Housing shortage.

johnnyvw

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I guess that depends on if the seller wants to be a dick about it...
 

Painless300

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Just wait. Lumber price will jump another 7-10% next week.
Its not just lumber that's increasing, you millwork products have also risen more than 50% over the last year and is continuing to jump 5-10% a month. Plywood, siding, nails, insulation, felt etc... is following suit as well. Until we have a market correction there is no reason this pricing direction will change.
 
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BullGear

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    Its not just lumber that's increasing, you millwork products have also risen more than 50% over the last year and is continuing to jump 5-10% a month. Plywood, siding, nails, insulation, felt etc... is following suit as well. Until we have a market correction there is no reason this pricing direction will change.

    Lumber manufacturers have no reason to drop prices at this time. Just walk into Home Depot. Their lumber is flying off the shelves. I really see no reason for the increase now other than the gluttony of corporate America. Free market is great, until a small glitch occurs and a want becomes a need, then all hell breaks loose.

    If the housing market starts to settle down and new homes sales start to come back down to earth, then and only then will you see a decrease in lumber prices.

    Of course this can also be used to explain the increase in all building products, but lumber is by far the worst of them all.
     

    wh20crazy

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    I guess that depends on if the seller wants to be a dick about it...
    We didn't request it this time, buyer offered. We were planning to request it as the first buyer couldn't get the loan and took our house of the market for a month. That'll make a dick out of me. If you have your stuff together and are serious, it's not a problem. We offered and paid it on the house we're in now.
     

    BikePilot

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    I’m a little west of Denver in the mountains. Very high demand (mostly people from CA) and no inventory. I think there are more realtors than homes on the market right now. Even ignoring price there’s just nothing to buy. When something does come up pricing is steep and it goes for at least a hundred over ask in a couple of days. I’d love to see a correction and buying opportunity, but realistically as long as we import 50k people from coastal cities. Every year and build a quarter of that at best in new supply, I don’t see it getting better. Especially in the custom/mtn home market. In by broader neighborhood one house had been built in the last 3yrs. All that’s getting built are the cookie cutter master planned hoa neighborhoods.

    btw lumber is expensive because mills have been at 30% capacity for a long time. There is a huge glut of timber for the same reason and it’s cheaper than it’s ever been. Lumber will come back in when the mills ramp up given how cheap their inputs are. Steel and concrete are up due to global politics and logistics.
     
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    Lightning8

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    I just retired from big Pulp and Paper company and I can assure you that the building products team is not at "30% capacity" - they are at 120% capacity and looking for every way they can to make one more 2x4, OSB sheet, plywood sheet, or sheetrock.
     
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    kenny1773

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    I put down a little over 1% earnest money on the new home I am looking to buy


    I wanted the seller to know that I was no bullshit. I also gave them a copy of my pre-approved loan (yeah I know that doesn't mean much) but that paper also showed the amount of my down payment in cash, the seller understood I was no bullshit at that point. They signed my contract in less than 1 hour
     
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    acudaowner

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    wonder if this has anything to do with the cost of pup tents going up mmm ?
     

    kenny1773

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    I only put earnest money, my agent's plan, I do computer shit, I hired an agent to do real estate shit, I do what he says :D
     
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    oneshot86

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    I only put earnest money, my agent's plan, I do computer shit, I hired an agent to do real estate shit, I do what he says :D
    Just watch your ass.
    Many agents say, after you get a fuckin, they work for the sale, not you.
    Be vary vary involved.
    Saying I do what he says, can leave you open for the fuckin.
    Family and friends will fuck you over for 100 bucks, that twit of an agent will fuck you in a heartbeat for a quick commission.
    Good luck
     

    oneshot86

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    thats what i did, i didnt know what dd was. of course my offer was denied hahah but the house is still for sale
    Hypothetically, if a developer wanted to buy your chunk, they may ask for a dd to go through a zoning change or something similar, to do w what they care to build.
    But, when they want the land off the market, it costs them if they cancel the sale
     
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    kenny1773

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    Just watch your ass.
    Many agents say, after you get a fuckin, they work for the sale, not you.
    Be vary vary involved.
    Saying I do what he says, can leave you open for the fuckin.
    Family and friends will fuck you over for 100 bucks, that twit of an agent will fuck you in a heartbeat for a quick commission.
    Good luck

    its a sentence on a forum and does not include great details, I am not a complete idiot, but thanks for the advice. ;)
    I see nothing wrong with giving 1% earnest money in a house deal right now. I added verbiage to the contract that spells out the terms I would get it back under. Exceeds what I am going to discuss here.
     

    oneshot86

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    its a sentence on a forum and does not include great details, I am not a complete idiot, but thanks for the advice. ;)
    I see nothing wrong with giving 1% earnest money in a house deal right now. I added verbiage to the contract that spells out the terms I would get it back under. Exceeds what I am going to discuss here.
    Don't get your feathers ruffled and congrats in the new home purchase.
    I made reference to the confidence you have in your realtor, nothing more.

    A realtor is bottom barrel like a used car salesman and an attorney, but yet we still have to go through them
     

    kenny1773

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    We all have our own experiences and opinions. I suggest you spend more time interviewing and researching agents, I have found some great ones.

    I also sold my last house as a FSBO and did the deal without a real estate agent on either end. It was person to person, so no, you don't NEED one, there are other options. Use the right tool for the job, advice that has never failed me
     

    BullGear

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    All I can say is I'm SO glad I don't need to buy a house for my family to live in.

    I just heard a piece of property just sold for asking price. Down the road from me is a piece of property that has been on the market for about 6 months. Each time a contract is signed, something happened to the sale and it goes back on the market. Seems a neighbor down the road knows about the property. He says it's unbuildable because it was a excavated something like 100 years ago and filled in with ruble. There is nothing to build a foundation on unless you're willing to dig down like 40 feet.

    The property just sold. I mean really sold. I hope the person who bought it knows about this situation. It was listed for $350,000, so it's not a cheap piece of property. I wonder if there's a due diligence clause in Maryland contracts or the seller must disclose any building issues known to them?
     

    DevilDocAZ

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    We all have our own experiences and opinions. I suggest you spend more time interviewing and researching agents, I have found some great ones.

    I also sold my last house as a FSBO and did the deal without a real estate agent on either end. It was person to person, so no, you don't NEED one, there are other options. Use the right tool for the job, advice that has never failed me

    This is how I purchased my home.

    I don’t get it. Why sell your largest asset in a sellers market and give away 6%?

    When I hear about realtors calling home owners looking for inventory I really don’t get why you need a person to take 6% just to talk to other people.

    I talk to you guys all day for free.
     
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    BullGear

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    This is how I purchased my home.

    I don’t get it. Why sell your largest asset in a sellers market and give away 6%?

    When I hear about realtors calling home owners looking for inventory I really don’t get why you need a person to take 6% just to talk to other people.

    I talk to you guys all day for free.

    In a conventional market, it may be necessary to use a realtor to get the exposure your house may need. They can also give you hints on making changes or improvements to your house in order to make it more marketable.

    However, in this climate, I think all ya have to do is to hang out a shingle as a For Sale sign and you'd probably get 6 offers.

    In this day and age, a realtor for the buyer isn't as necessary as it once was either. Particularly in those states where a lawyer is used for settlement, an agent isn't needed for that part.

    I was a part time realtor some 38 years ago. I didn't like the business, so I only lasted 1 year. I did buy my first rental at that time. The house hit our board (usually sits there about 2-3 days before it hits the multiple list service) and I was on it 10 minutes after I saw it.

    I do still know of agents that just keep their license so that they can find their next rental purchase before it really hits the market.

    It is really more like a used car salesman job than anything else.
     
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    kenny1773

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    everyone's situation is different. I need agents this time for reasons I am not going into here.

    You are a FOOL if you pay 6% in the current market
    Houses sell themselves right now, the agent doesn't have to market it much, ask them to take a lower percent and see what you get. I did.
     
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    NoDopes

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    Our house is paid off and our assessment value locked in for the bulk of the taxes. Home are appreciating and lots of new homes are being built, so the actual tax rate is going down. Our taxes are going to go down this year. If we moved, I'd be screwed on taxes.
    Although, my insurance rates will likely skyrocket next renewal.
     

    BullGear

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    Wife just brought in the mail. One of our houses just had an assessment done by the county for tax purposes. $152,000 increase in appraised value. Guess that one will be appealed. I can't tell you how mad I am at this point. The house really isn't worth much more than that. I feel it's worth about $220,000. It's a small 3 bedroom rancher on a postage stamp sized lot.
     

    Lightning8

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    Lots of great information here and timely. I just inherited my family home in Savannah GA and I live north of Atlanta GA now (5 hour drive). Home is solid but dated - I do not want to turn into rental or flip. I just want to sell "as-is" or with minimal repairs. Nothing wrong it is just 1980s finishes in a world that watches HGTV. In this market - I am thinking of putting a "For Sale By Owner" sign in front yard and schedule showings once a week as I commute back and forth (have family there to visit and stay with). I want to price such that the buyer picks the floor coverings, kitchen finishes, etc. they want. Talking now to real estate lawyers to represent closing. Any advice appreciated.
     

    kenny1773

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    I’m looking forward to a deal from a bank sale in a year or so from now.

    It’s all reruns on the news these days lol


    Having just gone through the mortgage process
    and having done it several times in the past

    I have never seen so much information required and so much scrutiny over giving a loan

    before you jump to conclusions, I am probably one of the easiest people in the world to qualify for credit (not giving my details you will just have to trust me)

    I don't believe they are giving loans out to people that can't afford them today. When I asked why they are being so rediculous with documentation these days, they said covid :D
     
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    TurboTrout

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    Having just gone through the mortgage process
    and having done it several times in the past

    I have never seen so much information required and so much scrutiny over giving a loan

    before you jump to conclusions, I am probably one of the easiest people in the world to qualify for credit (not giving my details you will just have to trust me)

    I don't believe they are giving loans out to people that can't afford them today. When I asked why they are being so rediculous with documentation these days, they said covid :D

    So for no real reason that house is worth 20% more than 8mo ago?

    Maybe, but I’m just not enough of a gambler.
     

    300zx_tt

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    I’m looking forward to a deal from a bank sale in a year or so from now.

    It’s all reruns on the news these days lol
    I’ve been in the market for a 325k-400k 3-4 bed on a few acres for quite some time. Had one pre covid but lost it because my wife lost her job. (Because of covid) we could have swung it but it would have been pretty tight. Anyway after looking for the last 8 months, I just bought a 3 bed townhouse, going to live there for a year and hopefully the market will settle down and I can get what I want without paying 65-80k over ask. We plan on renting the townhouse after we move
     
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    TheGerman

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    We have no inventory here and they are building on every last blade of grass.

    House prices are insane. If you had told me when I looked at the house we ended up buying years ago that it was this current market value, I would have turned right around and walked out.

    I am also getting an increasing amount of mailers and realtors trying to tell me to sell my house because I can get basically 3 times what I paid for it. The next one that bothers me with this shit is getting told I'll list with them, and I want something like 20 times the market value as the listing price.
     

    kenny1773

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    Maybe I mis-read what you are getting at. Bank Sale implies a foreclosure, no?
    So for no real reason that house is worth 20% more than 8mo ago?

    Maybe, but I’m just not enough of a gambler.

    The dollar is worth a lot less now than before Xiden took office is one reason
    Materials costs are through the roof is another, any new house being built went up 30% or MORE since a year ago
    Interest rates are really low, that drives the price of houses up
    Demand (covid etc) is through the roof

    There are lots of reasons, I gave 4 off the top of my head

    My point back to you is, in order for there to be a 'bank sale' that means the bank foreclosed because someone didn't make their payments. Mortgage companies are only giving loans to qualified people right now, not like years ago where they gave them to anyone that asked even if they didn't qualify.

    Even if my house loses $100k in value, I am going to continue to make payments on it. I need a place to live, so no bank sale. Sure there will be some people that lose their job and shit happens, but that is everyday, not just now.
     

    kenny1773

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    We have no inventory here and they are building on every last blade of grass.

    House prices are insane. If you had told me when I looked at the house we ended up buying years ago that it was this current market value, I would have turned right around and walked out.

    I am also getting an increasing amount of mailers and realtors trying to tell me to sell my house because I can get basically 3 times what I paid for it. The next one that bothers me with this shit is getting told I'll list with them, and I want something like 20 times the market value as the listing price.


    I owned a house from 1996 to 2017, I more than tripled my money during that time. If you told me that was going to happen, I would not have believed you.

    The person that bought it from me is continuing to make money on it. It has not doubled again from 2017 to 2021, but it has continued to go up.

    Houses are going to continue to go up until people just can't afford them anymore, not sure where that point is for 'a large number of people' enough to have an impact on the market prices anyway.
     

    DevilDocAZ

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    everyone's situation is different. I need agents this time for reasons I am not going into here.

    You are a FOOL if you pay 6% in the current market
    Houses sell themselves right now, the agent doesn't have to market it much, ask them to take a lower percent and see what you get. I did.
    Out of curiosity, what percentage did you and they find fair?
     

    TurboTrout

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    Maybe I mis-read what you are getting at. Bank Sale implies a foreclosure, no?


    The dollar is worth a lot less now than before Xiden took office is one reason
    Materials costs are through the roof is another, any new house being built went up 30% or MORE since a year ago
    Interest rates are really low, that drives the price of houses up
    Demand (covid etc) is through the roof

    There are lots of reasons, I gave 4 off the top of my head

    My point back to you is, in order for there to be a 'bank sale' that means the bank foreclosed because someone didn't make their payments. Mortgage companies are only giving loans to qualified people right now, not like years ago where they gave them to anyone that asked even if they didn't qualify.

    Even if my house loses $100k in value, I am going to continue to make payments on it. I need a place to live, so no bank sale. Sure there will be some people that lose their job and shit happens, but that is everyday, not just now.

    “Qualified” is a bank owned term.

    And inflation isn’t getting to crazy, much of this IMHO is supply and demand, you make it illegal to go to work for almost a year, it’s going to screw with the supply chain.

    Plus add on the managements extended covid hysteria, increased taxes on small biz, I don’t think my comment was that far out of the realm of reality.