Home prices

[Formerly Rockymtnole]

The housing market is nuts in many places around the country. Wages certainly haven’t kept pace with the rise in home prices.

Makes me sad for young couples and families who are trying to find something remotely affordable. I know I wouldn’t have wanted to commit to a $500k+ starter home on top of expenses, student loan debt, etc.

What’s it like in your area?

 

[runkpanole]

It was hot in Tallahassee last year and doesn’t seem to have slowed down at all.

A buddy of mine’s in-laws are looking to move up here. Offered $10K over asking and still got outbid.

Granted, starter homes in Tallahassee aren’t going to cost you $500K, but it’s still insane.

 

[MWardT]

It's a bit of a catch. Home prices are higher, but the cost to borrow is lower. The starter homes in the area might be going for more than they should, but the payments are relatively the same due to low interest rates.

 

[Moral]

Seems like there are bidding wars on affordable houses in my area. Houses that might have sold 120 to 180k are getting bid up by tens of thousands and turned into rentals. For the record, I'm a cheap ass and my mortgage is less than 900. Rentals are 1500 here. I probably need to vacate the area before too long. Although the new methheads across the street are very nice and thank me for my bulk trash.

 

[ConvenientParking]

No secret Iowa is cheaper than most places. Des Moines area has some inventory for less than that. I just did a range of $200k-$450k and there around a thousand listings with agents That's Des Moines and the surrounding burbs and small towns. But there are a lot of people building homes in neighborhoods that start at around $500k too.

 

[Jan Itor]

In Arizona it’s a mad house. A lot of buyers and low inventory. Wife wanted to move to Gilbert, so we sold our house in one day for above asking. Then it was our turn to complete with other buyers. We got a home, but paid 15k over asking.

 

[Formerly Rockymtnole]

It's a bit of a catch. Home prices are higher, but the cost to borrow is lower. The starter homes in the area might be going for more than they should, but the payments are relatively the same due to low interest rates.

I get it, but I always look at the total cost of big ticket items. Many of these families are signing up for a lifetime of house payments. (I also acknowledge that many don’t see paying off a home as a good use of money)

 

[ping72]

Crazy hot, things sell in a day or two.

Bought my house 3 1/2 years ago and it’s already gained 37% increase in value and that’s prob a low estimate.

 

[goldmom]

My neighbors on either side of me sold this summer/fall in five days for more than I thought my house was worth and mine is bigger than either of theirs. They're upsizing cause they have kids so they're okay with paying a lot more. I could sell but there's nothing I could move to that wouldn't be $75K more minimum.
So I'm just doing a refi. Going to save about $280 a month. I'm happy with that.
My sister is a Realtor and she said she's never seen a market like this in all her years. She's working with a young couple who have a very healthy budget - showing them a house selling as is for $650,000 and all bids must be in by 2PM tomorrow. No negotiating and no contingencies. She "hopes" they might get it. Crazy times.

 

[hawkifann]

I think it’s a couple things. Interest rates are one. Another, IMHO, is the change in work with COVID. I think AZ is hot because a lot of SoCal people are realizing that they don’t have to fight the traffic out there - they can go live in the periphery of Phoenix with lower taxes and less government. I think some markets (and PHX would be one of those), seeing an influx of people from more expensive areas who are coming in with proceeds from a more expensive sale.

 

[MWardT]

My neighbors on either side of me sold this summer/fall in five days for more than I thought my house was worth and mine is bigger than either of theirs. They're upsizing cause they have kids so they're okay with paying a lot more. I could sell but there's nothing I could move to that wouldn't be $75K more minimum.
So I'm just doing a refi. Going to save about $280 a month. I'm happy with that.
My sister is a Realtor and she said she's never seen a market like this in all her years. She's working with a young couple who have a very healthy budget - showing them a house selling as is for $650,000 and all bids must be in by 2PM tomorrow. No negotiating and no contingencies. She "hopes" they might get it. Crazy times.

This is where I think the appraisers come in. It's interesting that some of these buyers are getting the financing they need (the appraisal meets the loan amount), unless a lot of people are rolling in the cash they make off the sell of their home into their new home.

 

[golfinghawkeye]

We bought our house in May 2018. The first year plus it went up 2%. 2020 it has gone up 10% and predicted the same for 2021. Wife, no pic, is getting a promotion in June and we will be moving summer of 22 so we hope this keeps up.

Overall Albuquerque is having a big boom. For a city this size it should have around 4,000 houses on the market. January 1st it was just over 900. Houses are averaging 10 days on the market. A coworker of my wife had their house pending the day it hit MLS. A lot of Zoom workers are moving in from high COL areas and getting more retirement age as well due to an affordable area with good weather.

 

[seminole97]

Crazy hot, things sell in a day or two.

My parents decided to sell last October. In November the realtor put a 'coming soon' sign in the yard on a Friday and advertised an open house on Sunday.
They had four offers before dark on Saturday, buyers bid each other up and a contract was signed on Sunday.

I told them before it happened every time I hear a story where someone says, 'I sold my house in a day' all I can think is there had to be more money on the table if you gave the right buyer more time to find it.

 

[hawkifann]

My parents decided to sell last October. In November the realtor put a 'coming soon' sign in the yard on a Friday and advertised an open house on Sunday.
They had four offers before dark on Saturday, buyers bid each other up and a contract was signed on Sunday.

I told them before it happened every time I hear a story where someone says, 'I sold my house in a day' all I can think is there had to be more money on the table if you gave the right buyer more time to find it.

While you’re correct, sometimes markets move in a hurry and residential prices have historically been evaluated based on comparable sales.....in the early part of a boom, you’re still looking backwards while the prices move.

 

[Whiskeydeltadeltatango]

We saved up until we were into our 30s to buy what we did in Dec of 2019. Our first home is certainly not the standard first home, but we lived fairly frugal to reach our goal to get here. I did a free refi like 3 months ago and with what we are paying its like having a house in suburbia. West of West Des Moines on an acreage, we are playing the long game.

 

[funksouljon]

No secret Iowa is cheaper than most places. Des Moines area has some inventory for less than that. I just did a range of $200k-$450k and there around a thousand listings with agents That's Des Moines and the surrounding burbs and small towns. But there are a lot of people building homes in neighborhoods that start at around $500k too.

I did the same search just to see, $200-$450k, all of Colorado Springs. There are 583 listings that appear per Zillow (which means actually less since they skew the #s a bit). And COS has double the population of Des Moines. Some of those areas I have NO interest in living.

Housing in this area is bonkers. The aspect I truly dislike about the local market is lot size. You pay a HUGE premium if you want an acre, we are very limited and if you want to live between Denver and Colorado Springs, you cannot go west. The mountain range is National Forest so effectively no building can occur to the west.

 

[seminole97]

The aspect I truly dislike about the local market is lot size. You pay a HUGE premium if you want an acre, we are very limited and if you want to live between Denver and Colorado Springs, you cannot go west. The mountain range is National Forest so effectively no building can occur to the west.

On a small lot myself, just 1/3rd of an acre. But my favorite thing about this place is that my back gate opens up onto an almost 800 acre park (AJ Alford Greenway). My kids can go play in the woods anytime they want like I could growing up. Blows my mind there is no detectable price premium for properties that abut this park.
It was zoned level 1 when he moved here in 2011, but a few years later I got a letter that it was being rezoned level 0 (conservation land).

Back door is due east, so we can watch the sun rise through the trees in the morning during breakfast, or watch the moon rise like last Friday when we have a fire.

 

[BelemNole]

I’m in CA so it’s pretty reasonable compared to the rest of the country.

 

[Formerly Rockymtnole]

I’m in CA so it’s pretty reasonable compared to the rest of the country.

Just think of what you’ll be able to buy when the kids are out of the house and you and your wife move to Iowa!

 

[mnole03]

I did the same search just to see, $200-$450k, all of Colorado Springs. There are 583 listings that appear per Zillow (which means actually less since they skew the #s a bit). And COS has double the population of Des Moines. Some of those areas I have NO interest in living.

Housing in this area is bonkers. The aspect I truly dislike about the local market is lot size. You pay a HUGE premium if you want an acre, we are very limited and if you want to live between Denver and Colorado Springs, you cannot go west. The mountain range is National Forest so effectively no building can occur to the west.

We live between Denver and CO Springs. Bought in February thinking the market was ridiculously high. Our house has appreciated $100k since then. There is no inventory. Anything that comes on the market is a bidding war.

 

[Formerly Rockymtnole]

No secret Iowa is cheaper than most places. Des Moines area has some inventory for less than that. I just did a range of $200k-$450k and there around a thousand listings with agents That's Des Moines and the surrounding burbs and small towns. But there are a lot of people building homes in neighborhoods that start at around $500k too.

Always thought Des Moines seems like a decent city.

 

[ConvenientParking]

Always thought Des Moines seems like a decent city.

I like it here. Moved here after finishing school. More going on now than when I was a kid visiting family who lived here. I think if you grow up in a or near a real city then Des Moines is a bit boring but cheap with plenty of parking. People who move here from small town Iowa usually end up not going back to small towns. There are a lot of options it the metro area now if you wanna live in a more urban or suburban setting or even small bedroom towns that are less than an hour drive from downtown Des Moines or wherever you work.

 

[SWIowahawks]

My wife and I got lucky five years ago and bought a house by owner. We have paid cash for all the improvements and now have over $140K in equity. I just refinance and moved it to a 15 year note for an extra $40/month. We are on path to have it paid off by the end of the decade.

Just finished getting new windows. Siding, roof, and an attached garage go in this spring. Will be paying cash for the siding and roof. We plan on being here for quite a while so the next thing is tearing down our old barn and putting up a metal building.

 

[funksouljon]

We live between Denver and CO Springs. Bought in February thinking the market was ridiculously high. Our house has appreciated $100k since then. There is no inventory. Anything that comes on the market is a bidding war.

We purchased about 10 years ago, at the bottom. We got something we were very happy with in COS. I want to move a bit north, get a little land (which is the killer) and maybe another bedroom or so. Based on the prices of property between the two, we gain nothing by moving because as you say, IF there is anything on the market, it goes for a premium, and goes quickly. I keep waiting for the market to have a dip, so far, NOTHING.

 

[artradley]

The housing market is nuts in many places around the country. Wages certainly haven’t kept pace with the rise in home prices.

Makes me sad for young couples and families who are trying to find something remotely affordable. I know I wouldn’t have wanted to commit to a $500k+ starter home on top of expenses, student loan debt, etc.

What’s it like in your area?

At 3% interest housing is very affordable in most areas.

 

[noleclone2]

I just closed on a house Friday. It was on market three days and had three offers. I paid 5k more and asked them to pay 10k of closing costs and apparently made the best offer. The days of asking offering for a big chunk off are over.

A huge factor right now is interest rates. I got a 2.75% rate with no points and my mortgage is $2250. Had I got this in 2003 at the 5.875% rate I had for my first house my mortgage payment would be about $3200. That is a giant difference and of course market is reacting by prices going up and people bidding up. Lawyer at closing seemed to think there was going to be home inflation for a while coming due to interest staying low while over all inflation is happening and said it was a great time to buy these next 6 months. He may have been just blowing sunshine though. It’s not like he would say “damn son, you picked a terrible time to buy”

 

[Hawk and Awe]

This makes me think Iowa legislators should be pushing incentives to attract telecommuters and entrepreneurs. They could turn DSM into Austin Light over night (only the good things of Austin, none of the bad, plus crappy weather)

Instead they’re making alternative curriculum illegal in schools and likely slowing down pot legalization and ensuring we continue to use gasoline

 

[RunRonnieRun]

It's a sliding scale in intown Atlanta. <$500K houses are moving in a couple days' time after bidding wars. Some of the younger guys I work with have made offers on 20+ houses before getting a winner.

Houses in the $500K - $750K range are fairly steady: selling in a few weeks at or slightly below asking.

>$750K is still just about finding the right buyer, but there are plenty of "the right buyer."

 

[OutbackBowl2017]

At 3% interest housing is very affordable in most areas.

3%? Try 2 plus percent for a mortgage. 15 year was 2.125, 20 year 2.3, and 30 year 2.5 when refinanced four months ago. Rates are now even lower than that. If you have a job processing loans like my neighbor, absolutely killing it, can’t keep up so bonuses the more they do and if they work on weekends. Great and bad time to be working in the refi market since you are constantly buried in paperwork.

 

[brownd7949hawks]

Anyone know how close the “Zestimate” is to actual selling price?

 

[ConvenientParking]

Anyone know how close the “Zestimate” is to actual selling price?

Zestimate is just using data of recent comparable sales. If the property's condition is similar to the other properties that have sold recently, it could very well be close to an accurate market value. Zillow is getting that info from public data and realty MLS data but it's not a substitute for an appraisal.

 

[cfbfan23]

Anyone know how close the “Zestimate” is to actual selling price?

Usually in a range of +/- 6.9%

 

[Hoosierhawkeye]

Anyone know how close the “Zestimate” is to actual selling price?

I don't think that's a number that can be relied upon. I think basically what it does is it guesses based on things that can be quantified such as lot size, Sq Ft, prices of other homes in the area, things like that. I don't think it's able to take into account the condition the home is in or other factors.

Houses are one of those things that you actually have to physically see it. My wife and I were looking once at some homes in the area online and there was one which was a decent sized home, the pictures all looked nice, it had a big lot and it was selling for less than 50k. We knew something had to be wrong with it, so we went over there to check it out. We got there, opened the car doors and were furiously attacked by mosquitos . . . we found out fairly quickly that it was sitting right next to a swamp. Something we didn't see on Zillow.

 

[NoleATL]

Atlanta is crazy. Supply is severely restricted for single family homes. Intown condos are the total opposite. This is what I tell my buyer clients:

"Remember back in April when you were running around looking for toilet paper? That is what buying a house is like now"

 

[THE_DEVIL]

You can still buy cheap in Ottumwa

 

[Tenacious E]

You can still buy cheap in Ottumwa

 

[Fijimn]

They were discussing this on NPR this weekend and the guest was hesitant to call it a bubble because, for most of the country, the fundamentals are there to support the price increases.

 

[srams21]

They were discussing this on NPR this weekend and the guest was hesitant to call it a bubble because, for most of the country, the fundamentals are there to support the price increases.

I would be interested to hear that. Do you happen to have a link to it? Or know what show it was on?

 

[Joes Place]

What’s it like in your area?

Nuts

My neighbor's house was purchased 1 year after mine for about what my house had listed for (but I negotiated down on it). They divorced and sold this year; went for >$200k more than just 6 yrs ago.

And, apparently the inside wasn't terribly well kept up, as the new folks had flooring redone, and just got all new appliances this weekend; the older appliances that were being dragged out were definitely "not a selling point"....

A correction is most certainly on the horizon, as I don't see how these prices are sustainable.


The other thing I tend to notice around here, is that in the neighborhoods of $0.5M to $1M priced homes, people drive Subarus and Hondas and Toyotas (a few Teslas).

When you go to the "apartments" and $200-300k houses, you see folks with the tripped out trucks and Mercedes/Lexus/BMWs. Sure, those are around here, too, but many of the folks in the high-end houses seem to spend a lot less on their cars....and have a lot more invested in their properties....

 

[Joes Place]

They were discussing this on NPR this weekend and the guest was hesitant to call it a bubble because, for most of the country, the fundamentals are there to support the price increases.

That may be true in some areas; I don't think it is the case everywhere.

Now, perhaps with 2.5% interest rates, these can be modestly sustained. But interest rates will get back to 4%-6%, and these prices won't hold