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  #51   Report Post  
Old May 4th 21, 04:46 PM posted to rec.woodworking
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First recorded activity by DIYBanter: Nov 2017
Posts: 4,468
Default OT: House Offer Accepted. What A Crazy Market!

On Tue, 04 May 2021 15:09:57 GMT, (Scott Lurndal)
wrote:

Leon [email protected] writes:
On 5/3/2021 8:52 PM,
wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!



Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.


Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.


There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.

Houses in south San Jose are going for $250,000 over list or more.

House next door out here in the sticks (1 Hectare, 45 miles south of SJC)
was listed for 1.3 and had close to a dozen offers, I haven't
seen the final price, but I suspect it was close to 1.7M.

We had a semi locally went for $250 over asking. Almost $700Grand for
a SEMIDETATCHED home!!!!! Toronto buyers, to a large extent, getting
out of the city (60 to 70 km commute - but due to Covid working from
home)

  #52   Report Post  
Old May 4th 21, 07:35 PM posted to rec.woodworking
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First recorded activity by DIYBanter: Apr 2011
Posts: 12,048
Default OT: House Offer Accepted. What A Crazy Market!

On 5/4/2021 10:41 AM, Clare Snyder wrote:
On Tue, 4 May 2021 10:16:44 -0500, Leon [email protected] wrote:

On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
On 5/2/2021 8:32 PM, Clare Snyder wrote:
On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski wrote:

On 5/2/2021 4:42 PM, Bill wrote:
On 5/2/2021 3:43 PM, DerbyDad03 wrote:

Their offer was accepted, not just based on the offer price, but also
based on the appraisal clause. Another offer also had an escalation
clause that maxed out at $410K, but the appraisal clause was only
$13K above the appraisal value, $2K less than their offer. That was
close!

I'll assume my previous message has been read. Color my cynical but all
I have to say is "what a coincidence!".¬*¬* That said, I congratulate the
buyers on their new home. The way property is appreciating, it will
surely be a great investment in the long run, and you can live in
it!


I wonder in 3 to 5 years if the house price today will still be a good
investment when interest rates are back up.
¬*¬* I'm betting there will be a lot of people with upside down mortgages
in 5 to 10 years in several areas of the country. Our area is less
likely to see it than many others due to our resiliant economy -¬* but
%7 would definitely be painfull for MANY buyers - even here.


Exactly.¬* A scenario like:¬* I paid 500k for this house, owe 400k and the
highest offer is 300k.

Live there long enough and you are ok, but if you have to relocate, you
are screwed.



This is what is happening now. It will be interesting to see how many
people will be upside down in 2~5 Years.



I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
lucky and had an 800 credit score.


40 years and 4 months ago my wife and I paid 60K. 30 years, 12%
interest in Jan 1981 Refinanced 6 years later for 9% for 15 years. We
accelerated the payments after refinance and paid the mortgage off Feb,
1997.

Estimated value today $164K. $98K 10 years ago when we sold.

Cash for the next home in 2010.




That was when people WERE upside-down on their mortgages in a lot of
cases because of the 1980s recession with high rates causing prices to
drop. My MIL was in real estate in Windsor and people were walking
away from $800000 homes. Sadly for Windsor some of those homes are
still not worth very much more than that - - -


  #53   Report Post  
Old May 4th 21, 11:30 PM posted to rec.woodworking
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First recorded activity by DIYBanter: Apr 2011
Posts: 12,048
Default OT: House Offer Accepted. What A Crazy Market!

On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!



Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.


Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.


There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.


Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


Houses in south San Jose are going for $250,000 over list or more.

House next door out here in the sticks (1 Hectare, 45 miles south of SJC)
was listed for 1.3 and had close to a dozen offers, I haven't
seen the final price, but I suspect it was close to 1.7M.


  #54   Report Post  
Old May 5th 21, 02:07 AM posted to rec.woodworking
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First recorded activity by DIYBanter: Dec 2016
Posts: 2,582
Default OT: House Offer Accepted. What A Crazy Market!

On Tue, 4 May 2021 13:35:40 -0500, Leon [email protected] wrote:

On 5/4/2021 10:41 AM, Clare Snyder wrote:
On Tue, 4 May 2021 10:16:44 -0500, Leon [email protected] wrote:

On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
On 5/2/2021 8:32 PM, Clare Snyder wrote:
On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski wrote:

On 5/2/2021 4:42 PM, Bill wrote:
On 5/2/2021 3:43 PM, DerbyDad03 wrote:

Their offer was accepted, not just based on the offer price, but also
based on the appraisal clause. Another offer also had an escalation
clause that maxed out at $410K, but the appraisal clause was only
$13K above the appraisal value, $2K less than their offer. That was
close!

I'll assume my previous message has been read. Color my cynical but all
I have to say is "what a coincidence!".** That said, I congratulate the
buyers on their new home. The way property is appreciating, it will
surely be a great investment in the long run, and you can live in
it!


I wonder in 3 to 5 years if the house price today will still be a good
investment when interest rates are back up.
** I'm betting there will be a lot of people with upside down mortgages
in 5 to 10 years in several areas of the country. Our area is less
likely to see it than many others due to our resiliant economy -* but
%7 would definitely be painfull for MANY buyers - even here.


Exactly.* A scenario like:* I paid 500k for this house, owe 400k and the
highest offer is 300k.

Live there long enough and you are ok, but if you have to relocate, you
are screwed.


This is what is happening now. It will be interesting to see how many
people will be upside down in 2~5 Years.



I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
lucky and had an 800 credit score.


40 years and 4 months ago my wife and I paid 60K. 30 years, 12%
interest in Jan 1981 Refinanced 6 years later for 9% for 15 years. We
accelerated the payments after refinance and paid the mortgage off Feb,
1997.


When we first started (July) looking for our first home ('82, I think)
we were looking at 18% interest. We bought in September, with a 14%
30-year mortgage. A couple of years later we re-fi'd to 8%. We paid
$60K.

Estimated value today $164K. $98K 10 years ago when we sold.


Ours is now $304K (Zillow).

Cash for the next home in 2010.


I wish. The next house was in VT. We paid $150 and sold 14 years
later ('07) for $300. It's now $404. Last I looked the taxes were
$8K but it's not listed now.



That was when people WERE upside-down on their mortgages in a lot of
cases because of the 1980s recession with high rates causing prices to
drop. My MIL was in real estate in Windsor and people were walking
away from $800000 homes. Sadly for Windsor some of those homes are
still not worth very much more than that - - -

The dangers of ARMs. Without enough equity there's no way to
refinance when the interest rate climbs. Same problem in '07-'11.
  #55   Report Post  
Old May 5th 21, 03:48 AM posted to rec.woodworking
external usenet poster
 
First recorded activity by DIYBanter: Nov 2006
Posts: 14,759
Default OT: House Offer Accepted. What A Crazy Market!

On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!



Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.


Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.


There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.

Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


What's going on in your area might not be the norm.

The lack of supply appears to relate to both existing homes and building
supplies.

My son is a RE agent in Las Vegas. He tells me that they usually have a 6
month of supply of houses in their listings. Currently, it's less than a month.

He, my daughter and my other son have all been on the buying side of the
market in the last 6 months. NY, NV and IN. Finding a house wasn't easy in
any of those areas. They all paid a lot more than they would have just a few
years ago due to the lack of supply.

Now, as to building new, these articles were written in March 2021. They both
discuss a shortage of wood and the associated price increase of (and delay in)
getting a house built.

https://www.businessinsider.com/real...ruction-2021-3

https://www.wmbfnews.com/2021/03/29/...ces-skyrocket/







  #56   Report Post  
Old May 5th 21, 02:23 PM posted to rec.woodworking
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First recorded activity by DIYBanter: Apr 2011
Posts: 12,048
Default OT: House Offer Accepted. What A Crazy Market!

On 5/4/2021 9:48 PM, DerbyDad03 wrote:
On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!


Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.

Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.

There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.

Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


What's going on in your area might not be the norm.

The lack of supply appears to relate to both existing homes and building
supplies.

My son is a RE agent in Las Vegas. He tells me that they usually have a 6
month of supply of houses in their listings. Currently, it's less than a month.

He, my daughter and my other son have all been on the buying side of the
market in the last 6 months. NY, NV and IN. Finding a house wasn't easy in
any of those areas. They all paid a lot more than they would have just a few
years ago due to the lack of supply.

Now, as to building new, these articles were written in March 2021. They both
discuss a shortage of wood and the associated price increase of (and delay in)
getting a house built.

https://www.businessinsider.com/real...ruction-2021-3

https://www.wmbfnews.com/2021/03/29/...ces-skyrocket/





Well I am certain different locations will be different but in San
Antonio and Houston, there is no shortage of building materials. Never
really was except for a brief period last year, just like groceries were.

New homes/new neighborhoods are going up at a shocking rate. There is a
new neighborhood, being built by Meritage homes, across the street from
our subdivision. This was in the plans a couple of years ago, a 130
home community, buy there was just an empty field of grass in December.
Now there are streets and a model is going up along with 6 spec homes.
Another near by neighborhood that will likely have a thousand homes
started a couple of months earlier in October, also in a grass covered
field. The are probably 40 or 50 new homes in that location now. And
the one we were going to have a home built in has probably built 50
homes since October.

And all of these homes are going up at a going up and being sold at an
alarming rate.

Covid was a dream come true for home builders and the Democratic party
leaders.
  #57   Report Post  
Old May 5th 21, 02:30 PM posted to rec.woodworking
external usenet poster
 
First recorded activity by DIYBanter: Apr 2011
Posts: 12,048
Default OT: House Offer Accepted. What A Crazy Market!

On 5/4/2021 8:07 PM, wrote:
On Tue, 4 May 2021 13:35:40 -0500, Leon [email protected] wrote:

On 5/4/2021 10:41 AM, Clare Snyder wrote:
On Tue, 4 May 2021 10:16:44 -0500, Leon [email protected] wrote:

On 5/3/2021 8:34 AM, Ed Pawlowski wrote:
On 5/2/2021 8:32 PM, Clare Snyder wrote:
On Sun, 2 May 2021 17:44:19 -0400, Ed Pawlowski wrote:

On 5/2/2021 4:42 PM, Bill wrote:
On 5/2/2021 3:43 PM, DerbyDad03 wrote:

Their offer was accepted, not just based on the offer price, but also
based on the appraisal clause. Another offer also had an escalation
clause that maxed out at $410K, but the appraisal clause was only
$13K above the appraisal value, $2K less than their offer. That was
close!

I'll assume my previous message has been read. Color my cynical but all
I have to say is "what a coincidence!".¬*¬* That said, I congratulate the
buyers on their new home. The way property is appreciating, it will
surely be a great investment in the long run, and you can live in
it!


I wonder in 3 to 5 years if the house price today will still be a good
investment when interest rates are back up.
¬*¬* I'm betting there will be a lot of people with upside down mortgages
in 5 to 10 years in several areas of the country. Our area is less
likely to see it than many others due to our resiliant economy -¬* but
%7 would definitely be painfull for MANY buyers - even here.


Exactly.¬* A scenario like:¬* I paid 500k for this house, owe 400k and the
highest offer is 300k.

Live there long enough and you are ok, but if you have to relocate, you
are screwed.


This is what is happening now. It will be interesting to see how many
people will be upside down in 2~5 Years.


I paid $63700 39 years ago. That is about $170,000 in 2021 dollars. I
assumed a 6.3% mortgage when the going rate was 23% - 18% if you were
lucky and had an 800 credit score.


40 years and 4 months ago my wife and I paid 60K. 30 years, 12%
interest in Jan 1981 Refinanced 6 years later for 9% for 15 years. We
accelerated the payments after refinance and paid the mortgage off Feb,
1997.


When we first started (July) looking for our first home ('82, I think)
we were looking at 18% interest. We bought in September, with a 14%
30-year mortgage. A couple of years later we re-fi'd to 8%. We paid
$60K.


I recall mortgage rates going up to 18 % shortly after we closed at 12%



Estimated value today $164K. $98K 10 years ago when we sold.


Ours is now $304K (Zillow).

Cash for the next home in 2010.


I wish. The next house was in VT. We paid $150 and sold 14 years
later ('07) for $300. It's now $404. Last I looked the taxes were
$8K but it's not listed now.


Farkin taxes! You can afford to buy a home but can one afford to pay
the taxes on it.





That was when people WERE upside-down on their mortgages in a lot of
cases because of the 1980s recession with high rates causing prices to
drop. My MIL was in real estate in Windsor and people were walking
away from $800000 homes. Sadly for Windsor some of those homes are
still not worth very much more than that - - -

The dangers of ARMs. Without enough equity there's no way to
refinance when the interest rate climbs. Same problem in '07-'11.


We almost went with an ARM in 2010. It was locked in for 5 years. We
were only going to borrow about 20K, just to give us some kush after
moving in. We would have paid it off within the next couple of years so
the rate would not have ever gone up on us. But we decided to go all
cash to get and additional 3% discount off of the negotiated sale price.
  #58   Report Post  
Old May 5th 21, 02:57 PM posted to rec.woodworking
external usenet poster
 
First recorded activity by DIYBanter: Jul 2006
Posts: 2,304
Default OT: House Offer Accepted. What A Crazy Market!

Leon [email protected] writes:
On 5/4/2021 9:48 PM, DerbyDad03 wrote:
On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!


Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.

Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.

There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.
Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


What's going on in your area might not be the norm.

The lack of supply appears to relate to both existing homes and building
supplies.

My son is a RE agent in Las Vegas. He tells me that they usually have a 6
month of supply of houses in their listings. Currently, it's less than a month.

He, my daughter and my other son have all been on the buying side of the
market in the last 6 months. NY, NV and IN. Finding a house wasn't easy in
any of those areas. They all paid a lot more than they would have just a few
years ago due to the lack of supply.

Now, as to building new, these articles were written in March 2021. They both
discuss a shortage of wood and the associated price increase of (and delay in)
getting a house built.

https://www.businessinsider.com/real...ruction-2021-3

https://www.wmbfnews.com/2021/03/29/...ces-skyrocket/





Well I am certain different locations will be different but in San
Antonio and Houston, there is no shortage of building materials. Never
really was except for a brief period last year, just like groceries were.

New homes/new neighborhoods are going up at a shocking rate. There is a
new neighborhood, being built by Meritage homes, across the street from
our subdivision. This was in the plans a couple of years ago, a 130
home community, buy there was just an empty field of grass in December.
Now there are streets and a model is going up along with 6 spec homes.
Another near by neighborhood that will likely have a thousand homes
started a couple of months earlier in October, also in a grass covered
field. The are probably 40 or 50 new homes in that location now. And
the one we were going to have a home built in has probably built 50
homes since October.


50 homes in the Houston metro area isn't even in the noise....

Record low inventory:

https://www.noradarealestate.com/blo...estate-market/
https://www.houstonchronicle.com/bus...p-15852599.php

"\u201cI\u2019ve got more buyers than I have homes to sell them,\u201d said Shad Bogany, a
broker associate with Better Homes and Gardens Real Estate Gary Greene in Houston. \u201cWe just don\u2019t have the inventory.\u201d"

Supply and Demand indeed.
  #59   Report Post  
Old May 5th 21, 03:45 PM posted to rec.woodworking
external usenet poster
 
First recorded activity by DIYBanter: Apr 2011
Posts: 12,048
Default OT: House Offer Accepted. What A Crazy Market!

On 5/5/2021 8:57 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/4/2021 9:48 PM, DerbyDad03 wrote:
On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!


Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.

Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.

There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.
Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


What's going on in your area might not be the norm.

The lack of supply appears to relate to both existing homes and building
supplies.

My son is a RE agent in Las Vegas. He tells me that they usually have a 6
month of supply of houses in their listings. Currently, it's less than a month.

He, my daughter and my other son have all been on the buying side of the
market in the last 6 months. NY, NV and IN. Finding a house wasn't easy in
any of those areas. They all paid a lot more than they would have just a few
years ago due to the lack of supply.

Now, as to building new, these articles were written in March 2021. They both
discuss a shortage of wood and the associated price increase of (and delay in)
getting a house built.

https://www.businessinsider.com/real...ruction-2021-3

https://www.wmbfnews.com/2021/03/29/...ces-skyrocket/





Well I am certain different locations will be different but in San
Antonio and Houston, there is no shortage of building materials. Never
really was except for a brief period last year, just like groceries were.

New homes/new neighborhoods are going up at a shocking rate. There is a
new neighborhood, being built by Meritage homes, across the street from
our subdivision. This was in the plans a couple of years ago, a 130
home community, buy there was just an empty field of grass in December.
Now there are streets and a model is going up along with 6 spec homes.
Another near by neighborhood that will likely have a thousand homes
started a couple of months earlier in October, also in a grass covered
field. The are probably 40 or 50 new homes in that location now. And
the one we were going to have a home built in has probably built 50
homes since October.


50 homes in the Houston metro area isn't even in the noise....


No kidding, the real number is probably 100 times that. I was just
talking about within a 5 minute drive from our home. You cannot drive
any where, in only the west Houston area, with out seeing 5~10 new
neighborhoods that were not there a year ago.

And I am not saying that our market for new homes is the hottest, just
that there is no shortage of materials to build these homes.



Record low inventory:

https://www.noradarealestate.com/blo...estate-market/
https://www.houstonchronicle.com/bus...p-15852599.php

"\u201cI\u2019ve got more buyers than I have homes to sell them,\u201d said Shad Bogany, a
broker associate with Better Homes and Gardens Real Estate Gary Greene in Houston. \u201cWe just don\u2019t have the inventory.\u201d"

Supply and Demand indeed.



Supply of new homes yes, supply of materials NO. So there is really no
reason for material prices to be as high as they are.

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Old May 5th 21, 04:03 PM posted to rec.woodworking
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Default OT: House Offer Accepted. What A Crazy Market!

On Wednesday, May 5, 2021 at 10:45:46 AM UTC-4, Leon wrote:
On 5/5/2021 8:57 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/4/2021 9:48 PM, DerbyDad03 wrote:
On Tuesday, May 4, 2021 at 6:30:47 PM UTC-4, Leon wrote:
On 5/4/2021 10:09 AM, Scott Lurndal wrote:
Leon [email protected] writes:
On 5/3/2021 8:52 PM, wrote:
On Mon, 3 May 2021 18:10:26 -0500, Leon [email protected] wrote:

On 5/2/2021 2:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…


If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!


Not a good idea to buy a home for the time being. Prices are going
crazy and for no good reason. It is a fluke.

I thought you were.

Yes we were. No longer. The home we went into contract for in late
September, $365K is not welling for $430K. Almost 10K per month price
increases in the last 7 months.

Our home went up in value, in the past 7 months, from $232K to $274K.

There is a "reason". Whether it is good or not depends on whether you
are buying or selling.

Lack of supply, high demand.
Lack of supply was a temporary fluke. Building supplies are readily
available. Homes are being built at a record rate in my area. Demand
is up but supply has not been an issue since summer of last year.

While economics has a theory for supply and demand, this ain't that. It
is greed and demand. The builders are saying, lets see how much these
people will pay.


What's going on in your area might not be the norm.

The lack of supply appears to relate to both existing homes and building
supplies.

My son is a RE agent in Las Vegas. He tells me that they usually have a 6
month of supply of houses in their listings. Currently, it's less than a month.

He, my daughter and my other son have all been on the buying side of the
market in the last 6 months. NY, NV and IN. Finding a house wasn't easy in
any of those areas. They all paid a lot more than they would have just a few
years ago due to the lack of supply.

Now, as to building new, these articles were written in March 2021. They both
discuss a shortage of wood and the associated price increase of (and delay in)
getting a house built.

https://www.businessinsider.com/real...ruction-2021-3

https://www.wmbfnews.com/2021/03/29/...ces-skyrocket/





Well I am certain different locations will be different but in San
Antonio and Houston, there is no shortage of building materials. Never
really was except for a brief period last year, just like groceries were.

New homes/new neighborhoods are going up at a shocking rate. There is a
new neighborhood, being built by Meritage homes, across the street from
our subdivision. This was in the plans a couple of years ago, a 130
home community, buy there was just an empty field of grass in December..
Now there are streets and a model is going up along with 6 spec homes.
Another near by neighborhood that will likely have a thousand homes
started a couple of months earlier in October, also in a grass covered
field. The are probably 40 or 50 new homes in that location now. And
the one we were going to have a home built in has probably built 50
homes since October.


50 homes in the Houston metro area isn't even in the noise....

No kidding, the real number is probably 100 times that. I was just
talking about within a 5 minute drive from our home. You cannot drive
any where, in only the west Houston area, with out seeing 5~10 new
neighborhoods that were not there a year ago.

And I am not saying that our market for new homes is the hottest, just
that there is no shortage of materials to build these homes.

Record low inventory:

https://www.noradarealestate.com/blo...estate-market/
https://www.houstonchronicle.com/bus...p-15852599.php

"\u201cI\u2019ve got more buyers than I have homes to sell them,\u201d said Shad Bogany, a
broker associate with Better Homes and Gardens Real Estate Gary Greene in Houston. \u201cWe just don\u2019t have the inventory.\u201d"

Supply and Demand indeed.

Supply of new homes yes, supply of materials NO. So there is really no
reason for material prices to be as high as they are.


I curious as to why you continue to say that there is no shortage of materials,
when it's really easy to find current articles (like as of last week) that say that
there is. I'm asking, not arguing.

I'm not in the middle of it, so I only know what I read, which seems to dispute
your claim. What are you seeing/hearing/reading that indicates that there is
no shortage?

e.g. https://investorplace.com/2021/04/lu...s-are-soaring/

In addition, while new homes are certainly being built, how much has the price
increased due to reported lumber shortages? I've seen numbers that range from
$16K to $24K on average.

I might be recalling this incorrectly, but weren't you going to build but changed your
mind due to the increased cost? (It may have been someone else)


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