***Official Real Estate Thread***

grapedrink

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May 21, 2011
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A Beach
You are not far off. It won't be an apocalypse but it is slowing down in some areas. Per my wife, Zillo is sitting on a load of properties that they over paid for and are going to be in deep $hit with at some point.
Where is Zillow sitting in these? Nationwide or select markets?

Definitely should be some kind of corrrction with the eviction and foreclosure moratoriums lifting.

The wild card is whether all these investment funds will continue buying up houses. Although REIT dividends seem crap at the moment, so maybe that is tapering off . . .
 

npsp

Michael Peterson status
Dec 30, 2003
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Where is Zillow sitting in these? Nationwide or select markets?

Definitely should be some kind of corrrction with the eviction and foreclosure moratoriums lifting.

The wild card is whether all these investment funds will continue buying up houses. Although REIT dividends seem crap at the moment, so maybe that is tapering off . . .
Her primary area is coastal N. County SD but does work in other parts of the county. She says that Zillow has been buying up single and multi-family housing all over the county and paid a premium for them. They now have some of these properties back on the market for less than they paid for them. Most homes were purchased for $750K - $1M but worth $500K - $750K.
I assume this is the case in many areas across the country.
 
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hammies

Phil Edwards status
Apr 8, 2006
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Still going strong here. Every single listing in my neighborhood has gone for over asking, most recently $200K over asking on the day it was listed. A1300 sq ft house a couple blocks away just hit the market for $1.8M, we'll see what they get.

It just seems like there are an incredible number of people able to make $2M cash offers.
 
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gbg

Michael Peterson status
Jan 22, 2006
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Still going strong here. Every single listing in my neighborhood has gone for over asking, most recently $200K over asking on the day it was listed. A1300 sq ft house a couple blocks away just hit the market for $1.8M, we'll see what they get.

It just seems like there are an incredible number of people able to make $2M cash offers.
Where is this?
 

keenfish

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May 12, 2002
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I'm shipping lumber to a new home construction in Hope Ranch waterfront hillside lot (huge lot) and getting ready to ship to a new home build on Fernald Point. It's Blowing up with new home construction up there.

I'm sure both lots were north of 10m. ?
 

npsp

Michael Peterson status
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Her primary area is coastal N. County SD but does work in other parts of the county. She says that Zillow has been buying up single and multi-family housing all over the county and paid a premium for them. They now have some of these properties back on the market for less than they paid for them. Most homes were purchased for $750K - $1M but worth $500K - $750K.
I assume this is the case in many areas across the country.
Just read an article on the web this morning and it claimed that Zillow is sitting on a pile of below water properties with the highest concentrations in San Diego, Phoenix and Mesa, AZ. Their stock is tumbling and down >25% since the start of the year. I hope they get slaughtered as they outbid a lot of first time home buyers and/or families looking to upsize with all cash offers way over asking.
My wife was counseling her listing clients to make sure they had a game plan for post sale housing since their house may sell in one day and close escrow in 30 days but it may take months to find and close escrow on a new one, especially if the buyer was not open to a rentback option.
 

CutnSnip

Michael Peterson status
Sep 11, 2018
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Probably dropping in on you, California
just got pre approved for 800k - but not much to buy round here besides apartments. thinking long beach because id be able to take the train to LA if i need to go into the office and you can still get a sfh for under 800k, and not a fan of the Valley... plus im single no kids. do i need a house? do it for the investment? do it to stop pating rent? what say the erbb?

edit - If i need to i can put 20 percent down but a freind mentioned getting the FHA loan or whatever - paying a higher mortgage for a year and then refi'ing? im a total noob here so...
 

grapedrink

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May 21, 2011
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A Beach
just got pre approved for 800k - but not much to buy round here besides apartments. thinking long beach because id be able to take the train to LA if i need to go into the office and you can still get a sfh for under 800k, and not a fan of the Valley... plus im single no kids. do i need a house? do it for the investment? do it to stop pating rent? what say the erbb?

edit - If i need to i can put 20 percent down but a freind mentioned getting the FHA loan or whatever - paying a higher mortgage for a year and then refi'ing? im a total noob here so...
I'd say go for a Long Beach SFH. Will continue to improve over time and will weather a downturn better than a condo. Condo could still be a good play if it's in a desirable neighborhood. If rents are still super high then yes, put that into equity.

FHA loan will require paying PMI insurance which is several hundred a month. Best to do 20% down if you can.
 
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bird.LA

Phil Edwards status
Jul 14, 2002
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LA
just got pre approved for 800k - but not much to buy round here besides apartments. thinking long beach because id be able to take the train to LA if i need to go into the office and you can still get a sfh for under 800k, and not a fan of the Valley... plus im single no kids. do i need a house? do it for the investment? do it to stop pating rent? what say the erbb?

edit - If i need to i can put 20 percent down but a freind mentioned getting the FHA loan or whatever - paying a higher mortgage for a year and then refi'ing? im a total noob here so...
I moved from renting a 1br guest house in Mar Vista to buying a 3br home in south LA summer 2020, and don't necessarily regret the decision.

Something you may not be considering: Maintaining a house is expensive. Maintenance + insurance + property tax is more than what I paid in rent.

I look at my mortgage as a set investment that I make monthly, the other sh!t my actual living expenses.

I'd have done a lot better putting my 20% down payment + monthly mortgage payment into the right stocks/crypto, but the home value is up ~15-20% from where I bought and LA property values will almost certainly outperform those other investments on a down turn.

When and if that downturn comes is the question if you're thinking of buying. I think it will be more of a price plateau rather than a dip here, but we shall see. Prices are definitely way up.
 

CutnSnip

Michael Peterson status
Sep 11, 2018
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Probably dropping in on you, California
I moved from renting a 1br guest house in Mar Vista to buying a 3br home in south LA summer 2020, and don't necessarily regret the decision.

Something you may not be considering: Maintaining a house is expensive. Maintenance + insurance + property tax is more than what I paid in rent.

I look at my mortgage as a set investment that I make monthly, the other sh!t my actual living expenses.

I'd have done a lot better putting my 20% down payment + monthly mortgage payment into the right stocks/crypto, but the home value is up ~15-20% from where I bought and LA property values will almost certainly outperform those other investments on a down turn.

When and if that downturn comes is the question if you're thinking of buying. I think it will be more of a price plateau rather than a dip here, but we shall see. Prices are definitely way up.
thanks for the info, and yea - no matter what i do, the mortgage will be more than my rent most likely even with 20 down, but i like the way you look at it regarding the mortgage as a monthly investment and the rest the living expenses.

i got a down payment just sitting in a money market account and not ready to really put it to work in the market/crypto as i have other money in there now. this money was always saved for the purpose of a down payment so im sticking to using it for that. just dont know when the right time will be i guess because i just dont feel like i need a house rn - and my rent isnt horrible.
 

PeterDj

Legend (inyourownmind)
Jul 11, 2018
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Checking coastal real estate value is the most depressing topic ever. I don't think values will drop, but will level out somewhat like the stock market now. Too many REITs around that will keep pumping prices up not to lose on their investments.
 

sussle

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Oct 11, 2009
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