No bubble. No consumer debt issue at the moment.
Demand is being driven by population growth, migration out of urban areas and low financing cost.
Supply is low because of underbuilding after the GFC and natural elimination of housing units due to obsolescence, rezoning, demolition, etc.
I have seen articles on real estate softness in urban centers. The net effect however is a strong market across the country.
It's time to make money in the market on companies that service the industry. Many companies to choose from in this sector. The debaters can debate, or they can make money in the stock market. Or both.
Have you read this thread lots of good feedback on realtor...
https://www.early-retirement.org/forums/showthread.php?p=2593206
I will try and keep this brief so feel free to ask any questions you might have.<br />
4 siblings inherited house we grew up in when both our parents passed away in late 2019 and early 2020. Its in the SF bay area and no one party can afford to buy out the others and keep it even if we all agreed to give the buying party a deep discount. Plus the house could really use total remodel inside.<br />
Due to Covid we had delayed the sale till now. Two brothers who live in the area have been clearing things out and getting the place ready for selling. Parents were smokers so they removed the carpet and had the inside repainted. Still things are going to look outdated.<br />
The one brother who has done the majority of the planning and work has lined up a realtor he knows of who is going to do the sale at 5%. They are suggesting listing it on the lower side of what houses in the area are going for. Expecting multiple offers in the hot housing market.<br />
One sibling who is watching Redfin and Zillow estimates and recent sales thinks we should list it much higher because of the hot market.<br />
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I can see both points of view. Any thoughts would be appreciated.
we're not moving, selling or buying but we'll be soon offering for sale my late BIL's 2BR/2Bath condo in San Jose as part of settling his affairs/estate. we're looking for a quick "as-is" sale so i'm hoping the demand sticks around for a few more months.
No bubble. No consumer debt issue at the moment.
Demand is being driven by population growth, migration out of urban areas and low financing cost.
Supply is low because of underbuilding after the GFC and natural elimination of housing units due to obsolescence, rezoning, demolition, etc.
I have seen articles on real estate softness in urban centers. The net effect however is a strong market across the country.
It's time to make money in the market on companies that service the industry. Many companies to choose from in this sector. The debaters can debate, or they can make money in the stock market. Or both.
Here in Florida, that’s pretty common for any desirable property...you’ll have plenty of company.
The crazy thing about this hot real estate market is that it does not seem to be location-dependent.
Bubble Bubble Bubble!
I think the driver that has really blown it up large is Covid-19 and the "work from home, so home can be anywhere" issue.
But I think with a bit of time, there will be some strong currents the other way:
1) A return to work in-person for many. Problems bringing on new people, and getting them up to speed when so many/all are "remote" workers. Loss of intellectual critical mass, where big new things start/problems are solved due to hallway or overheard conversations. How to decide who to promote, when remote (catchy phrase, eh?). Remote workers may unknowingly put themselves onto the gig-worker track. They may like the idea at first, but losing stability, benefits, the next recession... Not everyone is cut out to be a one-person consultant company. If they think that they can do it sitting at home in their PJs getting up at 10 AM to use their laptop, and that's the way it will be, good luck. A few can do it, till their star fades, I think most can't.
People are not dumb. They see Washington DC printing presses running overtime, printing money out of thin air, for one multi trillion dollar extravaganza after another. People are running to put their rapidly devaluing dollars into some real asset---houses! And the good thing about a house is, you can live in it. Better to have a house with an inflating value, than to leave one's wealth in dollars which are being rapidly devalued.
This is an aside, but I can’t imagine working a corporate/office job that’s 100% WFH. Not saying it can’t be done, but for me I needed that face-to-face interaction to build relationships, provide feedback, etc. I often wonder how I would have managed being forced to WFH for the past year.
I feel the same way. I'm amazed at all the people who want to be 100% in work for home.Yes. While still working, there were periods when I had to work from home due to impending deadlines and needed “no interruptions”. It didn’t take long to realize that when you work from home you’re always at work. Not for me, I was glad to return to normal work-life separation.
Yes. While still working, there were periods when I had to work from home due to impending deadlines and needed “no interruptions”. It didn’t take long to realize that when you work from home you’re always at work. Not for me, I was glad to return to normal work-life separation.
Suburban homes in particular, given their greater square footage and yards probably will continue to grow in price driven by these trends and a greater slice of the workforce working from home.
I'm in the same point as you, however my compressor locked up on my 26 year old heat pump. It's time for a new unit.
You can see the prices online==$2250-2500 for 3 ton heat pumps.
I was quoted $5300, $7200 and $8900. I'm sorry, but I'm not going to pay anyone for a $3000, $4500 or $6000 profit for one day's labor.
I finally got a $4100 bid and jumped on it. The guy is a small HVAC firm without all the overhead of the contractors with 30-50 employees.
I like the observation and colorful write-upIn the blink of an eye, millennials' bio clocks all went off at once. Guess what? They don't want to raise their kids in grandma and grandpa's basement. Yet ironically, many grandparents are building homes for the kids to do so... but the kids want their space.
Do you mark to market?My net worth is 78% real estate, hope the good times keep going.
I’ve been casually shopping for a vacation home, nothing serious, but I have definitely noticed prices increasing with supply decreasing.
In the meantime, my (tentative) plans for buying a vacation home are on hold unless prices start to scale down. I also don’t see myself paying over list price and getting into a bidding war. So we’ll see what the future holds.