Housing market

[alarson]

The real problem here is not "Dreamcrusher Capital." Private equity doesn't own that much real estate or have that much power in local governments that set zoning and land-use policy. The problem is incumbent homeowners who deliberately suppress housing supply to preserve the value of their homes through scarcity. I live in a pretty posh neighborhood, and basically every home here has a "KEEP THIS **** OUT!!!" sign in front of it decrying a proposed mixed-use, high-density development that would add a few hundred housing units.

One of many ways our modern zoning and development does such a disservice to society as a whole.

And we're in such a hole now. The apartments built today arent generally going to be your affordable housing. Theyre going to be the expensive ****. They should be making the **** built 20 years ago the new affordable stuff, but since that was never built its going to take a long time to correct that- and a lot of those building new projects may have an interest in keeping the market in a place where it doesnt fall too far.

It also doesnt necessarily have to be big apartment projects. Drive through older areas of many towns and you see tons of smaller scale multifamily. Your duplexes\triplexes etc. Multifamily that still fits within a neighborhood. Seem to rarely see new construction of those these days.

 

[dahliaclone]

After two years of looking, offering, getting outbid, etc we FINALLY got a home! Some highlights/lowlights for us looking in Minneapolis.

Before COVID hit was when we started looking and it was not quite as difficult as it is now in terms of the market and competition, but it was pretty bad.

The first house we offered on we ended up offering I think $20k over asking. But while we were looking during an open house, a woman and her 16 year old daughter were also looking. We overheard the mother say that while her daughter went to high school in Eagan (SE metro), they actually lived in Golden Valley (west of downtown MPLS). The reason they wanted to buy the house was for the daughter to have so she didn't have a long commute. We were so pissed. THESE were the types of people we were up against...those that didn't NEED a new home but wanted a second home for their SIXTEEN YEAR OLD kid. Just unreal. We didn't get the home, but neither did they (thank God).

We put a few other offers on homes before COVID with no luck. At the beginning of 2021 we kind of started up looking again but as many know and have seen/said on here the market was just insane. And it still is honestly.

We looked at probably 40 homes. Some were sh!t. Some were horrible flips (some with tree roots literally growing through the foundation in the basement...but LOOK AT THE NEW KITCHEN!)

Two months ago we thought we found the one. We knew it was gonna be competitive so we dug in and offered I think $50k over asking price plus some other incentives, etc. It had gone on the market on a Thursday and we saw it that night. By Friday at 5 there were 25+ offers...and ours was the LOWEST OFFER. Lowest offer was $50k over asking. Just unreal.

That threw us a bit into a talilspin. We kept hearing that west coasters that had a ton of cash were buying up homes here paying 100% cash and using them as rentals or they'd flip them. etc. How could we compete with people laying down all cash offers?

Two weeks ago we saw like 7 homes and offered on two. No luck. We were just about done then a week ago late I did a random search in an area close to where we were really wanting to live but didn't fall in our search criteria. Last Sunday we went and saw it. It was easily my favorite home we'd seen because it had everything we were looking for and the updates were really not horrible and could be done in the next few years. We put a bid in, again well over asking, but didn't think we had a chance. We heard there were many offers and lots of them were doing appraisal gap incentives which we just couldn't do.

I decided we needed to write and sent a personal letter to the owners and include it with our offer. We'd written a few before but this one we really honed in and focused on why it was the home for us.

We got a call last Sunday night from our realtor saying it was basically us and another couple that offered the same exact thing but our letter was what put us over the top.

Super happy now but that process is ******* brutal to go through. Its so hard.

 

[Sigmapolis]

After two years of looking, offering, getting outbid, etc we FINALLY got a home! Some highlights/lowlights for us looking in Minneapolis.

Before COVID hit was when we started looking and it was not quite as difficult as it is now in terms of the market and competition, but it was pretty bad.

The first house we offered on we ended up offering I think $20k over asking. But while we were looking during an open house, a woman and her 16 year old daughter were also looking. We overheard the mother say that while her daughter went to high school in Eagan (SE metro), they actually lived in Golden Valley (west of downtown MPLS). The reason they wanted to buy the house was for the daughter to have so she didn't have a long commute. We were so pissed. THESE were the types of people we were up against...those that didn't NEED a new home but wanted a second home for their SIXTEEN YEAR OLD kid. Just unreal. We didn't get the home, but neither did they (thank God).

We put a few other offers on homes before COVID with no luck. At the beginning of 2021 we kind of started up looking again but as many know and have seen/said on here the market was just insane. And it still is honestly.

We looked at probably 40 homes. Some were sh!t. Some were horrible flips (some with tree roots literally growing through the foundation in the basement...but LOOK AT THE NEW KITCHEN!)

Two months ago we thought we found the one. We knew it was gonna be competitive so we dug in and offered I think $50k over asking price plus some other incentives, etc. It had gone on the market on a Thursday and we saw it that night. By Friday at 5 there were 25+ offers...and ours was the LOWEST OFFER. Lowest offer was $50k over asking. Just unreal.

That threw us a bit into a talilspin. We kept hearing that west coasters that had a ton of cash were buying up homes here paying 100% cash and using them as rentals or they'd flip them. etc. How could we compete with people laying down all cash offers?

Two weeks ago we saw like 7 homes and offered on two. No luck. We were just about done then a week ago late I did a random search in an area close to where we were really wanting to live but didn't fall in our search criteria. Last Sunday we went and saw it. It was easily my favorite home we'd seen because it had everything we were looking for and the updates were really not horrible and could be done in the next few years. We put a bid in, again well over asking, but didn't think we had a chance. We heard there were many offers and lots of them were doing appraisal gap incentives which we just couldn't do.

I decided we needed to write and sent a personal letter to the owners and include it with our offer. We'd written a few before but this one we really honed in and focused on why it was the home for us.

We got a call last Sunday night from our realtor saying it was basically us and another couple that offered the same exact thing but our letter was what put us over the top.

Super happy now but that process is ******* brutal to go through. Its so hard.

Giving this story a tag to summarize it...

"A tale of what happens when Midwesterners learn what real estate markets have been like on the East Coast and West Coast for roughly the past 20 years. Kind of insane, isn't it?"

Tried to warn you all -- different world out there. But seems the plague has come everyone.

 

[KnappShack]

Giving this story a tag to summarize it...

"A tale of what happens when Midwesterners learn what real estate markets have been like on the East Coast and West Coast for roughly the past 20 years. Kind of insane, isn't it?"

Tried to warn you all -- different world out there. But seems the plague has come everyone.

West Coast real estate is a full contact sport.

 

[Sigmapolis]

West Coast real estate is a full contact sport.

You thinking like boxing or Roman gladiators there?

 

[Cyclone06]

If you could tell me about five people where their employer literally "owns" (or at least has a lien against) their home when that employer is not a bank, then I would be really impressed.

It’s early, but as the cartoon alludes, it’s happening.

 

[Sigmapolis]

It’s early, but as the cartoon alludes, it’s happening.

[citation needed]

 

[Dopey]

After two years of looking, offering, getting outbid, etc we FINALLY got a home! Some highlights/lowlights for us looking in Minneapolis.

Before COVID hit was when we started looking and it was not quite as difficult as it is now in terms of the market and competition, but it was pretty bad.

The first house we offered on we ended up offering I think $20k over asking. But while we were looking during an open house, a woman and her 16 year old daughter were also looking. We overheard the mother say that while her daughter went to high school in Eagan (SE metro), they actually lived in Golden Valley (west of downtown MPLS). The reason they wanted to buy the house was for the daughter to have so she didn't have a long commute. We were so pissed. THESE were the types of people we were up against...those that didn't NEED a new home but wanted a second home for their SIXTEEN YEAR OLD kid. Just unreal. We didn't get the home, but neither did they (thank God).

We put a few other offers on homes before COVID with no luck. At the beginning of 2021 we kind of started up looking again but as many know and have seen/said on here the market was just insane. And it still is honestly.

We looked at probably 40 homes. Some were sh!t. Some were horrible flips (some with tree roots literally growing through the foundation in the basement...but LOOK AT THE NEW KITCHEN!)

Two months ago we thought we found the one. We knew it was gonna be competitive so we dug in and offered I think $50k over asking price plus some other incentives, etc. It had gone on the market on a Thursday and we saw it that night. By Friday at 5 there were 25+ offers...and ours was the LOWEST OFFER. Lowest offer was $50k over asking. Just unreal.

That threw us a bit into a talilspin. We kept hearing that west coasters that had a ton of cash were buying up homes here paying 100% cash and using them as rentals or they'd flip them. etc. How could we compete with people laying down all cash offers?

Two weeks ago we saw like 7 homes and offered on two. No luck. We were just about done then a week ago late I did a random search in an area close to where we were really wanting to live but didn't fall in our search criteria. Last Sunday we went and saw it. It was easily my favorite home we'd seen because it had everything we were looking for and the updates were really not horrible and could be done in the next few years. We put a bid in, again well over asking, but didn't think we had a chance. We heard there were many offers and lots of them were doing appraisal gap incentives which we just couldn't do.

I decided we needed to write and sent a personal letter to the owners and include it with our offer. We'd written a few before but this one we really honed in and focused on why it was the home for us.

We got a call last Sunday night from our realtor saying it was basically us and another couple that offered the same exact thing but our letter was what put us over the top.

Super happy now but that process is ******* brutal to go through. Its so hard.

Jeeze. Good for you. Not sure I could have done it.

 

[DeereClone]

[citation needed]

The cartoon isn’t a good enough source for you???

 

[SCNCY]

One thing I worry about housing in the far future is with our population not really growing, and the baby boomer generation hitting retirement age, what's going to happen in 20 years when the boomers begin to pass away in large numbers and lots of houses begin to hit the market? Because our population isn't growing very much, housing could begin to depreciate in value and really hurt the Gen-X and Millennials wealth.

 

[KnappShack]

You thinking like boxing or Roman gladiators there?

More like Thunderdome. 2 enter. 1 leaves.

 

[Sigmapolis]

More like Thunderdome. 2 enter. 1 leaves.

And here I thought that movie was a documentary about the Australian legal system.

 

[Sigmapolis]

One thing I worry about housing in the far future is with our population not really growing, and the baby boomer generation hitting retirement age, what's going to happen in 20 years when the boomers begin to pass away in large numbers and lots of houses begin to hit the market? Because our population isn't growing very much, housing could begin to depreciate in value and really hurt the Gen-X and Millennials wealth.

Gen-X and Millennials are going to be inheriting all that sweet Boomer wealth, though.

Has to go somewhere.

 

[SCNCY]

Gen-X and Millennials are going to be inheriting all that sweet Boomer wealth, though.

Has to go somewhere.

We'll see...

 

[tman24]

One thing I worry about housing in the far future is with our population not really growing, and the baby boomer generation hitting retirement age, what's going to happen in 20 years when the boomers begin to pass away in large numbers and lots of houses begin to hit the market? Because our population isn't growing very much, housing could begin to depreciate in value and really hurt the Gen-X and Millennials wealth.

Well all the nasty houses you see being built on HGTV will be out of date by that point so there will be tons of flipping opportunity, probably put more walls in and back to green and orange carpet.

 

[Sigmapolis]

We'll see...

It has to go somewhere.

But I could see the Boomers metaphorically or literally burning it all because they can't take it with them. Endowments for the kids, or huge bender in Las Vegas with your life savings before dying?

I know which one I'm picking.

So I can see your point.

 

[SCNCY]

It has to go somewhere.

But I could see the Boomers metaphorically or literally burning it all because they can't take it with them. Endowments for the kids, or huge bender in Las Vegas with your life savings before dying?

I know which one I'm picking.

So I can see your point.

That's what I was leaning towards too. Buying luxury cars, boats, traveling to other countries, etc. Not that they are not entitled to do that, but if supply of housing increases and no demand to fill the gap, that's a lot of money that could potentially not make its way back down to younger generations, unless you own said luxury products and services that retired boomers will want.

 

[Gunnerclone]

That's what I was leaning towards too. Buying luxury cars, boats, traveling to other countries, etc. Not that they are not entitled to do that, but if supply of housing increases and no demand to fill the gap, that's a lot of money that could potentially not make its way back down to younger generations, unless you own said luxury products and services that retired boomers will want.

Im going to buy up the boomer houses next to mine and combine them in to a mansion with a quadruple lot.

 

[Sigmapolis]

That's what I was leaning towards too. Buying luxury cars, boats, traveling to other countries, etc. Not that they are not entitled to do that, but if supply of housing increases and no demand to fill the gap, that's a lot of money that could potentially not make its way back down to younger generations, unless you own said luxury products and services that retired boomers will want.

I think holding back on adding housing stock now -- when the most vulnerable have zero chance of buying into the market and even some people who are "doing well" are having similar problems -- because it would degrade the value of real estate inheritances decades hence is too clever by half.

You might be right about the push-and-pull factors here, but when you've got a lot of benefits in the near-future from adding stock and a lot of costs in the far-future at the same time, some basic benefit-cost analysis of discounting those costs and benefits say you do it now and it'll work out later.

 

[besserheimerphat]

In the first half of 2021, over 4000 homes in Seattle have sold for between $100k - $300k OVER asking price. A more than 10X increase over 2020. The average home across the metro is selling for $48,000 over asking price, or about 109% of the asking price.

‘I’ve never seen anything like this’: Bidding wars send Seattle home prices skyrocketing

A new report from Redfin found that over 4,000 Seattle homes have sold for over $100,000 above asking price in 2021, marking a massive increase over that same period last year.

www.kiro7.com