Real estate during COVID

[Siiick]

Been house hunting for the past 6 months and I have to say it’s been a real b1tch. The competition has been fierce and the desirable properties are snapped up within a matter of days, if not the same day they are listed, for well over their list price. I will admit I’ve been super picky with where my next pad will be - location, location, location - but the few places I’ve put offers on, I’ve been outbid with multiple offers each time. With a little bit of luck though, I finally scored and got my offer accepted for a house nestled on dead end street that also resides on a golf course (technically 1 house over from the fairway) for about 5% under list price.

If any of y’all are struggling with finding a house, I know what it feels like. Just keep searching and eventually the right one will turn up ?

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[heresick]

When I first read this, I thought you were describing AZ. Same story for the market here.

By this time next year I’ll for sure be a homeowner like you!

Congrats!

 

[kevoco333]

It's the same in Florida. I am a real estate investor and told one of my long term tenants that I don't want to renew their lease so I could sell the property. I offered to sell them the property at a discount because I wouldn't have to pay a commission to a realtor but they declined. That was 4 months ago and the property value has increased at least $20k since then. They moved out a month ago and I am now considering holding the property and leaving it vacant until the spring. If a property is priced well in my area, it will have multiple offers on the first day. With interest rates so low it's a great time to buy except demand is outweighing supply right now. If anybody is interested, google 'real estate market cycle'. It's about an 18 year cycle that real estate prices generally follow and right now we are in about year 8 or 9 of the cycle which is still in the buy phase.

 

[Pitt-Civ]

The wife and I are looking in the small town south of Pittsburgh, and up until this year house prices were fairly low. Now people are trying to sell mobile homes that are 40 years old for over 100k.

 

[Fk7_412]

The wife and I are looking in the small town south of Pittsburgh, and up until this year house prices were fairly low. Now people are trying to sell mobile homes that are 40 years old for over 100k.

Tell me about it lol, in the same boat

 

[BrandonSmith]

Yeah man I dabble in real estate and DFW (all of north and east Texas, really) have been quick sales for the past 2 years. In that time it has been typical for offers to START at asking price (no matter a 30 year old house or a new house). And they are selling in less than a week. On Zillow, you see a house listed yesterday, call today and there's a pending offer... Been two years like this. When I bought my primary house a three years ago, the only reason I was able to buy it was because I saw the realtor putting a sign in the yard just before listing it, stopped to talk, and was able to view the house an hour or so later. right place right time.

Realtors have access to the MLS, which shows houses that are entered in the system, but not listed. Get your realtor to do some searching for you. Realtors often just search what's out there already, not property that's "pre-listed."

 

[krees]

I experienced the same. I was able to exploit the current environment a d make a healthy profit on my florida house but had a really tough time finding a place in pa. Granted, we were looking for log home & garage on 10+ acres on mostly flat wooded land with the no other house or neighbor visible from our house. It was a battle for each house but I'm glad we lost the early bids and then found exactly what we wanted and our offer was accepted. We did have to pay more than list but we are happy!

For those looking, each house you don't get, there is a better one waiting for you. Keep hope and faith!

 

[Gruber]

Is it a common perception that "covid" has anything to do with this?

 

[kevoco333]

Is it a common perception that "covid" has anything to do with this?

It's been said that people are leaving cities and going to the suburbs for more space. The interest rates are dropping for economic stimulus. And, some people are reluctant to list and show their homes because they don't want 15-20 people a day going through their homes. This has all increased demand and decreased supply.

 

[BrandonSmith]

Is it a common perception that "covid" has anything to do with this?

It's a common misconception, yes. At least here in North and East Texas, there is no difference because of COVID.

 

[Gruber]

I'm asking because, while I haven't been looking myself, during the 1-2 years before covid I had a flood of phone, email and text offers from people who buy houses, which I don't remember ever before that. And I've been hearing about a shortage of houses/sellers market then.
Since covid, this activity actually seems to have decreased around here.

 

[kevoco333]

I'm asking because, while I haven't been looking myself, during the 1-2 years before covid I had a flood of phone, email and text offers from people who buy houses, which I don't remember ever before that. And I've been hearing about a shortage of houses/sellers market then.
Since covid, this activity actually seems to have decreased around here.

Those 'we buy houses' companies probably have it pretty hard right now. They usually offer 50-60% of market value and promise a quick closing and pay for closing costs. These companies are like the guy in a bar that asks all the women for their phone number. He might get 1 out of 100. Their business model is based on finding a seller that has a property that needs work, is desperate to sell, and needs the money right away. Anybody else is better off listing their house at a fair price.

 

[Siiick]

I can't speak for everyone else's situation but personally I only had the desire to move after the whole WFH became the new normal back in April. Having more space would be greatly appreciated but also being able to take advantage of the historic low interest rates is also a huge motivating factor. I locked in at 2.75% for a 30 year mortgage - hard to believe I am even saying that but it's true! Knowing I should be able to sell my current property for more than double what I paid for it back in 2008 also helped push me to pull the trigger.

 

[krees]

Yeah, covid definitely had an impact on the houses we were looking at. The rural properties were being snatched up by folks fleeing the big cities.

 

[TheGreekFreak]

The market here in Boston is crazy too. It's almost a given that you have to offer over the asking price to grab up a decent property. It's tough finding a good deal these past few years, whether for an investment property or home to live in.

It also doesn't help that a bunch of buyers are coming in with cash offers and snatching up everything good. Never would have guessed so many people had that kind of cash on hand.

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