pdsdville Loc: Midlothian, Tx

I live south of Dallas just outside the county to provide a location. New home building is at a record rate right now. They are going up everywhere as fast as they can. I'm on the HOA board in the division I live in and keep up with home sales. Right now homes are selling within a day of when they go on the market. When I moved here my old home, three years ago, sold within 12 hours of listing. My new home has gone up 40K in value in the last three years. I'm amazed also, at the number of apartments that are being built in the outlying Dallas area, and in the most beautiful real estate in the area. It's a crazy world out there right now.

Bison Bud

To follow up on my previous posts, I'd like to mention just one example of the house next door to me. When the first owner sold out about 4 years ago they got $175,000 for it. This was about $30,000 more than they paid for it new about 12 years previous. However, they had done some serious work on the house by adding a 4th bedroom, 1/2 bath, and a really nice family room in what was an unfinished basement, so I thought the increase in price was probably justifiable. When the next family recently sold (about two months ago), they got $244,000 and didn't do much of anything in the way of improvements (in fact, it's currently in need of a new roof). Anyway, that's a net gain of almost $70,000 in just a few years time and this sort of thing is going on all over this area. On another note, I also get Realtor mailings and e-mails all the time wanting to list my home and have even had two different ones show up at the front door wanting/trying to get me to sell. As previously stated, it's a seller's market around here and the Realtors are just loving it!

Triple G

I’m in an area like that too. Lots were sold a long tine ago and owners are now retiring and building. Construction companies are very busy with new home starts pushed out to next October. Existing homes are either going right away or sitting for months. With building supplies at a premium and craftsman hard to get, the houses that need updating aren’t moving.

DirtFarmer Loc: Escaped from the NYC area, back to MA

When I was a kid it was 1x salary.
When I started looking for a house it was about 1.2x salary (at least for me).
When I finally bought one it was about 1.25x salary.
When I bought the next one it was 2x salary, but I pretty much traded even. Resulting mortgage was the same.

Bought a house after I retired so it was off the charts.
Bought a car after I retired. It cost the same as my first house.

ksmmike

I'm sure there are multiple factors. People fleeing cities and high tax places are one of them. However, there is always a connection between interest rates and prices on home sales. People can afford a certain monthly payment, not really a price for a home. Meaning, let's use round numbers. When a potential home owner can afford say, $1,000 a month for a home, that is made up of interest and principle. When interest is lower, less of the monthly payment is attributed to the interest portion, meaning more can go to the principle, hence a higher priced home.

When interest rates are high, less can go towards the actual price of the home and home prices sink. Less demand means lower prices, higher demand, higher prices. So with people moving and lower interest rates, means higher home values. More demand and more money towards the principal of the home means higher home values. The trick will be for the appraisers to catch up to the higher prices and banks making their adjustments as well. I hope that helps. Right now in some cases people are offering more than the list price and after being under contract they can't get the loans due to the appraisals not yet catching up to the market demand.

Mike

TriX Loc: Raleigh, NC

And at least here in N.C., it isn’t working. By far the recent large increases in infections are coming from rural, not metro areas, and they typically have the poorest healthcare systems if you need hospitalization - a double whammy.

jerryc41 Loc: Catskill Mts of NY

In my area, houses are selling quickly for high prices. We live about 100 miles from NYC - far enough, yet near enough. One house was asking $250,000, and someone clinched the deal by offering $300,000. A lot of people have an awful lot of money. Go to a local parking lot on weekends, and you'll see cars with license plate brackets - BMW of Manhattan, Mercedes of Manhattan, etc.

ecblackiii Loc: Maryland

Prices rise and fall based upon the number of houses in the market area available for sale versus the number of purchasers seeking to buy. It's as simple as that.

whatdat Loc: Del Valle, Tx.

But they are taking their politics to their new locations. Ask anyone in places like Arizona & Texas.
Also, because of high real estate prices in some areas they are moving from gives them the money to pay higher prices in quieter areas causing locals to pay higher taxes. Good for them; not for locals.

Triple G

Plus, the extra money in the towns provides jobs and higher wages for the locals.

Jtittsworth Loc: Tampa

The same is happening here in Tampa Florida. Not only selling at inflated prices but most selling in days.

St.Mary's

Consider: Uncle Sam is printing and borrowing money faster than it can give it away. High inflation is coming. Better to have a mortgaged house you can pay off in cheap dollars rather than letting your money in some savings account becoming worth less and less every day..

TriX Loc: Raleigh, NC

Unless they are retired, then it just increases property taxes 😩.

Careful about the prosperity we all wish for. Raleigh, NC and the Research Triangle Park area are booming. The estimates are 70 new people a day moving here, and you would think the increased tax base would pay for the increased infrastructure, utility, schools and other govt. services. It doesn’t. The result is more variety of restaurants and entertainment, along with higher housing costs, higher percentage property and sales taxes, more traffic and the destruction of fine old neighborhoods as lots are clear cut and single family homes are replaced by multistory townhouses and apartments. It’s not all roses, and in the end, the quality of life is worse, not better.

Bridges Loc: Memphis, Charleston SC, now Nazareth PA

Here in PA it depends a lot on the school system. My daughter bought her first house recently but failed on two previous offers because the houses were in walking distance of the Nazareth High School. Nazareth is one of two highly desirable school systems in the Lehigh Valley, the other being the Parkland school system. The first house she made an offer on was made for 5000 over asking price and she was outbid, the second was 8000 over her offer which was still higher than the asking price. One small two bed, one bath home near the school listed at 109,000 and sold for 129,000. She finally found a home in our neighborhood that had an asking price of 315,000 but she was able to get it for 280,000. The home wasn't a fixer-upper per say, but was really outdated. It had a lot of 70's and 80's touches that most people today wouldn't want like extensive wallpaper and carpet over hardwood floors. Well, it has been a project for the whole family with her and her husband my wife and myself working many hours there but it is starting to come together. Carpet gone to show beautiful hardwood floors, wallpaper gone and light grey walls painted, and light fixtures replaced with more modern fixtures. I still have to replace over-the-sink light fixtures in two bathrooms, change out all wall receptacles with the more modern square fixtures etc. but within a year the place will be a great starter home for my daughter and her family.

jeep_daddy Loc: Prescott AZ

A condo exactly like mine, right across from me, sold for $430k 1yr 3mo ago. One exactly like mine, also across from me, sold last weekend for, I don't know yet, but they listed it for $455k and got 14 offers in one day. So I'm pretty sure it sold for $480k or so. I'm selling my Jan 1 of 2021. I hope prices keep increasing. Zillow has a Zestimate of $492k for mine right now. This is ridiculous as far as I'm concerned. But what the hay, I'll take it!