[dmatre]

Originally Posted by zx10guy

Here we go:

https://www.msn.com/en-us/money/real...es/ar-BB17PYMp

And this happens in my area:

https://wtop.com/business-finance/20...-10-year-high/

Irrational exuberance

I don't think it's irrational as much as simple freshman-year economics:

When supply goes down, prices go up. Once Corona hit, a good number of homes were taken off the market. The urban flight to more separation has made this even more noticeable.

I have four family members who sold their homes in the last 4 months. All are relocations for work or move to retirement home. All sold in the first week with multiple bids above asking price.

There are segments of the economy that aren't suffering, and within those there is actually new hiring occurring.

While prices may seem high when looking at the economy in general, nobody lives in the general economy. If the economy is doing well, but you're unemployed - you can't buy a new house. This is simply the opposite case.

Even if prices are at a cyclical high, historically low interest rates are making the purchase more palatable.

[chassis]

Latest report shows mortgage applications are up. It’s a sign of interest (demand) and a leading indicator for home sales and home construction.

[RickFLM4]

Originally Posted by zx10guy

Here we go:

https://www.msn.com/en-us/money/real...es/ar-BB17PYMp

And this happens in my area:

https://wtop.com/business-finance/20...-10-year-high/

Irrational exuberance

Do those delinquency rates include borrowers in forbearance? Not great either way but different picture whether included / pumping up rate or excluded.

[vreihen16]

Originally Posted by BMW F22

Any thoughts on banks or credit unions with good rates and customer service?

We have savings/checking accounts as well as our mortgage and vehicle loans through a local credit union. Couldn't be happier. Plus, we get free notary services, and a free self-serve coffee bar for all members in the lobby.....

[BMW F22]

Originally Posted by vreihen16

We have savings/checking accounts as well as our mortgage and vehicle loans through a local credit union. Couldn't be happier. Plus, we get free notary services, and a free self-serve coffee bar for all members in the lobby.....

I checked local CUs and they tend to have much higher rates. It’s strange. Their auto loan rates are lower vs banks though.

[vreihen16]

My 15-year mortgage is at 2.75% from the last market downturn, but my 800+ credit score may have helped some. Our local credit union is only down to 3.25% on a 15-year mortgage as of today, but will write a 20-year at 3.375% that I feel a lot of people not buying jumbo should consider instead of going for the full 30-year note.

When I wanted to buy my BMW i3 last year, I went from application to check in hand in about 4 hours...with a free cup of coffee while I went over the paperwork. What else can I ask for?????

[nyalpine90]

the housing market is crazy, so far we made 2 offers on 2 seperate houses and got outbid quickly.

[BimmerDimmer6]

Originally Posted by nyalpine90

the housing market is crazy, so far we made 2 offers on 2 seperate houses and got outbid quickly.

Same. We found a place in the middle of nowhere and I put in a solid offer on Monday of last week and it was sold for about 4% over asking on Friday.

It's frustrating, but fortunately we're in no rush!

I'd say wait until things cool down a little if you guys can wait. Everyone is trying to get situated before kids start school.

[AlpineWhite_SJ]

Everything we're looking at in AZ is moving quickly. Only up for a few days and already contingent.

[chassis]

I don't see the housing market cooling off, in most areas. Companies that manufacture products used in home building have consistently commented on underbuilding since the GFC. The current market is a result of a sustained period of underbuilding - the market has tightened up and buyers are feeling it. Supply of new houses has not kept up with the increased demand from population growth, foreign immigration, net of properties demolished, condemned or otherwise taken out of viable housing stock. Add to this, changing preferences (urban vs suburban vs rural) means insufficient supply is needed, where it is being demanded.

Separately, and in conjunction with supply-demand dynamics, are low interest rates.

The only moderating factor that I see is lending standards.

This has been commented on several times by several posters on this thread and others.

[zx10guy]

Originally Posted by BimmerDimmer6

Same. We found a place in the middle of nowhere and I put in a solid offer on Monday of last week and it was sold for about 4% over asking on Friday.

It's frustrating, but fortunately we're in no rush!

I'd say wait until things cool down a little if you guys can wait. Everyone is trying to get situated before kids start school.

Don't see how getting kids situated is even relevant right now. In many areas, school for all kids is virtual at least till January if not for the rest of the academic school year. I had to place my daughter into private school because of the inept wishy washy leadership of her county school officials. I'm not banking on anything they tell us after what they pulled changing their minds at the last minute along with the rest of the surrounding county school systems.

[nyalpine90]

Originally Posted by BimmerDimmer6

Same. We found a place in the middle of nowhere and I put in a solid offer on Monday of last week and it was sold for about 4% over asking on Friday.

It's frustrating, but fortunately we're in no rush!

I'd say wait until things cool down a little if you guys can wait. Everyone is trying to get situated before kids start school.

you are the 2nd person to say this, bank rep that prepared the preapproval letter said the same exact thing.

But i been following house market in FL thru movoto app. And i can definite get nice house out there . i been telling my wife we can have nice house with this loan in FL.

[BimmerDimmer6]

Originally Posted by zx10guy

Don't see how getting kids situated is even relevant right now. In many areas, school for all kids is virtual at least till January if not for the rest of the academic school year. I had to place my daughter into private school because of the inept wishy washy leadership of her county school officials. I'm not banking on anything they tell us after what they pulled changing their minds at the last minute along with the rest of the surrounding county school systems.

How is the start of the academic year not a factor when purchasing a home? No one knows what's going on with spring yet. A lot of folks like to get settled.

[zx10guy]

Originally Posted by BimmerDimmer6

How is the start of the academic year not a factor when purchasing a home? No one knows what's going on with spring yet. A lot of folks like to get settled.

My point is it was when kids were going into a physical school. Now with this whole virtual mess, the parents have additional time to figure things out. Even if we are to believe kids are going to be allowed to physically attend schools in those that are doing virtual learning in January, the parents have another few months to find a suitable home without making a mass rush. Even if they relocate school districts. The only benefit from virtual learning is that the kid can do it anywhere even clear across the globe if they have a decent enough Internet connection.

[AlpineWhite_SJ]

For Alfisti and Joekerr

https://toronto.ctvnews.ca/this-tiny...r&_gsc=eTKRfeL

Bungalow asking 1M sold for 800k over

[nyalpine90]

last night we increased the offer on a house and still was outbidded lol
we are moving on to next one

we also learned that bank appraises the house, if the loan is above of the appraisal value. the buyer is responsible for the difference. So if you get a loan for 600k, and the house is worth 530k, the buyer is responsible for difference of $70k . so we ask the real estate to see what the houses market was in that area we were intersted in. they assured us the offer was ok.

[Alfisti]

Originally Posted by AlpineWhite_SJ

For Alfisti and Joekerr

https://toronto.ctvnews.ca/this-tiny...r&_gsc=eTKRfeL

Bungalow asking 1M sold for 800k over

This is what I am saying. Honestly feel the USA underestimates Toronto a bit, I see it in sports, it's now bigger than Chicago. Bland as fat free ice cream but big.

[chassis]

Originally Posted by Alfisti

This is what I am saying. Honestly feel the USA underestimates Toronto a bit, I see it in sports, it's now bigger than Chicago. Bland as fat free ice cream but big.

Alfisti Toronto is a great city, one of the great ones in North America. For clarification, the GTA population is around half that of metro Chicago. In my view, in the modern era city-limits population has less and less meaning because of population growth and sprawl, no matter how much vertical-development planning is done. More people = more space (area).

[Alfisti]

Wow I never realised metro chicago was so big! I too have ALWAYS believed in the metro number not the city limits number, it is one organism as afar as i am concerned. I thought Chicogo was half that though. Damn.

Toronto is pretty average TBH, there is really nothing to see here, the landscape is brutally dull, the harbourfront is atrocious, the inner city has no natural gathering square other than the extremely tired and uninspiring phillips square.

It's safe and has good jobs but there's no taste on the tongue, no ....... special something.

[gatorfast]

Market is on fire by me too. 3 homes on my block alone were recently listed for sale and all were under contract within a week (one within 24 hours).

[BMW F22]

I’m starting to see a lot more listings come on the market. A lot more. Might be a sign of inventory ticking up as people are looking to exit which means buyers will have more choices. Unless there’s a ton more buyers (which is doubtful as many are unemployed), I see it being a buyer’s market in the next 6 months.

[smyles]

Originally Posted by BMW F22

I’m starting to see a lot more listings come on the market. A lot more. Might be a sign of inventory ticking up as people are looking to exit which means buyers will have more choices. ...

I think one of the contributing factors is as schools, businesses, etc. have finally made decisions for the upcoming year, many folks now plan and act accordingly. So we'll see a lot of activity now that would usually be happening in spring/early summer.

Whether it translates into buyers market, or just a lesser seller market probably is more location specific, especially in so-called hot spots.