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Wtf is going on with house prices?


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2021 Apr 25, 8:13am   3,442 views  82 comments

by FortwayeAsFuckJoeBiden   ➕follow (3)   💰tip   ignore  

As an of patnet member I remember this housing thing before. Right now houses in reseda are going for 600+ and west hills for 800+. I’m talking small entry level homes. This seems insane, bubble prices again, but somehow people are buying... are we in a bubble or just some people got a ton of cash?

Thinking of selling now and moving honestly...

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62   FarmersWon   2021 Apr 28, 8:14pm  

B.A.C.A.H. says
farmer2021 says
Not true. You can refinance or take money out as long as your income can support the mortgage.


That is hilarious. Calling taking money out, increasing the amount of debt, as positive cash flow. This is like the fed using printed money for the US government to dole out. The government can coerce folks to pay taxes, or the fed can tap Greater Fools in the bond market to keep the gig going for awhile. But homeowners, be they techie homeowners or landlords, have no such powers of persuasion or coercion over their salaries, or the rent they collect. (My understanding is renters have some protections now so they don't even have to pay). Renters can just leave, like Patrick and millions of others in California are contemplating.

I understand your point about Asia. We are in the United States, homie, not Hong Kong, not Bangalore. The United States does not end at Altamont...


Try visiting a open house these days in bay area.
They will ask for all kinds of pre-approval and house will sell before you get scheduled.

I don't know who are these people buying, But It is reality and been like this for last few years accelerated by COVID.
https://www.sfgate.com/realestate/article/2021-04-Santa-Clara-camping-overnight-townhome-16127719.php
Dozens camp overnight for chance to buy $1.2 million Bay Area townhouses

We can't wish away the reality, The Fed is scheming against people.
63   B.A.C.A.H.   2021 Apr 28, 8:31pm  

farmer2021 says
Try visiting a open house these days in bay area.
They will ask for all kinds of pre-approval and house will sell before you get scheduled.

I don't know who are these people buying, But It is reality and been like this for last few years accelerated by COVID.
https://www.sfgate.com/realestate/article/2021-04-Santa-Clara-camping-overnight-townhome-16127719.php
Dozens camp overnight for chance to buy $1.2 million Bay Area townhouses


Yawn.

The US does not end at Altamont Pass. Many might argue though, that it begins at Altamont Pass.

Who sets the sales prices of homes (and nearly every other asset)? The sellers? The ®ealtors? Of course not. It's the buyers. What is evil about that?
64   FarmersWon   2021 Apr 28, 8:36pm  

B.A.C.A.H. says
farmer2021 says
Try visiting a open house these days in bay area.
They will ask for all kinds of pre-approval and house will sell before you get scheduled.

I don't know who are these people buying, But It is reality and been like this for last few years accelerated by COVID.
https://www.sfgate.com/realestate/article/2021-04-Santa-Clara-camping-overnight-townhome-16127719.php
Dozens camp overnight for chance to buy $1.2 million Bay Area townhouses


Yawn.

The US does not end at Altamont Pass. Many might argue though, that it begins at Altamont Pass.

Who sets the sales prices of homes (and nearly every other asset)? The sellers? The ®ealtors? Of course not. It's the buyers. What is evil about that?


No the prices are set by "Mortgage banks" and their appraisal officers.
There is housing inflation in double digits nationwide.
65   B.A.C.A.H.   2021 Apr 28, 8:44pm  

farmer2021 says
No the prices are set by "Mortgage banks" and their appraisal officers.


That is silly. The prices are "set" by the price the Greater Fool (buyer) is willing to pay. Yes, banks will give them a lift with the low interest rates. And yes, appraisers will sanction the price for the lender. And the price will be determined by the amount the buyer is willing to pay. Maybe by "offering" way more than the asking price. Silly Greater Fools.

This is not Bangalore or Shanghai or Hong Kong, though perhaps beginning to look like those places with frenzied folks coveting a few square meters of real estate. There's a whole USA beyond Altamont Pass without such frenzy.
66   FarmersWon   2021 Apr 28, 9:02pm  

B.A.C.A.H. says
farmer2021 says
No the prices are set by "Mortgage banks" and their appraisal officers.


That is silly. The prices are "set" by the price the Greater Fool (buyer) is willing to pay. Yes, banks will give them a lift with the low interest rates. And yes, appraisers will sanction the price for the lender. And the price will be determined by the amount the buyer is willing to pay. Maybe by "offering" way more than the asking price. Silly Greater Fools.

This is not Bangalore or Shanghai or Hong Kong, though perhaps beginning to look like those places with frenzied folks coveting a few square meters of real estate. There's a whole USA beyond Altamont Pass without such frenzy.


I wish buyer had that power.
Unfortunately he is helpless and hapless.
Many have no choice but to cough up money as bigger place is needed due to COVID work from home.

It is nationwide.
https://www.kiplinger.com/article/real-estate/t010-c000-s002-home-price-changes-in-the-100-largest-metro-areas.html

67   FarmersWon   2021 Apr 28, 9:29pm  

The illogical and cruel shutdowns are going to make life hell for everyone.

https://finance.yahoo.com/news/lumber-prices-232-could-spiral-090000342.html
Lumber prices are up 232% and ‘could spiral out of control in the next few months’
68   mell   2021 Apr 28, 10:04pm  

farmer2021 says
B.A.C.A.H. says
farmer2021 says
No the prices are set by "Mortgage banks" and their appraisal officers.


That is silly. The prices are "set" by the price the Greater Fool (buyer) is willing to pay. Yes, banks will give them a lift with the low interest rates. And yes, appraisers will sanction the price for the lender. And the price will be determined by the amount the buyer is willing to pay. Maybe by "offering" way more than the asking price. Silly Greater Fools.

This is not Bangalore or Shanghai or Hong Kong, though perhaps beginning to look like those places with frenzied folks coveting a few square meters of real estate. There's a whole USA beyond Altamont Pass without such frenzy.


I wish buyer had that power.
Unfortunately he is helpless and hapless.
Many have no choice but to cough up...


The rise in prices correlates with the fall of mortgage rates. Now there's also a shortage in rural and suburban areas due to various factors, mainly covid. In CA prop 13 adds to the shortage. Prices in most Western countries have been rising fueled by low rates, in Europe rates have been even lower. But you don't have to buy in CA, there are more affordable properties all over the map, in FL or TX for example. Plus rents have fallen to the point where renting is equal or better than owning in certain areas. You have a choice. And realtors on avg. are actually not doing well in a market like this, so it's not them conspiring. Many realtors are starving in a market with a shortage of homes as their clients never get the bid, and listing agents have fewer and fewer homes to sell. The markup on prices does not make up for that, realtors would much rather have a market with plenty of supply and more homes selling and turning over at lower prices.
69   ForcedTQ   2021 Apr 28, 10:11pm  

farmer2021 says
The illogical and cruel shutdowns are going to make life hell for everyone.

https://finance.yahoo.com/news/lumber-prices-232-could-spiral-090000342.html
Lumber prices are up 232% and ‘could spiral out of control in the next

I would call where they are currently “spiraled out of control,” but to each his own...
70   SunnyvaleCA   2021 Apr 28, 11:22pm  

mell says
Many realtors are starving in a market with a shortage of homes as their clients never get the bid, and listing agents have fewer and fewer homes to sell. The markup on prices does not make up for that, realtors would much rather have a market with plenty of supply and more homes selling and turning over at lower prices.

The way I see it (at least here in silicon valley) is that real-estate agents are a dime a dozen. Many go into that line of work hoping for a quick fortune. The market for that job sorts itself out. If they wind up only making $40k a year (because there are 5x more agents in the market than needed), then they shouldn't complain ... their skillset isn't any more marketable than a supermarket cashier and they're making the same money.

Just remember that the purpose of an agent hosting an open house on the weekend isn't to show the house; it's to meet new clients.
71   Misc   2021 Apr 28, 11:39pm  

There are currently more licensed real estate agents than there are houses for sale. More are being drawn into the field every day wanting to make bank for doing nothing.
72   zzyzzx   2021 Apr 29, 4:50am  

ForcedTQ says


Lumber prices are up 232% and ‘could spiral out of control in the next

I would call where they are currently “spiraled out of control,”



73   GNL   2021 Apr 29, 5:30am  

Misc says
There are currently more licensed real estate agents than there are houses for sale. More are being drawn into the field every day wanting to make bank for doing nothing.

The real estate transaction system is what it is. I am a real estate photographer and I can tell you, Realtors are not a dime a dozen. Every transaction is different regarding personalities and difficulties.
74   WookieMan   2021 Apr 29, 6:39am  

WineHorror1 says
The real estate transaction system is what it is. I am a real estate photographer and I can tell you, Realtors are not a dime a dozen. Every transaction is different regarding personalities and difficulties.

This is true. There's grown ass men that couldn't run a lawn mower if their life depended on it. There are shit head Realtors out there, so not defending the industry as they're overpaid for what they're doing. But if you can't mow the lawn good luck with a real estate transaction on your own between showings and all the other BS.

The real estate lobby is massive. Some were MLS fees, but most of my fees went to the association when I held a license. Let it lapse in September this past year and I'm saving $2k/yr now for something I only used for personal uses. I've got enough connections that I can make it as cheap as holding a license now. Wasn't worth the hassle anymore doing CE every 2 years and the cost.

Personalities are the worst part. Too many hands in the pot. Realtors (against each other), lenders, inspectors, attorneys, municipalities in some locations, etc. Probably by design, but having been there and managing a place, it's not all rainbows and sunshine.

Also, zz, the lady in red is pretty hot.
75   B.A.C.A.H.   2021 Apr 29, 7:49am  

WineHorror1 says
Realtors are not a dime a dozen.


That's being generous.

A dime per dozens.

(BTW this is not Chicago, it's the SF Bay Area).
76   GNL   2021 Apr 29, 8:13am  

B.A.C.A.H. says
WineHorror1 says
Realtors are not a dime a dozen.


That's being generous.

A dime per dozens.

(BTW this is not Chicago, it's the SF Bay Area).

Realtors are sales people. Would you call all salesmen a dime a dozen? If I understand correctly, sales is one of the top 4-5 paid careers...for a reason.
77   GNL   2021 Apr 29, 8:18am  

IMO, if you want to be dissatisfied with a real estate transaction, look no further than the government, financial institutions and the NAR.

I think Zillow, or some other type of company, has a real chance to compete with the NAR. Competition in this industry is sorely needed. Also, if America wants to be a great nation again, IMO, we need more people in houses without going broke and relying on that sweet sweet equity for their retirement. Just my 2 cents.

America is bifurcating along social, political and economic lines like never before(?)....not good. Not good at all.

Oh, and probably along health lines now as well with fucking the plandemic and all.
78   mell   2021 Apr 29, 8:25am  

SunnyvaleCA says
mell says
Many realtors are starving in a market with a shortage of homes as their clients never get the bid, and listing agents have fewer and fewer homes to sell. The markup on prices does not make up for that, realtors would much rather have a market with plenty of supply and more homes selling and turning over at lower prices.

The way I see it (at least here in silicon valley) is that real-estate agents are a dime a dozen. Many go into that line of work hoping for a quick fortune. The market for that job sorts itself out. If they wind up only making $40k a year (because there are 5x more agents in the market than needed), then they shouldn't complain ... their skillset isn't any more marketable than a supermarket cashier and they're making the same money.

Just remember that the purpose of an agent hosting an open house on the weekend isn't to show the house; it's to meet new clients.


Agreed - it wasn't meant to be specifically sympathetical towards realtors, just pointing out that a sellers market with low inventory is not good for them.
79   GNL   2021 Apr 29, 9:01am  

Radio personalities are overpaid and dime a dozen also. /sarc. My brother in law is a pretty popular radio personality in Seattle. It takes a special type of person to do that job.
80   B.A.C.A.H.   2021 Apr 29, 10:34am  

Misc says
There are currently more licensed real estate agents than there are houses for sale. More are being drawn into the field every day


WineHorror1 says


Realtors are sales people.


The same thing said two different ways.
81   FarmersWon   2021 Apr 29, 11:20am  

I frequently get mailers with realtors saying they have sold real estate worth billion.
e.g. see this lady:
https://www.chawlarealestate.com/
Claiming 1.3B in total sales and many 10s of millions since beginning of this year.

If she is able to keep 1% after expenses, She has already cleared $13M in income.
82   B.A.C.A.H.   2021 Apr 29, 11:31am  

Farmer,

If you think your story about ®ealtors is the whole picture, then get your license.

Then you will get your own Pocket Listing and be able to make your own purchase of your own listing, paying your commission to your self.

The license is so cheap that you'll come out ahead on the commission.

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