Real estate prices have really shot up in my city over the past year, and from what I've heard, this is happening all over the place.
They really skyrocketed here, too! The insanely high prices would be hilarious if it weren't for the plight of first time buyers in this market.
I am not a real estate professional, but it seems to me like maybe they are starting to level off right now in my neighborhood. Maybe.
A few questions:
1. What's going on? Why are prices jumping so high, all of a sudden?
I think it's inflation but I guess most people think there are other reasons. Articles I read say that people can work from home these days so a lot of people are moving to areas they prefer.
2. Do you expect this to be short-lived, then prices stabilize? Or are we looking at something more prolonged?
I think they will stabilize, but I don't think they will go back down.
As you assess my answer, bear in mind that I never in a million years would have expected the real estate volatility back around 15 years ago or so. At that time, I thought real estate could not drop in value. Boy was that a surprise.
3. Would now be a bad time to relocate? Or is it a wash? I'm thinking that since you could sell your old house for more, that would balance out the extra you'd be paying for the new one. But maybe I'm missing something.
From an investment perspective I'd think it was a bad time to relocate. You get more for the house you sell, and that will help you pay for the new house. But then, you may want to rent for a year or so between houses, to decide on a neighborhood, or to find the right house in this crazy real estate market. And rents are supposed to be going up too, pretty soon if not already.
I hear that you pretty much have to provide an all cash offer for considerably more than asking price, and even so you'll lose house after house before you manage to snag one. Also, I suspect that the houses available to buy are not as nice as they used to be, since people don't have to fix up a house to sell it.
The decision is complicated by the fact that life is short, and you might as well enjoy it! I think that if I really wanted to relocate, I'd do it in a heartbeat. I think that if I didn't especially care and was just thinking about it because I was bored, I'd shelve that plan and wait.