🏡 Better Homes OFFICIAL real estate bs discussion

OffshoreDrilling

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Value is only relative to the overall market. It’s not like a particular home is in a suddenly desirable area. There’s not shit to buy anywhere so it’s all going up.

You’d come out with more than you paid, less maintenance and taxes, and have to buy something similar with fewer choices.

Unless you’re getting out of owning all together or selling a second property it’s a bad rub all around.
 

DEEZUZ

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Value is only relative to the overall market. It’s not like a particular home is in a suddenly desirable area. There’s not shit to buy anywhere so it’s all going up.

You’d come out with more than you paid, less maintenance and taxes, and have to buy something similar with fewer choices.

Unless you’re getting out of owning all together or selling a second property it’s a bad rub all around.
I can't name a open lot that isn't being built on right now. We have several 350 home subdivisions going in right now. The houses are built in 8 days. They are machines out there.

My old boss sold some of his farm land earlier this year. There are move in houses already up.
 

FirstWorldProblems

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I can't name a open lot that isn't being built on right now. We have several 350 home subdivisions going in right now. The houses are built in 8 days. They are machines out there.

My old boss sold some of his farm land earlier this year. There are move in houses already up.
This summarizes it well, there's a big cumulative gap in the demand for homes due to demographics (people coming of age to buy homes/start families), and the number of homes actually built in the last 10 years


Between 2012 and 2023, the average rate of household formation was 1.4 million households per year, while the average rate of housing starts was 1.2 million homes (including both single-family and multi-family) per year.


 
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ZIPPYY

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Every home we list for sale is getting multiple offers. For the rest of 2024 I don't see this changing . Everyone is waiting for rates to drop before they make a move. But as soon as they drop it will bring in even more buyers into the marketplace and inflate prices even more. Just my opinion.

Also every home we put a bid on has multiple offers.
You must have a good mortgage broker that has you through underwriting first. So your offer looks more appealing. Makes you look like a low risk buyer.
Definitely need to get creative when buying and writing an offer but we are winning them more often than not.
 

Phalabala

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I can't name a open lot that isn't being built on right now. We have several 350 home subdivisions going in right now. The houses are built in 8 days. They are machines out there.

My old boss sold some of his farm land earlier this year. There are move in houses already up.
several vacant lots out here in the inverness/barrington area looking for buyers!
 

Boostie

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We have been looking for a couple months now. Since our offer on a house that got rejected 5 weeks ago we haven't even walked through another house. Our dream of having a big lot is slowly dying and the stupid cookie cutter style is becoming more appealing strictly on availability. I don't think I would do well with an HOA so that's kinda last resort. The last 3 weeks or so I feel like the amount of new listing has significantly decreased
 
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b00sted

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Building new is probably the best deal right now. Get what you want and a lot of builders are offering better financing rates. You just have to be in the income bracket needed to actually afford to build.

That's my plan now. I want something newer in Indiana, but with no HOA and quality materials...Which basically means building something from scratch.
 
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219Cobra

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Aug 30, 2005
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SIL listed her townhouse in NWI on thursday. 2br, 1.5 bath, 1,300 sq ft. Paid 150k in early 2019.

Listed for 244k, multiple offers, ended up accepting 252k and the buyers committed to covering an appraisal gap (not sure up to what amount).

252k for a townhouse with one shower.......bruuuutal

Where at in NWI? So glad we closed on our house in April of 21 with sub 3% mortgage rate. It’s insane by me they are building non stop and average house is probably around 500-700k. Most of them are all FIPS.
 

Ti28

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The wife and I are talking about relocating back to PA.... As of right now, there's now way in hell. I'm not paying a 7-8% or more interest rate on a house. A cornfield right next door to me sold last year, they are putting in a new Sub, we were curious and did tours of homes. There's nothing in those house that call for their prices!

There's, nothing worth $645,000 in this house! Zero land, zero custom!


$800k this house! Where? There's no way!


Bottom of Barrel builder grade shit! I can find all that shit at Menards or Home Depot, nothing warrants those prices, besides paying off the nut that they bought the land for.
 

FirstWorldProblems

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That's my plan now. I want something newer in Indiana, but with no HOA and quality materials...Which basically means building something from scratch.
$$$$$$$$$$

I was talking about this a few weeks ago in one of these threads. New construction seems like there's almost no middle ground anymore. You can have a custom house for $650k min (still in a subdivision), or you can have a cookie cutter house that gets thrown up in 3 weeks and you're only allowed to pick paint colors. If you want a custom house on land outside of a subdivision, prepare to pay big big $.

There are so few small builders anymore, the big guys buy up all the land and don't let anyone else in.

I'm assuming it's better in the more rural areas
Where at in NWI? So glad we closed on our house in April of 21 with sub 3% mortgage rate. It’s insane by me they are building non stop and average house is probably around 500-700k. Most of them are all FIPS.
She’s in Winfield, just south of 109th and Randolph
 
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FirstWorldProblems

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The wife and I are talking about relocating back to PA.... As of right now, there's now way in hell. I'm not paying a 7-8% or more interest rate on a house. A cornfield right next door to me sold last year, they are putting in a new Sub, we were curious and did tours of homes. There's nothing in those house that call for their prices!

There's, nothing worth $645,000 in this house! Zero land, zero custom!


$800k this house! Where? There's no way!


Bottom of Barrel builder grade shit! I can find all that shit at Menards or Home Depot, nothing warrants those prices, besides paying off the nut that they bought the land for.
Using all the space above the garage as living area saves $/ft too, they just pocket all that. Aaaand if you’re in those rooms you’ll be hot af in summer and freezing in winter
 

SMRTSS1

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I’m perfectly fine in my townhouse that I owe under $100k on, locked in at under 4% and has us sitting on a mountain of equity. Smaller units with less bedrooms and baths and no upgrades are going for $300k+ in my subdivision, mine is one of the largest end units with 3 beds and 2.5 baths. Granted I don’t want to send my son to U46 middle or high schools but the local Catholic schools aren’t expensive and aren’t gladiator academy’s like Elgin high school. Not that I’ll take him up on it but my father has offered to pay for my sons first year of jr high and high school if we choose to send him to St Mary’s and St Ed’s.
 

b00sted

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$$$$$$$$$$

I was talking about this a few weeks ago in one of these threads. New construction seems like there's almost no middle ground anymore. You can have a custom house for $650k min (still in a subdivision), or you can have a cookie cutter house that gets thrown up in 3 weeks and you're only allowed to pick paint colors. If you want a custom house on land outside of a subdivision, prepare to pay big big $.

There are so few small builders anymore, the big guys buy up all the land and don't let anyone else in.

I was planning on something a little more rural. I'd like to have 5ish acres(or more). And yeah, I'm figuring it'll be a mill or so all said and done - and I won't be doing anything extravagant. Hence why I haven't pulled the trigger. (More of a 5-10 year plan)

Who knows, maybe I'll come across a nice pre-existing place and go with that. I've seen quite a few nice places in the 650+ range on a couple acres, some with pole barns, etc.
 
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Nate

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We have been looking for a couple months now. Since our offer on a house that got rejected 5 weeks ago we haven't even walked through another house. Our dream of having a big lot is slowly dying and the stupid cookie cutter style is becoming more appealing strictly on availability. I don't think I would do well with an HOA so that's kinda last resort. The last 3 weeks or so I feel like the amount of new listing has significantly decreased
Man if u only knew someone who was selling a big lot with a shop and 3 lifts. Oh wait u do!
 

Chester Copperpot

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In a completely non-shocking turn of events, their cash offer is a Kommiefornian couple moving to TN.

Also shocking completely fucking no one, SIL admitted to my wife that “they made an irrational decision” to move to TN and are moving back to IL. Already had an offer on a house in St Charles for 515. Almost 11k in taxes. :bowrofl:
 
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FirstWorldProblems

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this demand is relentless, GD


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Home Prices Hit a Record High​

Prices for existing homes rose to $419,300 in May, and sales slipped for third month in a row​


By
Nicole Friedman
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Home prices are still rising because high mortgage rates are deterring potential sellers from listing their homes. PHOTO: CLARISSA BONET FOR THE WALL STREET JOURNAL
Home prices rose in May to a new high, with low inventory continuing to spur bidding wars among home buyers in some markets.
The national median existing-home price in May was $419,300, a record in data going back to 1999, the National Association of Realtors said Friday. Prices aren’t adjusted for inflation.
That was up 5.8% from a year earlier.
Those high prices, paired with elevated mortgage rates, have limited the number of sales this spring—typically the busiest season for home buying.


Sales of previously owned homes decreased 0.7% from the prior month to a seasonally adjusted annual rate of 4.11 million, the third straight monthly decline, NAR said. On an annual basis, existing-home sales, which make up most of the housing market, fell 2.8%.
Even though demand is low, home prices are still rising because high mortgage rates are deterring potential sellers from listing their homes, keeping the supply of homes on the market lower than normal. Sales of high-price homes are also rising faster than sales of midprice or affordable homes, pushing up the median price.
“Somewhat of a strange phenomenon, where we have low home-sales activity yet prices are hitting record highs,” said Lawrence Yun, NAR’s chief economist. “Affordability is a challenge.”
The decline in home sales was less than expected. Economists surveyed by The Wall Street Journal had estimated a drop of 1.4%.


Buying a home is out of reach for many renters and homeowners alike. The mortgage payment for a buyer of a median-price home has more than doubled since before the pandemic, Yun said.
In February 2020, just before the Covid pandemic, the median price of an existing home was $270,400.
In late February 2022, just before the Federal Reserve began raising interest rates, the average mortgage rate was 3.89%, according to Freddie Mac. This week, the average rate on a 30-year fixed-rate mortgage was 6.87%.
Still, the limited supply of homes, plus cash buyers who aren’t sensitive to mortgage rates, are keeping the housing market competitive. About 28% of existing homes sold in May were purchased in cash, up from 25% a year earlier.

Virginia Pilgrim-Hovey listed her one-bedroom condo in Silver Spring, Md., in January. Buyers toured the property but wanted a bigger unit with space to work from home, she said.
After months went by without an offer, Pilgrim-Hovey cut the price and offered a year of free parking in a nearby garage. “I was starting to get worried,” she said.
The condo sold this month.
But when Pilgrim-Hovey and her husband tried to buy a house in Philadelphia this year, they found that many properties in their price range needed expensive repairs. They decided to keep renting and save for another year.
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Due to the change in mortgage rates, “I could have afforded $100,000 to $200,000 more of house had I bought in the pandemic,” but they weren’t in a position to buy at that time, she said. “That does feel very disheartening.”
Homes typically go under contract a month or two before the contracts close, so the May data largely reflect purchase decisions made in April and March.


Price gains could slow in coming months if more would-be buyers drop out of their home searches. Just 14% of consumers surveyed by Fannie Mae in May said it was a good time to buy a home, matching the record low in data going back to mid-2010.
“Seven percent seems to be kind of a psychological level” for home buyers, said Doug Duncan, Fannie Mae’s chief economist. “If it ticks below 7%, you get a pickup” in purchase activity, he said. “If it ticks back above 7%, you get a slowdown.”
Homes are sitting longer on the market as some buyers stay on the sidelines, and the inventory of homes for sale is rising, though from very low levels. Nationally, the number of homes for sale or under contract at the end of May rose 6.7% from April and 18.5% from May 2023, NAR said.
Kristine Arlitt’s three-bedroom home in the San Antonio area has sat on the market since November. The potential buyers for her home likely have low rates on their current mortgages and can’t afford to give that up, she said.
“It’s that interest payment and the homeowners insurance—they have skyrocketed,” she said. “I’m going to keep it on the market, but I don’t think it’s going to sell in this market.”
News Corp, owner of the Journal, also operates Realtor.com under license from NAR.
 
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