Housing Bubble?

[glenn walker]

No way the buyer's looking for their up leg property are going to let go of their 3% loans. The interest rate is king (sorry Fernando). That and high inflation is what's gumming up the market. Also, many people I know with these low rates are taking advantage of new zoning laws allowing ADU's. The potential for generating additional rental income, raising their property value, or providing a space for a family member is a no brainer.

So, IMO, the current market conditions are not normal.... Something's got to give though....I mean, how much higher can a property that should be worth $600K, which is currently valued at over a million go?

That's amazing.....This is the way it should be. You couldn't even build that here in Cali for a $135K.

We can't do anything in Los Angeles for less than $250 to $300 per Sq.Ft. and that's not fancy. Only the big builders can do anything and there breaking even and pulling out.

 

[Joe Flacco]

We are seeing inventory moving higher from the pandemic range this year. We will see how high it goes but as of right now it looks like it is returning to a more normal market conditions.

 

[gregb]

We will see how high it goes but as of right now it looks like it is returning to a more normal market conditions.

What year do you consider a "more normal market conditions?"

 

[Joe Flacco]

What year do you consider a "more normal market conditions?"

For us, 2013-2019 range.

 

[Mark K]

No farmer is going to willingly pay $90,000 for a pickup.

Why would they? Most of the farmers in this area are given pickup trucks, nice ones, by the seed companies. Given, as in 3-yr lease paid up front by Becks, Pioneer, etc. If you farm 500-700 acres or more (small farmer in this area) you qualify.

Its the 'city boys' and construction workers in this area that are paying for the $75K+ trucks.

 

[Mark K]

Inventory is increasing around here. For sale signs popping up like dandelions...and staying up for extended periods.

 

[gregb]

For us, 2013-2019 range.

Let's see the graph.

 

[glenn walker]

For us, 2013-2019 range.

2013 to 2019 in our market was the end of the great mortgage meltdown and nothing but up not a normal market based on being stable.

 

[Joe Flacco]

Let's see the graph.

When I get home. I'm at the bike park with the kids.

 

[Tom D]

According to Redfin data, roughly 52,000 purchase agreements were canceled in March, the equivalent of 13.4 percent of homes that were sold that same month.

The highest shares of pending home sales that fell through last month were recorded in the same parts of the country that experienced a housing boom during the COVID-19 pandemic, with Florida and Texas cities dominating a list of the top ten cities with the most cancellations.

Orlando, Florida, reported the highest share of pending sales that fell out of contract, at 18.7 percent. Fort Worth, Texas, followed with 18.4 percent. The other cities in the top ten were San Antonio (18.1 percent), Las Vegas (18.0 percent), Miami (17.9 percent), Tampa, Florida (17.7 percent), Fort Lauderdale, Florida (17.5 percent), Atlanta (17.3 percent), Jacksonville, Florida (17.1 percent), and Riverside, California (16.4 percent).