Buyers who are after remodel candidates are usually very savvy RE shoppers. Flippers or folks like us who have had some cash set aside and who knew what they wanted
To us, “live in ready” meant exactly what @thumper1 said: good location, maybe some deferred maintenance but no major structural work needed, and in need of cosmetic fixes. We got what we wanted! We hired help and replaced the siding and some leaky windows, got new carpets, refaced kitchen cabinets and changed ugly bedroom doors. Mr. replaced all of the kitchen appliances except the fridge and installed a hood. I painted the bedrooms, and together we painted the new siding (to the horror of our neighbors who watched us go up the ladders). A few minor touches here and there, and the house is close to being what we ideally wanted. We have not moved a single wall! Even the kitchen layout was not rearranged. Yes, it was a lot of money and slow, but to us it was a good compromise. That said, I would have settled for a new construction or full remodel if one existed at the time. Even with Covid, we would have done the same. We are thinking about a bathroom redo.
Very few houses on the market in my town and the ones that get listed are going fast. I think it’s a kind of unusual market… the draw is entirely the school district, but taxes and prices aren’t high enough to drive empty nesters out. (Heck, our youngest graduated more than 10 years ago). I think the folks like us who might leave in the next 5-10 years are in no hurry to have strangers trailing through our houses.
We have updated kitchen, bathrooms, pool, paint andthis year made a big improvement to the front facade of the house.
Might need a new thread about RE values post conorovis. ?
I think from most of the posting, the real estate market, in general, seems robust and on an upswing. But I think it is a temporary boom that will not last long. Basically, the RE market is on an upswing because of government policies. I will summarize as follows:
Low-Interest rate. The fed intentionally lower the interest rate because of the pandemic. Once the incident is over, they will raise the rate to the market.
Eviction Moritarian. Fed, state and local government had enacted ordinances to forbid the Eviction process, the court won't accept any UD lawsuits. As a result, a good portion of the investor's houses that are normally going on to the market cannot.
Mortgage Forbearance and Foreclosure Moritarian. Bank cannot foreclose homes that are in default.
People who lost their job don't have to sell because of the extended unemployment package and the stimulus packages. Once those packages are gone, they have no means to keep the homes, thus increased inventory.
As a result, the number of homes on the market is at the lowest, created a seller’s market. This phenomenon will dissipate in 2021, after the pandemic is over and everything returns to normal. As a matter of fact, I believe there will be a sizable correction, both in Day on Market and prices, this is also going to reflect the number of foreclosures.\ on the market.
We live in Philadelphia (in the city;). My younger sister and her husband have been in the market for their first home. They were in the $300/350 thousand dollar range. Anything in a decent neighborhood and move in ready was going within days for above asking price. They were outbid on numerous homes. They just came to an agreement last week on a home. The expensive things like roof, electric, plumbing, new kitchen and bathroom are done. The basement bathroom is new. The basement needs to be refinished. They are an FHA loan. The home across the street from us just sold for $479,000 and it is 2 stories vs our 3 stories. Our home is significantly bigger (which in the city means another floor and another 900 sq feet). There home was just remodeled top to bottom and is lovely.
MA here. Mindset is changing. People want to live near the beach or on a property they can enjoy even during Covid type events. Many who never worked from home now are, and they are rethinking long commutes and high prices in areas which have nothing to offer but convenience and good schools. There are a handful of towns like this which are very overprices and people are moving away as many of them have 5K lots and no breathing room in a crisis. Many are moving outside the normal towns. Younger people are not eager to buy a condo or small house, many are also going further out. There aren’t enough houses on the market so they sell fast and close to ask or above. Anything in a desirable town that isn’t high density is still increasing in value. Houses sell very quick.
Austin here. I did a webinar with some guy who talked about a balanced market (level of inventory) and how that affects sales. A balanced market is six months of inventory. Right now, the bottom third of the market (about $400k and below) has less than two months of inventory so it’s hopping. In my neighborhood, houses aren’t on the market for more than a week and the homes sell (if priced appropriately) for $5k-$20k over asking. We had one house priced way over market for this neighborhood. I’m talking more than $100k over any other house that’s sold in the past year. No takers. A week later, they reduced it to $629k, and it sold immediately. But, still, that is almost $100k more than any other house in the 'hood. Now it had some interesting upgrades (the owner was a chef and had a really cool kitchen), and the house backs to greenbelt but still, crazy.
The top third of the market has homes at $1.2M and above. There is an 18-month inventory so people were advised to price smartly.
Kids in NYC here. Rental prices are coming down and it seems like purchase prices are more realistic, too. S and DIL are looking to buy a house in Brooklyn and there’s more available in the neighborhood they want within a price range they can handle than they expected. We’ll see if this holds once Covid settles down. We’re in a suburb of the city and the kids all think we should put our house on the market, like yesterday. The market here is very hot and the inventory is not extensive for realistically priced homes.
West Coast of Florida. My experience is only within the context of condos near/on the beach. Things are going very quickly here. We were under contract at list price on our intracoastal condo in three days.
One observation I have made for our area while looking at various condos at various price points on realtor.com is that properties in smaller buildings that are “mid-rises” (say, 12 - 20 units and only 3 - 6 stories tall) are selling MUCH faster than those in high rises. Our particular area doesn’t allow high rises, but I think people don’t want the dense population of a high rise and the need to always ride in the elevator. I’m guessing, of course.
The house across the street from me in Missouri just went on the market today. Tours are by appointment, but the stream of minivans and SUVs has been steady, and the little kids coming out of those vehicles with their parents are adorable.
I’ll miss my neighbor, but hope she ends up with a bidding war on her hands. Lovely house on a lovely lot, few if any updates since the 1960s. So a blank slate inside.
I live in Arlington, VA. The market is booming. Houses in my neighborhood are typically on the market for only a week or 2.
One interesting anecdote, a friend was selling and just after they put the house on the market, the Pentagon ended a halt on transfers. They got 10 requests for tours and several offers (including 1 at asking price) that day
@Massmomm
Can’t change prior postings after 15min, you know that.
Here is what I got from SFgate:
Data reported on SocketSite on Monday reveals that a whopping 1,470 houses and condos are listed in the city right now, up 150% from this time last year. The last time the inventory hit that high was 2010.
Typically this time of year sees a dwindling of inventory before a spike again in the fall, but the unprecedented effect of the coronavirus has turned seasonal norms on their head. With downtown office towers sitting empty and ongoing fears of infection spread on public transit and tight living quarters, many residents are selling their city homes and looking elsewhere.
Conversely, real estate in more spacious, less crowded regions outside of the city is surging as people look to a future of working remotely. Lake Tahoe’s inventory is historically low right now — in June 2019, there were 817 properties on the market and 127 sold in that month. In June 2020 there were only 408 on the market, 212 sold.
The details of the abnormally large inventory in San Francisco show that both condominiums and family homes are sitting waiting for new owners, with 370 single-family homes on the market, up 90% over last year, and 1,100 condos listed this week, up 180%.
Andrew Chamings is an editor at SFGATE. Email: Andrew.Chamings@sfgate.com | Twitter: @AndrewChamings
The airbnb cash cow has ended for now, and probably putting some things on the market, or up for longer term rent. Are rents decreasing anywhere?
Coralbrook, I was relieved to see your assessment of the San Diego market. Son and DIL closed on their condo and moved at the end of March, Balboa park area. I thought they paid too much, but the price was in keeping with what I was seeing on my Zillow emails at that time. Since then things have seemed lower, but who knows with the algorithm. It is one of those multi level condos, 4 floors including the rooftop deck, which to my aging body seems so difficult for the long term. Turns out to be perfect for the WFH couple, lots of auditory separation.
In my area, a Wisconsin small city, things are selling very well around me, with high, high prices, and contractors are swamped with renovations.
I’m in NYC suburbs, most houses from 1920s and another wave from 1950s. I have a friend who is a real estate agent who said that back in April and May houses in the slightly wealthier suburbs were absolutely selling like hotcakes. (We had too many cases to be considered desirable back then.) House prices seem to have stayed steady and at least on Zillow there is absolutely nothing listed in our immediate neighborhood. This neighborhood is really special and people who come here choose it and rarely leave. There can be a $200,000 difference in prices depending on whether anyone has touched the kitchens and bathrooms since the 1950s. I totally get not wanting to have a lot of construction going on right now, especially if you can’t afford to carry two mortgages.
DD is moving within Seattle, one apartment manager told her there is 12% vacancy instead of the 2-3% of the last few years, but prices don’t feel lower. She’s still seeing studios and 1bd at $2k+ and then parking adds more.