Any Real Estate Investors / Agents Here ?

[~JM~]

Interested in any information, advice, predictions, etc, on the future of residential real estate in the Southwest.

I've been looking at homes for sale. Seems like the pricing has been artificially inflated due to a lack of inventory, low interest rates & cash buyers.

Am I accurate in my thoughts? Any idea when this trend might end? Are we approaching another "crash"?

Thanks

 

[texasmr2]

Interested in any information, advice, predictions, etc, on the future of residential real estate in the Southwest.

I've been looking at homes for sale. Seems like the pricing has been artificially inflated due to a lack of inventory, low interest rates & cash buyers.

Am I accurate in my thoughts? Any idea when this trend might end? Are we approaching another "crash"?

Thanks

Excellent topic for discussion.

 

[MAK507]

Interested in any information, advice, predictions, etc, on the future of residential real estate in the Southwest.

I've been looking at homes for sale. Seems like the pricing has been artificially inflated due to a lack of inventory, low interest rates & cash buyers.

Am I accurate in my thoughts? Any idea when this trend might end? Are we approaching another "crash"?

Thanks

I'm in commercial real estate and it's doing amazing right now. As far as residential, my colleagues say it's doing very well, and don't predict a crash. A couple months ago I predicted a rise in interest rates by the beginning of the fourth quarter and I was right. Rates are creepishly going up and this election will be a huge decision maker on how fast it moves. Currently the best bank competitively for new residential purchases is Wells Fargo. Highly competitive. Not so much in refinancing.
Pricing has been inflated, and is slowing down in sales. I think the highest ticket was back in March, and has been slowly losing value. Most of my clients that do flips are unloading as fast as they can. I don't know about your market, but I think prices will lower as the rates continue to slowly go up.


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[TexasT]

With prices where they are in my area, I wouldn't make a purchase at this time . We bought about four years ago at what I believe was pretty near the bottom. If i could have found more properties in the area we like I would have purchased more.

Location, location, location
You make your money when you buy, not when you sell.

Maybe we can get 2quick6 to comment. I'm pretty sure he has several properties.

I do see a crash on the horizon. When I got out of high school and black whatever day occurred and the markets crashed there has been a major "adjustment" every seven years or so. Keep watching it happens whether you like it or not. Just have to be ready to take advantage of it.

 

[~JM~]

Thank you for the reply. I bought my home at the beginning of 2007. I had originally planned to stay in this area for 3 to 5 years & then leave. Well... That didn't work out, as my house lost about $100K in value one year later. It appears that the value has recovered enough that I could recover my initial investment, but I am to old to repeat that mistake again.

 

[TexasT]

Move in ready is always the most expensive way from my experience. Even in this market there can be bargains. People loose jobs, have life changing events and trash properties no matter the economic conditions. The problem then becomes locating and taking advantage of the situation in a timely manner. There are always investors with plenty of cash. You either have to be quicker or get a commitment before they know of the opportunity.
Even if you sell now and get your money out, where will you go? What will you do with your "stuff" until the next property is acquired?
Your own home is rarely an investment. Just like your car you drive every day and utilities, it is an expense. No one lives for free.

 

[~JM~]

I'm able to purchase first, move, then sell the home that I'm currently in.

Have wanted to return to the Southwest to be near Family & Friends for several years. Was upside down in current home until recently. The area that I'm interested in has become popular with Southern California retirees that are cash rich from selling their SoCal property. Inventory is low & the pricing has been inflated above appraised value. Don't know if I should buy now before prices climb higher, or wait. Don't really like the winters where I'm at now.

Thank you.

 

[~JM~]

Anyone care to comment upon the accuracy of sites like:

Zillow.com ?

Realtor.com ?

Trulia.com ?

I've been watching a steadily upward trend in median sales price from the beginning of the year until August. From August till now, the trend has been going down.

Thank you

 

[John Larkin]

I think Zillow is pretty accurate. It fluctuates - I don't know what drives that other than comparative home sales. However it is somewhat dependent on descriptions and content. My mom's house is way underpriced on there but ours is fair value. Just the way it is.