1 of 15: It has been hard to convey, through anecdotes or data, how bizarre the U.S. housing market has become. For example, a Bethesda, Maryland homebuyer working with @Redfin included in her written offer a pledge to name her first-born child after the seller. She lost.— Glenn Kelman (@glennkelman) May 25, 2021
People are buying houses in my city for 10-20% over the asking price in cash. Average cost of a home is now around $450k but minimum wage is still $7.25 an hour. I can only wonder how long it can last like this. I’ll probably never own a home at this rate.
Cryptocurrency speculation, selling their California house, $550k total compensation at FAANG companies, rich parents. Or worse from landlording or real estate speculation
my neighbor's business made a bunch of money off everything going online (they do software development or something) and for the past year they have been buying tons of houses and renting them outand I think make more money leaching off their tenants now :agony-shivering:
Best country on earth. The city I live in is marked by high costs due to retirees owning a couple investment properties and then having one of a few management monoliths actually service it.
It seems to be a lot of investment and real estate companies in my cities. There are private individuals from higher cost of living areas that have cash from their previous homes too.
I was going through the process of applying for a home loan to put in a bid months ago and asked my loan officer about this ("is this real in our area?"), and they said "we have definitely heard about organizations making all cash offers well over asking to secure a home quickly since that means the bidder doesn't have to wait the weeks it takes for traditional financing"
I have seen financial news articles that say a lot of "institutional investors" (I.e. index funds and pensions etc) are increasing their involvement in residential housing investment through rental companies.
the comments were full of middle class types realizing it was probably their own retirement account making it harder for them to own a home and that, if there is a housing market collapse, it will fuck homeowners from selling their home to retire and tank their retirement plans.
People are buying houses in my city for 10-20% over the asking price in cash. Average cost of a home is now around $450k but minimum wage is still $7.25 an hour. I can only wonder how long it can last like this. I’ll probably never own a home at this rate.
Most millennials and younger will be renting until they die unless there's a revolution.
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Where are these people getting hundreds of thousands of dollars in cash? Seriously, I can't figure it out, that's a fuck ton.
Cryptocurrency speculation, selling their California house, $550k total compensation at FAANG companies, rich parents. Or worse from landlording or real estate speculation
my neighbor's business made a bunch of money off everything going online (they do software development or something) and for the past year they have been buying tons of houses and renting them outand I think make more money leaching off their tenants now :agony-shivering:
Best country on earth. The city I live in is marked by high costs due to retirees owning a couple investment properties and then having one of a few management monoliths actually service it.
It seems to be a lot of investment and real estate companies in my cities. There are private individuals from higher cost of living areas that have cash from their previous homes too.
I was going through the process of applying for a home loan to put in a bid months ago and asked my loan officer about this ("is this real in our area?"), and they said "we have definitely heard about organizations making all cash offers well over asking to secure a home quickly since that means the bidder doesn't have to wait the weeks it takes for traditional financing"
I have seen financial news articles that say a lot of "institutional investors" (I.e. index funds and pensions etc) are increasing their involvement in residential housing investment through rental companies.
the comments were full of middle class types realizing it was probably their own retirement account making it harder for them to own a home and that, if there is a housing market collapse, it will fuck homeowners from selling their home to retire and tank their retirement plans.
Oh of course. This must be all the competition I've heard about that makes the market work. :mao-aggro-shining:
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