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Old 06-17-2013, 05:43 PM   #41
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Are we talking townhomes or tulips?
Hey my Dutch Merchant says they are a can't lose proposition.
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Old 06-18-2013, 02:07 AM   #42
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Sorry to get back to you so late, life is a lot busier these years. Wow, that's really, really close to the place I picked up. The border of La Costa is across the street from my place. But I'm in the "poorer" zip code. She has a superior "product" to the 2 bedroom I bid on next to her. Zillow may say $280k but appraisals and robo-appraisals like that are way behind the market realities. I'm certain she could get out from under the property if she listed for $330k.

Here's a closing in her 'hood:

SDLookup.com | 2323*Caringa*Way*#12 - MLS# 130014393
Thanks, I just sent it to her. That is indeed close by. And the same place sold for $240K in February!! I assume that that was a bank sale (the previous owner was underwater after a 9 year holding period) and then it was bought by an investor and flipped almost immediately for a huge profit.
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Old 06-18-2013, 10:29 AM   #43
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Cash is king, those who are in a position to do so have made a killing this Spring. I would say the market has begun to level off (you know this because now the newspapers are starting to say, "Real Estate is getting hot!" they are always so behind). It's still moving up, but it's moving up more slowly. It may just be a breather, though.
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Old 06-18-2013, 03:04 PM   #44
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Cash is king, those who are in a position to do so have made a killing this Spring. I would say the market has begun to level off (you know this because now the newspapers are starting to say, "Real Estate is getting hot!" they are always so behind). It's still moving up, but it's moving up more slowly. It may just be a breather, though.
South Florida homes have been selling but I am noticing an influx of foreclosures on the low end. Also, I hadn't paid much attention to commercial, so I was surprised to see it at about half the value as in 2010. I believe that the struggling housing story, at least in the hardest hit areas, remains to be written.
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Old 06-18-2013, 03:39 PM   #45
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I saw a townhouse bought within the last year for ~$400K being flipped for ~$600K just months later. 50% increase in 6 months? I view that as a bubble sign. It reminded me of the stories about tulip mania. There are still a lot of homes in foreclosure on the local real estate sites, so I just don't see the crazy home prices lasting, especially with mortgage rates going up.
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Old 06-18-2013, 04:34 PM   #46
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I saw a townhouse bought within the last year for ~$400K being flipped for ~$600K just months later. 50% increase in 6 months? I view that as a bubble sign. It reminded me of the stories about tulip mania. There are still a lot of homes in foreclosure on the local real estate sites, so I just don't see the crazy home prices lasting, especially with mortgage rates going up.
DB and wife have been "trying" to buy in their SF neighborhood, but keep losing out to all cash offers. One home billed as fixer up was bought, painted only, then resold 3 mo later for $500k more!
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Old 06-18-2013, 05:09 PM   #47
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The real estate frenzy has gotten much worse in the DC area this year. Condo, row house, & house prices in DC are crazy, even in some so-so neighborhoods. In desirable close-in suburbs in VA & MD, older houses are routinely torn down and replaced with McMansions. After the last bubble burst, homes inside-the-Beltway would still sell readily but at reduced prices. Now prices are higher than they were at the top of the last bubble. After the last bubble burst, developers continued to buy older houses in desirable suburbs and tore them down, but they wouldn't start construction on the McMansion until there was a buyer. Now they're building on spec again. I read a recent article about developers and real estate agents approaching retired folks living in old houses in Arlington, VA, to attempt to woo them to sell. One small, old house in suburban MD, just 1,050 sq. ft on a 5,000 ft lot near a Metro station, was advertised recently as a tear-down for $1 million. It had a contract almost immediately. The developer who bought it wants $2.4 million for a new 4,600 sq. ft. house they'll be building.
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Old 06-18-2013, 06:19 PM   #48
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Phew, sounds nuts. This place is for cash flow via rental only, I'm not smart enough to speculate. Nords put it best when he said, "Ah, your exit strategy is probate!" Indeed. As a 38 year old, I can afford to wait.
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Old 06-18-2013, 09:53 PM   #49
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Now prices are higher than they were at the top of the last bubble.
But remember - interest rates are, what, 33% (or even more) lower than at the top of the last bubble. That makes affordability (for that particular buyer) even greater when looked at on a mortgage payment basis. Sure, more people may be priced out due to lenders requiring 20%+ down and a stronger credit score, but for those that can afford it, having an interest rate on a 30 year mortgage at 3.5% vs 4.5% or 5% is a huge difference.

And perhaps people are starting to realize that this is getting closer to the 11th hour for a truly once-in-a-lifetime opportunity to get a 30 year mortgage at this rate before rates start ratcheting up, and there's a larger influx of people all of a sudden wanting to buy, just as the inventory of homes is steadily decreasing as more people wait for higher prices before moving.
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