Real Estate is going insane every where.

[Drama Queen]

... as well as equities and other investments.

How does this merry-go-round stop? I’m not interested in the political aspects, but I would like to hear what people think of inflation, interest rates, bond market and other stuff that will impact the economy.

[Lar6767]

The Fed has been purchasing huge amounts of treasury securities in order to stop a crash during the Covid crisis. Because the markets are up it's pushing up the prices of real estate. It's all artificial and will end shortly as it has accomplished what it was meant to do.

[Drama Queen]

The Fed has been purchasing huge amounts of treasury securities in order to stop a crash during the Covid crisis. Because the markets are up it's pushing up the prices of real estate. It's all artificial and will end shortly as it has accomplished what it was meant to do.

This acceleration of real estate values will in turn accelerate real estate revenues. Good for governments I suppose.

I’m guessing the real estate prices will plateau maybe in the near future and remain relatively flat for years. If so, the inflation of goods and services will eventual catch up, which is also higher revenues for governments. Then, maybe interest rates will raise ever so slowly to defuse any economic problems over time?

I wonder if that’s the thought process of economists.

[Lar6767]

Interest rates should've never been lowered. The economy was doing well so by lowering them it's overheated the economy artificially. It's causing a housing bubble that will bust again when the markets tank.

[The Duck]

We're in the market out of necessity. We had no intention of buying anything in AZ right now, but we have no choice. Most stressful thing I've ever experienced by a mile.

[Drama Queen]

We're in the market out of necessity. We had no intention of buying anything in AZ right now, but we have no choice. Most stressful thing I've ever experienced by a mile.

Did you get in a bidding war?

[KenfromCanada]

Did you get in a bidding war?

I am a real estate agent north of the wall specializing in igloos and ice fishing huts. Everything here is multiple bids. The Canadian real estate market has been nuts for years with Toronto and Vancouver being some of the hottest on the planet for a while. People are understanding that even normal people can make good money with real estate. That however is driving prices up for the people looking for family homes. People are going father from large centres to just find affordable housing. Prices in the small town I live in 2 hours east of Toronto have gone 150 % in 5 years

[3rd & Inches]

We're in the market out of necessity. We had no intention of buying anything in AZ right now, but we have no choice. Most stressful thing I've ever experienced by a mile.

I just sold my home three weeks ago and made a killing. I wanted to downsize and it took me a while to find a new place. Every house I placed a bid on had like 40 other bids. People were paying 40k over asking price.

I have had a good relationship with my realtor so I purchased a home from one of her other clients before it could go on the market. I told the client I’ll give you asking price and I will not need help during closing. Done deal.

[Drama Queen]

I just sold my home three weeks ago and made a killing. I wanted to downsize and it took me a while to find a new place. Every house I placed a bid on had like 40 other bids. People were paying 40k over asking price.

I have had a good relationship with my realtor so I purchased a home from one of her other clients before it could go on the market. I told the client I’ll give you asking price and I will not need help during closing. Done deal.

Pimps know how to close the deal! Awesome, homeboy!!

[The Duck]

Did you get in a bidding war?

We're on roughly our 30th bidding war.

[Drama Queen]

I am a real estate agent north of the wall specializing in igloos and ice fishing huts. Everything here is multiple bids. The Canadian real estate market has been nuts for years with Toronto and Vancouver being some of the hottest on the planet for a while. People are understanding that even normal people can make good money with real estate. That however is driving prices up for the people looking for family homes. People are going father from large centres to just find affordable housing. Prices in the small town I live in 2 hours east of Toronto have gone 150 % in 5 years

We bought an investment property from Canadian snowbirds in August.

They wanted to cash out and were very happy for the monetary conversion from Canadian to US.

win-win.

6 bidders within 4 hours on the market. 40 over asking. It seemed a little crazy then, but the aggressiveness now is in hyper drive

[The Duck]

I just sold my home three weeks ago and made a killing. I wanted to downsize and it took me a while to find a new place. Every house I placed a bid on had like 40 other bids. People were paying 40k over asking price.

I have had a good relationship with my realtor so I purchased a home from one of her other clients before it could go on the market. I told the client I’ll give you asking price and I will not need help during closing. Done deal.

We're routinely bidding $40k+ over. At this point, I don't think anyone is even driving around to look at the houses, we're all just blind bulk-bidding. Yesterday, we just started offering to pay the sellers closing costs on the ones we really like.

I really didn't want to stay in Phoenix, I don't even like the damn place. I was perfectly content to rent until I could find a way to transfer to some market that isn't the 7th circle of hell for 7 months a year. That's not even possible now. Everyone with a rental property is cashing in and selling to the California license plates. We're going on our fourth house in four years because owners keep selling on us. I'd rather overpay in a market I don't like than pay someone $50K a year for rent and have the rug pulled out from under me at the end of another one year lease. Long story short, this blows.

I can't even imagine what this is going to look like when the $15K first-time home buyers tax credit (which will be immediately available to buyers at closing) is passed later this year.

[Drama Queen]

We're on roughly our 30th bidding war.

oh crap!

I’m sure you’ve been coached about everything as far as having finances ready, escalating clause, terms... all that.

Books will be written about this situation

[Drama Queen]

We're routinely bidding $40k+ over. At this point, I don't think anyone is even driving around to look at the houses, we're all just blind bulk-bidding. Yesterday, we just started offering to pay the sellers closing costs on the ones we really like.

I really didn't want to stay in Phoenix, I don't even like the damn place. I was perfectly content to rent until I could find a way to transfer to some market that isn't the 7th circle of hell for 7 months a year. That's not even possible now. Everyone with a rental property is cashing in and selling to the California license plates. We're going on our fourth house in four years because owners keep selling on us. I'd rather overpay in a market I don't like than pay someone $50K a year for rent and have the rug pulled out from under me at the end of another one year lease. Long story short, this blows.

I can't even imagine what this is going to look like when the $15K first-time home buyers tax credit (which will be immediately available to buyers at closing) is passed later this year.

Interesting take. Didn’t realize investors are cashing in like this. Didn’t know about the proposal for first time investors out there as well.


Be careful. If you aren’t in it for the long haul (AZ is not your thing). then you might want to consider renting in an apartment where the rug doesn’t get pulled from under you.

I know of a California buyer buying off the internet sight unseen here in FL. The northeast and California are part of the driving forces here as well

[3rd & Inches]

I couldn’t imagine being a young first time home buyer right now with no available equity. So this is the new math I’m witnessing:

-house is being priced at 300k
- offers flood in
- seller accepts 365k offer
- house appraises for 305k
- buyer better have 60k on hand if they want that house
-delay in closing, house back on market


* I didn’t take the highest offer on my home, I wanted a quick closing.