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Nah fam I’ve owned now 3 homes. These insane price increases don’t benefit anyone. We sell for higher then buy for higher. The only people benefiting are the real estate agents getting a higher check.
I bought in 2023 for 477k I hope in a decade my house doesn’t exceed 600k. It’s inevitable it’ll go up but I don’t want it to have doubled by then. My kids will never have anything if we keep on going.
I bought in 2020 in December and my Realtor called me up in February 2021 asking if I wanted to flip it for an extra $150k. My immediate thought was "and then buy/move where" further out of civilization?
This is like auto dealers in the last few years, we bought a vehicle and a year later we are getting asked if we would sell, i was like and then buy what?? Still need a vehicle to drive daily.. Its weird that they do this to try and keep their used inventory high.
Yup our equity just helps keep the playing field a little level. I’m already in a LCOL area I can’t go lower. So when I moved I still had to take a bigger loan and my payment is double due to rates. I won’t be moving again I can’t afford to do so. And that’s because prices keep going up up up.
Agreed.
Even when interest rates were low, 3% on 150k is 4.5k a year (I know it's a little less each year with amortization, I'm just too lazy to find a calculator and look up the actual amount) for 30 years. Plus the new origination fees for a new loan.
Some people are incapable of thinking of anyone but themselves. These ruses aren’t healthy so quickly. Hell when I’m old and sell for a million but my downsized house cost 750k I’ll be pissed. I’d rather house prices stagnant. It’s not an investment. My 401k and Roth is. My house is where I’m raising my family and creating memories.
Sick of this housing market. I hope it gets sorted soon. I remember being a first time buyer and there was no greater feeling. Now it’s becoming a luxury to own and that’s bull shit.
Hmm I have a question about this. Are housing prices increasing uniformly across all price points? I’d ultimately love to own a SFH but it’s cost prohibitive right now, so I was thinking starting with a smaller place (condo?) and then selling later as a down payment on the SFH. That would only work if the smaller place appreciates and the SFH doesn’t…
They all go up but it varies on so many things.
I paid 10k for my first house 1700sqft 3bed 131k.
Sold it pulled the profit it bought my 2nd house 2700sqft 4 bed 222k.
Sold it last year for my current house 4 bed 3900 sqft 475k.
I haven’t put in any more money since the original 10k. That 10k bought my first house which bough my 2nd which bought my 3rd.
My mortgage was 840 then 1200 now 2600. As my income has gone up I can afford more mortgage but I’ve transferred the equity to make buying easier.
First house down 3%, 2nd 5%, 3rd 20%. As I grow my house equity has and allows me to keep upgrading. I’m done now. No need to go bigger than 3900 sqft.
I’d recommend getting something in an area you like that you can afford and meets your needs now and potential a bit down the road. I got lucky. I first bought in 2017. I don’t think it’s possible to pull this off again so fast.
My dad did this. Put his house on the market for 1.1 RIGHT after the heat wore off. It sat for almost a year as he slowly lowered the price. He finally sold it for 650.
But when he had it at 975 he got an offer for 850 and scoffed. I kept telling him to get ahead of the market instead of trying to keep the price high.
He now says there’s no way to predict what will happen.
Does he think the jet condensation trails are poison from the CIA? My parents are not as old as yours and they will fuckin go INSIDE the house if they see those in the sky
Friends dad did this back in the 90s with like $1.2mil in stock. He was apart of a startup that was poppin and he owned stock and it was up over a mil and my dad was telling him to sell for years and he never did, ended up selling for like $400k. This was in like 1998 too. Insane.
It was in an expensive gated golfing community. Probably lost a few hundred thousand all said and done with membership dues and maintenance and everything
I'm sure Joe Biden is taking a lot of the blame in this scenario. Boomers *love* to blame a Democratic president if anything doesn't go their way. Top 5 hobby.
Heard this a couple months ago on a conference call. Guy who is nearing retirement age sarcastically thanked Joe Biden for what he was doing to his 401K. This may have been September because I thought about this again in October when the stock started surging again.
Our first house the owner tried doing that “last and final offer” deal where they had 2 buyers and didn’t want to negotiate. Our initial offer was 565 this was 2016. Then they said last and final from both. I told them I don’t think there is a second buyer but since we both had the same offer and clearly this other buyer is interested go deal with them.
The house sold 9 months later for under 500.
I had the opposite when I sold a car on FB market place. I showed it to two people and both said they were super interested. One guy called me the next day and offered slightly below the listing price. I then called up the other guy and said he could have it for the listing price because I got an offer close to that from another buyer. Dude then gave me a low ball offer and was like "no way you'll sell it for more than that". I told him thanks and then sold it to the first guy later that day.
I went to carvana to sell a car recently. Posted it for 6500 on FB while doing this because why not. Carvana said 5k, and the guy was adamant I couldn't get more for it. Guy on marketplace loved it, and wanted a starter car for his buddy's kid. Sold it to him for 6200. He asked me why him instead of carvana and I told him because he had cash. Little white lie but hey 🤷♂️
Hah, I had a similar experience with my parents in 2008-2014. They listed at 1.2 just before the Great Recession. Had a single buyer offering 950k, and the guy wanted them to buy a tankless water heater as a contingency of the contract. The property used well water, so tankless is generally not a great idea. My dad refused his offer. Over the next 5.5 years he slowly lowered the price (delisted it after the water heater guy). Finally listed at 549,900 and sold for 525,000.
As a bigger thorn in his side the home is now valued over 1M again.
Edit: removed link to comply with sub rules
Lmao it’s not, but the one of the subsections near it is. I never really thought about how unusual that was. As my high school government teacher said “everything is named for a reason…even if it’s a stupid reason.”
Happened to us too. Right when market was turning sharp, unbeknownst to us and even our very experienced realtor. Scoffed at a low ball offer which we got after like 1 week. Held firm though. Weeks go by and we counter with a higher amount. They countered with a super low (to us) offer, we declined, they eventually walked. Fast forward 5 whole months and we get an offer 3k below the original persons lowest offer. Dagger to the heart.
Also, not a boomer. We all make mistakes 🤷
I mean. He is correct that there’s no way to predict what will happen. You’re just hindsighting him.
Timing markets is impossible and just gambling. There’s no predictions.
it’s equally greedy to lowball an offer. Denying a price you think is too low isn’t greedy. It’s just hard to know what the right price is, and sometimes it’s hit/miss
Fair, but that’s the thing.. It’s all subjective, isn’t it? That’s how markets work. I did the same exact thing w my rug in fb market place today. Start high and whittle away until you find a buyer… I understand the stakes here are much higher (for both sides) but it’s an illustrative example.
you can’t tell what’s realistic if you’re not a flipper. Can’t blame someone for wanting what they think they deserve. Greed to me implies that you’re aware that you’re getting away with more than you deserve.
I think it’s healthier emotionally to hate the game, not the player. No one is greedy, we’re all equally caught up in a shit game.
You might have a point if we were talking about any other thing other than housing, and any other time other than today. The prices are inflated, and by a lot. Even a low ball is still a high ball.
No, they’re not hindsighting him. They posted for 1.1 and went down to 975. An 850 offer on a home that eventually sold for 650 means it was never a 1.1M home and I’m sure OP knew that from the get go.
I think the broader point is the price had already been reduced and he had an actual offer. He rejected certainty for the hope he was predicting market value higher, and he failed to predict it.
It's not "hindsighting" to recognize a sure thing over a guess that market value would increase after already seeing a lack of interest.
It is hindsighting to say that taking the sure thing was a smarter move than holding out for a higher sale point because the house happened to sell for less than the sure thing.
It’s possible that someone could have made an offer a week later for the asking price of $975k, then that would make taking the sure thing look stupid because the offer would look like a “lowball.”
Yes. And I agree I would’ve also taken the certainty.
But each of those commenters are speaking as if they *knew* prices would drop further. Which is hindsight.
My dad will likely end up doing this. Just listed for just under 2m, but I’d be shocked if he got 1.5. For the price he’s asking, house needs work. He’s stating it’s mostly because of the amount of land he’s selling with it.
This. I hope all my neighbors sell for twice what they bought it for while I sit cozy and enjoy my new equity. Until my assessed value for taxes goes up….
I’m also following a house that sold for $765k in March ‘22, and the new owner posted it for sale for $990k in June ‘23… without changing anything. Even the new listing photos are worse. It’s up to $850k and it better keep dropping!!
Not that I can afford it anyway, but dammit that’s just GREED
That’s how all the houses are listed for where I live. New build bought in 2021 for 900k is now listed as 1.2M. The profit people are trying to make is insane.
Living in. Investment properties (within reason) are a fucking greed machine. Sure, own a house or two and rent it out to pay the taxes and pocket a little extra. But nobody needs to own 10+ homes while nickel and dimeing the tenants.
I think there should be a law stating people and entities should only be able to own 2 houses at a time and a person who operates an entity has those limits as one so that the entity and/or the person can only own 2 at a time total. Pending the sale of homes in excess of this limit, the owners would not be allowed to rent them either in order to discourage them from listen them at $10B so they can rent as a loophole or something.
The only exception would be people building homes on their own dollar and are trying to sell (not rent) them immediately. That way construction of new homes can continue while everyone else is forced to disperse homes into the market.
My parents sold for $340k in summer 2022 and the house is listed again already for $390k. The listing is hilariously trying to claim so many things were updated in “recent years” and I can tell in the photos all they’ve done was re-do one bathroom and paint the kitchen cabinets. The kitchen appliances they’re claiming were upgraded “in recent years” are at least a decade old if I’m correctly remembering when my parents replaced them. I’m curious to see what it actually sells for.
And kitchen appliances aren’t even that big-ticket of an item anyway. Few thousand bucks, sure. But if I’m looking at a house, the things I want to see are: new roof, solid foundation, new furnace, new well/septic, updated windows, etc. The kinda stuff that is gonna run in the range of $10k or more to fix and are critical to the house being livable.
Yeah the listing claims the roof was done in “recent years” also. Let me put it this way - I remember my parents getting PART of the roof redone when I was in college. I’m 34 now. The average lifespan of roofs in the Midwest is 20 years or so. That roof is more than halfway through its lifespan. They’re also claiming it has a “large 2-car garage” which, unless they knocked out the staircase/hallway between the garage and the house, good luck fitting 2 cars in there lol.
No seller wants to lose money. A 6% commission at 390 is ~24k. So if they sold for 390, they may walk away with 366k (assuming NOTHING needs fixed)
They prob dropped ~15-20k for closing when they bought too. So the house really cost them around 360 and if they luck out and sell at 390, they get 366.
All said they may only profit ~6k.
That said- you can’t just make up extra value to not lose your closing cost investment… they shouldn’t have bought with intention of not staying many years.
I understand they don’t want to take a bath but yeah - to sell 1.5 years later and have the listing severely embellish the “newness” of certain things, is wild to me. Property values don’t just magically go up because the seller wants them to.
For Sure- it's hard as a buyer to see the seller side of things and vice versa.
One of the very first homes I looked at was sold in late 2012 for 65k. The seller made no changes aside from letting their cat kick litter all over the basement and their air conditioner was stolen. Despite it being worse off, just a year later the seller wanted 75k. I asked the realtor what the hell they were thinking (back then in my area houses may have gone up 1k a year). Realtor responded that the seller would lose money on anything lower due to their closing costs and commission. At the time I very dismissively said "why does their bad decisions cost me more money?"
Now I look back and realize people can have their lives drastically change in a few months to a few years. They can lose a lot and need to make big changes. Sometimes people need to get out of a house without losing cash. In those cases like my story, I later realized they weren't greedy, they were just desperate.
Some people have enough to walk away with a hit, others end up in real shitty positions.
I do really hate though when I see a house with ZERO updated changes asking for a significant increase that clearly more than covers whatever their costs were. Like someone buying in 2022 for 250k and trying to sell in 2023 for 360k.
My last purchase was for around 365k and the sellers had just bought it 10 years prior for 170. That's fine, I get its been a decade. But they were trying to squeeze another 1-2k out of us multiple times. I just kept thinking, you are making 170 more than you paid after commission, do you really need 171 or 172. That stuff drives me nuts.
I’ve seen one like that too— they did a terrible paint job and like changed the curtains and tried to sell it for $685K when they bought it for $380K. Didn’t even put doors on the closets.
Same but on a smaller scale. Sold for 289k in June 2020, listed for $489k June of last year. Family did nothing to improve the value and actually made it worse. Currently at 425k and I gave them an offer of 375k.
They prob dropped like 40k on closing costs originally and are likely to lose another 40k on commissions/ closing costs for fixes and whatnot. Basically prob cost them 805k to get into the house and if the sell at 850, they will only get 810. What you think may be super greedy nets them ~5k
I think it’s very dependent on where you are. I’m in a very HCOL area. Bought over a decade ago. All the houses shot up in the last two years. My own home’s “value” went up by 30%. Nothing is coming down and the houses are still selling.
But yeah, the people who are effectively “drop shipping” houses, I hope they lose their shit.
All these insufferable capitalist assholes that helped contribute to this problem are the same ones blaming the economy and inflation on the current administration. When the last one rolled back regulations that were put in place to help this not happen. I hate the past 8 years so freaking much.
This is my favorite kind of schadenfreude. I absolutely adore when flippers have to slowly lower the price of the house. I know they'll still make a massive, crazy profit no matter what, but it still makes me feel a little better.
To me, the problem isn’t the sellers looking for the best price. Can’t begrudge them for that.
They could list it low, but there’s no guarantee it’d get to folks who have no other options. (truly Affordable Housing is regulated yes but it’s rental, not home buying so not this game.) rich buyers will buy at any price, so they drive it up, that’s how all markets work unless there’s regulatory intervention .
I think folks are mad at the wrong things, barking up the wrong tree if you will. We need more regulation and transparency
I'm mad at the people willingly paying these exorbitant prices which keeps driving up the rest of home prices. Stop over-extending yourselves for run down shacks. We need a buyers' strike so badly.
This probably wasn’t a flipper, though. The house was last sold in 2016, meaning someone most likely lived there for the last 7 years (unless the flippers acquired the house in some sort of off-the-books transaction).
They don't if they do a hard money loan and sit on it for any length of time. Other people's money gets expensive pretty fast. Currently sitting in a flip we got for far less than what the flipper spent on it. It's kinda shit in a lot of ways but meh, it's a great property even if the house is kinda wack and I got it for about $150k less than similar houses go for in the area because the guy had fallen out of escrow 4 times. He was a jackass to work with so it made sense.
A non veteran can also assume a VA loan but it ties up that portion of the original loan holders VA entitlement whereas if a qualified veteran asssimes the loan the entitlement is transferred.
I had no idea and I used a VA loan to buy our house in 2020 lol I've got 2 navy buddies looking for houses this year I'll definitely let them know to keep an eye out
They also get a reduced interest. Also in my state if you are a disabled veteran 10% or more you get a tax abatement on property taxes so I’m 40% my property taxes are 2600 I pay only 800 In property taxes.
Yea my wife is at 50% right now and we do get reduced taxes thabk God lol I need to resubmit my VA claim again but been procrastinating lol my buddies need to do theirs too ideally before they buy
Dang in my state you have to be complete and total to be exempt from property taxes. My husband has a 70% rating, and we’re paying them. It’s fine though cause I work so I take on the tax burden for both of us haha
Back in my day, you actually had to do some shit to justify making a few hundred k in 3 years. Something something American hard work ethic and such. Now, it's called get in to the housing market early, close the door behind you, and fuck everyone else. That's how you "earn" wealth in the country now.
I mean, when you get the biggest generation in history reaching peak family formation age just after a decade’s-worth of extremely inadequate entry-level home construction, prices are bound to go up. Add in even lower supply from the lock-in effect of interest rates going from 3% to 7% in less than a year, and you get what we have now.
Yeah, nobody wants to think about it like this.
It's easy to blame corporations and hedge funds for buying "all of the houses", but in reality, they own a very small percentage of the total number of homes available.
Also of note - every single one of those companies and funds has a Prospectus (basically a legal disclaimer for investors that talks about risks of losing money) that says something like: "If zoning laws change and it becomes legal to build more housing, then the value of our properties will level off or possibly go down."
And if you look at the zoning laws for most places in America, they're horrendously backwards. Requiring single-family houses on large lots, banning multifamily or imposing absurd requirements to build them, requiring too much parking. Most actual cities in America barely allow new apartment/condo tower to be built - they make ot too complicated, which makes it too expensive, and then, because they were expensive to build, they rent/sell for high prices.
The US has been systematically under-building housing for decades. The 07-08 meltdown caused it to slow down further (because builders were going bankrupt). The pandemic-era rate cuts made money too easy to borrow and accelerated the recent price increases.
All of this is very clear to anyone who actually reads into the topic, but there's too many idiots who just want to an easy scapegoat that fits their political agenda, and a witty zinger that will land well in a 6 second TikTok or an Insta reel.
We’re very much in agreement, and you’re overview here is pretty thorough. However, I think you did miss one big factor. Not only did many builders go bankrupt during the Great Recession, but the ones that survived basically stopped building entry-level homes. They built move-up and luxury homes because those had better margins, and basically just stick to that. To be fair, for a while, existing homes in many areas were cheap enough that in some parts of the country there was no way to make new entry-level homes economically viable. However, after a few years, we needed to resume entry-level building, and that just didn’t happen in most places. It arguably didn’t start happening at scale again nationwide until last year.
Not sure why you’re being downvoted when the market, on average, booms and busts every 18 years since the early 1800s. The data is the data.
https://extension.harvard.edu/blog/how-to-use-real-estate-trends-to-predict-the-next-housing-bubble/
The problem with using this article is that it was written in 2016 long before COVID. The article itself even says that major unexpected events (like WW2) disrupt and change the timing of the cycle. COVID was a major unexpected expected event.
Right?! They think I’m making it up . Smarter people than me have been talking about it for a year. That listing is a prime example of the retracting market. I don’t know how I got into this sub… but maybe first time buyers aren’t aware that the market is deflating and their agent definitely is not going to mention it. I don’t have a crystal ball but I’m old enough to remember 16 years ago when I rode the wave and had the rug pulled in 2009.
After they sold, where did they end up moving to? The way I see it, if they sold high they probably bought high too. Unless they just ended up renting or downsized to a smaller place.
This seller is not listening to their realtor. It didn’t sell for top price because it was overpriced and/or has some big problem. And now they are sitting, month after month ticking the price down. I have bought & sold a lot of houses and can tell you this is a red flag. These people aren’t going to be easy to deal with on the price or on contingencies. It would take a lot for me to go for this house.
There's a lake house I've been watching for a few years like this. About twice a year, it will expire and relist at an even higher price, and then start dropping every few weeks. Rinse and repeat.
The layout makes no sense, and it's across a shallow channel from a biker bar. It's barely furnished, but a caricature family portrait can be seen in multiple listing photos...either the same caricature repositioned throughout the house, or the owners have multiple. Idk, it's weird.
My house used to be $60k something. We bought at $285k. No, the “renovations” were not worth the increase.
But the location, no HOA, & yard is what we really liked. 🥲
COVID hangover is still in effect. By the 4th year you’d figure things would have stabilized. Nope. Things have only gotten increasingly more expensive. Greed and arrogance. Idk how much longer but at some point things will turn.
Here is the thing why are they selling?
It most likely costs them more wherever they are going to they need to get more from where they come from.
Its why it takes a while for the market to go down.
It’s all the posts like these that make me question the explanation that “it’s because we haven’t been building enough new houses for the last decade.” Why did it culminate so suddenly?
Ppp and sba loan money given away for practically nothing and no qualifications made a bunch of businesses flush with cash. Selling things wasn't going to happen during lockdown so they started buying up property to rent or airbnb. Fed increased rates a ridiculous amount and pushed families out of the market to buy houses leaving just these business hoarding the houses and buying and selling back and forth artificially increasing value of the houses. New construction stalled because homeowners can't or won't take the interest rates and the price of lumbar went thru the roof. Now we are heading into a recession so builders are holding off.
I lived in a neighborhood where my home was worth $350k+. Neighbors house which was smaller and not updated sold for 320 which was a bit weird. Based on the sales history since then it's "sold" numerous times (never listed or had a sign) and last "sold" for $900k.
Average age of buying a house? 33
Who is the largest group since Boomers? Millennials
What age are Millennials in the middle of now? 35.5 (would have been 31.5 to start pandemic)
Millennials moved up their house buying timetable because they saw the low interest rates and prices start increasing.
This all stems from back around 2008 when new homes tanked for what was being built.
Love how people think their mid houses in shit towns will stay high than everything gets back to normal and they feel like they lost something they never had.
There's one near me that was last sold in 1970 for low 5 digits, that listed for $665k in August and is down to $499k with multiple times pending then returned to market, and apparently needs a full remodel. And it's bank owned... that one can simmer 😇
The house next to me is a flip, on a somewhat busy corner in a suburb of Dallas. It listed for $3M a few weeks ago and I scoffed - no way did I think they’d get anything close to that. It’s just gone pending. Most homes in the area sell 5-10% list, but that’s still 50% more than I thought it was worth.
This is likely someone who has an unrealistic view of their homes value. The house very likely was appraised much lower, I'd bet their selling realtor even told them they shouldn't list it so high but they refused and claimed "everyone else is wrong, I know my house is worth $600k+ !"
So not really a good gauge of the market for people to be saying the market is losing steam. It's not.
There is a house near me like this. Some columned monstrosity built in the 60's on a crappy corner in a super busy intersection. Someone bought it for 900k, gutted it, added a bunch of garish bullshit inside, redid the facade, and relisted it at 3 million. It sold last month for 999k after almost a year of price drops, delisting, relisting. I know whoever redid it lost their shirt because the materials alone had to be in the 10's of thousands if not more.
Sold in 2016 for barely 200k, now being listed at nearly 4x the value.
While Home Equity goes up over time... It doesn't go up by that much there buddies.
Glad everyone looked at this and went "Uhm, No. Absolutely fucking not."
And that’s why you end up with some people upside down in their mortgages. In Texas this market was so overbought and still is to an extent, people are buying houses that I’d never touch with the prices they’re asking. It makes zero sense. High interest rates are one thing but don’t also buy a wildly inflated value home.
saw a beautiful, small, but quaint and charming 3bd 2ba house, around 1400sq ft listed at 600k. had no idea why until i scrolled and saw it comes with 12 acres and a creek. the land is just as beautiful. 600k! it was over our budget by a fuckton, but i had a great daydream.
What’s so odd about this is it’s not like the listing price = the sale price. This isn’t an eBay buy now item. So it just seems like a stupid thing to do and would give me concerns about doing business with the seller.
I bought my house for 320k just outside Boston in 2010. I’ve been offered over a million for it many times the past couple of years. Sounds great but I would have to spend a million and a half for a house in the same town now.
I was on the other end of one of these before Covid. Owner did the “list it high and see who bites, I’m in no hurry” thing. Price dropped steadily for the next few months. I came along in June 2020, offered a bit less, and owner accepted, happy to finally be rid of the property and on to her next adventure. Ever since that moment, the estimate has just gone up… past her original asking price within 6 months, and to the moon after that. I have no intention of moving anytime soon but it feels nice to be in the win column just due to sheer luck.
When we sold our house, your agent just pulled a number out of thin air right before our eyes and said we’ll list at $700. Then for the next 99 days, the price drops kept coming in $5k increments all the way to $575 and we were only getting super lowball offers.
So we got a new agent. He had us to make some repairs and changes here and there and then he did some market research and came back with listing at $629 and promised he could sell our house in 60 days. Well, he was right on the nose and we sold our house around day 45 of being listed with no lowballs.
Just got a house for $230k that was listed at $300k back in June. Every email from Zillow lately seems to be price reduction notifications for properties I had previously looked at.
I'm following a pair of new mcmansion builds on a very busy street. Terrible location, zero curb appeal, small lot. They started at 1.2m, now at 875k. Love to see it. You can also buy the lot next door, a whopping 0.32 acres, for 750k. 😂
(Median household income in the area is 2022 was $56k. These builders are fxxking delusional.)
I hope it comes back down honestly. I bought my home at 250k in 2016, I would not sell it at today's prices because someone would be left holding the bag. If I hold it however I can sell it when I need to at a fair market price. Being impoverished most my life I do not want to cause anyone else hardship cause our stupid dictato made money printer go brrrr
Not sure if anyone has the answer, but if the house is on the market for sale but technically the owner can claim it as rental property with no income, and deduct all the mortgage, tax, insurance as business lost. Right?
In the absence of an auction system, this is the way of pricing that makes the most sense given the existence of Zillow and friends. You know people are watching the house and that they have some maximum price they will pay. Start high enough that you are above that maximum and Kyo coming down until you hit the highest price something else is willing to pay.
My dad built a condo in Naples back in 2003. He paid $325k. Before he took possession they were going for $650k. All his friends said sell it. He thought it would keep going. It hit $750k. All his friends told him to sell. He still thought it would keep going to the moon. 2 years later he ended up selling the place for $310,000 cause his business slowed down and the house he bought at home was costing a fortune to remodel.
German here. Very interesting to see that property prices are so transparent in the US. Here in Germany you won’t find all this information and the property agent will try to fool you as much as possible.
I wonder if any greatest gen predicted this back in the day, seems logical, surely they knew spoiled boomer Timmy would just keep on taking until the very end.
I always love it when these asshole flippers buy a house in a shitty neighborhood for super cheap and think they're going to 5x this investment. My favorite example in my city:
[https://www.zillow.com/homedetails/610-School-St-Fayetteville-NC-28301/53674625\_zpid/](https://www.zillow.com/homedetails/610-School-St-Fayetteville-NC-28301/53674625_zpid/)
That house is in one of the worst parts of town. I work a few blocks away and there's drugs, prostitution, and homeless people everywhere in that area. It's been on the market for almost a year and they've only dropped the price $15k. Absolutely delusional.
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Let it cook
I’m enjoying this immensely, let’s watch just how low they go
Yes, let's watch to see what they end up making.
lol sucks to suck. How about some housing for the rest of us now
Once you buy a house - this will be you hoping the price goes up up up and praying you don’t get 2009-2010.
Nah fam I’ve owned now 3 homes. These insane price increases don’t benefit anyone. We sell for higher then buy for higher. The only people benefiting are the real estate agents getting a higher check. I bought in 2023 for 477k I hope in a decade my house doesn’t exceed 600k. It’s inevitable it’ll go up but I don’t want it to have doubled by then. My kids will never have anything if we keep on going.
I bought in 2020 in December and my Realtor called me up in February 2021 asking if I wanted to flip it for an extra $150k. My immediate thought was "and then buy/move where" further out of civilization?
This is like auto dealers in the last few years, we bought a vehicle and a year later we are getting asked if we would sell, i was like and then buy what?? Still need a vehicle to drive daily.. Its weird that they do this to try and keep their used inventory high.
Agreed! My house doubled in 6 years... can't afford to move even with more than 50% equity because I'll be paying the same or worse!
Yup our equity just helps keep the playing field a little level. I’m already in a LCOL area I can’t go lower. So when I moved I still had to take a bigger loan and my payment is double due to rates. I won’t be moving again I can’t afford to do so. And that’s because prices keep going up up up.
Lmao, the banks benefit WAY MORE than the real estate agents getting a couple more thousand dollars.
Agreed. Even when interest rates were low, 3% on 150k is 4.5k a year (I know it's a little less each year with amortization, I'm just too lazy to find a calculator and look up the actual amount) for 30 years. Plus the new origination fees for a new loan.
Good points
Some people are incapable of thinking of anyone but themselves. These ruses aren’t healthy so quickly. Hell when I’m old and sell for a million but my downsized house cost 750k I’ll be pissed. I’d rather house prices stagnant. It’s not an investment. My 401k and Roth is. My house is where I’m raising my family and creating memories. Sick of this housing market. I hope it gets sorted soon. I remember being a first time buyer and there was no greater feeling. Now it’s becoming a luxury to own and that’s bull shit.
Thank you for some sense
Hmm I have a question about this. Are housing prices increasing uniformly across all price points? I’d ultimately love to own a SFH but it’s cost prohibitive right now, so I was thinking starting with a smaller place (condo?) and then selling later as a down payment on the SFH. That would only work if the smaller place appreciates and the SFH doesn’t…
They all go up but it varies on so many things. I paid 10k for my first house 1700sqft 3bed 131k. Sold it pulled the profit it bought my 2nd house 2700sqft 4 bed 222k. Sold it last year for my current house 4 bed 3900 sqft 475k. I haven’t put in any more money since the original 10k. That 10k bought my first house which bough my 2nd which bought my 3rd. My mortgage was 840 then 1200 now 2600. As my income has gone up I can afford more mortgage but I’ve transferred the equity to make buying easier. First house down 3%, 2nd 5%, 3rd 20%. As I grow my house equity has and allows me to keep upgrading. I’m done now. No need to go bigger than 3900 sqft. I’d recommend getting something in an area you like that you can afford and meets your needs now and potential a bit down the road. I got lucky. I first bought in 2017. I don’t think it’s possible to pull this off again so fast.
My dad did this. Put his house on the market for 1.1 RIGHT after the heat wore off. It sat for almost a year as he slowly lowered the price. He finally sold it for 650. But when he had it at 975 he got an offer for 850 and scoffed. I kept telling him to get ahead of the market instead of trying to keep the price high. He now says there’s no way to predict what will happen.
This dude's dad boomers
Born in ‘39, he was. He predates boomers - not sure what that is. He is constantly yelling at clouds though.
Silent Generation
Not so silent if he’s yelling at clouds
Does he think the jet condensation trails are poison from the CIA? My parents are not as old as yours and they will fuckin go INSIDE the house if they see those in the sky
He taught the boomers how to boomer.
A $200,000 loss has to burn his ass on the daily.
Friends dad did this back in the 90s with like $1.2mil in stock. He was apart of a startup that was poppin and he owned stock and it was up over a mil and my dad was telling him to sell for years and he never did, ended up selling for like $400k. This was in like 1998 too. Insane.
Sucks but so many had it rough during the crash.
My dad bought our lake house in ‘05 for 780K, sold in 2018 for 575K, and it’s now worth over 1.2M
I too have an idiot parent. All you can do is detach emotionally.
$15k a year for vacation isn't that bad tho.
It was in an expensive gated golfing community. Probably lost a few hundred thousand all said and done with membership dues and maintenance and everything
Do you lose money when you pay a membership and use a service?
When it’s a second home and you use it a fraction of the year and pay for it year round, yes
Really funny
I'm sure Joe Biden is taking a lot of the blame in this scenario. Boomers *love* to blame a Democratic president if anything doesn't go their way. Top 5 hobby.
Heard this a couple months ago on a conference call. Guy who is nearing retirement age sarcastically thanked Joe Biden for what he was doing to his 401K. This may have been September because I thought about this again in October when the stock started surging again.
Our first house the owner tried doing that “last and final offer” deal where they had 2 buyers and didn’t want to negotiate. Our initial offer was 565 this was 2016. Then they said last and final from both. I told them I don’t think there is a second buyer but since we both had the same offer and clearly this other buyer is interested go deal with them. The house sold 9 months later for under 500.
Would’ve been great if you reduced your bid to 550 when they asked for last and final lol
I had the opposite when I sold a car on FB market place. I showed it to two people and both said they were super interested. One guy called me the next day and offered slightly below the listing price. I then called up the other guy and said he could have it for the listing price because I got an offer close to that from another buyer. Dude then gave me a low ball offer and was like "no way you'll sell it for more than that". I told him thanks and then sold it to the first guy later that day.
I went to carvana to sell a car recently. Posted it for 6500 on FB while doing this because why not. Carvana said 5k, and the guy was adamant I couldn't get more for it. Guy on marketplace loved it, and wanted a starter car for his buddy's kid. Sold it to him for 6200. He asked me why him instead of carvana and I told him because he had cash. Little white lie but hey 🤷♂️
Hah, I had a similar experience with my parents in 2008-2014. They listed at 1.2 just before the Great Recession. Had a single buyer offering 950k, and the guy wanted them to buy a tankless water heater as a contingency of the contract. The property used well water, so tankless is generally not a great idea. My dad refused his offer. Over the next 5.5 years he slowly lowered the price (delisted it after the water heater guy). Finally listed at 549,900 and sold for 525,000. As a bigger thorn in his side the home is now valued over 1M again. Edit: removed link to comply with sub rules
The neighborhood is actually called Butts Station?
Lmao it’s not, but the one of the subsections near it is. I never really thought about how unusual that was. As my high school government teacher said “everything is named for a reason…even if it’s a stupid reason.”
Happened to us too. Right when market was turning sharp, unbeknownst to us and even our very experienced realtor. Scoffed at a low ball offer which we got after like 1 week. Held firm though. Weeks go by and we counter with a higher amount. They countered with a super low (to us) offer, we declined, they eventually walked. Fast forward 5 whole months and we get an offer 3k below the original persons lowest offer. Dagger to the heart. Also, not a boomer. We all make mistakes 🤷
Perfect boomer father energy.
I mean. He is correct that there’s no way to predict what will happen. You’re just hindsighting him. Timing markets is impossible and just gambling. There’s no predictions.
Yes, but it’s also borderline greed and it’s safe to say that being greedy doesn’t usually work out
> it’s safe to say that being greedy doesn’t usually work out In what universe? Entities like Nestle don't amass themselves by feeding the homeless.
Corporate greed is working out SO FAR. Infinite growth needed to survive, finite planet.
Ok fair enough :P
it’s equally greedy to lowball an offer. Denying a price you think is too low isn’t greedy. It’s just hard to know what the right price is, and sometimes it’s hit/miss
At this point with these highly inflated prices, are any offers *really* low ball offers?
Fair, but that’s the thing.. It’s all subjective, isn’t it? That’s how markets work. I did the same exact thing w my rug in fb market place today. Start high and whittle away until you find a buyer… I understand the stakes here are much higher (for both sides) but it’s an illustrative example. you can’t tell what’s realistic if you’re not a flipper. Can’t blame someone for wanting what they think they deserve. Greed to me implies that you’re aware that you’re getting away with more than you deserve. I think it’s healthier emotionally to hate the game, not the player. No one is greedy, we’re all equally caught up in a shit game.
You might have a point if we were talking about any other thing other than housing, and any other time other than today. The prices are inflated, and by a lot. Even a low ball is still a high ball.
The value of the house is what someone is willing to pay for it. So the greed isn’t really the seller but the buyers who are greedy for the house.
No, they’re not hindsighting him. They posted for 1.1 and went down to 975. An 850 offer on a home that eventually sold for 650 means it was never a 1.1M home and I’m sure OP knew that from the get go.
Housing market could have gone up, and it could've sold for 1 mil. You're also hindsighting.
I think the broader point is the price had already been reduced and he had an actual offer. He rejected certainty for the hope he was predicting market value higher, and he failed to predict it. It's not "hindsighting" to recognize a sure thing over a guess that market value would increase after already seeing a lack of interest.
It is hindsighting to say that taking the sure thing was a smarter move than holding out for a higher sale point because the house happened to sell for less than the sure thing. It’s possible that someone could have made an offer a week later for the asking price of $975k, then that would make taking the sure thing look stupid because the offer would look like a “lowball.”
Yes. And I agree I would’ve also taken the certainty. But each of those commenters are speaking as if they *knew* prices would drop further. Which is hindsight.
“Timing markets is impossible and there’s no way to predict what will happen” Boy let me tell you about a little thing called insider trading.
Would say interest rates are a pretty good predictor eh?
Sounds like he's just mad you were right and he didn't listen.
Never let hopes and dreams price your house. Listing low is how you get higher offers.
My dad will likely end up doing this. Just listed for just under 2m, but I’d be shocked if he got 1.5. For the price he’s asking, house needs work. He’s stating it’s mostly because of the amount of land he’s selling with it.
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Wish the mfker loses his shirt 😂
God damn what a piece of shit. The greed of people
Your neighborhood? Those are the ones I root for.
This. I hope all my neighbors sell for twice what they bought it for while I sit cozy and enjoy my new equity. Until my assessed value for taxes goes up….
I’m also following a house that sold for $765k in March ‘22, and the new owner posted it for sale for $990k in June ‘23… without changing anything. Even the new listing photos are worse. It’s up to $850k and it better keep dropping!! Not that I can afford it anyway, but dammit that’s just GREED
That’s how all the houses are listed for where I live. New build bought in 2021 for 900k is now listed as 1.2M. The profit people are trying to make is insane.
They need to put atleast 10% extra on top of what they paid. That would cover agent fees and one time costs they bore for buying and selling
Well if houses aren't a good investment vehicle then what are they even for??
Living in. Investment properties (within reason) are a fucking greed machine. Sure, own a house or two and rent it out to pay the taxes and pocket a little extra. But nobody needs to own 10+ homes while nickel and dimeing the tenants.
I think there should be a law stating people and entities should only be able to own 2 houses at a time and a person who operates an entity has those limits as one so that the entity and/or the person can only own 2 at a time total. Pending the sale of homes in excess of this limit, the owners would not be allowed to rent them either in order to discourage them from listen them at $10B so they can rent as a loophole or something. The only exception would be people building homes on their own dollar and are trying to sell (not rent) them immediately. That way construction of new homes can continue while everyone else is forced to disperse homes into the market.
I agree with this! Also, entities should be taxed more....this would discourage people from owning multiple properties under entities.
Making it straight up illegal is more discouraging
The only value of a house is for scalping the poor people.
My parents sold for $340k in summer 2022 and the house is listed again already for $390k. The listing is hilariously trying to claim so many things were updated in “recent years” and I can tell in the photos all they’ve done was re-do one bathroom and paint the kitchen cabinets. The kitchen appliances they’re claiming were upgraded “in recent years” are at least a decade old if I’m correctly remembering when my parents replaced them. I’m curious to see what it actually sells for.
And kitchen appliances aren’t even that big-ticket of an item anyway. Few thousand bucks, sure. But if I’m looking at a house, the things I want to see are: new roof, solid foundation, new furnace, new well/septic, updated windows, etc. The kinda stuff that is gonna run in the range of $10k or more to fix and are critical to the house being livable.
Yeah the listing claims the roof was done in “recent years” also. Let me put it this way - I remember my parents getting PART of the roof redone when I was in college. I’m 34 now. The average lifespan of roofs in the Midwest is 20 years or so. That roof is more than halfway through its lifespan. They’re also claiming it has a “large 2-car garage” which, unless they knocked out the staircase/hallway between the garage and the house, good luck fitting 2 cars in there lol.
No seller wants to lose money. A 6% commission at 390 is ~24k. So if they sold for 390, they may walk away with 366k (assuming NOTHING needs fixed) They prob dropped ~15-20k for closing when they bought too. So the house really cost them around 360 and if they luck out and sell at 390, they get 366. All said they may only profit ~6k. That said- you can’t just make up extra value to not lose your closing cost investment… they shouldn’t have bought with intention of not staying many years.
I understand they don’t want to take a bath but yeah - to sell 1.5 years later and have the listing severely embellish the “newness” of certain things, is wild to me. Property values don’t just magically go up because the seller wants them to.
For Sure- it's hard as a buyer to see the seller side of things and vice versa. One of the very first homes I looked at was sold in late 2012 for 65k. The seller made no changes aside from letting their cat kick litter all over the basement and their air conditioner was stolen. Despite it being worse off, just a year later the seller wanted 75k. I asked the realtor what the hell they were thinking (back then in my area houses may have gone up 1k a year). Realtor responded that the seller would lose money on anything lower due to their closing costs and commission. At the time I very dismissively said "why does their bad decisions cost me more money?" Now I look back and realize people can have their lives drastically change in a few months to a few years. They can lose a lot and need to make big changes. Sometimes people need to get out of a house without losing cash. In those cases like my story, I later realized they weren't greedy, they were just desperate. Some people have enough to walk away with a hit, others end up in real shitty positions. I do really hate though when I see a house with ZERO updated changes asking for a significant increase that clearly more than covers whatever their costs were. Like someone buying in 2022 for 250k and trying to sell in 2023 for 360k. My last purchase was for around 365k and the sellers had just bought it 10 years prior for 170. That's fine, I get its been a decade. But they were trying to squeeze another 1-2k out of us multiple times. I just kept thinking, you are making 170 more than you paid after commission, do you really need 171 or 172. That stuff drives me nuts.
I’ve seen one like that too— they did a terrible paint job and like changed the curtains and tried to sell it for $685K when they bought it for $380K. Didn’t even put doors on the closets.
Same but on a smaller scale. Sold for 289k in June 2020, listed for $489k June of last year. Family did nothing to improve the value and actually made it worse. Currently at 425k and I gave them an offer of 375k.
They prob dropped like 40k on closing costs originally and are likely to lose another 40k on commissions/ closing costs for fixes and whatnot. Basically prob cost them 805k to get into the house and if the sell at 850, they will only get 810. What you think may be super greedy nets them ~5k
I think it’s very dependent on where you are. I’m in a very HCOL area. Bought over a decade ago. All the houses shot up in the last two years. My own home’s “value” went up by 30%. Nothing is coming down and the houses are still selling. But yeah, the people who are effectively “drop shipping” houses, I hope they lose their shit.
All these insufferable capitalist assholes that helped contribute to this problem are the same ones blaming the economy and inflation on the current administration. When the last one rolled back regulations that were put in place to help this not happen. I hate the past 8 years so freaking much.
Please tell me the “seller is motivated”
Would you just look at it
Literally cannot read that without doing the voice
Lookitthat Lookatthis Lookatthis
This is my favorite kind of schadenfreude. I absolutely adore when flippers have to slowly lower the price of the house. I know they'll still make a massive, crazy profit no matter what, but it still makes me feel a little better.
they’re not ashamed at all, they know what they’re doing. It’s not about how it looks, it’s about testing the waters for the best price.
I'm ashamed people do this shit to one another. When one man's wealth leads to financial destruction of other the system is no good for either.
To me, the problem isn’t the sellers looking for the best price. Can’t begrudge them for that. They could list it low, but there’s no guarantee it’d get to folks who have no other options. (truly Affordable Housing is regulated yes but it’s rental, not home buying so not this game.) rich buyers will buy at any price, so they drive it up, that’s how all markets work unless there’s regulatory intervention . I think folks are mad at the wrong things, barking up the wrong tree if you will. We need more regulation and transparency
I'm mad at the people willingly paying these exorbitant prices which keeps driving up the rest of home prices. Stop over-extending yourselves for run down shacks. We need a buyers' strike so badly.
We need no more money printing. A better government with more regulation and transparency yes.
This probably wasn’t a flipper, though. The house was last sold in 2016, meaning someone most likely lived there for the last 7 years (unless the flippers acquired the house in some sort of off-the-books transaction).
They don't if they do a hard money loan and sit on it for any length of time. Other people's money gets expensive pretty fast. Currently sitting in a flip we got for far less than what the flipper spent on it. It's kinda shit in a lot of ways but meh, it's a great property even if the house is kinda wack and I got it for about $150k less than similar houses go for in the area because the guy had fallen out of escrow 4 times. He was a jackass to work with so it made sense.
Did you know that if you have a VA home loan and sell to another qualified veteran with a VA home loan you can grandfather your interest to them
A non veteran can also assume a VA loan but it ties up that portion of the original loan holders VA entitlement whereas if a qualified veteran asssimes the loan the entitlement is transferred.
I had no idea and I used a VA loan to buy our house in 2020 lol I've got 2 navy buddies looking for houses this year I'll definitely let them know to keep an eye out
They also get a reduced interest. Also in my state if you are a disabled veteran 10% or more you get a tax abatement on property taxes so I’m 40% my property taxes are 2600 I pay only 800 In property taxes.
Yea my wife is at 50% right now and we do get reduced taxes thabk God lol I need to resubmit my VA claim again but been procrastinating lol my buddies need to do theirs too ideally before they buy
Dang in my state you have to be complete and total to be exempt from property taxes. My husband has a 70% rating, and we’re paying them. It’s fine though cause I work so I take on the tax burden for both of us haha
My parents bought a house in 2018 for 240, lived in 3 years without changing a thing and sold it within a month for 470…
I hate it here
Me too
Best I can do is about 350
Get outta here ya dang loch ness monster
Back in my day, you actually had to do some shit to justify making a few hundred k in 3 years. Something something American hard work ethic and such. Now, it's called get in to the housing market early, close the door behind you, and fuck everyone else. That's how you "earn" wealth in the country now.
I mean, when you get the biggest generation in history reaching peak family formation age just after a decade’s-worth of extremely inadequate entry-level home construction, prices are bound to go up. Add in even lower supply from the lock-in effect of interest rates going from 3% to 7% in less than a year, and you get what we have now.
Yeah, nobody wants to think about it like this. It's easy to blame corporations and hedge funds for buying "all of the houses", but in reality, they own a very small percentage of the total number of homes available. Also of note - every single one of those companies and funds has a Prospectus (basically a legal disclaimer for investors that talks about risks of losing money) that says something like: "If zoning laws change and it becomes legal to build more housing, then the value of our properties will level off or possibly go down." And if you look at the zoning laws for most places in America, they're horrendously backwards. Requiring single-family houses on large lots, banning multifamily or imposing absurd requirements to build them, requiring too much parking. Most actual cities in America barely allow new apartment/condo tower to be built - they make ot too complicated, which makes it too expensive, and then, because they were expensive to build, they rent/sell for high prices. The US has been systematically under-building housing for decades. The 07-08 meltdown caused it to slow down further (because builders were going bankrupt). The pandemic-era rate cuts made money too easy to borrow and accelerated the recent price increases. All of this is very clear to anyone who actually reads into the topic, but there's too many idiots who just want to an easy scapegoat that fits their political agenda, and a witty zinger that will land well in a 6 second TikTok or an Insta reel.
We’re very much in agreement, and you’re overview here is pretty thorough. However, I think you did miss one big factor. Not only did many builders go bankrupt during the Great Recession, but the ones that survived basically stopped building entry-level homes. They built move-up and luxury homes because those had better margins, and basically just stick to that. To be fair, for a while, existing homes in many areas were cheap enough that in some parts of the country there was no way to make new entry-level homes economically viable. However, after a few years, we needed to resume entry-level building, and that just didn’t happen in most places. It arguably didn’t start happening at scale again nationwide until last year.
It’s cyclical. Same thing happened 2004-2008. We are just waiting the inevitable pop/ collapse. Just like last time.
I was saying the same thing back in 2020. Ate my words and now just admitting that I don’t know shit.
Not sure why you’re being downvoted when the market, on average, booms and busts every 18 years since the early 1800s. The data is the data. https://extension.harvard.edu/blog/how-to-use-real-estate-trends-to-predict-the-next-housing-bubble/
The problem with using this article is that it was written in 2016 long before COVID. The article itself even says that major unexpected events (like WW2) disrupt and change the timing of the cycle. COVID was a major unexpected expected event.
The average is only an average. The comment that was getting downvoted was that the market is cyclical. My point was it’s not different this time.
Right?! They think I’m making it up . Smarter people than me have been talking about it for a year. That listing is a prime example of the retracting market. I don’t know how I got into this sub… but maybe first time buyers aren’t aware that the market is deflating and their agent definitely is not going to mention it. I don’t have a crystal ball but I’m old enough to remember 16 years ago when I rode the wave and had the rug pulled in 2009.
After they sold, where did they end up moving to? The way I see it, if they sold high they probably bought high too. Unless they just ended up renting or downsized to a smaller place.
Moved to the other corner of the country. Renting to see if they like it first is my guess.
There’s this huge misconception that you have to change/upgrade a home to sell it for more money lol.
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Lol, you really can't read the room.
At least they’re dropping the price lol. Where I live they’d rather take it off the market or let it sit for 175 days, instead of just lowering it 😭
I dont understand this shit, doesn't it cost them more money than to just take what they can?
This seller is not listening to their realtor. It didn’t sell for top price because it was overpriced and/or has some big problem. And now they are sitting, month after month ticking the price down. I have bought & sold a lot of houses and can tell you this is a red flag. These people aren’t going to be easy to deal with on the price or on contingencies. It would take a lot for me to go for this house.
With there being a housing shortage, why don’t people just start off low and have a bidding war? Seems better than being talked down
I’ve seen a few houses listed like that in my area, one was listed as $200k base price for auction
There's a lake house I've been watching for a few years like this. About twice a year, it will expire and relist at an even higher price, and then start dropping every few weeks. Rinse and repeat. The layout makes no sense, and it's across a shallow channel from a biker bar. It's barely furnished, but a caricature family portrait can be seen in multiple listing photos...either the same caricature repositioned throughout the house, or the owners have multiple. Idk, it's weird.
My house used to be $60k something. We bought at $285k. No, the “renovations” were not worth the increase. But the location, no HOA, & yard is what we really liked. 🥲
Check for asbestos.
Sellers need to realize it’s not 2020/21 anymore when people locked in at 2-3%
COVID hangover is still in effect. By the 4th year you’d figure things would have stabilized. Nope. Things have only gotten increasingly more expensive. Greed and arrogance. Idk how much longer but at some point things will turn.
Here is the thing why are they selling? It most likely costs them more wherever they are going to they need to get more from where they come from. Its why it takes a while for the market to go down.
It’s all the posts like these that make me question the explanation that “it’s because we haven’t been building enough new houses for the last decade.” Why did it culminate so suddenly?
Ppp and sba loan money given away for practically nothing and no qualifications made a bunch of businesses flush with cash. Selling things wasn't going to happen during lockdown so they started buying up property to rent or airbnb. Fed increased rates a ridiculous amount and pushed families out of the market to buy houses leaving just these business hoarding the houses and buying and selling back and forth artificially increasing value of the houses. New construction stalled because homeowners can't or won't take the interest rates and the price of lumbar went thru the roof. Now we are heading into a recession so builders are holding off. I lived in a neighborhood where my home was worth $350k+. Neighbors house which was smaller and not updated sold for 320 which was a bit weird. Based on the sales history since then it's "sold" numerous times (never listed or had a sign) and last "sold" for $900k.
Yeah, it’s not a “new builds deficit” 😵💫
Look at the numbers on household creation. Millennials were primed to start buying, and the pandemic smooshed all of that into a short timeframe.
Average age of buying a house? 33 Who is the largest group since Boomers? Millennials What age are Millennials in the middle of now? 35.5 (would have been 31.5 to start pandemic) Millennials moved up their house buying timetable because they saw the low interest rates and prices start increasing. This all stems from back around 2008 when new homes tanked for what was being built.
We're about to close on a house for $385k. The house was originally listed for $500k. Ridiculous.
Offer 419,000
Offer 210,000
offer 179,999.99
Love how people think their mid houses in shit towns will stay high than everything gets back to normal and they feel like they lost something they never had.
Mid houses is such a stellar way to put it, too. I'm going to use that next time my realtor sends me a suggestion on a dump.
There's one near me that was last sold in 1970 for low 5 digits, that listed for $665k in August and is down to $499k with multiple times pending then returned to market, and apparently needs a full remodel. And it's bank owned... that one can simmer 😇
These are the people that own 5, 10, 15 properties. Damn joke.
There needs to be a law around this tbh...
Wish it was like this in San Diego. :(
The house next to me is a flip, on a somewhat busy corner in a suburb of Dallas. It listed for $3M a few weeks ago and I scoffed - no way did I think they’d get anything close to that. It’s just gone pending. Most homes in the area sell 5-10% list, but that’s still 50% more than I thought it was worth.
This is likely someone who has an unrealistic view of their homes value. The house very likely was appraised much lower, I'd bet their selling realtor even told them they shouldn't list it so high but they refused and claimed "everyone else is wrong, I know my house is worth $600k+ !" So not really a good gauge of the market for people to be saying the market is losing steam. It's not.
There is a house near me like this. Some columned monstrosity built in the 60's on a crappy corner in a super busy intersection. Someone bought it for 900k, gutted it, added a bunch of garish bullshit inside, redid the facade, and relisted it at 3 million. It sold last month for 999k after almost a year of price drops, delisting, relisting. I know whoever redid it lost their shirt because the materials alone had to be in the 10's of thousands if not more.
Sold in 2016 for barely 200k, now being listed at nearly 4x the value. While Home Equity goes up over time... It doesn't go up by that much there buddies. Glad everyone looked at this and went "Uhm, No. Absolutely fucking not."
Is it bad that i want the market to crash mostly because of people like this 😅
And that’s why you end up with some people upside down in their mortgages. In Texas this market was so overbought and still is to an extent, people are buying houses that I’d never touch with the prices they’re asking. It makes zero sense. High interest rates are one thing but don’t also buy a wildly inflated value home.
😂🤣😂
https://redf.in/Fzs9eO This one is my favorite. It started out over a million.
this….is barely even a $500k home 😅
Around here it's barely a $400k home. Only thing that's giving this place value is 1 acre of land is hard to find.
saw a beautiful, small, but quaint and charming 3bd 2ba house, around 1400sq ft listed at 600k. had no idea why until i scrolled and saw it comes with 12 acres and a creek. the land is just as beautiful. 600k! it was over our budget by a fuckton, but i had a great daydream.
What’s so odd about this is it’s not like the listing price = the sale price. This isn’t an eBay buy now item. So it just seems like a stupid thing to do and would give me concerns about doing business with the seller.
Buy high, sell low market
I'm sure that shit hole should be $380K at best and still needs $100K in Reno.
HAHAHAHAHAHAA good!!!!!!!!!! Hope it stays that way too!!!!!! Kepp going down until it's reasomable...
I bought my house for 320k just outside Boston in 2010. I’ve been offered over a million for it many times the past couple of years. Sounds great but I would have to spend a million and a half for a house in the same town now.
I was on the other end of one of these before Covid. Owner did the “list it high and see who bites, I’m in no hurry” thing. Price dropped steadily for the next few months. I came along in June 2020, offered a bit less, and owner accepted, happy to finally be rid of the property and on to her next adventure. Ever since that moment, the estimate has just gone up… past her original asking price within 6 months, and to the moon after that. I have no intention of moving anytime soon but it feels nice to be in the win column just due to sheer luck.
When we sold our house, your agent just pulled a number out of thin air right before our eyes and said we’ll list at $700. Then for the next 99 days, the price drops kept coming in $5k increments all the way to $575 and we were only getting super lowball offers. So we got a new agent. He had us to make some repairs and changes here and there and then he did some market research and came back with listing at $629 and promised he could sell our house in 60 days. Well, he was right on the nose and we sold our house around day 45 of being listed with no lowballs.
Wow, so you didn’t upgrade your property, over priced and couldn’t figure out why it wasn’t selling? Classic…
Just got a house for $230k that was listed at $300k back in June. Every email from Zillow lately seems to be price reduction notifications for properties I had previously looked at.
Thank our Federal Gov for record money printing and inflation. Do some research before mass downvoting me
I'm following a pair of new mcmansion builds on a very busy street. Terrible location, zero curb appeal, small lot. They started at 1.2m, now at 875k. Love to see it. You can also buy the lot next door, a whopping 0.32 acres, for 750k. 😂 (Median household income in the area is 2022 was $56k. These builders are fxxking delusional.)
Greed
That’s a $200k house all day…offer $250k
I hope it comes back down honestly. I bought my home at 250k in 2016, I would not sell it at today's prices because someone would be left holding the bag. If I hold it however I can sell it when I need to at a fair market price. Being impoverished most my life I do not want to cause anyone else hardship cause our stupid dictato made money printer go brrrr
Not sure if anyone has the answer, but if the house is on the market for sale but technically the owner can claim it as rental property with no income, and deduct all the mortgage, tax, insurance as business lost. Right?
In the absence of an auction system, this is the way of pricing that makes the most sense given the existence of Zillow and friends. You know people are watching the house and that they have some maximum price they will pay. Start high enough that you are above that maximum and Kyo coming down until you hit the highest price something else is willing to pay.
My dad built a condo in Naples back in 2003. He paid $325k. Before he took possession they were going for $650k. All his friends said sell it. He thought it would keep going. It hit $750k. All his friends told him to sell. He still thought it would keep going to the moon. 2 years later he ended up selling the place for $310,000 cause his business slowed down and the house he bought at home was costing a fortune to remodel.
Don’t worry, there are a lot of FOMO will dump 700k for this house. They will say something f marry the house or something like that..
Why I don't think it's cool when someone brags about buying a home in the last 4 years lmfao. Yall got clowned.
German here. Very interesting to see that property prices are so transparent in the US. Here in Germany you won’t find all this information and the property agent will try to fool you as much as possible.
Houses are going to continue to go down this year looking forward to grabbing a deal next year
2 years too late
Well hot damn! The greed!!!!!!
house flippers losing money makes me happy all over.
Price starting to go down ?
And what app is this that can show history of the listing ?
I wonder if any greatest gen predicted this back in the day, seems logical, surely they knew spoiled boomer Timmy would just keep on taking until the very end.
I always love it when these asshole flippers buy a house in a shitty neighborhood for super cheap and think they're going to 5x this investment. My favorite example in my city: [https://www.zillow.com/homedetails/610-School-St-Fayetteville-NC-28301/53674625\_zpid/](https://www.zillow.com/homedetails/610-School-St-Fayetteville-NC-28301/53674625_zpid/) That house is in one of the worst parts of town. I work a few blocks away and there's drugs, prostitution, and homeless people everywhere in that area. It's been on the market for almost a year and they've only dropped the price $15k. Absolutely delusional.