Platinum Contributing Member Blackstar Posted March 7, 2021 Platinum Contributing Member Share Posted March 7, 2021 Real estate prices are going through the roof here. Lack of houses on the market and more people working from home due to Covid rules is pushing the market. 2 Years ago the average selling price of a detached house crossed $600k.In January it was up to $800k. Last week they announced that has now gone to $900k. My employee bought a house in October for $890k. His realator told him if he listed now he'd get between $1.1-1.2 mil. A semi-detached house sold last month and made the news when it sold for $801k. It listed for $599k and a bidding war ensued. It was a recent build and had an apartment set up in the basement. Now they say that the prices have gone out of reach for most first time house buyers so who is buying? Investors. They are buying and renting them out as those in apartments still want a house. Experts are predicting another 5-10% increase as spring hits then a stagnation of the market. A house is coming to market 1000 feet from me. It lists this week and I want it for my son and a parking/storage area for my business but I need it to be somewhat reasonable to justify the cost. It will be interesting. Quote Link to comment Share on other sites More sharing options...
Gold Member 800renegaderider Posted March 7, 2021 Gold Member Share Posted March 7, 2021 Prices are insane. They’ve been through the roof here since last year. We sold our first house last April got more than I thought it was even worth on the high side. The new house we built I bet we could sell for good money over what we paid last fall. It’s gonna come crashing hard sooner or later IMO. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted March 7, 2021 Share Posted March 7, 2021 Wait till the foreclosures hit. The fed has been holding them off. Quote Link to comment Share on other sites More sharing options...
smokin george Posted March 7, 2021 Share Posted March 7, 2021 We are down in Nova Scotia and there's an inventory shortage here. A couple looking put an offer of $100K over asking and were outbid. We have a 1900 sq ft ranch style on 4.77 acres that we're gonna list shortly. We've had half a dozen inquiries already and 3 are from Ont and 3 from here. Show me the money lol. One lady asked if she can have 1st dibs lol. Quote Link to comment Share on other sites More sharing options...
Rod Posted March 7, 2021 Share Posted March 7, 2021 Record low interest rates and materials to build new are sky high Quote Link to comment Share on other sites More sharing options...
Zambroski Posted March 7, 2021 Share Posted March 7, 2021 Decided to sell mine up in Duluth, MN. Listed it high....three offers in two days. Took a cash offer of $30k over listed price. Made good bank. Just unreal. We're flipping my inlaws house now and expect to do even better. I mean....silly and funny all at the same time! Quote Link to comment Share on other sites More sharing options...
Rod Posted March 7, 2021 Share Posted March 7, 2021 Around here it’s acreages now. After this the townies don’t want to be in town Quote Link to comment Share on other sites More sharing options...
ckf Posted March 7, 2021 Share Posted March 7, 2021 14 minutes ago, Zambroski said: Decided to sell mine up in Duluth, MN. Listed it high....three offers in two days. Took a cash offer of $30k over listed price. Made good bank. Just unreal. We're flipping my inlaws house now and expect to do even better. I mean....silly and funny all at the same time! Are you getting out of MN completely? Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted March 7, 2021 Share Posted March 7, 2021 38 minutes ago, Mainecat said: Wait till the foreclosures hit. The fed has been holding them off. plenty of room for that inventory in desirable areas, might hurt a bit in rural but IMO worst case is keeping appreciation down for 18 months while it's absorbed. Way more in forbearence for convenience than need so no where near as bad. we need to rip the band aid off so people can get foreclosure proceedings started and sell them before that point while they can make some money Quote Link to comment Share on other sites More sharing options...
Anler Posted March 7, 2021 Share Posted March 7, 2021 Housing crash is coming up. Record unemployment, distressed business, covid restrictions, mortgage/rent moratorium expiring and there is a housing boom? Where have we seen this before? Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted March 7, 2021 Share Posted March 7, 2021 1 minute ago, Anler said: Housing crash is coming up. Record unemployment, distressed business, covid restrictions, mortgage/rent moratorium expiring and there is a housing boom? Where have we seen this before? 10 years of somewhat tight credit in comparison to the 00's should limit the damage some. Assuming the rebound is fairly quick post covid with pent up demand for normalcy. First half of the 10's was tighter credit than even the early 90s when i got into lending. Quote Link to comment Share on other sites More sharing options...
Gold Member Stephen Hawking Posted March 7, 2021 Gold Member Share Posted March 7, 2021 1 hour ago, Mainecat said: Wait till the foreclosures hit. The fed has been holding them off. In canada? Quote Link to comment Share on other sites More sharing options...
Mainecat Posted March 7, 2021 Share Posted March 7, 2021 Problem is money is basically free the rates are so low. Back in 08 rates were 8-9% and when one spouse lost their job they could refi at a lower rate and stave off a foreclosure cause you were upside down. At today’s 2% rates when the values drop and a spouse loses their job it’s just gonna be a walk away. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted March 7, 2021 Share Posted March 7, 2021 1 minute ago, Stephen Hawking said: In canada? Spanksylvania. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Blackstar Posted March 7, 2021 Author Platinum Contributing Member Share Posted March 7, 2021 (edited) 33 minutes ago, Anler said: Housing crash is coming up. Record unemployment, distressed business, covid restrictions, mortgage/rent moratorium expiring and there is a housing boom? Where have we seen this before? I've been waiting for a market down turn for 5 years but it just hasn't come. The last one was when Blackberry took a shit 10-12 years ago. All the gravy jobs left and so did most of the exec's. $1mil houses dropped to $700-800k and sat for a long time before they sold. The market started climbing again 5 years ago and those same houses are now selling for $1.3k-1.5k. Tech companies have flocked here picking up the out of work Techi employees now. One of my customers bought a new build on a court in the premium golf course community here. He paid $1.7mil 3 years ago. His neighbour just sold for $2.5mil and he has the better lot with the pool and big cabana. Now he wants to sell and move across the road since those lots back on the green space but the builder wants $1mil plus for just the lot. This property I want has a shitty little house (probably 800-900 sqft and over 100 years old) and a shop (1000sqft but in disrepair) and on a 1 acre lot. The old guy who lived there ran a wrecking yard/scrap business out of the backyard even though he wasn't zoned for it. He was quiet so no one complained. He and his wife died within months of each other last spring. I hear that the daughter owns it now. I waited for the sign to go up all last summer but it never happened. I seen a truck and loader there a month ago. I looked over the fence last week and most of the cars and trucks are gone and the scrap has been taken away. I'm sure they hope to hide the fact so no one asks for an environmental study but if they check google you can see the backyard is full. I put my realtor on it. He says its a crazy market. The house is too close to the road so its a knock down and the new house has to go where the shop is. Hopefully it scares a bunch of the potential speculators away. I'm hoping for $600k and thinking it will go close to $700k. My neighbour wanted $450k for his place 3-4 years ago and I came so close to buying it. I had $40k cash in my hand and walked 10 feet into his property and turned back. He sold for $440k. My son quit working for me and went back to university a couple months later so it would have hurt not having his income. My plan would be to buy it and rent the house out, probably rent out the shop and most of the yard too. I'd put a couple seacans in the yard for storage for my business as I'm running out of space here. In 5 years I'll be in a different situation as I start to look at retirement/slowing the business and he will be finished university. Edited March 7, 2021 by Blackstar Quote Link to comment Share on other sites More sharing options...
Anler Posted March 7, 2021 Share Posted March 7, 2021 16 minutes ago, Blackstar said: I've been waiting for a market down turn for 5 years but it just hasn't come. The last one was when Blackberry took a shit 10-12 years ago. All the gravy jobs left and so did most of the exec's. $1mil houses dropped to $700-800k and sat for a long time before they sold. The market started climbing again 5 years ago and those same houses are now selling for $1.3k-1.5k. Tech companies have flocked here picking up the out of work Techi employees now. One of my customers bought a new build on a court in the premium golf course community here. He paid $1.7mil 3 years ago. His neighbour just sold for $2.5mil and he has the better lot with the pool and big cabana. Now he wants to sell and move across the road since those lots back on the green space but the builder wants $1mil plus for just the lot. This property I want has a shitty little house (probably 800-900 sqft and over 100 years old) and a shop (1000sqft but in disrepair) and on a 1 acre lot. The old guy who lived there ran a wrecking yard/scrap business out of the backyard even though he wasn't zoned for it. He was quiet so no one complained. He and his wife died within months of each other last spring. I hear that the daughter owns it now. I waited for the sign to go up all last summer but it never happened. I seen a truck and loader there a month ago. I looked over the fence last week and most of the cars and trucks are gone and the scrap has been taken away. I'm sure they hope to hide the fact so no one asks for an environmental study but if they check google you can see the backyard is full. I put my realtor on it. He says its a crazy market. The house is too close to the road so its a knock down and the new house has to go where the shop is. Hopefully it scares a bunch of the potential speculators away. I'm hoping for $600k and thinking it will go close to $700k. My neighbour wanted $450k for his place 3-4 years ago and I came so close to buying it. I had $40k cash in my hand and walked 10 feet into his property and turned back. He sold for $440k. My son quit working for me and went back to university a couple months later so it would have hurt not having his income. My plan would be to buy it and rent the house out, probably rent out the shop and most of the yard too. I'd put a couple seacans in the yard for storage for my business as I'm running out of space here. In 5 years I'll be in a different situation as I start to look at retirement/slowing the business and he will be finished university. I read that "they" (market experts) were expecting a crash in 2016. And the reason it didn't happen was because of quantitative easing. The cracks were definitely showing in 2019 when the fed started bailing out banks via the repo market. And then a miracle happened... Covid. Now everybody gets a bail out. This isn't sustainable, inflation is on steroids now. We are in a giant bubble. Quote Link to comment Share on other sites More sharing options...
smokin george Posted March 7, 2021 Share Posted March 7, 2021 We met quite a few from Ont that cashed out and moved to Nova Scotia. It's a hell of a lot cheaper to buy here for sure. Quote Link to comment Share on other sites More sharing options...
Rod Posted March 7, 2021 Share Posted March 7, 2021 1 minute ago, smokin george said: We met quite a few from Ont that cashed out and moved to Nova Scotia. It's a hell of a lot cheaper to buy here for sure. That’s why Stinker moved here Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Blackstar Posted March 7, 2021 Author Platinum Contributing Member Share Posted March 7, 2021 4 minutes ago, Anler said: I read that "they" (market experts) were expecting a crash in 2016. And the reason it didn't happen was because of quantitative easing. The cracks were definitely showing in 2019 when the fed started bailing out banks via the repo market. And then a miracle happened... Covid. Now everybody gets a bail out. This isn't sustainable, inflation is on steroids now. We are in a giant bubble. The bailout started here 11 months ago. People are being paid $2000/month to sit at home and those businesses that are employing people are getting wage subsidies. Small business loans are now being forgiven. No shortage of money yet but as you say, skyrocketing inflation. My pricing has gone up 12% and I'm not sure if its enough. Its hard to predict what your costs will be 2 months from now. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Blackstar Posted March 7, 2021 Author Platinum Contributing Member Share Posted March 7, 2021 4 minutes ago, smokin george said: We met quite a few from Ont that cashed out and moved to Nova Scotia. It's a hell of a lot cheaper to buy here for sure. If I was retiring I might look at the east coast but I doubt the wife would once we have a grandkid running around. If I retire and move it will likely be within 2 hours of where I am now. Quote Link to comment Share on other sites More sharing options...
favoritos Posted March 7, 2021 Share Posted March 7, 2021 It's kinda sad how crazy the pricing has become. Can't imagine trying to get into the market for a first home. I watch and shop the market for rentals and potential rentals. Been through a ton of properties over the years. I've seen a shift in the type of buyers with rental properties. There are a lot of younger shoppers and surprisingly, many are couples. Their dialog is interesting too. They seem to think that the market is made of gold. And, sadly it is right now. I've seen buildings relist in less than two years at 20% appreciation. Not a bad investment for cheaply borrowed money, paint, and shine. It does create an avenue for young buyers to get into a decent house. They can live in the multi unit property fairly cheap and build equity. Low interest rates and rising market have made it way too easy. I'm also seeing the high risk buyers starting to venture into those deals. People that don't even have a clue about the basics of financing, much less the principles of maintaining a building. One example is a couple I witnessed yesterday talking with a realtor. They were standing on a sagging porch of a multi unit wondering how to get FHA financing for the overpriced property. The building had a nice shine and a 895k price tag. The 100k in structure deficiencies and unreachable appraisal pricing were harder to see. Quote Link to comment Share on other sites More sharing options...
01mxz800 Posted March 7, 2021 Share Posted March 7, 2021 2 hours ago, ckf said: Are you getting out of MN completely? he was probably told to get the fuck out 2 Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted March 7, 2021 Share Posted March 7, 2021 2 hours ago, Mainecat said: Problem is money is basically free the rates are so low. Back in 08 rates were 8-9% and when one spouse lost their job they could refi at a lower rate and stave off a foreclosure cause you were upside down. At today’s 2% rates when the values drop and a spouse loses their job it’s just gonna be a walk away. so out of touch. Quote Link to comment Share on other sites More sharing options...
ckf Posted March 7, 2021 Share Posted March 7, 2021 35 minutes ago, 01mxz800 said: he was probably told to get the fuck out Quote Link to comment Share on other sites More sharing options...
Zambroski Posted March 7, 2021 Share Posted March 7, 2021 3 hours ago, ckf said: Are you getting out of MN completely? Not sure but, I think it's time to say goodbye to my beloved state. It's a mess and taxes are sure to keep rising to cover the poor decisions. Our daughter is still in school there so, we'll bounce back up towards Duluth this summer but hope to be building somewhere in WI by fall. 3 hours ago, Angry ginger said: 10 years of somewhat tight credit in comparison to the 00's should limit the damage some. Assuming the rebound is fairly quick post covid with pent up demand for normalcy. First half of the 10's was tighter credit than even the early 90s when i got into lending. It'd sure be nice for me to see a good downturn mud summer though the end of the year. I'll gonna be ready to scoop some stuff up for sure. 1 Quote Link to comment Share on other sites More sharing options...
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