Where the market is - Buyer Offers

[Mety]

Is it safe to say that we don't have speculators exist anymore in the realestate market? It's hard to say no, when you have homes appreciate 20-25 % annually, since last year. This will bring alot of speculation to the housing market and any speculation exist in an asset class will not end well. It is different though when someone buy to their root down. Whether the market goes up or down, we need a place to live, rent or buy. The heartache now is both rent and buy is coming into an extreme measures.

I think there are tons of speculators and "investors" buying now.. A lot of people have a lot of money and real estate is just one asset that has inflated. But since lending standards are high, we won't see a crash like we did last time. What could cause something like that?

I do believe that society benefits from people buying homes for themselves to live in.

Real Estate has become a good investment asset since the interest rates have gone down a lot. CD rates are so low like 0.5% compare to 2 years ago when it was 3+%. So it's natural to see money moving from banks to properties and stocks since those are giving you much more appreciation than parking your money in banks now days.

What would cause a crash like last time? Couple things we can speculate.

1. Forbearance Money
Many people actually took advantage of forbearance since it's like not paying for like 2 to more months and living for free! Why not, right? Well, like many experts here warned, it would cause issues when you sell or refinance your home. It might not be much an issue if you sell since your home price most likely increased much to cover any unpaid mortgage, but if you were to refinance, you would have to take care of those unpaid money first. So if you spent those money elsewhere, tough luck. And imagine those unpaid money keeps piling up here and there and everywhere, yeah it won't be that pretty. But it's actually not that much of an issue since you can just sit at your home not selling or refinancing. Just live there forever, right?

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

3. Increase of Rates
I think the country is actually benefitting from low interests rates since many people take advantage of it and keep buying homes which means more taxes for the country! In a way, that might be why we're having good economics and not crashing like many people thought. But if the rate goes up, woooo! You know people won't buy as much and RE money will be moved to banks and even to other countries, and your home price is going down, baby.

Now these are just couple speculations of possible crash. But I personally don't think or hope not it would happen as bad as the last one since we have more strict buying conditions and I personally don't think the FED will increase the rates any time soon. But who knows? 8)

 

[CalBears96]

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

As far as I know, lenders won't allow you to pay off your loan for 3-6 months without penalty.  When I refinanced back in March 2020, the terms were 6 months, so I had to wait until October before I could refinance again.  It worked out for me since the rate wasn't really worth it before then anyway.  I refinanced 15 years fixed at 2.625% (no closing costs) in March and then again at 2.25% in October.

 

[eyephone]

Is it safe to say that we don't have speculators exist anymore in the realestate market? It's hard to say no, when you have homes appreciate 20-25 % annually, since last year. This will bring alot of speculation to the housing market and any speculation exist in an asset class will not end well. It is different though when someone buy to their root down. Whether the market goes up or down, we need a place to live, rent or buy. The heartache now is both rent and buy is coming into an extreme measures.

I think there are tons of speculators and "investors" buying now.. A lot of people have a lot of money and real estate is just one asset that has inflated. But since lending standards are high, we won't see a crash like we did last time. What could cause something like that?

I do believe that society benefits from people buying homes for themselves to live in.

Real Estate has become a good investment asset since the interest rates have gone down a lot. CD rates are so low like 0.5% compare to 2 years ago when it was 3+%. So it's natural to see money moving from banks to properties and stocks since those are giving you much more appreciation than parking your money in banks now days.

What would cause a crash like last time? Couple things we can speculate.

1. Forbearance Money
Many people actually took advantage of forbearance since it's like not paying for like 2 to more months and living for free! Why not, right? Well, like many experts here warned, it would cause issues when you sell or refinance your home. It might not be much an issue if you sell since your home price most likely increased much to cover any unpaid mortgage, but if you were to refinance, you would have to take care of those unpaid money first. So if you spent those money elsewhere, tough luck. And imagine those unpaid money keeps piling up here and there and everywhere, yeah it won't be that pretty. But it's actually not that much of an issue since you can just sit at your home not selling or refinancing. Just live there forever, right?

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

3. Increase of Rates
I think the country is actually benefitting from low interests rates since many people take advantage of it and keep buying homes which means more taxes for the country! In a way, that might be why we're having good economics and not crashing like many people thought. But if the rate goes up, woooo! You know people won't buy as much and RE money will be moved to banks and even to other countries, and your home price is going down, baby.

Now these are just couple speculations of possible crash. But I personally don't think or hope not it would happen as bad as the last one since we have more strict buying conditions and I personally don't think the FED will increase the rates any time soon. But who knows? 8)

and/or other global factors that can lead to an economic slowdown or credit crisis (thumbs up)

 

[eyephone]

Is it safe to say that we don't have speculators exist anymore in the realestate market? It's hard to say no, when you have homes appreciate 20-25 % annually, since last year. This will bring alot of speculation to the housing market and any speculation exist in an asset class will not end well. It is different though when someone buy to their root down. Whether the market goes up or down, we need a place to live, rent or buy. The heartache now is both rent and buy is coming into an extreme measures.

I think there are tons of speculators and "investors" buying now.. A lot of people have a lot of money and real estate is just one asset that has inflated. But since lending standards are high, we won't see a crash like we did last time. What could cause something like that?

I do believe that society benefits from people buying homes for themselves to live in.

Real Estate has become a good investment asset since the interest rates have gone down a lot. CD rates are so low like 0.5% compare to 2 years ago when it was 3+%. So it's natural to see money moving from banks to properties and stocks since those are giving you much more appreciation than parking your money in banks now days.

What would cause a crash like last time? Couple things we can speculate.

1. Forbearance Money
Many people actually took advantage of forbearance since it's like not paying for like 2 to more months and living for free! Why not, right? Well, like many experts here warned, it would cause issues when you sell or refinance your home. It might not be much an issue if you sell since your home price most likely increased much to cover any unpaid mortgage, but if you were to refinance, you would have to take care of those unpaid money first. So if you spent those money elsewhere, tough luck. And imagine those unpaid money keeps piling up here and there and everywhere, yeah it won't be that pretty. But it's actually not that much of an issue since you can just sit at your home not selling or refinancing. Just live there forever, right?

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

3. Increase of Rates
I think the country is actually benefitting from low interests rates since many people take advantage of it and keep buying homes which means more taxes for the country! In a way, that might be why we're having good economics and not crashing like many people thought. But if the rate goes up, woooo! You know people won't buy as much and RE money will be moved to banks and even to other countries, and your home price is going down, baby.

Now these are just couple speculations of possible crash. But I personally don't think or hope not it would happen as bad as the last one since we have more strict buying conditions and I personally don't think the FED will increase the rates any time soon. But who knows? 8)

and/or other global factors that can lead to an economic slowdown or credit crisis (thumbs up)

There is reported power outages that not that many people are talking about, but people should be concerned.  8)

 

[woodburyowner]

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

As far as I know, lenders won't allow you to pay off your loan for 3-6 months without penalty.  When I refinanced back in March 2020, the terms were 6 months, so I had to wait until October before I could refinance again.  It worked out for me since the rate wasn't really worth it before then anyway.  I refinanced 15 years fixed at 2.625% (no closing costs) in March and then again at 2.25% in October.

Lenders don't want you to pay off your loan until 6 months after the refinance in order for them to keep their commissions and fees.  There is nothing they can do to stop you.   

 

[Cares]

2. Refinance
Because the rates have gone so much lower, so many people refinanced last and this year. But the problem is if you refinance right after you just refinanced, you're kind of screwing up your first refinancer. I heard you should wait couple months for them to actually profit for refinancing your home, but the rates kept getting lower and lower and since not many lenders can prohibit you from refinancing again with other lenders the next day, how would that loss be covered? If that keeps happening all over the country, yeah it won't be that pretty.

As far as I know, lenders won't allow you to pay off your loan for 3-6 months without penalty.  When I refinanced back in March 2020, the terms were 6 months, so I had to wait until October before I could refinance again.  It worked out for me since the rate wasn't really worth it before then anyway.  I refinanced 15 years fixed at 2.625% (no closing costs) in March and then again at 2.25% in October.

Lenders don't want you to pay off your loan until 6 months after the refinance in order for them to keep their commissions and fees.  There is nothing they can do to stop you. 

Ban this man! He knows too much.

But yea honestly it's all scare tactics when they say you can't refinance in 6 months because they will lose their commission on it. Most lenders require you to sign some sort of agreement to not prepay within 6 months but #1 I doubt they will go after you for it and #2 the relationship will sour if they do try to go after you.

I would hope all my previous clients don't do this to me and that if rates significantly dropped within 6 months to give me the first shot. I would hate to lose the commission the 1st time around plus all closing costs I covered and then lose them as a customer too.

 

[usctrojancpa]

Got this home for one of my buyers using a no limit escalation clause but the bidding got fierce...
https://www.redfin.com/CA/Irvine/46-Townsend-92620/home/5978848

 

[Mety]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

 

[OCLuvr]

Helena/Delano listings should go on a separate thread, as they match Bay Area prices than Irvine prices.

 

[TestingIrvine]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

 

[Mety]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

Opendoor charges 5% for listing fees. That?s more than many others now days. Interesting.

 

[Irvinehomeseeker]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

So opendoor bought it Aug at 930K and they are selling for 90K more?
I heard flipping is back in full swing  A collegue of mine mentioned he is back into flipping with this hot housing market.
Just hoping it doesn't end the way happened in the last housing bubble.

 

[usctrojancpa]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

So opendoor bought it Aug at 930K and they are selling for 90K more?
I heard flipping is back in full swing  A collegue of mine mentioned he is back into flipping with this hot housing market.
Just hoping it doesn't end the way happened in the last housing bubble.

No way they get a $1m for a Plan 1.  Probably mid-to-high $900s.

 

[sleepy5136]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

So I thought redfin/zillow/opendoor are taking Ls from buying and flipping? Doesn't seem like that is the case and these people are artificially inflating the market.


It?s an Open Door listing they bought below $1M and trying to flip it.

So opendoor bought it Aug at 930K and they are selling for 90K more?
I heard flipping is back in full swing  A collegue of mine mentioned he is back into flipping with this hot housing market.
Just hoping it doesn't end the way happened in the last housing bubble.

 

[Irvinehomeseeker]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

So opendoor bought it Aug at 930K and they are selling for 90K more?
I heard flipping is back in full swing  A collegue of mine mentioned he is back into flipping with this hot housing market.
Just hoping it doesn't end the way happened in the last housing bubble.

No way they get a $1m for a Plan 1.  Probably mid-to-high $900s.

The plan 2 of Delano with 3 bedrooms went for 1.2M( i mean in contract), so why not plan 1 for 1M price at today's crazy market?. The sqt wise plan 1 is only 200 sqt less. Plan 1 misses as a side yard but makes it up somewhat with a small courtyard. Just wondering....

 

[usctrojancpa]

That's right. You know what time it is. It's the time Delano plan1 hits $1m listing, baby!https://www.redfin.com/CA/Irvine/70-Parkwood-92602/home/167401774

It's looking for almost $90k appreciation in a month. Yes, you'e reading it correctly. They sold and listed again in a month with $90k up.

It?s an Open Door listing they bought below $1M and trying to flip it.

So opendoor bought it Aug at 930K and they are selling for 90K more?
I heard flipping is back in full swing  A collegue of mine mentioned he is back into flipping with this hot housing market.
Just hoping it doesn't end the way happened in the last housing bubble.

No way they get a $1m for a Plan 1.  Probably mid-to-high $900s.

The plan 2 of Delano with 3 bedrooms went for 1.2M( i mean in contract), so why not plan 1 for 1M price at today's crazy market?. The sqt wise plan 1 is only 200 sqt less. Plan 1 misses as a side yard but makes it up somewhat with a small courtyard. Just wondering....

Why?  Because it's a carriage unit where all the living space is upstairs with no yard.  I sold the same floor plan last year and heard all the complaining about that so you can't compare price per SF on an inferior floor plan to a good floor plan.  Also, the model match below closed yesterday for $939k. 
https://www.redfin.com/CA/Irvine/55-Quill-92602/home/169484376

 

[Irvinehomeseeker]

Thanks Martin!

 

[irvinehomeowner]

Condwich bad.

You would think a pandemic would have some negative effect on real estate... instead it was the opposite... on almost everything.

I wonder if tulips have gone up in price too.

 

[Cares]

Condwich bad.

You would think a pandemic would have some negative effect on real estate... instead it was the opposite... on almost everything.

I wonder if tulips have gone up in price too.

Well the negative effect is if you don't already own then you're in a much worse spot than a couple years ago. Most of us on these forums are owners of 1 or multiple homes so we're doing much better than the average person.

 

[aquabliss]

Condwich bad.

You would think a pandemic would have some negative effect on real estate... instead it was the opposite... on almost everything.

I wonder if tulips have gone up in price too.

Well the negative effect is if you don't already own then you're in a much worse spot than a couple years ago. Most of us on these forums are owners of 1 or multiple homes so we're doing much better than the average person.

A coworker friend of mine almost bought 3 times in 2019 but kept getting outbid and wasn?t in a rush.  Then when pandemic hit he got excited because he thought the economic crash of the century was here and he could buy a $1M home for $250k if he waited and kept his cash on the side.  Well of course you know what happened, he kept waiting and waiting and never bought.  Now of course that $1M home from 2019 is $1.5M and he can not afford it.  I feel bad for the guy but the best time to buy real estate is usually ?now?, I told him this but he didn?t listen and now he?ll probably never buy anything.