Have prices the last month jumped the shark?

[Anonymous]

We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

[Anonymous]

It seems like there were only specific areas that people with a budget of 750k+ were willing to bid and buy houses for that much. That area has since expanded to pretty much all parts of Fairfax County and even Loudon County. If the buyers in the higher range are priced out of their desired neighborhoods (supply and demand there too), they will have to broaden their search area to get a house. Now many people are so pressed to get a house but if you happily sold your house for 15% over asking a month ago, your time is running up to buy a house so it creates a greater demand.

[Anonymous]

2 houses in Burke we looked at listed under 8 just sold for 925 and they were on a cut thru street - I don't see how it is sustainable. Last year they would have gone for 725.

[Anonymous]

Anonymous wrote:It seems like there were only specific areas that people with a budget of 750k+ were willing to bid and buy houses for that much. That area has since expanded to pretty much all parts of Fairfax County and even Loudon County. If the buyers in the higher range are priced out of their desired neighborhoods (supply and demand there too), they will have to broaden their search area to get a house. Now many people are so pressed to get a house but if you happily sold your house for 15% over asking a month ago, your time is running up to buy a house so it creates a greater demand.

DP looking in the same area. This makes sense. I’m going to sit this wave out and hope I don’t regret it later.

[Anonymous]

In arlignton I’m seeing consistent 20% over ask for mid/lower end homes.

[Anonymous]

Anonymous wrote:2 houses in Burke we looked at listed under 8 just sold for 925 and they were on a cut thru street - I don't see how it is sustainable. Last year they would have gone for 725.

And in February and March of this year they would have gone for 800ish. No, this is not sustainable.

[Anonymous]

Man, I wish I wanted to sell my house.

[Anonymous]

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

[Anonymous]

I've been curious how appraisals have been able to keep up with the fast increases with each sale. Or maybe it doesn't matter because the only people buying these houses have been people with all cash or at least a significant amount down.

[Anonymous]

I follow the central part of Fairfax County and last couple weeks have looked better to me regarding available homes, better maybe than since last fall.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

Somewhat true but it doesn't explain why in the past year or so, prices have increased 200k+, there hasn't been a pay raise for majority of the working class in the past year actually so the jobs corridor doesn't make sense.

This is just a frenzy of buyers and fomo-ers driving up the price with historically low rates. Remember when toilet paper was impossible to find and they had to limit it? Just this past week gasoline was impossible to find too and people were hoarding that. There has been a huge increase in demand in housing and there hasn't been really anything to stop it and until the demand slows down (build more houses but unlikely as we are running out of land) or interest rates go back up, this craze won't stop. Unfortunately for me, I'm one of the people trying to buy in this mess

[Anonymous]

Anonymous wrote:

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

I'm sorry but avg. homes in Burke don't go for 925, and these would have happily sold for 7-725 a year ago. over 200K appreciation in a year? And that is being generous for one of them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

I'm sorry but avg. homes in Burke don't go for 925, and these would have happily sold for 7-725 a year ago. over 200K appreciation in a year? And that is being generous for one of them.

PP and I think we will end up renting forever around here or until the dust settles

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

I'm sorry but avg. homes in Burke don't go for 925, and these would have happily sold for 7-725 a year ago. over 200K appreciation in a year? And that is being generous for one of them.

PP and I think we will end up renting forever around here or until the dust settles

What kind of dp and range are you looking at?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We've all seen the significant price jump from 2020 to 2021. But it seems that, in some areas at least, the prices the last few weeks have been extra bananas.

As an example, we are looking in Fairfax/Burke area. We have looked at a lot of houses and a lot of comps. Houses were consistently going about 6% above ask. But in the last month, some houses are going way above that. A house we saw that was listed at 775k just went for 900k! To be, these houses just can't hold that value, and it's made us decide to pause for a bit and wait until the desperation frenzy cools down a bit. I have no doubt that higher prices are here to stay, but I also am very suspicious of some of these homes going for the 900s in these areas.

Is anyone else seeing extra crazy purchases this last month?

New houses in these areas sell in the $1.2M+ range. It's close enough to the city, middle of Fairfax County so reasonable access to the jobs corridor there, decent schools.

I'm sorry but avg. homes in Burke don't go for 925, and these would have happily sold for 7-725 a year ago. over 200K appreciation in a year? And that is being generous for one of them.

No one is saying they do... and they don't now either. Prices are not up $200K in a year in this area, more like about 8% YoY. Nicely renovated houses are getting a premium as they always do. But Burke has always been a relative bargain.