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besserheimerphat said:
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.

www.kiro7.com

‘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 www.kiro7.com
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Yeah. It's absolutely insane out there. The houses I've been just keeping an eye on are selling for $25-50k above asking

I'm just trying to understand where all the demand (and money to some extent) is coming from.
 
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besserheimerphat said:
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.

www.kiro7.com

‘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 www.kiro7.com
Click to expand...

So are all these people pocketing the $$$$ and renting until things come down? Selling for $100k-$300k over asking price is great but the price of anything they'd be looking to buy after selling their home would be just as bloated, no?
 
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besserheimerphat said:
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.

www.kiro7.com

‘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 www.kiro7.com
Click to expand...

When THAT many houses are selling for THAT much over asking, why aren't homeowners/realtors raising the asking prices to begin with? I know at times they start with a certain price to get more potential buyers interested, but when you're $100k off on the market value that just seems stupid.
 
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Local example: my wife's friend bought a house in Ames in 2018 for $350k. With the current market they decided to sell it....figured it would list at $425k, realtor listed at $475k.....six days later they had it sold, all cash offer for $575k after competition from 6 different buyers.

With the supply of apartments in Ames, they place they found to rent is covering essentially all utilities just to get people in the buildings.
 
Gonzo said:
So are all these people pocketing the $$$$ and renting until things come down? Selling for $100k-$300k over asking price is great but the price of anything they'd be looking to buy after selling their home would be just as bloated, no?
Click to expand...

Some are probably renting....others might be just moving to a lower priced area. Maybe they can/will be working from home and don't "need" to be 30 minutes from work anymore?

Once building material supplies stabilize, price of building a home will come down too....some might be wanting to do that.....invest some of the profit from a home sale on a lot and build in a few years but rent until then.
 
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I have no idea what is driving the prices in Seattle, as I am about 60 miles north. But we are seeing major market inflation too - so we're trying to take advantage by refinancing to pay off a bunch of higher interest debt as well as going from a 30 year to a 15 year mortgage.
 
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Tailg8er said:
When THAT many houses are selling for THAT much over asking, why aren't homeowners/realtors raising the asking prices to begin with? I know at times they start with a certain price to get more potential buyers interested, but when you're $100k off on the market value that just seems stupid.
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I think it's a combination of things

1) The house isn't really worth the inflated amounts that they are getting offered. They list a high but reasonable number and let the market fight it out
2) It might actually be to their benefit to let people throw in bids without a higher starting point. Why tell people you think it's worth $500k when someone might throw you a $550k offer. It's almost an auction situation.
 
Sousaclone said:
I think it's a combination of things

1) The house isn't really worth the inflated amounts that they are getting offered. They list a high but reasonable number and let the market fight it out
2) It might actually be to their benefit to let people throw in bids without a higher starting point. Why tell people you think it's worth $500k when someone might throw you a $550k offer. It's almost an auction situation.
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Its like Options trading. Earning potential: Unlimited when you get a bidding war going. Highest and best.
 
Sousaclone said:
Yeah, if we can arrange that end to be sometime in late July or early August I'd appreciate it.
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**** I would take right now.. my old house is sold and we are searching for a new one now... this having to offer over asking and still losing out on it is already annoying..
 
cyfan92 said:
finance.yahoo.com

Lumber Prices Post Biggest–Ever Weekly Drop With Buyers Balking

(Bloomberg) -- Lumber futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases.Prices in Chicago fell 18% this week, the biggest decline for most-active futures in records going back to...
finance.yahoo.com finance.yahoo.com

"Lumber has has now dropped almost 40% from the record high reached on May 10. "

-With strong U.S. home building expected to last for several years, lumber prices will likely remain above $500 per 1,000 board feet for the next five to eight years, said Scott Reaves, forest operations director at Domain Timber Advisors.

“We’re at a new normal,” Reaves said in a phone interview. “We’re going to see this sustained level of housing demand and a new normal for a pricing floor in lumber.”

After reading up a little more on this topic. I bet we settle around $750-$800 per 1000 feet. Which is still twice as expensive as "normal".. But by next summer we will at least see healthy supply at stores
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There is already a healthy supply at stores. I've never seen as much inventory at the local Menards as they have now. The "this is the new norm" suppliers are pushing now makes about as the "transitory" inflation the Fed is pushing after printing money hand over fist.
 
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Housing prices are crazy. Our home in Eden Prairie increased in value by 25% in less than 4 years. The increase in value coupled with low mortgage rates allowed me to refinance, get out from under PMI, cut 6 1\2 years of the length of the loan, and drop my monthly payment by $40.

I went through LoanDepot. I literally paid no loan fees. (All fees were covered by the lender)The only money needed to bring to the table was to cover the new escrow. Crazy times.
 
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Althetuna said:
Market is slowing down due to lack of supply on starter homes.

www.cnbc.com

As housing boom begins to fizzle, weekly mortgage demand falls nearly 7%

Weekly mortgage demand fell to the lowest level in almost a year and a half, as home prices sideline more buyers.
www.cnbc.com www.cnbc.com
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Good. I've been watching the twin cities market for awhile. Lately I've noticed it's taken a little longer before a house is pending and a few that were are now back on the market.

I found one acreage that has a small house needing full gut/remodel/update and a few nice outbuildings. Appears they've been trying to sell it since 2018, but they keep jacking the price up. This year they listed it at 125k more than last year. My guess is the owner doesn't want to sell too bad and just wants to cash in on a hot market.
 
RLD4ISU said:
Good. I've been watching the twin cities market for awhile. Lately I've noticed it's taken a little longer before a house is pending and a few that were are now back on the market.

I found one acreage that has a small house needing full gut/remodel/update and a few nice outbuildings. Appears they've been trying to sell it since 2018, but they keep jacking the price up. This year they listed it at 125k more than last year. My guess is the owner doesn't want to sell too bad and just wants to cash in on a hot market.
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I am in the north suburbs and have been helping a friend look for his first home for the last few months. Early on, a home would come on the market in the mid $300,000's on a Thursday, and the seller would collect offers by Sunday at noon, select the best offer and move on. They would get 6+ offers. My guy missed out three times when offering $10,000 - $15,000 over asking. Last week, we saw one for $349,000. It actually had dropped in price after sitting for a week. Was not updated but in very good condition overall. My guy put in the only offer, offered $325,000 thinking they would counter and settle for something between. They accepted and he got his home. So even since we have been watching since spring, things seem to be slowing down a bit.
 
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I would assume some of the slow down would be due to getting close to the ending of the summer selling season. There is only like a month and a half before school starts up, so I would think those buyers would end their search and try again later.

Additionally, I would assume younger buyers may have just given up and try again later due to frustration. I know before we got a contract we talked about this after missing on several homes. Every home we missed out on that was competitive (10+ offers) we were always top 3. We started to think about just renting. I said that things will only get worse because the competitiveness was due to high demand and low supply, thus a problem that won't be solved in a year.

Looking back, the seller/investor we bought the house from did just crappy work, and the fact we were living in a hotel, we thought out best option was to continue with the purchase and fix things ourselves. However, I think we have regrets in doing that based on what we paid for the house and what we are going to have to put in over several years to get it in to a condition that it should be in. But this is an problem and decision we made. /vent. We should retain value because we have moderate water views and are in a great school district.
 
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SCNCY said:
I would assume some of the slow down would be due to getting close to the ending of the summer selling season. There is only like a month and a half before school starts up, so I would think those buyers would end their search and try again later.

Additionally, I would assume younger buyers may have just given up and try again later due to frustration. I know before we got a contract we talked about this after missing on several homes. Every home we missed out on that was competitive (10+ offers) we were always top 3. We started to think about just renting. I said that things will only get worse because the competitiveness was due to high demand and low supply, thus a problem that won't be solved in a year.

Looking back, the seller/investor we bought the house from did just crappy work, and the fact we were living in a hotel, we thought out best option was to continue with the purchase and fix things ourselves. However, I think we have regrets in doing that based on what we paid for the house and what we are going to have to put in over several years to get it in to a condition that it should be in. But this is an problem and decision we made. /vent. We should retain value because we have moderate water views and are in a great school district.
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If you don't mind me asking, what is there that you need to fix that the seller/investor didn't do or did just crappy?
 
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