Why the real estate market continues to explode
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- เผยแพร่เมื่อ 7 พ.ค. 2024
- As the pandemic shifted our work lives into working-from-home lives, it also accelerated trends among homebuyers toward more affordable locales. As a result, competition for houses in smaller cities, like Boise, Idaho, has reached never-before-seen heights. Correspondent David Pogue talks with realtors across the country about their unprecedented sales, and with new homeowners whose migrations from larger metropolitan areas helped fuel a residential bull market.
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Selling your home is easy. Trying to find a new one is darn near impossible. It is like a game of musical chairs.
I think that's the part some people do not understand.
I'm closing on a house next week, the house went on the market on a Saturday, I put in an offer Monday morning. I was the first viewer and first offer, I offered $32k over asking price. I had just lost out on a house where I offered $6k over asking price so I knew I had to offer something to let them know I was serious. You have to really love a home to even think of buying right now.
@@jlv3x Your problem is going to be, when this is all over, you might be underwater in 5yrs.
Ha i sold my house and moved to europe 😌
Just build that’s what I’m doing right now .
There is no way this is going to end well.
Right!?!?!
C'mon man!!! Prices never drop. Land and houses only appreciate in value..... and unicorns and fairies will landscape for you as part of the HOA fees :).
Crypto is not gonna end well
Save your money now guys and I’ll be with you at the tax auctions in a couple years
the difference is 2% interest rates
Cash buyer was likely an investor. Client who bought the sellers next home also an investor. Investors coming in with cash, overpaying and inflating the market. Families looking to buy getting pushed out because its no longer affordable.
Yup, thought the same thing. Happening all over Austin.
I asked my broker, who have have I been loosing out to because I’m a GulfWar Vet. And I was told by him, that they got cash for a few and they did not want VA, because they could not get out of having to do waivers or way over the asking the pricing.
I believe 40% of homes sold in 2020 were to institutional investors so yeah that's possible but in that case I don't think so given how much they overpaid.
Maybe it's 20%www.google.com/amp/s/therealdeal.com/national/2021/04/13/institutional-investors-higher-material-costs-lead-to-rising-home-prices/amp/, but I was pretty sure I heard on the radio more recently it was 40%. Either way not a market I want them messing around in, just going to jack prices up
@@eddyeroyal6024 why does it matter that you are a GulfWar vet? How does that make you different than the other buyers?
I’d like to make a suggestion. Perhaps you could do a story on how the great real estate boom is putting more people on the streets. I live just outside of Austin Texas and as a result of this wonderful boom my landlord sold the house I’ve lived in for five years which was fine until I started looking for another place. The rentals have ALSO DOUBLED AND AS A RESULT I’m going to be homeless as of the 31st of May. Many people like me are struggling to find a new home and WE CAN’T. We’re being outbid for apartments by the hundreds. Maybe someone can do a story on how the great “reshuffling” shuffled thousands of us into the streets with no where to go. I’m spending my 54th birthday homeless after working hard all my life. Thanks to whomever is responsible for this.
I’m so sorry to hear this :/ I really hope something good happens for you 💜
I’m deeply sorry for your plight! I will pray that you will find a place to live!
Have you considered renting a room?
I'm so sorry to hear this. We live in a disgusting, greedy, society. It's all this is. Housing has become another extortion, like healthcare in America.
Destruction by design.
🙏🙏🙏
Flaunting one's wealth in what use to be a middle class neighborhood isn't going to end well. Just because you can doesn't mean you should.
Agreed. Im not trying to impress someone and have the bank own it all
You forget a lot of people are FROM generations in ID, and moved to the city to gain wealth then move back. Sorry.
@@randomoverpopulatedworldid3286 few and far between.
An entire generation priced out of the market.
I feel you but an entire generation can not succumb to hopelessness. That'll cost way more
Young folk don't care. They think they rule the world.
Hey, they say they value experiences over stuff
poor babies, maybe we should pay off their student loans and buy them a house
@@billmoyer3254 We are not asking for handouts.
So you're telling me people like Alicia are selling their homes ridiculously high and then purchasing their new home ridiculously high? Ha!
The only winners in this market are real estate agents.
Yes they are cashing in serious money.
I would think she is going to rent and invest the money she made and put her capital to work. The interest even on a boring 5% return annually for upwards of half million would be around $25,000 a year. If you live frugally in a relatively cheap rental, you could skate with working any part time job you wanted until house prices came down and then go house shopping again. At least that’s how I would do it. Unless I’m missing something from the picture.
Banks, finance firms, and agents always win. Even when they lose they win with a huge bailout.
It's a mystery to me why people are still giving seller's agents a huge cut when the houses are literally selling themselves.
Even though buyer's agents theoretically are most useful in a seller's market, I'm hearing lots of stories of potential buyers getting ignored by their agent because the agents can only afford to focus on their most bullish clients. Everyone else will get outbid, so no commission.
The real estate industry is structured in a really dumb way. I hope that FSBO start to surge as a result of all of this.
It is not ideal for us agents either, we are trying to compete for the few listings available, and if we have buyers, it is hard for them to win the bid. So, most agents are working without making anything. The only winners are those selling in a high market and moving to a place with lower priced homes, or investing their profits wisely. I am luckily an established agent in Boise, Idaho, but so many agents are struggling and it is sad. It is also sad that the locals can't afford to buy or rent anymore. I would give up half of my salary if we could go back to homes that were affordable. I have been a single mom for over 21 years and my boys may never be able to buy a home. One lives at home and one has to rent a home and rent out rooms. So speaking for myself and other (some..not all )agents here in Boise, this is not ideal.
Be fearful when others are greedy!
-Warren Buffett
Too many people predicting the next housing crash. They rent while they wait... Time to buy.
Be smarter then the fish swarm - Ferenc Vad
@@brokeduece1691 idk when the housing market will crash or if it will, but it’s pretty obvious this is a ridiculous stupid market and not a buyers market at all.
and be greedy and others are fearful
Never trusted the media ... Even in 07 they were saying the market was excellent , yet months after the market crashes, and btw i was in the industry for 12 yrs .. Artificial inflation and low interest rates are not sustainable... The law of gravity will kick in
Took me years to get my act together enough to buy a house. Now I still can't buy a house because I can't afford to outbid someone by 30,000+ over list price. It's almost like, why even try?
Just keep saving! The problem is because there's not many homes on the market!! This video isn't talking about that at all!. People will start selling again.
I hear ya, man. I'm in the same boat. Got a good credit score, money in the bank, but no house. I'll be damned if I pay these top of the market prices.
I’m in the same boat as you.
Apparently you didn't try to buy the same house before the frenzy began. This market will pass and other opportunities will come for those who are prepared through their own hard work, sacrifice, good habits, time spent learning how the system works, etc. Start right now by learning from this and setting goals rather than using it as an excuse to stop trying. That is a life lesson that will bode well for much more than just purchasing a home.
@@jamiesouza there are a TON of houses on the market. Just not in the neighborhoods that EVERYONE wants to live in. But we can't build more of those because of zoning. The suburbs have a ton of houses... surrounded by walmarts and home depots.
We used to build walkable neighborhoods.. now walkable means you paid a premium to live in a highrise with a Tom Thumb or a Trader Joes on the first floor...
Not getting an inspection is insane
Heck, if you can afford $60k over the listing price, you can afford a teardown Remember Mcmansions?
@@karoberts2198 but they cant because its financed even if someone pays cash their most likely going to refinance after they get the house
its actually starting to become common in this market, I bought a house back in February and thought about not getting one because the house was relatively new
You get an inspection but you don't ask the seller to fix anything because someone else will buy the house. I got my seller to include a home warranty.
I'd like to buy one of those garages with the house attached.
I live in Boise and my house is a converted Garage in a 2 bedroom house with no vents for heating.
@@Nilbog-Hunter brrrrr! You have to be one tough cookie to live without heat!
@@VM-yd6zq Am do a lot better than most Americans in terms of my living situation so I'm blessful for that. My house has no baseboard heaters, It's essential in Idaho to get cheaply built homes with Shady handyman's.
@@Nilbog-Hunter I agree! You are doing well and have moved to a beautiful place. I was only curious about the method you used to stay warm. Is it difficult? I think maybe a wood stove might work there.
us single people can’t afford to buy a house now Because the high listing prices and people are offering high even over that... It’s to the point now that people I know that are looking can’t afford to move because of the high prices and offers...
"And they are looking for smaller, more affordable starter homes" Meanwhile when I look around I just see mcmansions
You want to buy a home low and sell high..not the other way around…this is not going to end well
@Mass Debater exactly..and then you have Zillow paying cash to flip houses…that’s not helping the matter
💯
Just bought a condo here in San Diego County, 2 bedroom, 1 bath for 195k in a sub-urban area 🥳. It helped that i’ve rented where I bought from the owner for the last 5 years!
Wow, that’s a crazy, unheard of price in this market. Congratulations!
People are turning these once gorgeous homes into Airbnb’s, families and renters literally don’t have a place to go. I have like three options for apartments in the Valley currently. Two options to buy. Don’t use Airbnb! They are finding this to be a big contributor to the problem!
I just read a description for a Jersey home that offered a Airbnb estimate of monthly earnings.
Did they really send a camera crew to film that lady getting interviewed through a computer?
Remote work is allowed for now. Eventually employers will likely pull the plug on that.
It depends on the industry. Software companies save money on office space and it's pretty easy to work fully remote.
If remote work is acceptable; why not hire folks in Malaysia, Philippines or India, where the cost of labor is significantly cheaper? People are not thinking this through to its conclusion
@@Iamthepossum Because labor laws should prevent that. Same reason you cannot bring people in from another country to work physically. Most countries already do this because some level of protectionism is necessary. If either is allowed it's usually just so companies can exploit foreigners for their own profits and should be illegal.
@@Iamthepossum Sadly, this is already being done and happened to a great extent way back in 2001.
No they won’t, they now realize that they don’t need to pay millions for scam office rent
The only ones I feel bad for are the young 20-35 year olds that have been priced out of the market because of jerks with money paying ridiculous amounts over a reasonable home price. Looking forward to a crash that corrects all this.
Edit: I feel for father's living in campers so the ex and kids can stay in the house. Or the single senior women who can't find safe affordable housing. Or the young couple with small kids who grew up in and stayed in a small town only to be outbid by out of towners.
That’s me 😅 I’m 27, have a good job and credit. Just couldn’t go 30,000 over price.
A crash does not correct all of this, if you look at previous crashes and even if it did you really would not wish for one, if you ever experienced one already!
That's me, 26, great job, great credit, just couldn't compete. And new construction has gotten worse too. Also doesn't help hearing realtors and investors say "buy now or never".
Americans only like capitalism when it suits them.
@@katdeluxy9608 Agreed. Capitalism is great when it's a fair outcome. Problem is what is a fair outcome.
50 cars lined up in a driveway to pay double for a postage stamp-sized lot and a slapped together house in a suburb that looks* Just Like* all the other houses, in an HOA that puts a lean on your home if you dont do as they say and make your house boring like all the others. No Thank You!! There's a sucker born every minute. Good for sellers and realtors, I guess.
*lien
I wish I had never bought a house in an hoa.Everything you said is true.
@@donnahagan5018 ugh, sorry. I lived in a condo for 9 years, most of those years were because I bought it just before the market crashed and I literally could not get out of it financially until the market finally started to recover. It was like living in a prison, white backed curtains only, nothing on your balcony, no decorations showing outside, blah blah blah... Fined for not filling out a form about who lives in my house, where I work, pets etc. 300.00 to change a lock because I had to use their locksmith! Finally was able to get the heck out of there and buy a single family non HOA house, where I can put flamingos on the lawn if I want too. Some day you will get out...
This is SO painful to watch. Buying a home feels like such a distant dream.
Agree
Start small get a condo or townhouse at first. It's a circle went nuts in late 90s and early 00s, then it crashed. If you didn't have to buy hold off and wait for a correction if able to. Abd work. Work as much as you can get more cash to have ability to be competative
Oh buck up. The mgt. industry and realtors (look at these fat cats gloating) are up to their old tricks so sit tight and wait for the bubble to pop; sad to say, it will. While you're waiting, bank every red cent. No more craft beers, destination weddings, upgrades, uber-eats. Scrimp! Then go to the library and check out the books on how to buy a house without a realtor. Do your homework and then, when you're ready to buy, sit down with a good real estate lawyer. Don't buy a house with 4 baths, spa tubs, glam fixtures blah, blah, blah. Finally, do a spreadsheet of ALL possible costs and life disasters: leaking roof; do you pay to maintain city trees (we do), sickness, house paint, unemployment, divorce, taxes, pets and travel (you might have to give some things up); lawn service? (mow your own)....do the math and buy exactly what is within your budget. Good luck. ; )
@daniel it wont crash. This isn’t 2008. Its called inflation bro. I’m a realtor.
build your own
Bought my home in 2011 for 280K and now my home comps are over $650K insane. I am staying put and watching the feeding frenzy from the sidelines.
Do not sell it because your 650k can only buy a garage in california this time🤣🤣
@@ronpagala7496 House is going into a trust for my kid. We always had the idea as a starter house. This bubble will burst soon and I’m hoping everyone can accomplish buying a house.
Why didn’t he ask where that woman was moving to?
I was going to ask the same question in the comments.
@@ohmy9479 She lives in Idaho. It doesn't really get any more "non-woke" than that.
Ding!
That's the exact answer I was waiting for as well.
Hate to think what their apartment rents are like! Since every time a real estate boom happens like this, those rents go up also.
Rents are starting to exceed to cost of a 30-year mortgage on an average priced home in many areas.
They are insane here in Phoenix, Arizona😞
One bedroom is $1,400 a month and home price close to $400k in south Florida. Median salary is &45k. Locals can not afford the skyrocketing costs.
Just started renting in NW Central area in Boise. I pay 1175 for a 2 bedroom apt. 750 square feet. Very dated everything. A renovated unit goes for 1200+
After a 2 mos of searching, this was slightly below the typical rent for this area.
PS - I'm a grad student, who wouldn't qualify for a mortgage loan if I wanted too. I would easily be paying 200-400 a month if I purchased l. But also, everything below 250K in Boise is sold the same week it goes on the market. I'm not sure how this will end, but owning a home is quickly becoming unreachable for most below the age of 35
Feel bad for the people who grew up there and now can't afford to live there
Small towns are experiencing what big cities have been going through
Too bad so sad. they can rent from me. it's a wolfs market.
Ownership of single family homes should be restricted to those who live in them. All institutional, absentee, foreign, and investor ownership of single family homes should be restricted or banned outright. If this is not done, the dream of home ownership will become a dream for most and the USA will become a land of landed aristocrats plus those who rent from landed aristocrats.
It would help if HOMEOWNERS would stop SELLING to investors! If/when I move I have no plans to do so regardless of the price. I want a family who needs a cute affordable house to live here. Not someone treating it as a cash cow. :(
Right on the money. I've been saying this for awhile now people seem to thing this is too extreme for some reason.
Neo - Feudalism, you will own nothing and be happy.
You’re absolutely right. I hate real estate agents. I hate passive income earners. I hate the fact the American Dream in this country is out of reach for a lot of people.
@@johnboy32064 have you always been so poor?
"Unrelenting demand that we expect to see for years to come." Is that woman serious? She seems completely oblivious to the fact that most Americans are now priced out of the market. This is a bubble, a big one. And it's about to burst.
PEACE, WISDOM, FREE THINKING, CALM KINDNESS, LOVE ONE ANOTHER, HUMANITY UNITED, PROSPERITY, BONANZA, RESPECT, HONESTY, SAFETY GOOD HEALTH, SOBRIETY, OPTIMISM
@@sanbruno3606 It will burst, but unfortunately, it will take awhile.
The places that are being overpriced are a small part of the market. Its not unlikely that those areas will stay overpriced -- even if there is a bit of correction.
This is just a "shuffle" because lots of people can now work remotely. If you are in the areas of CA where they are leaving there has probably been a dip in housing prices already. People in small houses/condos want a home office. People with a bunch of kids want a place with a yard. Everyone is moving "up" at the same time.
Locals being priced out by out of towners. A bit sad and unfair.
Just wait-- a lot of those idiots will be on the street again soon...
Unless you own a home there!
Nyc native just enter the chat.
It’s exactly what Californians did to Seattle. Now there’s a mass exodus out of Seattle but everything is insanely expensive there. They can’t go backwards...
You imply there is some special status to being a "local". I think we all live in the same country, USA, you don't get some special dispensation because you were born in a certain locality. "Localism" is a disease!
The cost of living will rise quickly in these areas which unfortunately pushes out locals losing the character it had in the first place.
Gentrification
Happening a ton in Texas lmao
The Mexicans are taking over neighborhoods anyway .I moving to the woods
People were tired of the old town they moved away from and now trying to make their new town like their old town lol
@@shwiggle Not really. Most of the houses being snapped up need no renovation and are already in good neighborhoods with good schools.
I live in a smaller city. The people moving here are awful and yeah pricing us out of our homes. It is sad what is happening
Why awful
This is what actual Californians have had to deal with for the last 50 years. Now the tides have turned.
What city is that?
The blue wave is coming near you 😂
I sold my house in what just 5 years ago was a small, nice area just north of Tampa. By awful, i can relate. This once nice place is now overrun by aggressive, obnoxious people from the northeast. I fled. I made a good enough profit and will now just wait until this ridiculous market crashes.
Every house in my neighborhood that comes on the market is snatched up by an investor who makes it a rental. Larger homes get turned into two or more apartments. What used to be a neighborhood of single family owner occupied homes has become one full of rentals. I used to know my neighbors. Now they come and go so fast I have no idea who anyone is.
This is not safe for the neighborhoods either. Neighbors typically look out for each other. No real neighbors, whose watching?
I love how short everyone's memory is. "This time it will be different." or "This isn't a bubble." Here's a history lesson: In the late 1989s, the huge craze was around canned sardines which sold for $100 a pop. In 2000, it was the dot com bubble. In 2008, it was the real estate. In 2020, it's bitcoin. And every single one of those times, prices came tumbling down. Why? Because when people stop being able to afford something, they grow disgusted and lose interest. And when people lose interest, sellers lower prices to bring buyers back. But buyers are still too disgusted at being priced out of the market. So the sellers start undercutting each other to compete for the few buyers left. Over and over again. There's nothing magical or unique about this time around.
Long story short, be extremely fearful when everyone is being greedy.
Are people being greedy or scared to miss out
I don't remember the sardine thing.
PEACE, WISDOM, FREE THINKING, CALM KINDNESS, LOVE ONE ANOTHER, HUMANITY UNITED, PROSPERITY, BONANZA, RESPECT, HONESTY, SAFETY GOOD HEALTH, SOBRIETY, OPTIMISM
@@katdeluxy9608 Definitely FOMO. There will be some supply released when evictions are allowed again, but there has been a 12 year building deficiency and the largest generation just woke up to the idea that waiting will not result in a better deal in the foreseeable future.
As others have commented,no one can afford to live/own a home 🏡 at these prices! Throw in the yearly tax and upkeep, Americans will be in debt for the rest of their lives or homeless!😫😫😫🙏🙏🙏
Like the Yogi Bara quote "Nobody goes there anymore because it's too crowded!" By definition if something sells at a price, somebody could afford it.
This is actually a breakdown of the containment of unaffordable housing to major urban markets. The buyers driving up prices are able to buy larger homes in the best parts of smaller towns by selling their urban armpit condos and bringing their high paying work from home salaries.
I love the fact that the piece did not bring up the fact that wall st is helping to artificially inflate home prices right now.
I'm sincerely NOT challenging you, but I'm asking how.
That old supply and demand thing. The more people there are who want to buy, the higher prices will go, just realtors and apartment block owners can make a profit. Forget there may be residents who grew up there who may be left out in the cold.
@@joeycallahan by them investing in single-family homes instead of high-rises or apartment blocks. I mean they do invest in those as well but they have now commodified housing with all cash buys and can sit on it to get the rate of return they would like without consequence to their bottom line.
You have no idea what you are talking about. Low interest rates and people being able to work from home, as well as wanting to move out of apartments and have more space after Panedic shutdown. You just want to blame it on Wall St bc you wish you were there.
@@CharlotteSoccerHighlights hahaha someone doesn't know history. Look back housing has always appreciated with inflation up until around the 2000s when Wall Street commodified it. We were lucky that it wasn't massive appreciation but this is a natural reaction to market conditions which severely distorts prices because housing no longer function as what it is but as an investment. Try reading some financial history.
Congrats to everyone who has sold and/or purchased a home. Must be nice to have the American dream. I am slowly coming to accept that I missed my chance to be a home owner. I am working on redefining my American dream. So happy for you all 😊
Don't give up on the dream, Rich. Be patient. When the bubble bursts, be positioned to take advantage of it.
Rich my opinion the american dream can be a nightmare owning a home repairs taxes going up but to each his own its sweet and sour
Ahhh Rick don't give up. Keep looking!!
There are millions of hardworking people who can't even rent an apartment without sharing. Middle class are getting the squeeze the lower economic spectrum has experienced for years.
And yet ppl keep voting for the party of trickle down economics which now has been proven to only contribute to the wealth gap making the rich richer.
Is there still a middle class?
@@katdeluxy9608 nyc biggest real estate racket.
@@lisajohnson6351 Reaganomics killed the middle class
Reaganomics started this mess
meanwhile, gen x is left out of the conversation again like they don't exist lmao
Not just gen x. I'm nearly 60, and am having a tough time just finding an affordable apartment.
@@janxander6535 I need a roommate 😉😇
And they ignore the Gen Z who are starting to buy, the under building from the housing crash of 2008, and a few other factors...
But just take Zillow's word for it.🙄
Yeah...that’s how we became the “whatever” generation. 😂
I’m a Gen X, no we just have to know how to put back.
The seller market is so good that buyer's in some areas are paying above asking price and foregoing inspections. I have a feeling the next housing bubble will be much worse than 2008.
The big difference is that the buyers DO have the cash to buy. In 2008 banks were giving anyone with a pulse loans. That is not the case now. Millennials have professional jobs that can be done from anywhere.. The market could slow down when interest rates go up. But a financial crash is not likely.
@@RyanWehr I wonder if fed rates will ever go above zero again?
@@RyanWehr You are wrong. Regardless if you are millennial or not, do the work from home or not. The bank lends you the money and that money you have to pay in addition to taxes and insurance. And one thing is real here in the USA, the jobs are not stable.
@@RyanWehr Exactly. Educated millennials who did not do something stupid like rack up massive student loans and work at Starbucks, but those who went into real professional careers have made out well. A corporate job with 15+ years experience is easily a 150k/year position in non-california sectors. Husband/wife pair can easily have a 300k/year household. Not much problem for them to buy a home (outside California at least).
I would NEVER be desperate enough for a house to forgo the inspection. You don't know what problems you may be getting. I also would NEVER buy a house based on a virtual viewing. Glad I'm not in buying mode.
Just wish that those who move to new places and start a business would quit advertising "shop local," because they are anything but local...they are almost always transplants who want cheaper housing prices, lower taxes, and want to change their new locations to be exact replicas of the places they moved from. They are willing to change their new digs as long as they get what they need, with utter disregard for those around them...
Yes, and when they do flood the small town the locals who live there will be forced to pay for all that new sewer, water treatment, roads, & schools.
Please stop saying “the great reshuffle” like it’s something to be optimistic about. These effects have a great impact on the market in the long term. The US isn’t well suited for a long term demand for housing, which means there will be a lot of people displaced because of this. Sure you can sell your house for a high price, but if you can’t afford to buy a house after selling yours, then how good is the market?
Just food for thought.
Agreed. Meanwhile this host seems positively giddy over this bull mess.
Well, it is appropriate. After all, who is best at "shuffling"? A card-cheat who deals from the bottom of the deck!
These are turnkey homes in good locations. Don't want to pay a premium? Be willing to do a bit of work and don't buy in the "hot" locations. Walkable, in town, ready-to-move-in properties command a premium price... who knew?
@@redwolfexr yeah sure, because there’s plenty of “walkable, in town” homes in the suburbs (which is where most housing is being bought).
@@redwolfexr Also, if you can’t understand how $100k to $1 mil over asking price is a premium price and is acceptable, you’re delusional.
I love that we are in housing bubble two right now. People are so smart. This happened ten years ago and y’all have already forgotten the lessons of 2008. Just because this one is VAUGLY different doesn’t mean that is isn’t gonna pop too. I was just an 8 year old when the first one popped I guess I’m gonna have to graduate college in housing bubble two 😩
i bought my house last year at the beginning of the pandemic. my house has gained almost 40k in value in a year. its crazy...
Mine too it’s crazy. House went up $35,000 and we just bought in November 2020. Houses on sale and going pending in 2 days around here Pennsylvania
@@tahira.7914 i mean it might sound great for us as house owners.. but if we needed to buy we would also have to be overpaying and getting into bidding wars..
@@jorgegarciamex Location, location, location has become timing, timing, timing!
I bought my house in Boise in January 2020. Now it's worth $250k or more over what I paid. The house being finished next to me which is identical sold for this higher price, and that sale was made months ago, so maybe add another $50k to that number? In my neighborhood, which is all new houses, the streets are full of brand new expensive vehicles, airstream trailers and the like. Saw a brand new Ferrari the other day parked on the street still with dealer tags. I guess all those Californians are selling their shoeboxes in Silicon Valley for $2M and paying cash for a new place here and spending the rest on brand new glamping gear. All the Boise natives will need to move to Mountain Home and commute I suppose.
It’s not real money, it’s inflation.
Sell it, where you gona live ?
But where is the Boise seller going? That's the problem. If I sell my house, where do I go? I get a great price for my house but I have to spend that on a house that is probably smaller and/or further away.
That’s why you don’t sell your house buddy. It is your house if paid in full.
The Boise seller is going to Idaho Falls, Pocatello, or Twin Falls. Some go further and go north into Moscow or East to Montana or Wyoming. Theyre the next booms.
Imagine you get fired and now you live in Idaho.. hello welcome to walmart
That part!!!
there is going to be so many remote jobs, i'm starting to think I should just move abroad in a island
Wait for Starlink to fully deploy
@@Yui789esss Except that is everyone's thought and within a year half of them will have to come back.
Not to mention if remote works great why pay you? They will send it to India for 1/3rd the cost
@@r987p you’re probably right, there isn’t going to be as many remote as I thought there would be .... Apple is already saying that they need to have their employees 3x in the office per week
they are all smiling ear to ear as they cash their commission checks, again the American mortgage will be under attack as Inflation eats up any buying power for the middle class
Real estate agents are too dumb to realize this is not the free market at work...
PEACE, WISDOM, FREE THINKING, CALM KINDNESS, LOVE ONE ANOTHER, HUMANITY UNITED, PROSPERITY, BONANZA, RESPECT, HONESTY, SAFETY GOOD HEALTH, SOBRIETY, OPTIMISM
I’m thankful the sellers of my current home were nice people and didn’t sell to all the investors that wanted the house. Luckily the dollar wasn’t most important. Because I had none to compete 😂. But the way I loved the house and their hard work on it with the hopes I’d preserve it was my winning bid.
The difference this time is that the people buying the houses as can actually afford them, they’re not getting subprime mortgages with nothing down.
Correct. A LOT of dual income households with 2 decent earners and nothing else they want to spend their money on/. Cheap computers, electronics, furniture, transportation help people just direct their money at their house.
no, they cannot afford them. they are still getting junk loans at 5-10% down. one recession and its over for 90% of states like Colorado and California
@@andrewevans5750 % of cash buyers is staggeringly high - by definition they can afford it.
Where do people have so much money from to be able to buy 30-50% above asking price?? I always heard that people were living from paycheck to paycheck and my wife said about 75 percent of Americans are only 1.5 months away from being on zero. So I see everyone buying houses for almost double price. Where’s the money coming from??? I make good living but I sure wouldn’t waste my earnings that I sacrificed my time for to buy a house for 150% because I m not stupid. So it’s actually a good question to ask, why are so many people stupid? They not wasting 10 grand, they are wasting 40-50 -150 grand and more!!! Wasting!!! That’s definitely stupid!!
Selling dope is legal in Cali now or didn’t you get that memo ?
Low interest rates. Buying costs almist the same as renting
Because ppp loans and grants that’s how tell Biden stop printing so much money
I... think it's the rich Americans and foreigners who are buying. Not the ppl who live paycheck to paycheck.
Lots of folks made plenty of money. A silicon valley developer over the past 10 years was raking in over 200k/year with options on top of that. Save that money, cash out the options, and you have more than enough for cash offers, especially if you're married and have a two income household.
Get rid of the speculators, investment firms, and flippers. When real estate becomes a means of portfolio success, it’s lost all touch with reality! Just waiting for the bubble to burst.
Or the seller needs to avoid the tempation to close on a sale with such inflated values.....and who's going to do that? because you're asking people to go against their own financial interests when someone is offering obscene amounts of $$ for their home.
What goes up will come down eventually! Right now is 2007 prelude to 2008/9 crash! 😱👎
Sure I could sell my home for a high price, but then I have to realize that all the other homes are just as highly priced so it really wouldn't be worth it.
*realestateinvestment84@**gmail.com*
yep
I live in California. We bought our house in March 2006 for $370, 000, at the height of the market. By 2009, the value dropped to $270,000, and eventually bottomed out at $167,000 by 2011/12. Currently, the market value is $410,000. My husband would love to sell, but I fear the market is going to crash again and it'll be 2009 all over again.
Exactly it’s a wash. This only hurts people trying to buy homes for the first time. It’s unfortunate
PEACE, WISDOM, FREE THINKING, CALM KINDNESS, LOVE ONE ANOTHER, HUMANITY UNITED, PROSPERITY, BONANZA, RESPECT, HONESTY, SAFETY GOOD HEALTH, SOBRIETY, OPTIMISM
I live in CT and looking for a home was exhausting and impossible, so I gave up. If you don’t offer 30,000 over you have no chance.
I’m also in CT & stopped looking for the same reason. It was emotionally draining & the average person just can’t compete. I will continue to save & hope the market comes back down to reality soon.
@@Jameson77777 just be patient. Everyone wants what they want and they want it right NOW. Don't be like that. It you keep emotions out of it you will be fine.
@@Jameson77777 ITS A TOUGH STATE TO LIVE IN ,LIKE NY TOO
TOO MUCH TO COMPETE. YOUR BETTER OFF NOT LOOKING NOW
The extra $30,000 you offer is nothing since that home would go up 10-12% in a year. Don't lose out for a measly $30,000.
@@josephkupina120 you’re right & I’m doing just that. Hoping people like us eventually get a chance at home ownership in a couple of years.
National attention like this will only push prices in Boise even higher. We're lucky, we own, but I feel bad for others starting out trying to find an affordable place to live in the valley. Feels like another wealth transfer from younger to older, from poorer to richer, and Millennials getting shafted yet again.
i just closed on my house in March, i had to switch from FHA to Conventional, and had to pay closing costs, but i still had the inspection and appraisal, we got extremely lucky, it was the 5th house we put an offer in, me and my fiance are both in our mid 20s and in Las Vegas
Congratulations! I hope you and your fiance/spose have a happy, healthy, successful union
i was in vegas 2 weeks ago and the heat was unbearable i am a cable guy i could not work outside over there at least in the summer months i will stay in los angeles but congrats with your new house and i hope you and your fiance work indoors because the extreme heat i experience was just too much for me
My own humble place shot up over $100k on zillow in 2 months because of this crazy stuff going on. I wonder what happens if fed rates ever go above zero? One downside i see is local people are priced out of the market when Big Corporations come in to buy as an investment or West or East Coast people come in with alot of cash after they sell their $2 million shack in their home state.
Can someone remind me what happened the last time we had a boom in housing? Can't quite remember...
That was an entirely different situation. This wasn’t driven by regular economic factors (like Bush 2.0), but by a pandemic. We just bought a home and then sold at home. The latter happened by the first buyer through, and elderly couple with cash. Don’t hate
Every boom and bust is different. Why prices rose and why they fell are different each time. But prices won't keep accelerating at warp speed, because ultimately you can have your house assessed for whatever you want, but it's only really worth what someone is willing to pay for it.
That's right, always buy low and sell high.
@@afisemenaborevlaka48 And if it doesn't go up, don't buy it.
Correction: Your house is worth what investment funds with deep pockets are willing to pay for it
$65k over asking, all closing cost included and allowing the seller to remain in the house for an additional five months???... homebuyers are competing with investors!
Yeah. It's Crazy 🤪. A seller is like a Bar of Gold right now.
These these people are ruining my town of Las Vegas. They’re coming in here and paying way way way over the asking price just because they got a bunch of money from their home sales in California. They’re jacking up the prices here in my town those of us that are from here aren’t even able to buy a home. And I’m looking in the five and $600,000 range. Still can’t find anything. I refuse to pay 100,000 over asking price. These people need to stay where they’re from!!!
So when are leaving the US ? Hahahahaha.
Everyone loves capitalism until they don’t 😂
totally agree!!!!
Value based on debt is not value, sounds like another bubble, maybe even another recession, great!
Definitely. It differs from the knee 15 years ago but the results will essentially be the same. I'm holding saving more and waiting for the bubble to burst.
So what happens when your employer wants you back in their brick and mortar? Ouch to a lot of people if that happens. 🤕
They won't. It's cheaper for them to make their employees work remotely.
This may happen for some, but most will make the shift wfh. I hope my company maintains it.*fingers crossed*
Why would they? If they’ve experienced that a mostly remote workforce only enhancing their corporate labor allocation posture, it’s profitable to make that the dominant model.
Yup, I know a few people that left thinking they'd be fine and are now being called back early... it is definitely a big ouch
@@alley5869some companies are already in long term leases with buildings that is the issue... is it cheaper to break those leases or make people come to work now that restrictions are loosened or gone?
Since most jobs are based on cost-of-living in the area, I wonder if local Boise jobs will have to start paying more. I know they will definitely NOT pay more until they HAVE to due to labor shortages, but otherwise people will have to seek remote work if they want to survive in Boise.
Yep
It's already starting to happen. And so far, it isn't enough, so I expect it to continue.
Job market in Boise is garbage. If you’re looking for work there you’re doomed.
Sounds like a perfect storm for millions to be underwater. High prices but the home isn't actually worth that much.
Aaaaand this why I encourage any and all trash talk about Florida. The more these people think of us as the trash bag of the country, the more they’ll stay away and keep our housing affordable for longer.
It's already happening here in Florida. A lot of outsider I can't even drive around anymore.
But Florida has always attracted a lot of outsiders-- retirees, millionaires avoiding taxes, northerners sick of the cold. This shouldn't be a new phenomenon down there.
Sure some millennials have become home owners. I know someone who bought a house that should have been priced for $400k and settled at $600k! That house is not worth what she will now be paying off for years in a market where the property taxes are over $12k! Sure you can move to a rural area but now it’s driving up the market and making housing practically unaffordable in states where these prices should not be as high. Global housing crisis is and will continue to be an issue we face in this country and Co-19 only accelerated this issue!
DONT COME TO NY OR CONNECTICUT WHERE I AM
TAXES ARE JUST INSANE ROADS SUCK TOO
POLITICANS DONT CARE TOO
People are buying houses they can’t afford. If you could buy a doublewide on an acre and be debt free or be 500k in debt in an overpriced house to look rich when you really can’t afford it, it seems people choose the debt option and it’s hilarious
How? Bitcoin? Dogcoins? Bank robbery?!
@@Wizardof no it’s called work and save money
@@jake_of_the_jungle9840 Banks don't loan to people that can't afford to buy. Your loan payment can not exceed 30% of your income. Your double wide will be worth...0 in ten years but a house (if maintained) will continue to appreciate.
3:49 This animation is fascinating. Look at all of the people leaving LA!
As fake as Facebook news.
Alicia Figueroa may be the winner, but everyone like her makes the rest of us losers! This is an American tragedy!
I'd be curious to know where she is moving...
you are a loser
@@karenswidzinski6071 I would think to rent and invest. Just a guess. Until prices came back down and buy back into the market.
A positive fallout from the pandemic but not so great for the locals when prices go up! Im in a West Coast adjacent state and yes we had a strong influx from Cali mainly due to high cost of living (politics are secondary) but the greater migration seems to be from Texas of all places. But its been really great to be able to choose where you live and not have to base it on how far your work commute will be. Ive been doing it since 2017 and LOVE it.
I'm in Texas and that has not been my experience. I've been trying to buy a house for over a year and am constantly losing offers to cash buyers/investors.
@@marywalters1181 That's because there are still many people moving TO Texas as well from California especially to take advantage of it growing popularity as a new center of technology. The housing grab you're talking about sounds familiar. That happened in NV and AZ in the early 2000s. I know your pain!
Not the usual in this case but moved from NY to the Bay Area last fall. It was insane looking for a house. A tear down rebuilt home in Oakland we looked at went for $1M over asking! It was the tiny cottage that hooked the buyers. Other then the prices here it was impossible to find an inspector and/or engineer (earthquakes here) to inspect the home. They were backlogged for weeks.
Because your government has allowed banks,builders,investors and every other financial pirate to make speculative money off of shelter. Shelter should be a public utility like water or electricity.
It's almost like decades of systematically restricting housing supply in the name of "protecting the investment" of people who already own real estate may have been a bad idea.
Makes me so happy to live in VT in my little ranch house, paid off, even with 6 months of winter. This situation truly is insane and I do feel for folks who are trying to purchase their first home or looking to move to a more family friendly place.
It’s on fire like a meteorite burning through the earth’s atmosphere about to crash
Everyone is a genius in a bull market. Now entering bear market, suddenly nobody knows anything LOL
We are in a very critical point at this time.
The crash has been how the rich collect the covid cheques of the poor.
I’m just saving as much as I can. I’m patiently waiting to buy the real estate dip!
@@dwaynerodger9066 Study the trajectory of great assets like real estate, dividend paying stocks of blue chip companies, gold, etc ,chose the most great assets never come down to the price that you want them to so you can buy. just buy the ones you can afford today.
@@dwaynerodger9066 seeking an advise from JULIE ANN GRACE and co who guides through the market and made me avoid a lot of rookie mistakes, I decided to seek guidance while I improve my trading skills and investment strategies by watching videos and reading. the experience has been a smooth ride and i am going slow for now
What happens when companies start telling their employees that they need them back in the office. 😱
Why? It’s cheaper to have remote employees.
Work from home has always been an option for people who are so in-demand the company accommodates them. Most CEO's want relationships and cohesion among their staff. The glaring lack of accountability us another thing. You hear about the guy who was driving Uber while he remote worked from his regular job 🤣. So typical.
@@jmango5370 more productive if they are supervised.
I could make the same argument there’s people that are more productive working from home. What makes the world go round is money and corporations are always looking for ways to cut costs and increase profits. Remote work opens up a broader network for employers to hire from, and you don’t have all the costs of having an office building.
It's all about command and control. It's a rarity that someone gets hired over a Zoom call who is more than a 90 minute drive away. Consultants 1099ers....sure, anywhere. Employees? Not really done, too many potential complications. A simple office visit becomes a plane ride, cross-training means Hotel stays....and on and on. The media is usually wrong about these things, the offices will fill back up.
This pandemic has been stressful on anyone wanting to buy a home or sell one. Wishing that more opportunities can open up very soon, upon everyone wanting to do one of or both procedures.
No wonder why there is so many moving trucks getting wrecked by the bridge in Durham
11' 8'! 4 life!
Felt like I was watching an infomercial for the real estate industry!
One thing you can do is if you see a house that’s empty, check the parcel search to find out who owns it and see if the owner wants to sell. This way you bypass the realtors who don’t do much and make lots of money off of you.
1:44
Look how close the neighbors house is, LOL
I reside in Rural Georgia, for a fraction of the cost, & have plenty of property for privacy.
Crazy Times
got in 3 years ago, house went from 450k to 850k.
SUPER happy i stopped listening to people who thought a crash was going to happen.
It will crash at some point. Be careful.
@@jamescalifornia2964 LOL
Florida, Texas, Idaho, etc have already bestowed “Realtor of the year” co-winners to Andrew Cuomo and Gavin Newsome... Congrats to both recipients!
Nice try, California has the most expensive real estate. California is for affluent, educated people. Texas and Florida are for poor people
the reason they don't mention in the video is the crime in NY and CA that's driving people away
@@vicepresidentmikepence889 We’ve always had that and still do..Especially rich investors living OUTSIDE Ca’s “income” tax collections ( a ton of Chinese investment since 2008) What’s news are the income tax and lifelong resident assets are fleeing juxtaposed with the impoverished, drug addicted, homeless, and 3Rd wild illegal immigrants insourcing in droves.
You need to so your homework on this, and if you think I’m wrong, explain how Ca’s population (11% of the national population) now consume 40% of all federal welfare dollars?
**not even counting massive state income and taxes nailing businesses and residents, or countless billions Ca has got in bailouts**
Los Angeles just announced a record 12 billion budget (15% JUST to homelessness issues)
A few winters in Boise and they'll be moving back to the sunny coast.
@@vicepresidentmikepence889 I’m in Dallas, Tx., and I know people just like me, and we are not that poor, but we are not able or not going to do a a wavier list, go above list, if there are problems with the property then we are stuck with it. Pay 60 to 100K over list. If you say 500K cash for a house if that okay. You go ahead. I’m not going to give 100K over list, or go over 500K. I finally got a contract bid, going above list by 60K but would go up to 500K if the the VA comp said. It actually went 509K.
Thank God my husband talked me into getting our house back in 2009, only had a few others interested, we even asked for improvements and they did it!!!
I bought our house at the beginning of the pandemic. No one looked at this house in 3 months. We put an offer under asking and had lots of repairs done by previous owners. We got in in the nick of time!!
I wish I had sooner
PEACE, WISDOM, FREE THINKING, CALM KINDNESS, LOVE ONE ANOTHER, HUMANITY UNITED, PROSPERITY, BONANZA, RESPECT, HONESTY, SAFETY GOOD HEALTH, SOBRIETY, OPTIMISM
@@sanbruno3606 Nope just a very smart husband-man...
im only 14 but im scared that when i need to buy a house its gonna cost $1M for a shed
$𝟜𝟠𝟘𝟘 ᧁⅈꪜꫀꪖ᭙ꪖꪗ +𝟙𝟜𝟜𝟚𝟜𝟜𝟜𝟙𝟝𝟠𝟛 ᭙ꪖ𝕥'ડ@ρρ.
Be nice to your grandparents and you might get a free house
Built/bought my first house in 2002. Starter home in OH. Had to move in 2005 for work to GA. Market was taking off in the Atlanta area and bought the cheapest house in a new neighborhood. 2002 house wouldn’t sell so I rented it. Sold it in 2007 for a loss. In 2010, I made a local move and Sold the 2005 house to a bank who owned a new, foreclosed house I wanted from them. Local bank in GA. I got my dream house in 2010 for a discount, sold them 2005 house at a slight loss in the most depressed GA market ever. My house is now worth significantly more than I paid for it.
In 2012, homes in my neighborhood were some of the higher priced ones in the county (remember....West Georgia, suburban Atlanta ....very hard hit real estate market from the recession). They were priced $300-400k and would sit a year. Now, they are priced over $500k, going up for sale and pending a week later. Freaking crazy. This area of Georgia is more insane than the 2005-08 upswing. I don’t see how it’s sustainable. Happy where we live and have everything we want in a house. Sometimes I think of buying 10-20 acres in an even more rural area, but with building costs now, there’s no way to replace what I have without spending a ton more. It’s all very interesting, but I can’t see this ending well.
Do it, I reside in Rural Georgia. Its fricken Great
Its like this all over FL now. It's insane
Yeah, but youd have to live in Boise.....
Bought my house in 2016 for 640k, now is valued at 960k. With homes smaller and in worse condition than mine going for sell in the neighborhood for 1.2M. I would easily be able to get that. Only problem is I wouldn’t be able to move anywhere for cheaper, and would end up walking away with no money gained
regardless, I have a friend in real estate in Denver, who does very well, but says that it's really tough for first time homebuyers without a lot of money
We've run into houses that were bought by investors at reasonable prices and then upgraded with unecessary glitz and put back on the market for 100,000 more than the home is worth. And they are getting it. I dont need marble countertops and rose gold bathroom fixtures in a 1200 square foot home appraised at only 115,000.
$𝟜𝟠𝟘𝟘 ᧁⅈꪜꫀꪖ᭙ꪖꪗ +𝟙𝟜𝟜𝟚𝟜𝟜𝟜𝟙𝟝𝟠𝟛 ᭙ꪖ𝕥'ડ@ρρ.
Have you ever seen those house-hunter shows, where the young couple is looking at an $800,000.00 house? First they say, "It MAY NOT be in our budget." Then they say, "This [perfectly functional kitchen] needs updating." WHY??? First of all, where do they work? Secondly, are there any openings?
One time, I looked at a two-family house. (It was actually a one-family house, with the second floor converted to an apartment.) The first-floor kitchen had a hideously ugly, lime-green electric stove. The realtor apologized for it. I asked, "Does it still work?" She said, "Still like new." I replied, "Good enough for me!"
Good time to be sitting on a 2.75% refi, and just WAIT.
I just did that on my property and am selling a rental unit. Price shot up 20% in the past 2 months and realtor says the sales price may keep floating upwards. I'm selling before the crash...
Hopefully closing in 3 weeks. 19k over ask and only because we are friends with the seller, they turned down higher offers to help us out
But here's the thing about Boise, if you lose your "fancy" California tech job, good luck finding something in the area to replace it with and something at the same or similar pay. Several years ago my company had a transfer opportunity to Boise. I would be moving from a moderately-sized metro area on the east coast. I had a moderate but livable salary. Our branch in Boise could not afford me. Another thing this story doesn't point out, a lot of these companies make their employees take a cost of living adjustment (mine did) if they move out of the local area of their original job. Since a Boise salary can not compete with certain California salaries in any way, shape, or form, and when they tire of Boise (and they will) and have that first taste of a Boise winter, these same people are going to be hard-pressed to come back to California. People really need to make sure to do their research and think twice about doing this.
I get paid twice as much in Texas as I did in California. Wages are depressed there because so many people want to live there. I am not seeing this higher pay in California that everyone is talking about. I work in biotech.
To paraphrase Awnold, "You'll be back!"
@@roberte.andrews4621 If I come back I'll have saved hundreds of thousands of dollars over people who stayed and will have no problem buying if I need to scoop up a third property. Also leaving let me rent my old place out. It's a win, win, win situation.
I love that they say that Boise Idaho is a great place to live… If you’re white and conservative
Whats wrong with that?
@@LlamasAreBest if you have to ask…
You can be any color but don't expect Boise to change for you.
Don't whites and conservatives have the right to escape persecution too?
I am in the market in Dallas, Tx. I went throw 10 homes, and this is what’s happening to me, and I’m being priced out of area.
you should wait until the bubble busts, just rent somewhere for a little while
The problem is this great reshuffle is ruining these smaller towns where the locals are still getting paid a local wage. These Californians are also destroying the way of life in Boise.
Californians destroy everything.
every1 is super excited in this video... even the couple who cant afford a house... very frightening
Anyone buying during this Price Frenzy will regret it Very Soon.
This makes me scared that I’m not going to be able to afford my own condo because my taxes keep going up 🥺 I barely qualified and I want to stay right where I am damnit 😂 this isn’t going to end well. I’m in one of those states everyone is moving to! Ugh 🤦🏼♀️
I live on Kauai, HI. Bought my house 19 yrs ago for $400,000. Now worth $ 1 million plus. Go figure. What goes up must come down.
real estate works much better than the stock market because of population increase/competition...you're 1 million is relatively safe
They are so correct and to compound the problem we have found in the Boise area that speculation buyers that have large amounts of cash are coming in and purchasing homes to flip due to the exponential growth of the cost of homes. Real Estate is the wild west.