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Speaking of California is anyone else troubled by this?

LargeOrangeFont

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People have money and are fleeing the urban shitholes of Nor Cal because they can work from home.

People making above asking offers like that are putting significant money down and aren’t going walk away from their mortgage.
 
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hallett21

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Not really.

Personally I think the whole “over asking” is misleading. It allows the real estate industry to brag how they can get you more money than your property is worth.

I’m sure that house is worth 500k. But saying you got 100k over asking sounds better.

From a marketing standpoint it’s smart. Get over 100 people excited and let them throw Hail Mary offers. Bound to get 1-2 to overpay.

I don’t mean to bash realtors. Their job is to get you the most money in the quickest amount of time. As a seller I don’t care how they achieve it.

But if you listed a 100k schiada for 50k imo getting 2x asking isn’t 100% genuine.

Edit. I realize boats and real estate are polar opposites lol.

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shintoooo

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We've put 12 offers for a condo for my son and we finally got verbal acceptance last night and are opening escrow today. We started looking in November but stayed patient through the process. We did go $30K over asking on this one but it's a 2 bed 2 bath and way larger than any other places we put offers on. I was shocked we got this one because even with the $30K over asking, it's less than the other 1 bedroom places. Also, this is in Simi Valley which is blowing up so the upside is high and it will be a rental property when he eventually moves out in a couple of years.
 

dribble

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I'm my time I've watched many real estate cycles and whenever we get into buying frenzy mode it is a precursor to a crash. Usually a huge one. Citrus Heights is not a exactly prestigious address. In fact this house in two blocks away from one of the most crime ridden streets in Sacramento County. With a huge strip of section 8 housing. Much of it looks like this. I know poor people who won't live there.


image.jpg
 

outboard_256

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2 houses sold across the street from me during covid. One during summer that sold for 165k over asking and another one last month that sold for over 100k over asking. And they were listed for more than I thought they would sell for. My house value went up 300k because of those 2 sales.
 

Havasu Rehab

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Not really.

Personally I think the whole “over asking” is misleading. It allows the real estate industry to brag how they can get you more money than your property is worth.

I’m sure that house is worth 500k. But saying you got 100k over asking sounds better.

From a marketing standpoint it’s smart. Get over 100 people excited and let them throw Hail Mary offers. Bound to get 1-2 to overpay.

I don’t mean to bash realtors. Their job is to get you the most money in the quickest amount of time. As a seller I don’t care how they achieve it.

But if you listed a 100k schiada for 50k imo getting 2x asking isn’t 100% genuine.

Edit. I realize boats and real estate are polar opposites lol.

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There’s a realtor in Brea named Darryl Jones. He plays stupid bullshit games like this. He’ll price the house way under ask, then it will obviously sell well above.

Just a method so he can tell potential clients he got “X” amount above ask.

It’s just unnecessary games. IMO just be honest with what you want.


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motormonkey

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There’s a realtor in Brea named Darryl Jones. He plays stupid bullshit games like this. He’ll price the house way under ask, then it will obviously sell well above.

Just a method so he can tell potential clients he got “X” amount above ask.

It’s just unnecessary games. IMO just be honest with what you want.


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The game I believe is to bring in more buyers, a honey trap. Low price brings in everybody. It's a strong move IMO
 

RogerThat99

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I have a house in my neighborhood that is Pending Sale. It is listed by Open Door Brokerage, and never had a real estate sign, or anything, in the yard. Everything was done online. The house is being flipped by someone who bought it in January 2021, selling it for $50K more than they paid in January.
 

Waffles

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I'm my time I've watched many real estate cycles and whenever we get into buying frenzy mode it is a precursor to a crash. Usually a huge one. Citrus Heights is not a exactly prestigious address. In fact this house in two blocks away from one of the most crime ridden streets in Sacramento County. With a huge strip of section 8 housing. Much of it looks like this. I know poor people who won't live there.


View attachment 984526
This is what ive been reading. People are seeing the writing on the wall and are trying to park their cash in real estate before hyperinflation hits us.


1616431784220.png
 

motormonkey

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Inflation is here, not coming. Most are a year or more late for financial moves.
 

Havasu Rehab

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The game I believe is to bring in more buyers, a honey trap. Low price brings in everybody. It's a strong move IMO
I get what you’re saying. It just wastes people’s time and effort. In that case, why not set the price at $1?

I guess I’m just venting because I wasted time on a few of this guys listings. I would probably feel differently if he sold a house for me.


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motormonkey

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I get what you’re saying. It just wastes people’s time and effort. In that case, why not set the price at $1?

I guess I’m just venting because I wasted time on a few of this guys listings. I would probably feel differently if he sold a house for me.


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I get it. It's marketing that brings talk and all the boys to the yard.
 

Cole Trickle

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I get what you’re saying. It just wastes people’s time and effort. In that case, why not set the price at $1?

I guess I’m just venting because I wasted time on a few of this guys listings. I would probably feel differently if he sold a house for me.


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Its a waste of time.....In this market why not shoot realistic or a tad high to weed out the junk offers. I guess if you want a story about how you got 150 offers in 2 days its a good plan but i would think its a waste of time for the agent/seller to weed through unrealistic offer sheets.
 

LargeOrangeFont

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I'm my time I've watched many real estate cycles and whenever we get into buying frenzy mode it is a precursor to a crash. Usually a huge one. Citrus Heights is not a exactly prestigious address. In fact this house in two blocks away from one of the most crime ridden streets in Sacramento County. With a huge strip of section 8 housing. Much of it looks like this. I know poor people who won't live there.


View attachment 984526
Honestly, RE is a great hedge against inflation in the long term.
 

Xring01

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You will know when a housing market crash is coming....
Thats when the REITs, start selling there assets...
Until then, typical supply/demand/unemployment/interest rate battle.
 

GRADS

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I live in the next town over from this Citrus Heights house. I had a real estate agent drop flowers at our doorstep Saturday morning, begging us to put our house up for sale. At last check there was only like 5 houses for sale in our entire zip code which is quite large.
 

Carrera205

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I know I might get railroaded for this and it goes against “free market” but I think it’s bs that corporations can and are buying up all of the residential property in this country and causing a frenzy and huge price spikes. People just want to have a home. It’s a basic human need. And it’s being exploited. I don’t know how it could or would be regulated but it’s redic. They buy up whole blocks then Jack the rent up. The American dream is fading away for the middle class.
 

Bear Down

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I know I might get railroaded for this and it goes against “free market” but I think it’s bs that corporations can and are buying up all of the residential property in this country and causing a frenzy and huge price spikes. People just want to have a home. It’s a basic human need. And it’s being exploited. I don’t know how it could or would be regulated but it’s redic. They buy up whole blocks then Jack the rent up. The American dream is fading away for the middle class.
I totally agree.... I bothers me as well to see all of these Chinese investment groups buying homes/flipping them or sitting on them for years. I am saddened that its not regulated to some degree.
 

Tamalewagon

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I totally agree.... I bothers me as well to see all of these Chinese investment groups buying homes/flipping them or sitting on them for years. I am saddened that its not regulated to some degree.
With the current administration? There will be no regulation of the sort for the next 2-4 years.
 

Xring01

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I know I might get railroaded for this and it goes against “free market” but I think it’s bs that corporations can and are buying up all of the residential property in this country and causing a frenzy and huge price spikes. People just want to have a home. It’s a basic human need. And it’s being exploited. I don’t know how it could or would be regulated but it’s redic. They buy up whole blocks then Jack the rent up. The American dream is fading away for the middle class.
Excellent Point..
But it does go against one of the founding aspects of this country... Capitalism...

So if you dont want Capitalism, then whats the alternative?

The last thing I want is more Government Regulations... take a look at what they have done to the Utilitys, Health Care, Immigration etc etc etc.,
 

hallett21

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I know I might get railroaded for this and it goes against “free market” but I think it’s bs that corporations can and are buying up all of the residential property in this country and causing a frenzy and huge price spikes. People just want to have a home. It’s a basic human need. And it’s being exploited. I don’t know how it could or would be regulated but it’s redic. They buy up whole blocks then Jack the rent up. The American dream is fading away for the middle class.
Flip side of that is my generation (millennials) were busy renting high end apartments and living our best life. Instead of trying to get into the real estate game.

And now that bars, clubs and nightlife in general are closed. Everyone’s running to buy a home with a badass entertaining backyard.


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Xring01

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If/When the Millennials decide to start investing in Real Estate as a whole...
BOOOMMMMM
Thats what will happen to the cost of housing..

One thing about Millennials,,, price doesnt mean a whole lot... but how it makes them feel that means everything....
Put some lipstick on a pig, put solar roof, LED's everywhere, paint the damn thing green.... give them what they want.. They will over pay...

If that starts happening... You will truly see housing costs skyrocket...

But the biggest factor that is not truly being address for the CA Housing Market...
New Construction . Is all the new Regulations that make Ca Houses so freaking expensive...
Solar Roofs, Windows, the R Rating etc etc etc etc etc etc etc etc...
My buddy does all the Heating/AC analysis for the Commericial and Residential Sectors, and keeps me up to date on not only the regulations that coming into effect in 2021,,, but more importantly, the regulations that are already passed, that come into effect in 2022, 23, 24 25 etc etc etc...

So when the cost of a new home to be CA compliant is 2 x, people will prefer to buy the older homes at less....

What am I getting to... New construction costs, have a huge impact on the current cost of the used houses in Ca...

Those regulations are only getting stricter, forcing the costs to go higher, combine that with CV19, a decent economy, low interest rates... hopefully a Millennial Generation....

Housing prices can go alot higher in my opinion....

Unless CA Politicians pull there heads out of there ass and fix the regulations, but I doubt thats going to happen, because it goes against the GREEN AGENDA... so... fuck voters... do whats right for the planet, and who cares if 50% of the voters are homeless....

GREEN BABY .... Gotta be GREEN... .dumb MFKRs.
 

River Runnin

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The only thing that troubles me is! .... I don't have a place to sell in that ShitHole! 😑
 

2Driver

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The 30% yearly appreciation is going to stick because this time its different. Now is the time to buy.

Rinse and repeat
 

Xring01

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The only thing that troubles me is! .... I don't have a place to sell in that ShitHole! 😑
I do, but its my home... Because I refuse to own a Rental in CA...
Ca Gov - has proven, they dont give a shit about the property owners... therefore I would not risk a rental property.
Stock Market is a far better play... For now anway
 

RichL

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I totally agree.... I bothers me as well to see all of these Chinese investment groups buying homes/flipping them or sitting on them for years. I am saddened that its not regulated to some degree.
With the current administration? There will be no regulation of the sort for the next 2-4 years.
This is something I've been watching and it just bothers the hell out of me.
 

shintoooo

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My son was about to rent a place in November and move out with his girlfriend. He's a college graduate and has a great job and his girlfriend works and is graduating this June as well. He made some good money in the stock market since Covid hit and I told him we would help him buy a place instead of renting. They are really excited about owning a place. We're all going to Maui in August and he told my wife and I yesterday that he is going to pop the question on that trip. It's all coming together.

His payments on this place will be less than renting a one bedroom apartment and he'll build some equity this way. Even if the market crashes, they will need a place to live so long term it's the best decision to own. He just turned 23 so this will give him a boost for the future.
 

bk2drvr

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It concerns me but i'm probably looking at it differently than most on here. In short, home ownership was never supposed to be like this. The American dream in Socal for a young couple starting out is either not possible or they will get roped into the frenzy and buy a tiny house that is wildely overpriced and half of their income or more will go to it. Its sad really. I wonder how many people move to southern california thinking it will be one way and then after a year are sorely dissapointed.

My sister is a real estate agent and she has a listing in Irvine right now, 950 sqft condo, association is $325 mo and there is a $109 special assesment due each month at the moment, listed for 525k. I have a hard time wrapping my head around this. Like I said, its sad.
 

EmpirE231

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Wild times... would like to sell our place in CA, but it seems everywhere we would want to move has increased more in price than the Socal area. It seems like Socal didn't keep up with the rest of the country this time around. Everyone is getting out.
 

Cole Trickle

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It concerns me but i'm probably looking at it differently than most on here. In short, home ownership was never supposed to be like this. The American dream in Socal for a young couple starting out is either not possible or they will get roped into the frenzy and buy a tiny house that is wildely overpriced and half of their income or more will go to it. Its sad really. I wonder how many people move to southern california thinking it will be one way and then after a year are sorely dissapointed.

My sister is a real estate agent and she has a listing in Irvine right now, 950 sqft condo, association is $325 mo and there is a $109 special assesment due each month at the moment, listed for 525k. I have a hard time wrapping my head around this. Like I said, its sad.
Supply vs. demand.....

Everyone comes for the sunshine and wants to be close to the beach. Kids won't sacrifice and make the commute to the outskirts like there parents did so they can own a nicer house with a yard in Riverside county. They need to be in OC and are gonna pay.

2 bedroom apartment in Irvine rents for $2500+ a month so a 30 year mortgage on 500K even when you throw in the association/fees is close to the same numbers.
 

EmpirE231

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The 30% yearly appreciation is going to stick because this time its different. Now is the time to buy.

Rinse and repeat
You think the market is gonna stick this time around due to inflation?
 

Carrera205

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Excellent Point..
But it does go against one of the founding aspects of this country... Capitalism...

So if you dont want Capitalism, then whats the alternative?

The last thing I want is more Government Regulations... take a look at what they have done to the Utilitys, Health Care, Immigration etc etc etc.,
This is the conundrum. Unfortunately humans will find any way they can to fuk one another over. So really there is no answer. Either the govt is Fukin you or some corporation is fuking you. Either way you get fuked 😂
 

Waffles

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If/When the Millennials decide to start investing in Real Estate as a whole...
BOOOMMMMM
Thats what will happen to the cost of housing..

One thing about Millennials,,, price doesnt mean a whole lot... but how it makes them feel that means everything....
Put some lipstick on a pig, put solar roof, LED's everywhere, paint the damn thing green.... give them what they want.. They will over pay...

If that starts happening... You will truly see housing costs skyrocket...

But the biggest factor that is not truly being address for the CA Housing Market...
New Construction . Is all the new Regulations that make Ca Houses so freaking expensive...
Solar Roofs, Windows, the R Rating etc etc etc etc etc etc etc etc...
My buddy does all the Heating/AC analysis for the Commericial and Residential Sectors, and keeps me up to date on not only the regulations that coming into effect in 2021,,, but more importantly, the regulations that are already passed, that come into effect in 2022, 23, 24 25 etc etc etc...

So when the cost of a new home to be CA compliant is 2 x, people will prefer to buy the older homes at less....

What am I getting to... New construction costs, have a huge impact on the current cost of the used houses in Ca...

Those regulations are only getting stricter, forcing the costs to go higher, combine that with CV19, a decent economy, low interest rates... hopefully a Millennial Generation....

Housing prices can go alot higher in my opinion....

Unless CA Politicians pull there heads out of there ass and fix the regulations, but I doubt thats going to happen, because it goes against the GREEN AGENDA... so... fuck voters... do whats right for the planet, and who cares if 50% of the voters are homeless....

GREEN BABY .... Gotta be GREEN... .dumb MFKRs.
I dont see how this is feasible considering the average millennial is financially behind.

On the whole, millennials' savings are abysmal, according to the INSIDER and Morning Consult survey. While 70% of millennial survey respondents have a savings account, 58% have a balance under $5,000. That's likely not enough to cover expenses in the event of an emergency, let alone a down payment and closing costs.

More than half of Americans (53%) ages 21 to 37 have received financial assistance from a parent, guardian, or family member since turning 21, according to the 2018 Country Financial Security Index.

About 37% of millennials receive money on a monthly basis, and more than half (59%) receive money several times a year. Many are putting this money toward basic needs, both small and significant, like cellphone bills, groceries and gas, health insurance, and rent.
 

Xring01

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This is the conundrum. Unfortunately humans will find any way they can to fuk one another over. So really there is no answer. Either the govt is Fukin you or some corporation is fuking you. Either way you get fuked 😂
Yeah... thats a very valid point.... o_O
But how are we going to mitigate how bad we get fucked... :mad:
Thats the question?;)
 

Xring01

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I dont see how this is feasible considering the average millennial is financially behind.




TIME...
Time is on there side....
Baby Boomers can only clog up the good paying jobs for so long... they are retiring at a huge rate since CV19, especially in my industry..

Then the X gen.... again...
Time/Education and no other choice for future employers...
Eventually they will get the better paying jobs.
Eventually they will enter the housing market..
The question becomes, will they over pay for lipstick on a pig, because it makes them feel good, or do they learn how to value shop?
Right now... I think they will pay a premium for some lipstick on a pig, and some great marketing.... This house has paint that came from a tribe in the Brazillian Rain forest. Every gallon of paint we buy from them, they plant 100 trees... Literally stupid shit like that, they will fall for... Ask me how I know. Cause I have several neices and nephews who truly think/shop to this effect.
 

rivermobster

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There’s a realtor in Brea named Darryl Jones. He plays stupid bullshit games like this. He’ll price the house way under ask, then it will obviously sell well above.

Just a method so he can tell potential clients he got “X” amount above ask.

It’s just unnecessary games. IMO just be honest with what you want.


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That's right out of Marty Rodriguez's playbook. It's how you get a bidding war started! 👍
 

jetboatperformance

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I got a call from a realtor last week asking if I wanted to sell my house here , She said "people are paying way over market value" 3 flat level acres , nice stucco in the nicest area of this town, I said show me an offer ... I had to respond with Please dont waste my time ;)
 

OldSchoolBoats

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What's going to solve the inventory problem? Nobody wants to move up sell in this market, because there isn't anything to move up to and on top of that, nobody wants to sell when they have a 2.5% interest rate and a payment less than what you can rent an apartment for.

The biggest generation of homebuyers is just starting to hit and it will only get worse. IMO prices have to level out though as wages won't be able to keep up, but who knows.........people are buying homes with cash or huge down payments so the wages thing isn't an issue for some of them.

 

Cole Trickle

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What's going to solve the inventory problem? Nobody wants to move up sell in this market, because there isn't anything to move up to and on top of that, nobody wants to sell when they have a 2.5% interest rate and a payment less than what you can rent an apartment for.

The biggest generation of homebuyers is just starting to hit and it will only get worse. IMO prices have to level out though as wages won't be able to keep up, but who knows.........people are buying homes with cash or huge down payments so the wages thing isn't an issue for some of them.

Do you think alot of parents are paying cash so the kids can get in the door and then refi/changing title into the kids name? I just can't believe people with 700k cash are buying 700K houses. Seems they need the help to get an offer accepted.
 

LargeOrangeFont

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What's going to solve the inventory problem? Nobody wants to move up sell in this market, because there isn't anything to move up to and on top of that, nobody wants to sell when they have a 2.5% interest rate and a payment less than what you can rent an apartment for.

The biggest generation of homebuyers is just starting to hit and it will only get worse. IMO prices have to level out though as wages won't be able to keep up, but who knows.........people are buying homes with cash or huge down payments so the wages thing isn't an issue for some of them.

I think that going forward people that want to buy entry level homes will buy small condos/apartments in CA or buy houses on other states. Anywhere in CA worth living is only building high end large homes or ultra dense condos. CA is squeezing out the middle class home buyer.
 

OldSchoolBoats

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Do you think alot of parents are paying cash so the kids can get in the door and then refi/changing title into the kids name? I just can't believe people with 700k cash are buying 700K houses. Seems they need the help to get an offer accepted.
I am sure it is happening, but on what level......I don't know. Not seeing a ton of gift funds on my side either.
 
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