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Ok. If I understand correctly: the nation-wide housing boom on the sub$400k entry-level market is being driven by all cash buyers who do things like waive inspections and pay over the list- with the cash coming from rich parents who want their kids to move out of their basement?
we have this from CA, Seattle, Denver and almost all parts of the us. Closed one I. Talahasee 12 months ago. Working on a Hawaii now.
You have to realize that this situation exists and is perpetuated by the fact that most realtors are holding fast to the traditional way of doing this business.
So many factors there, location not being the smallest of those. It is really hard to say. But a few things I can say to consider based on the one I bought:
Good stuff and thanks. I'll have time later to read more. For the flooding, we're on the top of a decent sized Hill so I'm not worried about that so much, but critters are for real.
Flooding doesn't just involve standing water. If the stream/drainage flows through your house, it's still flooding. (A friend of mine did that.) Also, make sure you get a good geological survey. You want a good stable piece of land.
There are housing developments and apartment buildings going up every where you look. Here is an example near our neighborhood that plans to quintuple the City of Black Diamond, approximately 30 miles south east of Seattle. My property has increased 37% in price since I bought in August of 2013.
Zillow ranks Raleigh 2nd hottest market in 2018. My house has increased 22% since Sep 14 and it's the same to other cities, shortage of properties, huge influx of new residents, good job opportunities. Yaddayadda, if there is a patch of dirt, they are developing.
First person/only person that saw my house bought it. Live in the Cleveland School area.
Seemingly on the edge of adding an Apple campus in the Raleigh area (+/- 10K jobs), hang on.
I see the same thing in land development. In the mid 2000s in my area land developers would come in and build golf courses, miles and miles of roads and utilities before even selling a lot. Now they are being smarter about phasing infrastructure and limiting their upfront costs before getting lots sold, which decreases the size of their bubble and minimizes their exposure if/when the downturn hits.
I figure it’s not very reliable. That said, we got a fantastic deal and the current Zestimate is in line with other like homes in our area.
not very accurate at all. It's an algorithm and they don't have great data, especially in non-disclosure states.
While I agree with his statement about not being in a bubble, housing costs are far far far outpacing wages, couple that with rising rates which further hampers affordability, and we're not to far off from the end of this cycle (basically, they're elevated a little higher than they should be thanks to endless years of minimal interest rates, but not a bubble). This is nothing like the late 2000's where a stripper "owned" 12 homes, and it won't be an epic crash, but prices will start to level off if rates continue to rise and we near our next recession (maybe 2020-2021, who knows).
Pretty torn on that one. Not going to act like I know how they should handle it but some type of measures need to be inacted IMO. I’m a homeowner in Seattle neighborhood and wife works at Amazon. If I understand the compromise was to cut the tax proposal in half and reevaluate in 5 years.The city council is working on that problem for you
It's an algorithm - easiest way I can explain; it just looks at data from sold homes in the area to calculate the price... It falls short when it comes to looking at details like renovations, work done, etc..
This will be a market-by-market thing IMO. Some of the high priced areas like you mentioned are starting to see a top. Gov't wants RE to go up 4-6% per year. The pricey areas will come back down to that line at some point in the next few years. Just normal cycles.
Screw our city council. Useless bunch of attention whores.The city council is working on that problem for you
Wow, glad I refinanced and pulled out some equity on a 15Y at 2.75 a couple years ago. Sucks for first time buyers with prices so high and rates climbing(although they are still low historically but how long will that last??)
I don’t know. The Fed controls rates in either direction. Basically rates themselves are artificial.
Not directly, but they have a strong indirect influence and the Fed rate was quite intentionally kept at those low levels to spur further lending - particularly in the consumer borrowing space.
My point is that who says .25% is too low? We're used to fluctuations/manipulations in rates but that doesn't mean it should be the norm. And I'm not necessarily saying rates should be .25%, just that rates are what the Feds deem them to be, hence they are artificial.
The Fed controls EVERYTHING related to money. It's done very discreetly and indirectly but I can assure you, the Fed literally controls our nation's currency from every angle and in every way. If you control the currency, you set prices interest rates and everything else related to money/currency.
