OT: February home prices see the biggest gain in 15 years

[Matt92037]

Hey Karl, I am in Bird Rock. Been here for 23 years or so.

Originally Posted by KarlC

Matt where are you in La Jolla? We must live close by.


We have been thinking the same lately, its crazy as I would not have thought of leaving San Diego in the past.

I think we will stay in Ca, but we may leave San Diego.



.

[jkbrwn]

We were going to put an offer in on a place that was listed at $585,000, but they had cash offers in excess of $800,000 so we didn't bother Houses are selling for so much that sellers are only accepting offers where the loan contingency has been removed because nobody will lend on houses selling for 30% over their (realistic) asking price.

There's just no way first time buyers with FHAs can compete with that. So we're just going to take a step back and maybe wait it out.. or rent for the rest of eternity

[Matt92037]

I was in Bozeman just 3 weeks ago. I feel bad for what is coming their way. It seems like the farmers who own the massive parcels of land are calling it quits by selling to developers, which in turn are becoming generic subdivisions like what we are used to seeing in California.

Luckily for Bozeman, the winters are enough to keep a lot of people from moving there.

Originally Posted by eddief

It's really wacky there.

[pasadena]

Montana and Idaho are really popular now
Hope the locals can keep it from becoming "north LA" but it's tough to dam a tide.

Originally Posted by eddief

It's really wacky there.

Pandemic put a big compression on everything. Buyers timetables, interest rates, home sales and remodelling, construction, etc, etc

It's a peak, but home prices always see-saw, so things will slow.
New construction and commercial construction bubbles will burst soon.

[eddief]

bubbles pop. watch out.

[jlwdm]

Houses are really going up in price, but I am not fond of comparisons to some of the early months last year when sales were not as strong. It took a little while before things went crazy.

Jeff

[BobbyJones]

I wrote last year in a similar thread that we had sold a house in CT in 3 days for around 25% over ask in cash.

Spoke with the neighbor last week. Had his house on the market for 2 days and as we're texting back and forth (..."agent has 20 showings lined up for tomorrow!") he's getting offers 40% (!!!!) over ask.

I think he too settled on an easy, all cash deal around 25% over. The downside is he's moving out of country to an even crazier market from what I understand.

Crazy times. But good to be an agent in the right area with the right connections!

[eak12]

Originally Posted by pdonk

Here in Toronto we have seen 15% y/y increase in home prices, inventory is high, (up 50% y/y) but demand is higher so up go the prices.

Product in the ground related new construction market place is even crazier. Between land constraints, Development Charges, materials, labour and FOMO prices are increasing 10% a week in most projects - if they don't sell out the first day.

We decided to spend a large chunk of money on doing an addition as we literally could just barely afford to buy the house we live in.

All very true. But also not new for the GTA. It's basically been like this on and off for 25 years. I'm interested to see if mortgage rates actually rise in the near future as BoC pulls back on bonds. I'm actually selling my house Q4 2021. I hope my timing works out with the market.

[wc1934]

Originally Posted by bigbill

What happens when builders are able to get sufficient materials and labor? Supply will catch up and exceed demand. Where I live, there is a waiting list to have a house built. My neighborhood has more than a dozen foundations poured just waiting on materials. I bought a house last September after renting in the area for two years. I bought right before the market really took off. It's no longer a cheap place to live, the lowest income folks are paying the price.

construction costs are crazy - 7 bucks for a 2x4!!

[zap]

Originally Posted by eak12

All very true. But also not new for the GTA. It's basically been like this on and off for 25 years.

Little longer than that.

We (and many others) left Montreal in ‘84. I to the US and my mom to Toronto.......her office moved from Montreal to Toronto. Been back repeatedly to GTA and was always impressed with the amount of homes being built around GTA since ‘86. My mom worked part time as an agent for a home builder north of Toronto. Yes, prices have been going up for quite some time.

By the way, some awesome bricklayers in GTA.

[pasadena]

Originally Posted by wc1934

construction costs are crazy - 7 bucks for a 2x4!!

damn, I heard there was a shortage on materials but wow, that is insane

[Ken Robb]

Gta?

[zap]

Originally Posted by Ken Robb

Gta?

Greater Toronto Area.

[bigbill]

Originally Posted by pasadena

damn, I heard there was a shortage on materials but wow, that is insane

Before Covid, there was a shortage of particle board because a major manufacturing plant had burned down and was not going to be rebuilt. That shifted quite a bit of particle board production to Mexico. MDF (medium density fiberboard), particle board, and plywood require adhesives and resins. Several factors play into the shortages. The most recent issue was the winter storms in Texas that shut down chemical plants. Another issue is a shortage of truck drivers and factory labor. I'm the chief engineer for a factory that relies on wood products. People are reluctant to return to work when they can make $31K a year not working and receiving stimulus. We have openings for 40+ jobs and insufficient numbers of applicants. Minimum in AZ is $13 so that's $27K a year versus doing nothing for $31K. The truck drivers know they can get hired once they decide to return to work but can hold out.

At some point it will reach equilibrium again and hopefully we all learn from it.

[BobbyJones]

OT...

Originally Posted by bigbill

People are reluctant to return to work when they can make $31K a year not working and receiving stimulus. We have openings for 40+ jobs and insufficient numbers of applicants. Minimum in AZ is $13 so that's $27K a year versus doing nothing for $31K. The truck drivers know they can get hired once they decide to return to work but can hold out.

At some point it will reach equilibrium again and hopefully we all learn from it.

Edit: A little AZ specific searching answered my question.