Anonymous wrote:I wrote this response in another thread, but I thought the idea deserved its own. I don’t hear many people discussing these factors.

High housing prices and large overbids are partly caused by low inventory, but low inventory doesn’t explain how so many can pay so much with significantly higher interest rates.

The answer is that the UMC/UC has benefited the most from the pandemic. Everyone has had multiple raises of 10%, compounded for several years. Meanwhile, many costs have gone down - refinanced mortgages, WFH (less spent on new clothes, dry cleaning, gas, car maintenance, lunch and dinner food budgets, home and lawn help and childcare). Also, stock market and home equity gains have been large. Add all that up and you’ve got people drowning in cash that keeps giving. What are they going to do with all that cash?! Spend it on housing, luxury vacay, expensive cars, etc.

If this is true, housing prices are coming down anywhere there are high-paying job, WFH jobs.

Where does everyone work?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Make that over ask an escalation clause and you'll be more competitive.

Someone made me an escalation clause and I immediately countered with their max escalation amount. Why waste everyone's time?

You're a douche bag.

That’s not how it works. Escalation only comes in if there are other offers and you have to prove that there were other offers.

I wrote this response in another thread, but I thought the idea deserved its own. I don’t hear many people discussing these factors.

High housing prices and large overbids are partly caused by low inventory, but low inventory doesn’t explain how so many can pay so much with significantly higher interest rates.

The answer is that the UMC/UC has benefited the most from the pandemic. Everyone has had multiple raises of 10%, compounded for several years. Meanwhile, many costs have gone down - refinanced mortgages, WFH (less spent on new clothes, dry cleaning, gas, car maintenance, lunch and dinner food budgets, home and lawn help and childcare). Also, stock market and home equity gains have been large. Add all that up and you’ve got people drowning in cash that keeps giving. What are they going to do with all that cash?! Spend it on housing, luxury vacay, expensive cars, etc.

If this is true, housing prices are coming down anywhere there are high-paying job, WFH jobs.

Low inventory is part of the story, but it doesn’t explain how so many can pay so much with significantly higher interest rates.

The answer is that the UMC/UC has benefited the most from the pandemic. Everyone has had multiple raises of 10%, compounded for several years. Meanwhile, many costs have gone down - refinanced mortgages, WFH (less spent on new clothes, dry cleaning, gas, car maintenance, lunch and dinner food budgets, home and lawn help and childcare). Also, stock market and home equity gains have been large. Add all that up and you’ve got people drowning in cash that keeps giving. What are they going to do with all that cash?! Spend it on housing, luxury vacay, expensive cars, etc.

OP, this is what you’re up against, and it’s why you’re being outbid.

Millennials are a huge generation and the pandemic persuaded many of them to move out of condos in the city much earlier than they otherwise would have.

That big bump in demand, combined with lower than normal inventory due to high interest rates (homeowners don't want to sell and take a higher rate on the new loan for their next house), means that demand for homes is going to outstrip supply for a long time to come.

A deep recession -- in which people lose jobs and find they have to sell because they can't afford their mortgage payments, or they need to move cities for a new job -- could bring things more back into alignment. There would be fewer buyers in that scenario, too, and interest rates would likely come down to help stimulate the economy.

So, if you want to buy a home, root for the economy to take a big tumble!

^ coping

I hate to tell you but you do not HAVE to buy.
You can stay out right where you are.
You may feel the tight squeeze spatially but it’s better than a financial squeeze because you bought some overpriced bull crap.
This nation has a housing shortage of around 3 million homes. Spending all of your time, energy and funds just to ‘win’ something you probably don’t love and paid too much for us not worth it in my opinion.

Pick a different location op.

Anonymous wrote:No one wants to sell because they don't want to buy

THIS!
We are not giving up our 3% interest rate!

Anonymous wrote:

Anonymous wrote:No advice but I feel you! We just lost our 6th offer although we didn't go over asking and had a home inspection contingency ( but it had been on the market for over a week without offers so thought we might have a chance)
We're debating building now

We did a full home inspection for our own edification but didn’t include the contingency in the offer.

my realtor is even discouraging asking for informational inspection. because the sellers don't want to deal with it and have plenty of other offers. SIGH

Anonymous wrote:No advice but I feel you! We just lost our 6th offer although we didn't go over asking and had a home inspection contingency ( but it had been on the market for over a week without offers so thought we might have a chance)
We're debating building now

We did a full home inspection for our own edification but didn’t include the contingency in the offer.

I don't know where you are trying to buy, but there is a brand new build in my neighborhood that has been sitting empty for 4 months now.

They have knocked 400K off the initial asking price.

I have seen multiple listings like this over the past year.

Maybe look outside of Palisades?

No advice but I feel you! We just lost our 6th offer although we didn't go over asking and had a home inspection contingency ( but it had been on the market for over a week without offers so thought we might have a chance)
We're debating building now