Insane prices!
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Insane prices! (by NE [PA]) Jan 26, 2022 6:55 AM
       Insane prices! (by Dodge [PA]) Jan 26, 2022 7:09 AM
       Insane prices! (by Ray-N-Pa [PA]) Jan 26, 2022 7:12 AM
       Insane prices! (by NE [PA]) Jan 26, 2022 7:29 AM
       Insane prices! (by Jasper [OH]) Jan 26, 2022 7:43 AM
       Insane prices! (by S i d [MO]) Jan 26, 2022 7:48 AM
       Insane prices! (by Richard [MI]) Jan 26, 2022 7:48 AM
       Insane prices! (by PG [SC]) Jan 26, 2022 8:39 AM
       Insane prices! (by Dave [MO]) Jan 26, 2022 9:04 AM
       Insane prices! (by NE [PA]) Jan 26, 2022 9:17 AM
       Insane prices! (by Nicole [PA]) Jan 26, 2022 9:59 AM
       Insane prices! (by Ken [NY]) Jan 26, 2022 10:11 AM
       Insane prices! (by NE [PA]) Jan 26, 2022 10:27 AM
       Insane prices! (by MikeA [TX]) Jan 26, 2022 11:21 AM
       Insane prices! (by Sorta Blonde [CA]) Jan 26, 2022 11:33 AM
       Insane prices! (by 6x6 [TN]) Jan 26, 2022 12:00 PM
       Insane prices! (by RB [TN]) Jan 26, 2022 12:18 PM
       Insane prices! (by MAP [NY]) Jan 26, 2022 12:33 PM
       Insane prices! (by Tex [TX]) Jan 26, 2022 2:51 PM
       Insane prices! (by Tex [TX]) Jan 26, 2022 2:51 PM
       Insane prices! (by Tex [TX]) Jan 26, 2022 2:51 PM
       Insane prices! (by Chris [CT]) Jan 26, 2022 3:55 PM
       Insane prices! (by BRAD 20,000 [IN]) Jan 26, 2022 7:01 PM


Insane prices! (by NE [PA]) Posted on: Jan 26, 2022 6:55 AM
Message:

There is a housing development here where we have flipped 12 or so houses over the last few years in. These are Joe the Plumber types house. All the layouts are almost identical. The lots are mostly the same, some have garages, some donít. Cookie cutter 3/1 ranches. If we got 135k for the houses typically, we were doing good. My partner is wrapping up one where he is thinking of asking in the upper 140ís. The guy next door is flipping one where he put HIGH END product in. Iím guessing a 12-15k kitchen when the standard for this neighborhood is 5-6k. Expensive lights, super expensive flooring. Well, he listed it last week for $199,000 and itís under contract!!! I couldnít believe it. Around here, in that neighborhood, that is absolutely insane! This development is one step above a trailer park.

--24.152.xxx.xx




Insane prices! (by Dodge [PA]) Posted on: Jan 26, 2022 7:09 AM
Message:

That's an insane jump. I'd bet out of state buyers or at least out of the area. I wonder if it will appraise at that price? --174.198.xxx.xxx




Insane prices! (by Ray-N-Pa [PA]) Posted on: Jan 26, 2022 7:12 AM
Message:

That begs the question, when the market softens, will it be a soft landing or a thud --24.101.xxx.xxx




Insane prices! (by NE [PA]) Posted on: Jan 26, 2022 7:29 AM
Message:

Dodge, I donít know if it is an out-of-state buyer or not. It was a realtor listing though. It very well may appraise out. Weíve only flipped two in the last year and a half to two years due to not being able to find any to flip. So we are a little behind on our numbers. But the problem is, the numbers are all over the place. The neighbors price might be on in this neighborhood now. The good thing for my partner is that heís only going to have around $80,000 into his project; purchase and rehab. So itíll be a homerun for him. --24.152.xxx.xx




Insane prices! (by Jasper [OH]) Posted on: Jan 26, 2022 7:43 AM
Message:

Had a similar situation on a flip a few months ago. Listed it for way over what anything in the neighborhood had sold for. It went under contract the first day and had multiple offers. Appraised just fine. It was hard to believe. --98.17.xx.xxx




Insane prices! (by S i d [MO]) Posted on: Jan 26, 2022 7:48 AM
Message:

Demand is high. Money is cheap. Americans until recently have been saving at rates unheard of for decades. Cash buyers almost equal buyers who need loans.

Yep. Prices are "insane"...or are they?

On a previous post, I mentioned reading an article from a national homebuilder association that says they will have to build 7 million unit annually just to keep up with demand. And what are they building, mostly? 3/1 ranch? My observation is 4/3/2 ranch is most popular. They start around $250k-$300k and go up depending on amenities.

I don't know anyone building 3/1 houses. Those used to be the basic entry level house when I was growing up. When I graduated college in 1999, the 3/2/2 was the starter. Now it's even more. All this means Joe the Plumber must either bid against Jack the Electrician to buy or rent.

BTW, have you seen what plumbers and electricians charge these days? We'll have to invent a new name for the humble blue collar worker. How about Bob the Barista?

--108.230.xxx.xx




Insane prices! (by Richard [MI]) Posted on: Jan 26, 2022 7:48 AM
Message:

Prices here are way up too. About 3-4 years ago it became too expensive to build low and even medium priced houses, so none were built. The county and city will not allow any more trailer parks which might help (nimby's), so now there is a huge shortage of affordable housing. Low interest rates and the events of the last 2 years have further increased housing prices as well.

The only thing happening in new housing is that govt backed funding made available to certain developers is allowing these developers to build subsidized housing (a fancy name for what used to be called projects). So the developers come in and throw up these projects which include a certain percentage of low income residents, making a large profit (in the millions). They then form a management company to manage the projects and rake off more money. When the project fails in a couple years, they close the management company and leave the entire mess to the city. As an example, in my town they have approved and are building a 5 story project that they say will cost about 5 million. With the inevitable overruns, it will be at least 8 million.It is projected to LOSE 300K+ per year. The city will receive almost no property taxes for years. After a couple years the management company will quit and leave an the city/taxpayers will have to deal with a project full of deadbeats losing over 300K a year and likely way more.

The smart people/those who can are moving out. --75.7.xx.xx




Insane prices! (by PG [SC]) Posted on: Jan 26, 2022 8:39 AM
Message:

Is it panic buying? About 4 months ago I talked to custom builder in a near by town that is booming. His price at that time was $220 sq/ft and he had a waiting list.

I guess we will see 50/60 year loans. Same way cars went from 3 to 5 years and longer. --184.20.xxx.xx




Insane prices! (by Dave [MO]) Posted on: Jan 26, 2022 9:04 AM
Message:

Itís insane market here too. Our company bought a house beginning of January and didnít touch it, put it back on the market 2 weeks later and hit a home run! It feels like houses are a commodity. Itís a flippers dream market.

Ray, if we hit a housing market where the mortgage is more than what the house will sale for itís gonna be a hard landing. Keys will be left on the kitchen counter and home owners will walk like they did in 08.

My thoughts are more of a soft landing. --174.202.xxx.xx




Insane prices! (by NE [PA]) Posted on: Jan 26, 2022 9:17 AM
Message:

Dave, it is a flippers dream, but the problem is sourcing inventory. When I was talking with my partner about this, we were discussing selling rental inventory. But then, what do you do with the profits? --174.198.x.xx




Insane prices! (by Nicole [PA]) Posted on: Jan 26, 2022 9:59 AM
Message:

NE, down here, that is a $200,000 - $240,000 house, depending on what it actually is... downfall being the one bathroom. The cliche of lipstick on a pig works. --98.237.xxx.xx




Insane prices! (by Ken [NY]) Posted on: Jan 26, 2022 10:11 AM
Message:

NE,get rid of the junk now and wait till the market turns,it always does. --72.231.xxx.xxx




Insane prices! (by NE [PA]) Posted on: Jan 26, 2022 10:27 AM
Message:

Nicole, the 3/1 was the standard when this development was built in the 70ís. It was top notch then. Itís interesting when we do them, Every single house has the same old ugly gold linoleum under the carpet or hardwood when we pull it out. These were no frill houses. Theyíre all the same and weíve done enough that it is a neighborhood where we can buy them from the street and not even need to go inside.

Ken, I did sell one junker early in the year last year and I may list a three unit here in a few weeks. But on the other hand, rents are so ridiculously high right now. Itís a tough call. --174.198.x.xx




Insane prices! (by MikeA [TX]) Posted on: Jan 26, 2022 11:21 AM
Message:

Same here. The little WWII 2/1 bungalow's I was buying for $35-40K 2-3 years ago are going for $80-100K today. The cash flow at that rate is cut to $0 as a rental.

What will it do in the future? If the early 1980's are any indication of what will happen, after a couple of hick-ups, the prices will stick at the inflated rate. It has to do with the dollar being devalued through inflation and monetary policy. Not saying there won't be some markets that take a hit, but nationwide, these prices are the new norm. --209.16.xx.xxx




Insane prices! (by Sorta Blonde [CA]) Posted on: Jan 26, 2022 11:33 AM
Message:

Nothing in my neighborhood has sold for under $500k. Even mobile homes in the local parks are listing at just under $200k. All are going quickly. Total insanity for sure. 2 bed/1 bath types. 3 beds are going for $700k or more. Rents are at $2500 and up for 2/1 and $3000 for 3/2. Just crazy and people are snapping up everything. --174.65.xxx.xx




Insane prices! (by 6x6 [TN]) Posted on: Jan 26, 2022 12:00 PM
Message:

I was speaking with a realtor a few days ago and they mentioned that they had an investor looking at a house in the 300K-400K range, I can't remember, but they bid 75K over asking price to get the house.

The prices here are insane and climbing because people are coming here from all over, mainly CA I think, and also a lot of out of state investors buying up everything.

I can't wrap my head around it. I don't see how investors are making money like that.

Where is all this money coming from that people are spending like crazy?

I can see people selling their homes in CA and FL and giving them money to retire here, but what is really going on?

--73.120.xx.xxx




Insane prices! (by RB [TN]) Posted on: Jan 26, 2022 12:18 PM
Message:

The Great Escape ! --24.183.xxx.xxx




Insane prices! (by MAP [NY]) Posted on: Jan 26, 2022 12:33 PM
Message:

*POP* (the sound of the bubble bursting as it did in 2008)

Hell italian sausage is almost $6 a pound here. --72.231.xxx.xx




Insane prices! (by Tex [TX]) Posted on: Jan 26, 2022 2:51 PM
Message:

In the immediate Downtown San Antonio area what you could bought at just over land cost now cant be touched for less then 100K.

--161.226.xxx.xxx




Insane prices! (by Tex [TX]) Posted on: Jan 26, 2022 2:51 PM
Message:

In the immediate Downtown San Antonio area what you could bought at just over land cost now cant be touched for less then 100K.

--161.226.xxx.xxx




Insane prices! (by Tex [TX]) Posted on: Jan 26, 2022 2:51 PM
Message:

In the immediate Downtown San Antonio area what you could bought at just over land cost now cant be touched for less then 100K.

--161.226.xxx.xxx




Insane prices! (by Chris [CT]) Posted on: Jan 26, 2022 3:55 PM
Message:

Part of it is inflation that $199k today is 180k in 2019. --24.45.xxx.xxx




Insane prices! (by BRAD 20,000 [IN]) Posted on: Jan 26, 2022 7:01 PM
Message:

I predict a new wave of panic buying because the Fed is talking about raising rates in March.

BRAD --73.102.xxx.xxx





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