Housing market

shaggy

Old Mossy Horns
Me and my wife had thrown around the idea of moving down to the swansboro area. We decided against it for several reasons but one was the market right now. Houses are rarely staying on the market for more that a day and offers coming in right away. One house hit the market Thursday that needed all rooms painted. It was estimated at 181k and sold at 219k in just 4 hours. We had a realtor assess our house and he never listed it but already had an offer for 25k above estimated price.

We are still thinking of moving but is it worth it to buy in such a crazy sellers market? I could easily see us overpaying for a house that loses value if the housing market crashes.

Any suggestions/advice.

The biggest factor in not making the move is me being able to find an equally high paying job. Looking for available jobs down there and I wasnt able to get $4 of what I make now. Cant move and take on a higher mortgage if I am taking a pay cut......that's just not a smart move.
 

wncdeerhunter

Old Mossy Horns
Me and my wife had thrown around the idea of moving down to the swansboro area. We decided against it for several reasons but one was the market right now. Houses are rarely staying on the market for more that a day and offers coming in right away. One house hit the market Thursday that needed all rooms painted. It was estimated at 181k and sold at 219k in just 4 hours. We had a realtor assess our house and he never listed it but already had an offer for 25k above estimated price.

We are still thinking of moving but is it worth it to buy in such a crazy sellers market? I could easily see us overpaying for a house that loses value if the housing market crashes.

Any suggestions/advice.

The biggest factor in not making the move is me being able to find an equally high paying job. Looking for available jobs down there and I wasnt able to get $4 of what I make now. Cant move and take on a higher mortgage if I am taking a pay cut......that's just not a smart move.
Who estimated it at $181k?

Selling at the height of the market in many instances also means buying at the height of the market.
 

shaggy

Old Mossy Horns
Who estimated it at $181k?

Selling at the height of the market in many instances also means buying at the height of the market.

It was on zillow. Estimated sales range was 170-190 so the "zestimate" was 181k.....the 2020 tax assessment on the home was just under 140k. This is the house and it literally went pending in only 4 hours at a sale price of 219k.

 

TravisLH

Old Mossy Horns
Me and my wife had thrown around the idea of moving down to the swansboro area. We decided against it for several reasons but one was the market right now. Houses are rarely staying on the market for more that a day and offers coming in right away. One house hit the market Thursday that needed all rooms painted. It was estimated at 181k and sold at 219k in just 4 hours. We had a realtor assess our house and he never listed it but already had an offer for 25k above estimated price.

We are still thinking of moving but is it worth it to buy in such a crazy sellers market? I could easily see us overpaying for a house that loses value if the housing market crashes.

Any suggestions/advice.

The biggest factor in not making the move is me being able to find an equally high paying job. Looking for available jobs down there and I wasnt able to get $4 of what I make now. Cant move and take on a higher mortgage if I am taking a pay cut......that's just not a smart move.
Wife and me were kicking around the same idea since we’re getting unsolicited offers 65k over what we paid in 2015. Problem Is if we sold what ever we buy would also be inflated.
 

dobber

Twelve Pointer
My poor daughter has been looking, its not likely to happen in our current market. Recently she offered $220k on a house that was asking $179k. It sold for $360k
What is happening up here is a house goes up for sale - all offers are in closed envelopes and on a certain day the seller then reviews and picks.
 

BiggestSpikeYouEverSeen

Ten Pointer
Contributor
If you're going to see a reduction in HH income, a bigger mortgage probably isn't ideal unless you were living well below your means previously. With that said, I think the market is likely to continue climbing although likely at a less aggressive rate. With housing prices growing so much faster than incomes, there is sure to be a rebalancing at some point. With that said, the growth seems to largely be driven by supply/demand and fortunately a lot of appraisals are still coming back with a realistic figure (less than the sales price in a lot of competitive situations). I don't really fear a housing market collapse/recession in our near future or at least not for the same reasons as the 07/08 collapse but who knows....
 

shaggy

Old Mossy Horns
I would love to move and my heart says get near the coast but my brain says not so fast.

So any ideas on what's driving this sellers market and what's gonna happen when the economy eventually slows down again and all these people are in such high levels of debt?
 

wncdeerhunter

Old Mossy Horns
I would love to move and my heart says get near the coast but my brain says not so fast.

So any ideas on what's driving this sellers market and what's gonna happen when the economy eventually slows down again and all these people are in such high levels of debt?

there are several primary factors that are driving this market. One is very low interest rates which means that people are able to afford more than they previously could at least on paper. I know there are many companies/businesses which have eliminated brick and mortar office spaces and employees are now able to work remotely so they can live almost anywhere so people are moving.

We also have very limited inventory which makes the homes that are for sale very competitive and that is driving prices up.

We have a supply/demand situation driving these prices.
 

FITZH2O

Twelve Pointer
It was on zillow. Estimated sales range was 170-190 so the "zestimate" was 181k.....the 2020 tax assessment on the home was just under 140k. This is the house and it literally went pending in only 4 hours at a sale price of 219k.

Who in their right mind would rent a 1300 sqft place on .4 ac for that money????
 
Pension funds are snapping up real estate around the country as investments. Then leasing them out through a 3rd party. Most of those high cash offers are likely pension funds. They're pricing young couples out of the market for what should be affordable starter homes.

 

shurshot

Eight Pointer
Best way to take advantage of this crazy market is to sell your home, put your possessions in a POD unit, and find something to rent until these totally inflated prices recede to some type of normalcy. Might be a little inconvenienced but the money realized could be worthwhile.
 

jug

Old Mossy Horns
Contributor
Pension funds are snapping up real estate around the country as investments. Then leasing them out through a 3rd party. Most of those high cash offers are likely pension funds. They're pricing young couples out of the market for what should be affordable starter homes.

Yes sir that is correct. Folks are spending some of that Big money they made the last 3 years off the stock market and buying houses or land. The land sales are slowing down now in some areas of NC. They have dropped like a rock in Patrick and Henry county Virginia. Anyone who can sell their house now can make Big money if you are within a hours drive of the RDU area. Crazy what is going on now. The wife and I ordered an Airstream in March. May look at living in that rascal one day if we see the housing market do this again.
 

wncdeerhunter

Old Mossy Horns
Best option for making money is sell now,rent for a year or two till the market crashes,,,which they are giving arm loans again so it will happen...and then buy again after prices crash....as long as interest doesn't skyrocket it will work
ARM loans weren’t the predominant reason for the last crash - it was lending to people who didn’t qualify (mortgage fraud).
ARMs won’t cause a crash this time - for instance, SECU has a 5 yr ARM that was 2.95% a couple weeks ago. Can only adjust 2% max in each adjustment period. Even if it adjusted the max after year 5, you’re still under 5%. The ARM products that contributed to issues in ‘08 are not the same type of loans that we see today.
People who believe this market is supported in any way like the market prior to the 2008 crash just don’t understand what is driving the market.

it’s not fraudulent mortgage lending - or ARMs - it’s supply and demand coupled with historic low rates.
Just like folks predicting “massive foreclosures” - you aren’t going to see that. They don’t foreclose on homes that can be sold with positive equity.

I personally don’t think we will see a crash anytime soon - more of a correction and shift to a more balanced buyer/seller market. I do think lot of people that are paying crazy high prices are going to be in those homes for some time - cause many will be upside down for a while.
 
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Dick

Ten Pointer
looks the same to me as the last crash. if mortgage companies are willing to give money to buy at these inflated prices then it will happen.
Appraisals were blamed last crash too. Or at least that is what the lenders tried to blame it on. But if an appraisal did not react the loan desired, they just got another appraisal.
Add in the crazy inflation of every other item on the market right now. Has loan ratios changed to account for this?

Even if factors are different in the real estate market then last crash. The addition inflated cost of everything else will eventually drive a crash.
now this is just my ignorant frail abused minds eye on things. So I'm probably wrong 😄
 

wncdeerhunter

Old Mossy Horns
looks the same to me as the last crash. if mortgage companies are willing to give money to buy at these inflated prices then it will happen.
Appraisals were blamed last crash too. Or at least that is what the lenders tried to blame it on. But if an appraisal did not react the loan desired, they just got another appraisal.
Add in the crazy inflation of every other item on the market right now. Has loan ratios changed to account for this?

Even if factors are different in the real estate market then last crash. The addition inflated cost of everything else will eventually drive a crash.
now this is just my ignorant frail abused minds eye on things. So I'm probably wrong 😄
Biggest difference is that people can afford what they are paying this go around. Last time they could not, and lenders knew it from the onset.

We are actually seeing many home appraisals come in low, but people are paying the difference in cash out of pocket. Nothing at all like the last housing market crash - not even close.
 

shaggy

Old Mossy Horns
We are talking about a plan B which would be her getting a role at one of the hospitals as a traveler where they actually put us up for the year. This would mean we could sell our house and have time for me to find equally paying jobs and have more time to find the right house at the right price.

Still have options on the table.
 

shaggy

Old Mossy Horns
Sell, rent down east and use a little of the gains starting your own business. When your rolling in dough, remember my advise and charter me a fishing boat.

That was a thought actually. Tossed the idea around of starting a pressure washer job down around the coast. If I could line up a couple jobs a day at 300-500$ a job I could do pretty well I would think.

At the same a manager role just opened up here at work for the area I've been working for 21 years. I may throw my hat in the ring for that job as well.
 

jug

Old Mossy Horns
Contributor
We are talking about a plan B which would be her getting a role at one of the hospitals as a traveler where they actually put us up for the year. This would mean we could sell our house and have time for me to find equally paying jobs and have more time to find the right house at the right price.

Still have options on the table.
Well the only thing wrong with that plan is the unexpected always seems to happen unfortunately.
Some very close friends of ours had similar plans, they sold their share of his family farm 3 years ago and moved down near Topsail Island. He never found a decent job and she is actually on her 2nd nursing job since the move. He ended up coming back to Sanford and taking his old job back in Apex till he got laid off. They are doing okay and they have a beautiful place on the creek they call it which part of the inner coastal waterway.... but money is short right now at a time when they are close to retiring . I hope your plans work out. My wife wants me to pull the trigger and move to Florida but I just can't do it. We are buying an Airstream and hopefully we live long enough to enjoy 2 to 3 months a year in Florida ...
 

ibgreen

Ten Pointer
Contributor
That was a thought actually. Tossed the idea around of starting a pressure washer job down around the coast. If I could line up a couple jobs a day at 300-500$ a job I could do pretty well I would think.

Fun fact: Many metal roofing manufacturers will void coastal warranties due to that the owners do not have documented proof of a clean water rinse of their metal roofs yearly to counter corrosion........ Rain doesn't count.
 

shaggy

Old Mossy Horns
Well the only thing wrong with that plan is the unexpected always seems to happen unfortunately.
Some very close friends of ours had similar plans, they sold their share of his family farm 3 years ago and moved down near Topsail Island. He never found a decent job and she is actually on her 2nd nursing job since the move. He ended up coming back to Sanford and taking his old job back in Apex till he got laid off. They are doing okay and they have a beautiful place on the creek they call it which part of the inner coastal waterway.... but money is short right now at a time when they are close to retiring . I hope your plans work out. My wife wants me to pull the trigger and move to Florida but I just can't do it. We are buying an Airstream and hopefully we live long enough to enjoy 2 to 3 months a year in Florida ...

Yeah my wifes primary spot is orlando
My mom has dementia and care taking is going to be rough due to her symptoms. I dont want to get too far away from home just yet but maybe if we delay moving the next couple of years then Orlando is where we go.

Lots of moving parts right now in these decisions we are trying to make.
 
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QBD2

Old Mossy Horns
Fun fact: Many metal roofing manufacturers will void coastal warranties due to that the owners do not have documented proof of a clean water rinse of their metal roofs yearly to counter corrosion........ Rain doesn't count.
That’s some lawyerfied bovine excrement right there...
 
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