Housing market

RJ1

Ten Pointer
As it has happen before housing market will a crash and people will find out that they have a house worth $100,00.00 but owe 300,000.00 to the Bank/ Mortgage company.
 

NCST8GUY

Frozen H20 Guy
As it has happen before housing market will a crash and people will find out that they have a house worth $100,00.00 but owe 300,000.00 to the Bank/ Mortgage company.

So when this crashes, whom do you think will suffer (this time), the Banks, or the loanies?

The precedent has been set. Not going to kick people out of homes because they made poor choices to get a risky/illconceived loan to live there. Not going to punish banks either for loaning them that $. Only one target/bully/group left to take $ from.
 
  • Like
Reactions: jug

josh

Old Mossy Horns
Contributor
A lot of folks did - they knew they were making bad loans & that it would collapse.

Keep in mind a huge number of today’s buyers are buying cash too.
So is this another “new normal” thing or will it slowly dissolve back to “normal”?

It’s insane right now even where I live, folks from out of state are buying land and houses to live in the country because they can work remotely

Then they are finding out it’s alot more “country” here than they thought ...

We are getting hammered with people coming from Florida... not native Floridians but the “half backs”
 

wncdeerhunter

Old Mossy Horns
So is this another “new normal” thing or will it slowly dissolve back to “normal”?

It’s insane right now even where I live, folks from out of state are buying land and houses to live in the country because they can work remotely

Then they are finding out it’s alot more “country” here than they thought ...

We are getting hammered with people coming from Florida... not native Floridians but the “half backs”

My opinion is that we will see the market shift some, with demand decreasing, rates increasing some, leading to more inventory and a more sensible and balanced market. I believe it will remain a sellers market predominantly though through this year and into next.

I don’t think we will see a crash, outside of some major world event that is unforeseen. At least not in the near future.

But I’ve been wrong before. Will be again.
 

wncdeerhunter

Old Mossy Horns
So when this crashes, whom do you think will suffer (this time), the Banks, or the loanies?

The precedent has been set. Not going to kick people out of homes because they made poor choices to get a risky/illconceived loan to live there. Not going to punish banks either for loaning them that $. Only one target/bully/group left to take $ from.
What circumstance are we currently in that would lead to a housing market crash - how do you see that happening?
 

pattersonj11

Old Mossy Horns
A lot of folks did - they knew they were making bad loans & that it would collapse.

Keep in mind a huge number of today’s buyers are buying cash too.

how many of today’s buyers have $500,000 cash to spend on a house? I know some are selling at an inflated price and buying again. Essentially a swap, but you made this statement like the majority are paying cash. I just don’t see the possibility of that.
 

wncdeerhunter

Old Mossy Horns
how many of today’s buyers have $500,000 cash to spend on a house? I know some are selling at an inflated price and buying again. Essentially a swap, but you made this statement like the majority are paying cash. I just don’t see the possibility of that.

I never made the statement that the majority were - but that a lot of them are. There are a large number of folks paying cash in our market. I see more cash transactions in the higher price points. To answer your question, there are a lot of folks that will pay cash for $500k and higher....much higher. I see it a lot.

In our MLS from 1/1/21 to today, cash purchases are only second to conventional loans as the most common way residential properties are purchased. Nearly 23% cash.

The stats below are a screenshot I just pulled from our MLS.
BFDE96AC-5146-428B-9ED4-5617EA41B89A.png
 
Last edited:

beard&bow

Twelve Pointer
Contributor
how many of today’s buyers have $500,000 cash to spend on a house? I know some are selling at an inflated price and buying again. Essentially a swap, but you made this statement like the majority are paying cash. I just don’t see the possibility of that.

Off the top of my head, I'd imagine these are folks selling larger NC "city" homes, and moving to the country, or selling their higher valued homes from other large cities across the country, once everyone realized they didn't have to go to the office to type on the keyboard at their cubicle.

I have a buddy from Chicago. Three years ago he told me that once his mom retires, his parents are selling and moving down here.

They bought their home, decades ago, for mid 100's. 3 years ago realtors were contacting them saying they had buyers willing to pay over a million sight unseen.
 

NCST8GUY

Frozen H20 Guy
What circumstance are we currently in that would lead to a housing market crash - how do you see that happening?

My personal opinion is that once again, for a rare time, we may possibly see homes drop is selling prices. Hopefully not nationally, but possibly in specific areas where they have been rising at alarming rates. If people are living in a home now, that years from now they can no longer afford to live in, or lose $ when they sell it to downsize/whathaveyou, then the system may fall. I realize about 100 dominoes have to fall first, and this is nothing like 2008 (which was a near financial collapse, not a housing market collapse).
 

30/06

Twelve Pointer
how many of today’s buyers have $500,000 cash to spend on a house? I know some are selling at an inflated price and buying again. Essentially a swap, but you made this statement like the majority are paying cash. I just don’t see the possibility of that.

More than you think, more than I ever thought! When we were looking at houses on Hyco we’d look at a house and by the time we got back to Raleigh there would be multiple offers, many in cash and these were houses priced above the $500k mark, some a lot more. Not sure who these folks are but they are out there.

I think there will be a slow correction. Eventually either interst rates will rise allowing inventory levels to get back to more normal levels or prices will get so ridiculous people will stop buying. Prices should come down. If the supply chain improves and material prices come down then more houses will be built snd that may help as well.
 
Last edited:

Ol Copper

Ten Pointer
My grandmother died a few weeks ago and I inherited her house.
It was built in 1963 for $12,100 according to all of the receipts she had kept.

I hit the market on Thursday morning 7/22 at 8 a.m. for $190k, by 12 noon I had 6 offers, all were at least $10k above asking price, and all averaged over $2k in good faith and earnest monies. None asked for help with closing cost. All buyers already had their loans lined up, were just waiting to find a house and were ready to close quickly.

Got it under contract today at 1 o'clock.
Never seen anything like this...this market is insane right now !! 😳😳😳
 

pcbuckhunter

Old Mossy Horns
Contributor
The thing I don’t understand is how the market will sustain all these people paying $300,000 for a house that is worth $150,000. It has to come toppling down at some point.

Case in point. Down the road from my Dad there’s a house that had been on the market since 2018. Originally priced at $139,900 IIRC. It had gradually reduced in price to $104,900 by the end of 2020. It was taken off the market in early 2021 only to be relisted in May of this year at $299,000. It sold in early June for $325,000. The house isn’t worth near that. The buyer surely can’t expect to make money on that should they sell after a few years.
 

YanceyGreenhorn

Not a Moderator
My grandmother died a few weeks ago and I inherited her house.
It was built in 1963 for $12,100 according to all of the receipts she had kept.

I hit the market on Thursday morning 7/22 at 8 a.m. for $190k, by 12 noon I had 6 offers, all were at least $10k above asking price, and all averaged over $2k in good faith and earnest monies. None asked for help with closing cost. All buyers already had their loans lined up, were just waiting to find a house and were ready to close quickly.

Got it under contract today at 1 o'clock.
Never seen anything like this...this market is insane right now !! 😳😳😳
Awesome for y’all. Hope to see y’all round these parts eventually 😎
 

wncdeerhunter

Old Mossy Horns
The thing I don’t understand is how the market will sustain all these people paying $300,000 for a house that is worth $150,000. It has to come toppling down at some point.

Case in point. Down the road from my Dad there’s a house that had been on the market since 2018. Originally priced at $139,900 IIRC. It had gradually reduced in price to $104,900 by the end of 2020. It was taken off the market in early 2021 only to be relisted in May of this year at $299,000. It sold in early June for $325,000. The house isn’t worth near that. The buyer surely can’t expect to make money on that should they sell after a few years.
It’s worth what someone will pay. There is a risk in any investment - so yeah, they may lose money down the road. Hard to say as it depends on lot of factors.

Lots of people did really, really well right after the 2008-09 crash - many people bought a lot of house for well under typical value or what some may have thought they were worth. Real estate isn’t static.
 

jug

Old Mossy Horns
Contributor
how many of today’s buyers have $500,000 cash to spend on a house? I know some are selling at an inflated price and buying again. Essentially a swap, but you made this statement like the majority are paying cash. I just don’t see the possibility of that.
Don't underestimate the amount of people leaving NY, NJ, and California and coming to the Carolinas right now and they are paying cash. I am seeing it with our landscape business here in Sanford. Picked up 3 new customers from NY, 2 from California and 1 from NJ this year . My sons girlfriend is in real estate and her dad is a home inspector in the Raleigh area. She said people are paying between 500k and a million in cash for homes up there. She said people are researching the best places to live in the Carolinas and buying.People are fed up with those states. They obviously have the money to pay cash.
 
Last edited:

timber

Twelve Pointer
I hope when all those people do there google search to live in Nc they are all far west of 95. Even better west of 85
 

jug

Old Mossy Horns
Contributor
I am glad I am in Harnett and Rockingham......
This what comes up when you do a Google search.
Screenshot_20210725-160132_Samsung Internet.jpg
 

nchawkeye

Old Mossy Horns
Northerners moving here because our real estate is cheaper isn't new...I was with Deere from 1977-1990, I had 10 dealers here in the Piedmont that I called on...Back then we were seeing it...They would sell their home up North, move down here buy some land and the next thing you know we were selling them a planter, tractor, mower conditioner, baler, etc...Paying cash because they had plenty from working up there, saving their money, selling their home and moving down here...

Then, in 1990 I started my own recruiting agency and recruited medical device sales reps...Hardly a week went by that I didn't get a call or resume from someone up north, wanting to move down here to Raleigh or Charlotte...

And of course now, I sell real estate and dang if the same thing isn't happening...Just this weekend, I had a home on 16 acres with a pond that I listed between Troy and Biscoe...Yep, we got our price and the person is from Brooklyn...

For those that think this is like 2008, nope, not at all...These buyers have cash...In many cases the money coming into real estate is money they pulled out of the market when Biden went in because they knew he was going to do what he is doing...Throwing our tax money away, trying to buy votes for the next election...
 

jug

Old Mossy Horns
Contributor
Northerners moving here because our real estate is cheaper isn't new...I was with Deere from 1977-1990, I had 10 dealers here in the Piedmont that I called on...Back then we were seeing it...They would sell their home up North, move down here buy some land and the next thing you know we were selling them a planter, tractor, mower conditioner, baler, etc...Paying cash because they had plenty from working up there, saving their money, selling their home and moving down here...

Then, in 1990 I started my own recruiting agency and recruited medical device sales reps...Hardly a week went by that I didn't get a call or resume from someone up north, wanting to move down here to Raleigh or Charlotte...

And of course now, I sell real estate and dang if the same thing isn't happening...Just this weekend, I had a home on 16 acres with a pond that I listed between Troy and Biscoe...Yep, we got our price and the person is from Brooklyn...

For those that think this is like 2008, nope, not at all...These buyers have cash...In many cases the money coming into real estate is money they pulled out of the market when Biden went in because they knew he was going to do what he is doing...Throwing our tax money away, trying to buy votes for the next election...
^ Gives this man the gold MEDAL cause he is RIGHT....
My mom was in Forsyth Hospital in Winston Salem for 2 weeks last month and every nurse but 2 recently moved here from NY.
 

GUP

Eight Pointer
IMO the down side to all of this is that eventually NC or at least many places here will become over priced for the average working class folk. You’ll need a hefty bank account or job with a hefty salary to afford any decent quality of life here.
 

nchawkeye

Old Mossy Horns
IMO the down side to all of this is that eventually NC or at least many places here will become over priced for the average working class folk. You’ll need a hefty bank account or job with a hefty salary to afford any decent quality of life here.

They already are, if you are a first time home buyer, your chances are very, very slim in this market...
 

catfishrus

Twelve Pointer
Northerners moving here because our real estate is cheaper isn't new...I was with Deere from 1977-1990, I had 10 dealers here in the Piedmont that I called on...Back then we were seeing it...They would sell their home up North, move down here buy some land and the next thing you know we were selling them a planter, tractor, mower conditioner, baler, etc...Paying cash because they had plenty from working up there, saving their money, selling their home and moving down here...

Then, in 1990 I started my own recruiting agency and recruited medical device sales reps...Hardly a week went by that I didn't get a call or resume from someone up north, wanting to move down here to Raleigh or Charlotte...

And of course now, I sell real estate and dang if the same thing isn't happening...Just this weekend, I had a home on 16 acres with a pond that I listed between Troy and Biscoe...Yep, we got our price and the person is from Brooklyn...

For those that think this is like 2008, nope, not at all...These buyers have cash...In many cases the money coming into real estate is money they pulled out of the market when Biden went in because they knew he was going to do what he is doing...Throwing our tax money away, trying to buy votes for the next election...

Curious how much a pond helps a sale?
 

timber

Twelve Pointer
Around here haven’t seen where a pond adds a lot of value unless a buyer is specifically looking property with pond on it.
 

nchawkeye

Old Mossy Horns
If memory serves me, I have sold 6 properties with ponds on them the last 6 years, I add 10K to the price of the property with a pond...I have over 60 customers signed up, getting properties that come onto the market, mostly land but also homes with land and I bet at least 60-70% of them want a steam, pond or some sort of water source on them...Remember, more people fish than hunt....
 

Homebrewale

Old Mossy Horns
I was considering building a house back in January that would have been priced at $829,000. Today the builder is building the same house for $1,049,000. I should have built one and resold it.
 
Top