are still paying less monthly with higher prices. if interest goes up to 5% again and prices go back to where they were, you'd be paying the same or more. keep looking, find a house and make a competitive offer. gotta give up appraisal and mortgage contingencies. so bring people that know how to inspect with you to visit the house.
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Mearcstapa
10/10/2021
11:57 AM
#10
House prices are inflating around here literally faster than I can save, and I'm already living with my parents and spending practically zero on non-essentials.

Really feels like we're accelerating into a neo-feudalist hell world. 20 years ago, a guy in my economic situation probably could have made it easily, but not today; and I'm already more fortunate than most.
after years of waiting
nothing came
Rypt
10/10/2021
11:58 AM
#11
thank you joe biden
Squall28
10/10/2021
11:59 AM
#12
I think they need to do some legislation around it. Too many families are going to get priced out at this rate.
You can't go back and change the beginning, but you can start where you are and change the ending.
-Misattributed to CS Lewis
Esrac
10/10/2021
12:02 PM
#13
I just bought a house last week for 250,000 with the VA loan, because the cost of renting is much higher than the cost of the mortgage.

The only problem is I trusted my wife with selecting a place and her eye isn't as critical, so the place is more of a fixer-upper than I'd like.
Omnislasher
10/10/2021
12:03 PM
#14
acceleration is the only way

crash now - don't rebuild
LinkDaLunatic
10/10/2021
12:10 PM
#15
Legato-and-Vash posted...
Don't forget about appraisals. If you bid 40k over asking price and the bank doesn't appraise it that high, you'd have to pay the difference out of pocket.
Dope username. Yeah, the appraisal gap is a dick. Even if you bid on a cheaper house, if it hasn't been appraised recently there's a huge ballpark for where that figure could land and no accurate way to estimate it, so your offer could just totally fall through at that point.

Bleuets posted...
Bro people say the same shit all the time, oh this amount would have bought me a luxury home a decade ago! No shit Sherlock. Houses are always going to go up.
Obviously houses are always going to go up. What you missed is that they're going up substantially higher than they should due to the unique and unregulated circumstances allowing investors to literally fuck this market right now.

https://awealthofcommonsense.com/2020/10/the-u-s-real-estate-market-in-charts/

Squall28 posted...
I think they need to do some legislation around it. Too many families are going to get priced out at this rate.
The issue is it's completely legal. And the people that could put legislation in place to prevent or stop this are in the pockets of the institutions that are doing it. It will not be fixed.
ThyCorndog
10/10/2021
12:11 PM
#16
real estate companies have gone out of control buying up all the properties and turning them into rentals. it should be limited in some way
https://imgur.com/6cPXvLN
https://imgur.com/hVC4i6j
Billyionaire
10/10/2021
12:14 PM
#17
LinkDaLunatic posted...
This isn't a housing bubble
Oh but it is. But it's not subprime lending that's the problem this time, it's external factors driving up prices to something unreasonable for regular people. All these people paying exorbitant amounts for houses now are going to be hurting when the market corrects itself a couple years from now.
$ex
AlBundy33
10/10/2021
12:17 PM
#18
ITT: People who dont know how to house correctly

Bought my 3 bedroom house in a city with a VERY HIGH COL, for $60,000, buy a fixer upper, get your hands dirty, its not that hard
Shoe Salesman. Four Touchdowns, one game.
This post may contain my opinion. My opinions may be offensive, deal with it
Lunar_Savage
10/10/2021
12:18 PM
#19
The future will not be fun. What they're doing is intentional.
Number of Mega Cookies given: (::::) 33
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harley2280
10/10/2021
12:20 PM
#20
Don't try and buy something in a big city. Buy something about 45ish minutes away in the direction the city is sprawling.

We bought our house back in May, and its already worth more than what we bought it for.
PSN/GT: Harley2280
LeoRavus
10/10/2021
12:21 PM
#21
My house is now valued at double what I paid for it.

It's crazy how fast prices are going up. It's good considering my investment, but bad if I want to move to a better place.
This is where cool people write stuff.
Mezcla
10/10/2021
12:24 PM
#22
im low key hoping for another housing crash

my retirement will be fucked for a while, but i aint retiring any time soon.

maybe ill be able to buy a house in my hometown for less than 750k (3 bedroom, 1 story, house made in 1940s)
SUMIN
SUMIN
Bleuets
10/10/2021
12:26 PM
#23
If hoping for a housing crash is your strategy for buying a new house, you may want to rethink that.
Mezcla
10/10/2021
12:28 PM
#24
Bleuets posted...
If hoping for a housing crash is your strategy for buying a new house, you may want to rethink that.
what should i do then? save up an easy 250k for a downpayment on a multimillion dollar house in the hood?
SUMIN
SUMIN
BeyondWalls
10/10/2021
12:29 PM
#25
Really regret selling my grandmothers house in 2019 now. If we had just held on for another 2 years...
END OF LINE
LeoRavus
10/10/2021
12:30 PM
#26
Mezcla posted...
im low key hoping for another housing crash

my retirement will be fucked for a while, but i aint retiring any time soon.

maybe ill be able to buy a house in my hometown for less than 750k (3 bedroom, 1 story, house made in 1940s)

Good lord you could get a house like that for under $200k here. For now.
This is where cool people write stuff.
Bleuets
10/10/2021
12:30 PM
#27
Mezcla posted...
what should i do then? save up an easy 250k for a downpayment on a multimillion dollar house in the hood?

Id consider moving to a state with a more reasonable housing market.
Mezcla
10/10/2021
12:32 PM
#28
Bleuets posted...
Id consider moving to a state with a more reasonable housing market.
oh yeah. im going to move out to Nowwheresville, USA so i can live out my best life

growing corn and drinking moonshine with Billy Bob and Sally Mae.

sure.
SUMIN
SUMIN
ThyCorndog
10/10/2021
12:37 PM
#29
Mezcla posted...
oh yeah. im going to move out to Nowwheresville, USA so i can live out my best life

growing corn and drinking moonshine with Billy Bob and Sally Mae.

sure.
lmao forreal
https://imgur.com/6cPXvLN
https://imgur.com/hVC4i6j
party_animal07
10/10/2021
12:38 PM
#30
Mezcla posted...
oh yeah. im going to move out to Nowwheresville, USA so i can live out my best life

growing corn and drinking moonshine with Billy Bob and Sally Mae.

sure.
Why do people think everything outside of a major city is just wheat and barns? There are tons of places that are just scaled down versions of major cities.
https://warpzone.me/wp-content/uploads/2018/08/GRANDIA_-696x509.jpg
a-c-a-b
10/10/2021
12:41 PM
#31
It's getting pretty insane where I live in Canada too. I know a guy who sold his small, single story 3-bedroom house earlier this year.

It was listed at $850,000 and sold within a couple days for $975,000.
Save for your doomed future
modena
10/10/2021
12:41 PM
#32
party_animal07 posted...
Why do people think everything outside of a major city is just wheat and barns? There are tons of places that are just scaled down versions of major cities.
It's an easy "out". I say let them keep thinking that. Keeps costs down around here, although a lot of people are finding my gem thanks to a Tesla charging station. Ah well.
I'm surrounded
#33
Post #33 was unavailable or deleted.
gamestunner
10/10/2021
12:56 PM
#34
I feel your pain. Mofos with cash keep scooping everything under our feet.

It was so bad, my realtor asked me to write a letter to one of the owners.

Wrote in it that my wife was pregnant with our 2nd child on the way which was true, and all that extra bells and whistles added to fluf it up.

She wanted the people with cash.
theAteam
10/10/2021
01:09 PM
#35
Been looking at cheaper places to live but then you notice literally everywhere houses have shot up 2x what they were pre-runup. Maybe it's not a bubble but I can't see the prices sustaining outpacing local wages that much.

We're looking to move from socal to Colorado and despite making double the median household income of the area we're looking at we're at risk of being priced out of that area within a year or so.

Are we all just hoping there will always be richer people getting priced out of even more expensive areas willing to buy your home for more than you paid for it? Because I don't see anyone local competing.
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Bleuets
10/10/2021
01:24 PM
#36
Colorado housing market is extremely expensive right now. I know, I live here. Not exactly the housing market Id use as a good example. If anything, its a terrible example because its easily one of the most expensive places to live right now.

Your point may be true, maybe housing is going up all over the country, but you gotta use a good example to support that. You talking about how its expensive in Colorado as though thats surprising shows a lack of knowledge in the market. Its well known that Colorado is expensive to live in.

You using that as an example is almost cute, but at very least hurts your credibility. Been looking at cheaper places to live, Colorado is so expensive like no duh. try actually looking at cheaper states and do some research.
uwnim
10/10/2021
01:33 PM
#37
Housing as an investment really needs to end. It does nothing good for the economy, just fucks it up and distorts things.
I want a pet Lavos Spawn.
[Order of the Cetaceans: Phocoena dioptrica]
theAteam
10/10/2021
01:33 PM
#38
It's not about the actual prices it's about the trends and gap between home prices and regional income.

We did also look at Phoenix, Oregon, Nevada, NM, Idaho, all have the same trends.

Also you don't need to be a dick about it. Compared to socal yes Colorado is a fucking bargain
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Fony
10/10/2021
01:34 PM
#39
I moved to Pittsburgh 6 months ago for medical reasons(shorter kidney transplant list than New York, in fact I already got the call just recently) and the housing is cheap here. Some locals consider my rent expensive($1380, i've seen standard not shitty paprtment starting at $850) but you can't get ANYTHING besides a bedroom or a REALLY fucked up apartment the size of my current walk in closet back home for that price. Not even on long island either. I'm in a newly built three year old complex, 1100 square foot luxury apartment and the grounds have a lovely bbq area, huge pool and fitness center.

The Housing here is also quite affordable, but I would just never live here permanently. Once I get my kidney and heal up enough i am on thew first plane back to NY. I can never get use to life here. It's too slow and Pittsuburgh while having a few nice features is clearly the shell of an old industry mining town built upon an enterprise that is now outsourced to china. Massive urban decay, half the houses and buildings here look like they were bult in 1850 and never maintained, whole chunks of every district are abandoned, the food sucks mostly, the poor litter the streets in many areas and there is nothing to do here.

It's kind of the gloomiest parts of NY, with a tenth of the population and none of the positive aspects. And somehow, depsite the massively cheaper car insurance rates, the drivers here are awful. As if they learned to drive on a tractor at a farm and have driven 90% of their life up till now on a dirt road in smallville(lol) and literally moved to a city two days ago. Terible. there seems to be a moderate influx of people from rural areas in surrounding states and they seem to like it.

Even if I were to settle down and have a fmaily, I wouldn't live here.
It's not the end of the world, but we can see it from here.
VigorouslySwish
10/10/2021
01:36 PM
#40
Mezcla posted...
im low key hoping for another housing crash

my retirement will be fucked for a while, but i aint retiring any time soon.

maybe ill be able to buy a house in my hometown for less than 750k (3 bedroom, 1 story, house made in 1940s)

that made in the 40s part is increasing the value fyi. modern buildings are built like absolute trash and everyone knows it
i'm just some guy yellin' about apple sauce
Bleuets
10/10/2021
01:42 PM
#41
theAteam posted...
It's not about the actual prices it's about the trends and gap between home prices and regional income.

We did also look at Phoenix, Oregon, Nevada, NM, Idaho, all have the same trends.

Also you don't need to be a dick about it. Compared to socal yes Colorado is a fucking bargain

I'm just saying, using Colorado is not a great example to support what you're saying. I believe you, but use a better example.

It would be like if we were having a conversation about phone prices and you said "Been looking at inexpensive smart phones, these iPhones are ridiculous!"

Just trying to help you build a stronger argument.
Esrac
10/10/2021
02:30 PM
#42
Mezcla posted...
oh yeah. im going to move out to Nowwheresville, USA so i can live out my best life

growing corn and drinking moonshine with Billy Bob and Sally Mae.

sure.

Cringe as fuck, right here.

Also, if you want big city amenities, you pay big city prices. Get used to it.

If you want a more reasonable cost for a house, adopt more reasonable standards.
RIPVyseCity
10/10/2021
02:38 PM
#43
Ten years ago I bought my house for 226K. Zillow currently has it worth 444K. Not too bad.
Current Events » The housing market is fucked...