Not sure about the rest of the country, but for the last month or so in my area its been looking like the year 2004. People are bidding up houses. A house near me is currently pending for a price 20-30% higher than it would have got 3 months ago. (I'm in Northern CA) I was looking at another house today that they listed it for sale back in may, but a few weeks ago they raised the price by 35% (apparently alot of offers must have come in, because I can't see why they would raise their price that much.) I'm just wondering if any of you in real estate are noticing this rapid housing run up in your areas too.
Here in the northeast (Boston) you have some fools paying 2% - 3% higher than asking in certain areas for new construction and move-in ready. Although I can't see why, but history does repeat its self. I always followed the rule that you buy houses like food clothes and cars, on discount aka "on sale". "Never pay full price". People forget that the average property owner only has one home to sell, while buyers have many homes to choose from.
IT may be that the historically low mortgage rates are working as intended. That Bernanke. What a guy!
QE helps increase asset prices, most of which are held by the middle class and up. The people lower on the economic totem pole, as well as those 30 or under, will be paying for this asset price reflation through debt service and inflation, yet may never be able to take part in the asset price increase.
don't fight fed.they usually got things their way. many times i was trying to be smart\wise\rational-whatever the word is,but it didn't help me to get richer. i can name 100's of various reasons why i don't believe in any recovery in housing any time soon,but i do believe now that if fed said that it will make house prices go up-they will go up regardless. i have no balls to put my money into real estate in my area,but i believe that it is good time to buy in depressed areas to speculate on price.(FL,vegas,CA,etc) not sure, how volume looks in other areas,but here is a pick from zillow in my area(see screenshoot) imo this picture worth 1000 words. too lazy to dig into my posts,but i said it some time ago-buy now.
Phoenix is another place that has gone up. 22% in the last year. http://realtyresource247.com/blog/2011/10/02/home-prices/ I think people can be fooled twice into buying more property than they can afford. People who are 18-25 years old dont typically care about buying a house, so all those people that 18-25 during the housing bust didnt pay attention,nor cared about it because it didnt affect them. Those 18-25 year olds are now 25-32 year olds. The typical first time homebuyer is about 30 years old, so once they see prices rising, they will quickly jump in because they don't want to get priced out which will just further help property values go up. I would not be surprised if the average home value in CA goes up 50% in the next 2 years.
I hope you're right I'm in the process of buying a 2 year old 4 bed/3.5bath in Hatteras NC. The poor sob is in the coast guard and had to transfer Cape May NJ. He paid 150k for the land and 180k for the house I'm paying 270. <div style="margin:10px 0;padding:0 3px;overflow:hidden;background:#fff;border:1px solid #acf;width:290px"><h6 style="margin:0;padding:5px 0 3px;font-size:13px;line-height:15px;text-align:center;color:#555; font-family:helvetica,arial,sans-serif">Hatteras Median List Price</h6><img src="http://www.zillow.com/app?service=chart&chartType=geo&mt=18&dt=1&tp=5&r=35745&width=290&height=250" /><div style="margin:0;padding:0 0 4px;text-align:center"><a href="http://www.zillow.com/hatteras-nc/" style="color:#36B;font-size:11px;line-height:13px;font-family:helvetica,arial,sans-serif;">Hatteras real estate info</a></div></div>
I just hope you guys know when to get out this time. Just like a stock. You sell it before it starts its downtrend other wise you are going to chase it with limit sell orders.
www.city-data.com/zips/27920.htmlhttp://www.youtube.com/watch?v=AAhCMI1cjXM due to the supressed re market and the median price ,you can do better,at least 20%..worst case if the market drops and the other re shoe hits the floor you can get someone to pay what you scooped it up for