House hunting

Follow-up to this post

Home buying was a frenzied ordeal in 2020-2021. Demand for homes is still high compared to supply, so prices are still climbing but at a slower pace this year. 

If you want to buy real estate (or even move to a new rental), you're wondering if this year will be any better. Should we move now? Or should we wait until prices go back down to something like the values we saw before the pandemic? 

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According to this article, the short answer is that you probably should not wait for prices to go back down because that's unlikely. In addition to the high level of demand, there's a big spike in the cost of lumber (which will put pressure on both new home prices and renovations). Interest rates are expected to go higher later this year as well.

It's hard to game the market, so your buying decision will depend on how ready you are to make your move.

from The Atlantic 

Unintended 1

We've had a whole year of locked down businesses, events, holidays, jobs, fundraisers, celebrations, graduations, etc. A lockdown of this magnitude was never tried before, so no one knew exactly what would result from such a policy. The results are coming to light.

It seems there was an effect on housing availability. My son, in the market for a new home, ran across a startling article. Within 24 hours of going on the market, the house below generated 133 requests for showings. A total of 32 competing offers were soon received. 

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It sounds insane, as the article subtitle states. The real estate agent says he's never seen anything like this in his 17 years of experience. To secure their purchase, buyers offer cash, make offers well over asking price, forego inspections. I think the word "desperate" was used.

A reason for this craziness? The number of homes on the market in our area is only about half of the number a year ago. With so many working at home, apparently a lot of us are looking for a change - but more are hanging on to what they've got.

It's just one of the unintended consequences of those pandemic strategies. There will be more.

from BringMeTheNews