Guys, give me some guesses on the housing market

Winter is typically not a hot time for listings in cold weather areas... you will see more hit come end of March.

I'm waiting to here back on a condo... I was 2nd high bid but the top bid is having financing issues... am hoping its falls through

detox, i'm about 20 mi  from silicon valley in california and the market was white hot til the interest rates climbed to 4.5% or so...i agree with those who say it about location..location..location...there's no way u can find property out (single family homes) here for for less than about $500,000 and these aren't the best of areas... i think where i live the property values will continue an upward trend as long as interest rates remain clse to or below about 5.5%..fortunately for me and others who live in this area we've got the jobs(many high paying) low inventory of homes on the market, more people moving into the  area from outside the us (think asia and europe) not to mention  probrably one of the nicest places on earth to live...a case of supply and demand  in this area...low supply and lots of demand will equal rising prices...probably a little higher than what inflation will be...anywhere from 5% to 12% in this area for the nxt several yrs. minimum...that's how i would access things in the sf bay area...good luck

Just read through this thread. Interesting stuff.


Did you ever have any luck in the CLT market? I am in NC and have been in business with "flippers" the past couple of years (contacting). It was an absolute gold mine. Prices were way under the current value even then. Homes could be picked up in relative nice areas (middle class to college areas) and turned for a nice ROI. In fact, I know a few whom would be 90K invested and sell in the 135-170 range. Imo, you do not see returns like that on many investments...


Just curious to see who is out there is still in this business and who plan to grind it out. Flipping has slowed down (in this area) due to several reasons:

1) Foreclosures have completely dried up and banks are asking for higher returns. The ones that are still available are through sites such as aforementioned Homepath. Even then, I see the banks doing something they were not doing in the past: They are playing the rising market by asking more than what they are owed on the property. In the downturn, many banks seemed (as I am not a banker) to be just looking to recoup the losses. Foreclosure homes were simply listed to get back what was owed on the property...

Now, even foreclosed properties are being listed above the comps in the area. Banks have taken notice of the rise, and are looking to get more out of their listings imo.

2) It's a sellers market now. Every Joe Public wants to sell their 3 bedroom 1 bath ranch for way over market price. It's a realtor's game now. Beat up the buyer.

3). Rates have risen. Many are (and in my opinion as a former broker mistakenly so) holding out for the next dip or bubble burst. Many I have spoken with are hoping that rates drop back down below 4%...Wishful thinking?




Sorry for the rant. Just curious as to this new era as home prices are rising and rates are rising. I am looking to get into the game as a part time player as I am already picking up in the contracting business. I live in a college/resort town on NC's coast and am looking to buy a flip (if a project presents itself) or get into the rental game as a long-term investment; essentially using the property like an IRA or retirement investment.

Just hoping I haven't missed the boat. I don't think so as there will always be fixer uppers and deals out there. Not to mention niche projects (buying condos/small homes in the college part of town, etc).

I missed several opps this last year and don't want to continue to wait. It's jump in now or never; sink or swim. I had the opp to buy a 3 bedroom rental property (foreclosure) 1 block from campus for 75K (1 year ago). This same property was just listed for 130K. UGH! No rehab was needed other than slight cosmetics. It's making me sick...

That said, I do think this is a MUCH more risky business now. You have to have a head on your shoulders in this new market. Just really wish my crystal ball will tell what will happen, lol.


Anyway,

Best way to put it is the Housing Market is all opportunistic.. And has been for few years, now.  Consider that close to 50% of all home purchases are with Cash.    So who is benefiting here ?   The wealthy or middle class.   Easy Answer.

Truth is, you need a healthy economy and increasing wages for a sustaining housing recovery.   Middle class America is not rising;   I view the improving housing recovery as opportunistic, and it needs are more solid foundation to keep going .

For those not paying with Cash, Rising Interest Rates are already putting a lid on demand.