It's a Seller's Market/Purchasing a Home Perspective

[Angry Perch]

Right on. There is darn near zero inventory. Great time to sell, but doesn't do you any good unless you move to a different market.

[idaho guy]

The prices we are seeing now have way more to do with the supply shortage than interest rates which have been low for some time.  I refinanced at 2.7% seven or so years ago.

  My point exactly there is a many things driving real estate besides interest rates. Basic supply and demand is having a lot bigger impact than interest rates right now . The US had a housing boom in the late 80s and I wouldn't call interest rates low at that time . A 1 or 2% increase or decrease in interest rates doesn't automatically adjust home prices by hundreds of thousands of dollars. It does makes a home more affordable and help appreciation.  Interest rates have been historically low for a long time. What's really driving prices in smaller northwestern towns and cities is technology and the ability to work from home or a remote office location. Everyone is piling out of bigger cities and into nicer areas of the northwest. There is not even close to enough supply to keep up with all the new demand. Where do we all go when everybody gets here? 

[cbond3318]

The prices we are seeing now have way more to do with the supply shortage than interest rates which have been low for some time.  I refinanced at 2.7% seven or so years ago.

  My point exactly there is a many things driving real estate besides interest rates. Basic supply and demand is having a lot bigger impact than interest rates right now . The US had a housing boom in the late 80s and I wouldn't call interest rates low at that time . A 1 or 2% increase or decrease in interest rates doesn't automatically adjust home prices by hundreds of thousands of dollars. It does makes a home more affordable and help appreciation.  Interest rates have been historically low for a long time. What's really driving prices in smaller northwestern towns and cities is technology and the ability to work from home or a remote office location. Everyone is piling out of bigger cities and into nicer areas of the northwest. There is not even close to enough supply to keep up with all the new demand. Where do we all go when everybody gets here? 

Wyoming! 

[idaho guy]

The prices we are seeing now have way more to do with the supply shortage than interest rates which have been low for some time.  I refinanced at 2.7% seven or so years ago.

  My point exactly there is a many things driving real estate besides interest rates. Basic supply and demand is having a lot bigger impact than interest rates right now . The US had a housing boom in the late 80s and I wouldn't call interest rates low at that time . A 1 or 2% increase or decrease in interest rates doesn't automatically adjust home prices by hundreds of thousands of dollars. It does makes a home more affordable and help appreciation.  Interest rates have been historically low for a long time. What's really driving prices in smaller northwestern towns and cities is technology and the ability to work from home or a remote office location. Everyone is piling out of bigger cities and into nicer areas of the northwest. There is not even close to enough supply to keep up with all the new demand. Where do we all go when everybody gets here? 

Wyoming! 

 

I am with you pard! Still enjoying Idaho for the time being though

[pianoman9701]

I laugh when I hear about how we don't have inflation yet.  Shop for a house, boat, car, bullets, canning stuff, sausage making stuff, aka any stuff and I have a hard time seeing that we aren't in a high inflation period now.

For the average Joe, their house is the best and most significant investment they will ever make.

Yes, count housing and its horrible. All this low interest rates have done is raise home pries. Its terrible. We bought our place in 2015 for $320,000...a neighboring place just sold for $520,000 that is comparable.

I saw 10-15 years ago that 25% of first time home buyers get help from family in the down payment....no wonder poor people are bent out of shape and think the rich have advantage...they do!

Horrible housing market here in the Tri -Cities for buyers, only 300 or so listings, half what it was a year ago.

We're far from rich. We both had saved money. We bought a small home. Lived in it. Improved it. Sold it later for a profit. We bought a slightly bigger home, have improved it and made it worth more plus. Almost anyone can own a home but they have to work and save, sometimes do things like join the military to get benefits like VA loans. I have no advanced education. I've been given nothing and have worked my butt off for 48 years and intend to work another 7 or 8. So far, people have the most opportunity for success here than any other place in the world. But it's not instant and you've got to be willing to do more than the others.

[JimmyHoffa]

The prices we are seeing now have way more to do with the supply shortage than interest rates which have been low for some time.  I refinanced at 2.7% seven or so years ago.

  My point exactly there is a many things driving real estate besides interest rates. Basic supply and demand is having a lot bigger impact than interest rates right now . The US had a housing boom in the late 80s and I wouldn't call interest rates low at that time . A 1 or 2% increase or decrease in interest rates doesn't automatically adjust home prices by hundreds of thousands of dollars. It does makes a home more affordable and help appreciation.  Interest rates have been historically low for a long time. What's really driving prices in smaller northwestern towns and cities is technology and the ability to work from home or a remote office location. Everyone is piling out of bigger cities and into nicer areas of the northwest. There is not even close to enough supply to keep up with all the new demand. Where do we all go when everybody gets here? 

Wyoming! 

 

I am with you pard! Still enjoying Idaho for the time being though

A few of the developers I know are all interested in Idaho right now.  They've been going over there on work and scouting trips.  The one guy is building another 45 places in CdA, one of his buddies is doing stuff in Sandpoint.  The other guys were looking hard at places like McCall and Ketchum.  They're all talking about it like the next gold rush.  The biggest thing they're looking at to get in early on are ski destinations (existing-underdeveloped or undiscovered).  Their main interest is building 'ski in-ski out', where they think they're going to make loads of money. 

[Mudman]

Just think of all the people trying to pay for these high $ houses if and when markets crash and jobs are lost.  Bubble bursts.  Values drop.  Buy then.  Thats how to make $.  Save now, spend later.  If your smart or lucky you sell right before it happens rent for 6 months and buy.  We just did this 12 years ago.  History repeats.

[Gentrys]

I've been selling real estate in WA for 19 years.  I've seen the dot com boom and bust in the early 2000s, I've seen the subprime market crash in late 2007, 2008.
So I've seen some crazy shifts over the years.  Never seen a sellers market as strong as this one.  It's tough to be a buyer right now, especially if you're purchasing under $500,000 in King and Pierce Counties.  I'm sure it's elsewhere in WA also, but these are the areas we cover.  Not uncommon to see 15-20 offers on a home with escalation clauses going $25,000+ above asking price.  Some buyers are even willing to waive inspection contingencies and help pay a seller's closing costs, just to get a home.  Not things I recommend or like to see in today's market.  Obviously a great time to be a seller (assuming your not turning around and trying to buy something yourself in the area).

[JimmyHoffa]

Lumber prices right now are setting new records.  What choice to buy when it's so expensive and too delayed to build.

[HUNTINCOUPLE]

I laugh when I hear about how we don't have inflation yet.  Shop for a house, boat, car, bullets, canning stuff, sausage making stuff, aka any stuff and I have a hard time seeing that we aren't in a high inflation period now.

For the average Joe, their house is the best and most significant investment they will ever make.

Yes, count housing and its horrible. All this low interest rates have done is raise home pries. Its terrible. We bought our place in 2015 for $320,000...a neighboring place just sold for $520,000 that is comparable.

I saw 10-15 years ago that 25% of first time home buyers get help from family in the down payment....no wonder poor people are bent out of shape and think the rich have advantage...they do!

Horrible housing market here in the Tri -Cities for buyers, only 300 or so listings, half what it was a year ago.

We're far from rich. We both had saved money. We bought a small home. Lived in it. Improved it. Sold it later for a profit. We bought a slightly bigger home, have improved it and made it worth more plus. Almost anyone can own a home but they have to work and save, sometimes do things like join the military to get benefits like VA loans. I have no advanced education. I've been given nothing and have worked my butt off for 48 years and intend to work another 7 or 8. So far, people have the most opportunity for success here than any other place in the world. But it's not instant and you've got to be willing to do more than the others.

Very well said!!!!! 

[jstone]

Very well said
We started out the same.
Our first home costed us 80,000
Fixed it made money to get a bigger house. Mainly cause our first only had one bathroom. We have been in the same house for 20 years just refid to get property money. Was going to be in Wenatchee BUT with all of the taxes Jay is going to impose probably leave the state

[Buckhunter24]

We were happy 3 months ago when selling... now that we're buying im ready for a recession 

We offered 630k on a house listed for 600k, it was a swing and a miss. The sellers agent asked our agent if we wanted to strengthen our offer the day they were reviewing offers. Not sure what it sold for but our impression is we weren't close, and 630k was already about 200k too much. Never in my life did I think I would offer to pay that sort of money for a house

[pianoman9701]

Well, you've done well to be able to even consider a purchase like that. I won't join you in hoping for a recession, but good luck on finding your dream home. 

[pianoman9701]

One note on the purchase of a home like that. If you can limit the loan amount to $548,250, it can be a qualified mortgage and puts you in the right place for the best rates. Once the loan amount goes over that threshold, it becomes a Jumbo, which is non-qm. The rates are slightly higher even with good credit.

[Buckhunter24]

Ha yeah kidding about the recession. That offer was as much as we could muster up. We don't like renting, but may be doing that for the next year.