Experts predict Florida's 'obscene' homebuying market to fizzle as many become priced-out
ฝัง
- เผยแพร่เมื่อ 17 ต.ค. 2024
- Home values throughout the Tampa Bay area are increasing by the day. Real estate agents say around 90% of homes are selling over the asking price.
The market is being driven up by out-of-state buyers who make cash offers. The high demand continues to push up home values throughout the Tampa area.
MORE: www.fox13news....
FOX 13 Tampa Bay brings you the important videos like breaking news, Tampa Bay weather, and local stories. But also plenty of fun stuff, like #WeLiveHere tips, the best of our archives, and all those 'only-in-Florida' stories.
Subscribe to FOX 13 News: www.youtube.co...
Watch more FOX 13 News video: fox13news.com/
Watch FOX 13 News live: fox13news.com/...
Download our app: fox13news.onel...
Get our newsletter: www.fox13news....
Some mis info here. $500-450k doesn’t equal $50k profit as there are expenses on the resale side. Likely a break even. Another thing is 20% down isn’t true. Can still do FHA 3.5 and conventional 5% down. But yes I agree. The housing market is insane and something will give.
not making profit on house when you hold it for 4 months and the house payment is half a million per month either.
Your crazy I work for 4 different realitors doing construction everyone of them are making a killing.
Don't forget the short term capital gains tax.
In my area they are building hundreds and hundreds of new homes. All over priced and made with Chinese building materials. This is just like what was happening in the early 2000's
@@untouchable360x yup 👍
If I did this I would buy a 3 bedroom house for 400k and next month house market will crash.
@alex knight lol, fk that, 2008 I learned my lesson.
I always have horrible timing with investments so now I just keep cash in the bank. Its safest for me to do. Lost too much listening to others
@@TampaTec I almost got screwed too in 2008 but trusted my instincts instead of a realtor
Lol. I hear you. I had a friend that literally paid top dollar in 2008. The market started to crash about 30 days later.
@@nesq4104 the bank? Right now that isn't even close to being safe. Think outside the box, paper money is of little value anymore...I'd personally invest in bartable goods that will be of great value moving forward, weapons, ammo, non perishable goods 😉. Thank me later
The most uncomfortable man on earth...a Florida realtor in the summer heat wearing a suit...
For 6 figures a month I would as well.
@@WeKiIISuckas Good way to have a heat stroke! Empty houses don't have AC running!
they all do bro
Make sure to stay hydrated 🌊
Just moved my mother down to south florida from CT after owning house for 35 years. Got outbid on All 17 properties we offered. All. Every single one went WELl over asking. Were now stuck renting for an absurd price in a low too middle class neighborhood. Just cant win these days wow.
You can sell your house for an obscene price, but then you have to go buy someone else's over priced house. So you dont really gain anything unless you were planning to move into an apartment or something.
exactly, i don't understand people who sell their primary home w out a plan as to what they are doing and going to
Just move into a U-Haul truck
That’s what real Americans are doing
We were at the beach
Some people want to escape the larger U.S. cities after last year. Many people are working remotely & can live anywhere now.
No, no, no. In this topped out market, you don't buy after you sell. You rent short term. Then when the market crashes in a year or so, you buy your dream home for $150,000. 00 cash. And another crash is coming.
BTW... Damage, Inc. Nice!
It works well where the homes are the most ridiculous, like California. Just like the guy said, sell your home for a million, then get twice the home somewhere else for 500k.
the buyers are flipping houses. They're not changing their minds.
Yeah who sells a house without building equity first even if it was a mistake
@@jillianleda6732 that's the point. the market is so overinflated they are building insane amounts of equity in a month without even actually putting any of their own money into it.
Exactly
Na. If you buy at 450 hold for 2 months and sell at 500. Thats zero profit. Commission and other costs eat that 50k.
@@MrBeard-ig5zc deadass, even the short term capital gains on that “income” will be out of the roof. Everyone knows you should keep a house for atleast a year before you sell to pay lower taxes
Its like musical chairs..lets see who gets stuck with the house last for 4 x the price and cant sell it and value drops to 5x less than it started with
You're exactly right! New Simi cycle play out before. And Portland Oregon during the tech boom is a perfect example.
@Lotus. They all deserve it for being greedy. Housing should depreciate in value just like everything else.
They need to bust nationwide. All these get rich quick house flippers need to go bankrupt. Reminds me of the graphics card whores causing super inflation because they are trying to get rich farming Bitcoin.
Greed Greed Greed☝🏾☝️☝🏻
And that's just right around the corner another 2008
@@terryhunter2526 No!!! Please tell me it isn't so! I bought my house back in 2007 and immediately lost $200K in value overnight! Finally almost worth what I bought it for 14 years later.
@@laurad2442 If it goes down, it won't go back down to nearly anywhere close to what it was in 2008. Just think about how much a $100 could get you in the 90's and then do that again in 2008. Now in 2021 $100 is like $30. The price of homes hasn't gone up, the dollar has gone down.
Ummm, gotta love that they left out the part about institutional investors snapping up houses en masse.
I don't love that.
@Steve Nunez agreed, but I doubt that’ll happen.
This ⬆️
Yup blackrock is one of them. This all part of the "great reset" stop selling to anonymous or tempting offers.
That’s wrong math. Broker fee, tax, closing cost, you don’t make $100k.
Exactly! I would say for 500k house you would spend 35k in closing cost and 14k in taxes,,, if you sell it for 550k you are at no profit almost
@@lidoz the news need to retake math.
Have to pay capital gains tax as well since it wasn’t lived in for so many years before the sale. Probably broke even lol
Exactly... The news channel is deceiving people on the $100k. What about broker commission, closing costs, capital gains tax ??? More like $35k-$45k NET Profit
@@MrSiddji you're all missing the point entirely...
Not one “expert” mentioned prices this high due to low inventory.
Low inventory and plenty people with money equals inflated prices.
doesn’t fit their narrative
@Faux Que big lumber mills
@Faux Que are they on hold because of lumber shortage or are they making a shortage to make more money?
And the fact that that is allowed? Please explain
@Faux Que tariffs
Lived in Florida during the 2006-2008 economic nosedive. Many newer 'boom' neighborhoods forced homeowners to sell. Then came in the shuttles of rich and well spoken europeans touring the neighborhoods made up of 'for sale' signs. American middle class dream no longer exists. It went to wealthy foreigners with more monies.
Don’t sell your home unless you have a new home locked down.
You may think you’re being offered alot, but when all the other homes are being sold like yours and prices increased… well don’t end up like the west coast to Texas with the homeless problem.
The new thing now is to sell your house and then demand that the buyer let you stay in that house for the next two months for free while you look for the house you want to buy. Sadly, a lot of buyers are agreeing to this.
Brace yourselves folks. When this bursts its gonna be ugly for us Americans.
How so ?
I think it'll be mostly ugly for people who are currently buying for well over market. Especially those doing loans who may not be able to afford it down the road., they won't be able to resell if it comes down too much.
Banks are not over lending like they did in the market crash previously. Don’t think it will happen like that again
A lot of production will slow. Unemployment increase. Inflation will remain. Dollar de-valued. Stocks decrease.
Topic: It's going to fizzle
Probability: No
Why: Because of California's
40,000,000+ people & their mass exodus coupled with them having a surplus of cash in far excess over the country's house mean average. Aka at any given time there's more people looking to leave CA, then there are houses on the market.
Wife and I were in the market to buy before Covid. Started looking again last month and are heartbroken. Houses that were in our budget at now double the price. Anything with more than an acre of land are a millions dollars or more. We're moving because rent is reflecting the sla prices of homes. We can't find a 3br ANYTHING for less than 1800/month
20% down ? wtf And it's also because of the price of lumber. Your house is worth more because of the current value of materials (price gouged because of the pandemic) to build a new one.
Lumber just came down 30%
No its worth more because there is alotta demand and little supply
BlackRock is buying everything "You will own nothing, and you will be happy"
@Lionel Dore just one of them, but you can find it on mostly alternative news outlets
All hail black rock
The sign in this video said bLACKROCK rEALITY. Spelled exactly like this on the for-sale sign. Do you think this is the same company as the Blackrock Corporation?
For anyone who doesn't get the reference look up The World Economic Forum, "Great Reset".
That BUBBLE WILL BURST LIKE NON OTHER BEFORE! Flipping houses is good as long as you have lots of cash!
When I was young the financing of a car was 18 months, today it’s 72 months. Mortgages now are 30 or 40 year mortgage. Just bring in 100 year mortgages. The days of Florida home prices of $10,000-$25,000 are dead and gone and if you think 30 years from now homes will go back to $50,000. Good luck
50 k will never happen bc of inflation and the dollar becoming worthless
Companies are doing this and not average home buyers.
Happening everywhere. Corporations buying all the property they can. Something big is coming. The same will profit, the same will suffer
“I base all of this on absolutely nothing. Variables such as money laundering are too difficult to think about.”
Usually buying & selling your home for a profit isn’t normally categorized as money laundering operations.
Though an example of what could happen... if you’re Charlie Crist (D) any foreign entity can buy your home at triple the asking price while this craziness is happening and then “CHy-Na” could rent it right back to “Charlie” the same day with an all inclusive $500 a month payment that includes taxes, utilities, insurance with an option to buy.
Though legal, I doubt Charlie would do something so unethical with his property... AGAIN.
@@SoSpankMe it’s a Tampa Florida thing. There are an amazing number of “oh my, I actually want to buy a house over there instead and then sell the house for cash at a huge mark up. Foreign banks are not nearly as scrupulous about where their money comes from.
@@SoSpankMe o wow, lol, don't hold back
You can sell but then you have to move to a different state to reap the profits.None of these people selling are buying up, they are buying down in a different state and pocketing the rest.
Not if the house you bought was only for the purpose of reselling it.
Most buyers do NOT have to put 20% down. Ever heard of FHA and VA loans?…
You shouldn’t buy a home if you don’t have 20%
You don't need 20 percent down for conventional either, 5 percent will do and some go as low as 3.5.
Goodluck making an offer. Most buyer without 20% down will not get a house. No seller will accept an offer with a FHA and VA loan these days.
You need a cash offer right now in Florida. People are willing to pay well over market value and banks won't finance that far over market value.
@@ThePunishmentGaming you can use a conventional loan and come out of pocket for the over bid over cash offers.
We will not have a crash. First interest rates are next to nothing so mortgages payments are relatively low. Second people are having to put cash down so they won’t ever be under water. Three, a lot of houses are being paid for by cash. And building materials are up to stay, the new normal so to build a new house will remain expensive thus making existing homes values stay up with them. And finally, there are not a lot of houses on the market and this is a new normal too as the population continues to get older, people are staying put. Blessings to all!
Well said!
I live in Reno. Prices are up 25 % in one year. Median price is approaching 600k. Median income-$ 52,000 per year. Prices are driven by an influx of Californians. Incline Village ( Lake Tahoe) saw prices rise from an average of $ 830,000 to $ 2.3 million in one year. Is this 2006 again or something more permanent?
Ditto for Phoenix
And now the whole lot between California Nevada and Phoenix are out of water........let's sit back and watch the NEW market trading of water run up water Bill's to 1000 a month
@@1just4laughs Right? I love listening to the experts talk about " emergency restrictions" as if by saying that , it'll fix the problem. There is no substitute for water. Period.
The housing maker will crash and a ton of investors will make a ton of money
A whole lot of pensions are wrapped up in that housing market... Some will make a ton of money, many will lose a ton of money unless the fed has some dry powder left... negative interest rates?
You will know the end of the dollar is here when a dollar is worth as much as a piece of toilet paper.
@@joshcourt1393 congrats. thats how money is made. someone has to lose it for another to earn it. Toilet Paper will be worth FAR MORE than the USD here very shortly. :)
@Inceptacon lol its not people cashing out their pensions. its folks fleeing democrat run states. they are infill developing america. you really dont get how this works. The market doesnt affect "them" it affects us. They trade in human time, we trade in paper dollars. Guess which one has value and which one doesnt?
@@DieselRamcharger you sound like a fundamentalist which is a problem because the fundamentals have been gone out the window. Money hasn't been backed by gold in years so it's infinite. ESPECIALLY in the last year we've printed more than 3x the amount from 2008-2009. USA money is infinite. Nobody has to "lose" money for you to make it. A dollar that you have isn't a dollar that I can't make because it's in your pocket. But yes the whole market is about to crash hard
@@MrArtVein whats your definition of fundamentalist? lmao. it sounds like you are arguing that if you have any principal what so ever you are a total loon. US money is not infinite. lmao. Well, i mean it can be. But the value isnt. Thats why the price of things like gas fluctuates wildly. Anyhoo. Do you know WHY gold is perceived to have value? {Serious question} Like why historically has gold had value as currency? you cant eat it when you are hungry. you cant drink it when you are thirsty. you cant plant it to grow and you cant squeeze it for drink. if you are. man alone in a desert with a pile of gold. you are still wealthy. but why? WHY is gold valued throughout history? i would like your no bullshit take on this. If you dont mind.
This is because large numbers of people are fleeing NY, NJ, California and Illinois.
The government insistence of super low interest rates
to prop up the Stock Market and Real Estate is killing this country.
The insane low interest rates don't allow markets to correct.
Give me the old days prior to the early 2000s when interest rates were 7 to 8 percent and homes cost 2 to 3-times income for the areas. Lower cost, lower down payments, lower taxes, lower insurance, and if interest rates went down more appreciation and refinancing available. Now US median home prices about 6 times income.
Capitalism won't allow that 2 happen again. That was a once n a lifetime thing. Greed doesn't allow logic 2 win.
Its the same all across the country..the housing market bubble is getting bigger by the day
Yup, I'm just waiting for it to bust. It's insane everywhere. Even the states with less than a million people.
@@DizzyedUpGirl i live in indiana and its been getting crazy over the past year and j cant see it going down just like it did last time ...gonna be good to scoop up forclosures again for some
Out of state buyers, real estate investment firms, Airbnb operators, corporations are outbidding families. We will all be renters in the future.
Yep, give them enough time and they'll snatch every property up. Even those homeowners who hold out, they'll approach with irresistible offers, just like corporations have been doing for years to those who own acres of sought after land they want to develop. Eventually they'll own it all and have the whole country under their thumbs, forcing us all to pay them rent every month.
unless you are willing to move into an apt after you sell your overpriced home you will take a bath buying someone elses overpriced crap
This, I sold one of my rental properties for a record price last month just to cash in on this boom which is now invested in the SPX500 etc & select stocks - speculation really, kinda hoping for a correction soon to buy back something bigger for the same money...we'll see how that plays out!
But if it was my main house, it would be pointless; with the boom continuing & the amount of time it takes to complete on your new house plus associated fees & tax, you'd end up losing out in the deal, relatively!
would love to buy there, but not during this fiasco. i'll wait it out.
This has a lot to do with the COVID insanity. Florida, being one of the very few states that haven't gone off the deep end (thanks largely to DeSantis), is looking REAL good right about now. So as others have said, it's all about people trying to escape whatever state they currently live in, and moving to one of the few semi-sane places left.
@@denniskelley8974 i know, it will level off at some point. plus, some will decide they don't like the hot weather and move back north(er) than they were. timing is everything.
Sadly I don’t believe this will come back down. 🤷🏻♂️
Cash offers won't be affected by a market bubble burst. As long as the home makes you happy and plan on living there long term then doesn't matter!
It'll only affect those who buy well beyond their means (just like the previous housing market bubble burst in 2008)
crash, crash, crash
so I can afford a home. rent is obscene here!
@Georgetown Vintage Rent is getting expensive as well too. For a one bathroom it play some ranges from $1,000 dollars to $1,200 dollars if you want to live in a good neighborhood
@Georgetown Vintage It’s terrible. I pay 1500 for a 2/2 in a crappy neighborhood. If you want to live somewhere nice, the 700sqft 1 bed rooms are 1800 starting price. You have to be almost rich or live with a roommate. My wife and I are waiting to buy a house but once the prices are what they’re suppose to be. Stay in Ohio my friend lol.
@Georgetown Vintage I live in S FL my rent is $1700/month one bedroom one bathroom that includes garbage & water…stay in Ohio my friend
@Georgetown Vintage Palm Beach County $1400 for one bedroom one bathroom in a decent part of town.
Studios in socal are going 1200+
Prices will plateau but don't expect to come down much. Buyers should probably leave the market. Private companies are also buying homes just to rent them out which is also a problem that won't go away.
The same type of artificial inflation of property values of curd in Portland Oregon. There was an enormous influx of people from California that had sold their higher valued property and moved to Portland for the tech boom. What goes up must come down. And when the bottom fell out of the tech Market a lot of people were left with them overly inflated homes And not enough money to pay for them.
Dont forget the agents fees. They quickly absorb a hefty profit.
In this market, a RE agent is not necessary. There is nothing to "sell". The mania is real and you can sell on your own. I've done it over 20 times ;-)
I hate attorneys realtors and cops! In that order
Many agents in Florida have become millionaires now because of this craziness.
@@jayrod9002 they aren’t getting percentages anymore. Just flat rate for every sale. It’s become that outrageous
In TX, $500k house 6 months ago now asking for $750k. $800k house 6 months ago now asking for $1.3 million........ let’s see how many are going to bite the baits......
"Buyer had a change a heart"... sure they did! haha they hearted that 100K!
Lol
Exactly! That was not a regular buyer!!
Don’t be miss led. They paid a fat capitol gains tax on that said 100k I’ll bet around 35k
They say 50k profit, but that's bs. When you p[ay realtors fees and title and such including taxes on your profits you're really only walking away with like 10-20k not 50. And even less so if you consider a 400k home you buy you are usually paying 420 after closing costs and such. so really you're not making much and just breaking even. Most people lose money on those deals and oftentimes just wanna break even
I agree with TampaTec. I have the power to bring this entire real estate market down quickly in a fiery crash. I just have to buy a house.
Since 2016 the cost of homeowners insurance in Florida has gone up by an average of 32.5%. For context, the cost of coverage rose by an average of 10.9% across the country during the same time.
At the same time , NOAA is reporting 3-5 category 3+ hurricanes this hurrican season.
you fell for the vaccine so why not lol ~ Ivermectin worked great, but money won...
What percentage of these houses are being bought by investment firms. Gates buying up all the land, investment firms buying a good amount of these houses
Thankfully I'm in Colorado. No bubble here just freaking skyrocketing prices. The thing is, when all of the buyers are either all cash or extremely well qualified and are willing to plunk down the cash for the house, how exactly do you consider it a bubble? Simply because you can't afford to compete in the market? If the buyers weren't all cash or well qualified, then a bubble might exist.
I heard about the seller market frenzy in the '80s, the '90s, and 2000s. Nothing new.
Lol that part
As a homeowner I understand it’s a seller’s market, but that’s the best reason not to sell. You might make a quick buck but that money wont go far in a hyperinflation type situation. It would be better to hold the asset. “You will own nothing and you will be happy”. Just remember that
Sell your home high, move into an RV. Head north. As far as you can.
Truth
@@dorothymartin8557 how about living in a tent in the woods eating out of nature
Why north?
Very very very underrated comment….
I’m in Florida. Getting the RV ready
Where is everyone getting all of this money??? All I hear on the news is how Americans are struggling. Doesn’t seem like people are struggling when 90% of homes are getting more than the asking price.
probably took out a bunch of covid relief money... cashed out 401k's etc, sold their beach front properties and moving up prices in surrounding areas.
In California Chinese were paying way over asking price in cash in the Bay Area. The people who sold went to other areas. Drove prices up. Now I am hearing big investment companies are buying homes to rent them. It’s a class war
Just my luck, I’m due to move to Tampa in a few months!!! Hate to have to overpay for something not worth the money!!
Rent
Don't have to buy right now..
Freedom isn't free but it's sure worth it
rent for a couple yrs
@@EF_DadLeftMe
You think home prices went up and rent didnt?
I have what I need to secure my first home loan but I'll wait the time it takes for a better buyers market.
I'll wait for the crash. Realtors will be desperate for cash just like the suckers they rope in. Empty houses are the result of greed and a major driver of the homeless problem. DUH.
Exactly
I'm doing the same..save save save
It's getting way too expensive to live in Florida anymore. Not that it was ever really affordable for the working class, but it's even worse now. Guess it's time to move back north, not sure what else to do.
It's expensive everywhere..
Here is an excellent example of lawmakers' need to pass a law on the house Protection act. Our federal government programs must use Fannie Mae, Freddie Mac, FHA, VA, or USDA first homebuyers house down payment assistance and 45 day waiting period before selling to conventional loans or investors overseas buying up Properties.
If all 50 states pass a law, then the house market bubble won't crash. We need more homeowners than renters.
Making it hard for first time buyers
Agents have inflated the market to gain higher commissions. The age of agents needs to end. With the technology we have, there's no excuse not to set up a direct system in which real estate lawyers can just charge a flat fee for paperwork. Giving up $50,000 to someone who spends an hour or two showing the place is stupid.
I'm in Canada, where a liveable 3 bdrm bungalow on a modest lot is up to 1.4 or 1.5 million.
+
And all the while property taxes will be increasing alongside this speculative market. Tulip bulbs anyone?
Thank you Black Rock for buying as many houses as you can above market price, and pricing out most of us. You must still be able to sleep well at night even after hurting so many Americans, because you were simply carrying out free market operations and making money to your clients, who most likely are already wealthy.
They don't give a s*&T
100% true
Inflation is out of control .
Wages are the same .
The boom will bust when all the eligible movers finish coming out of California and New York….and China.
Why would that cause it to bust? If they're all "leaving NY and CA" then the only prices that will go down are in NY and CA, which is fine by me.
All metropolitans are democratic China
@Killer Miser
There probably would be a crash if it were every day residents buying homes, but since it's Blackrock deliberately buying them up it probably won't. Once hyperinflation hits a lot are going to lose the homes they're in now. Can't afford them anymore. Property tax is going to skyrocket too.
@@SheepAmongG.O.A.T wouldn’t that qualify as stagflation.
@@Newlinjim
Never paid much attention to the word until now. I guess it fits. Part of our unemployment problem is because people are getting more free money right now than what they would make or at least its just not worth going back to work. This country is in a free fall at this point, morally and economically.
This has been going on everywhere. I'll continue to pay rent for a while lol.
Same is happening in Atlanta, GA. I've been contacted by numerous agents asking me to sell my home. They have told me that they can get me at least 20k to 30k more for my house than it is actually worth and have multiple buyers waiting in line to pay it.
Yep just like corporations have been doing for decades to those who own valuable acres they want to develop. They're stealing everything away, eventually give them enough time they'll own everything and we'll have no choice but to pay them rent every month.
@@jflsdknf -- That is their marxist plan. To destroy the American dream of owning your own home.
"GREED BUBBLE" call it what it is.
So you wouldn't try to get as much for your car or house as possible? Yeah sure you wouldn't.
Sellers and agents, enjoy the greed while it last.
Sarasota just south of Tampa, offers the best rated beaches in the USA and neighborhoods close to the water with amazing sunsets!!!
that is why people are leaving Tampa to Sarasota, as they showed in video!
Nicer area at less cost.
Traffic is Sarasota is insane. Good luck getting to a beach.
"Were close to the peak"....I have been saying that in CA for the past 20 years. Sorry to say, he is wrong.
I moved to Denver in 2008, around 2013 I was ready to buy a home, but I got not so great advice from everyone and convinced myself that we were close to the peak again and that it was going to come back down. Fast forward to 2021 I could no longer even afford rent, uprooted moved to Tampa on a whim, lived there about 9 months and bought a house to not repeat that same mistake.
@@biggamer8655
were not even 9 months into 2021.
Cash offers all across south Florida and houses are 100k 200k over market value by a long shot it’s sad because I’m trying to buy a house in the next couple months
Actually, the sellers' profits are much less than listed. When u flip houses, usually the seller has to pay capital gains (unless they do an exchange - which I'm not familiar with) -- and the selling realtor gets his commission. You also have to pay the mortgage/taxes for the few months u own the house. In California - the housing market was up from 1998 to 2006 --- then it collapsed. So many people throughout the U.S. went into foreclosure. Then the snakes, ie, hedge funds; Blackstone out of NY, and many groups of investors -- snapped up these houses and rented them out. They paid CASH - so families couldn't buy these houses. These snakes are now buying up blocks and blocks of houses across America -- and we'll soon be a country of renters. Be Careful and Be Aware of the housing market/bubble.
I heard the same thing about Toronto and Vancouver market for the past 18 years. Crash never happened and housing is on average $1 million
How do regular working people afford million dollar homes? Are the salaries that high?
' A Sky Rocket in ' Property Taxes ' for All to pay ' Out ' for All time ! " Responsibility Matters for All Lives ' !
Yep, the government benefits greatly from this. Don’t expect them to do anything. Who gives up free money willingly?
Same in California one house sold then resold 3 months later asking 100k more!I’ll be ready when the bubble pops! Waiting patiently!
The buyers are hedge funds managements, pension funds, etc. 1% is creating rental environment for all.
No it's happening everywhere..
Yawl are missing parts of the story, the intuitional buyers gobbling up residential real-estate and turning them into rentals. This isn't going to fizzle or crash. Also the buyers are coming in, and pricing out locals. You think that's going to fizzle? NOPE! Material costs are sky high, labor costs are high, there is limited supply and abundant demand. The next five years are going to be nuts as telework allows high income people flexibility to kick out the locals. If it's not them, it's enormous fund investors like Blackrock scooping up homes even before they enter the market. This is the new normal.
Bought my house in Clearwater, 1600sqft built in 2005, last September for 317k. In the last month 3 houses sold in my neighborhood, all built in the 60's and 1200 sqft 2 bed 1 bath went for 395-414k in less than a day, cash paid. It's crazy! I could probably put mine back up for 425k and probably get 430ish.
Live in Naples, Fl. Bought our house in '09 for $200k 2500sf.
2 months ago our neighbor sold his (which is 1 bed/1 bath smaller than mine) for $420k cash.
Crazy.
Yes I don’t see those houses selling like that in 2 yrs . Once the pandemic under control it will go back to Fl prices
Suresure blame the Pandemic bc that totally has something to do with it
Wait until hurricane season is over
@@branflakee4257 And this year is supposed to be bad.
@@mikebobson2768 ~ no hurricane season is not predicted to be “bad”.
@@SoSpankMe It’s predicted to be above average. Perhaps BAD wasn’t the right word but from the article’s I have read it’s not going to be a good year.
Just man's GREED !!! LOVE IT and we're ALL perplexed !! hey...now lets do a million dollar study on Florida's (like San Diego's) HOMELESS problem !!! yeahhhhhh
That's an easy study : "Get/stay off the f'in drugs."
OK, where is my million?
@@Icecat21How are you going to get the people off drugs that already on drugs?
@@daedae1522
I have no clue. It has never been a secret what drugs so to people, so I never had the desire to use them. No matter what life threw at me.
A lot of people seem to think legalizing drugs will help. I cant understand the logic there. I think those are just people who want to do a lot of drugs and not get caught.
I suppose if the cops confiscated a quantity of drugs, poisoned it, and put if back on the street it would reduce the number of drug addicts. Probably have a deterring effect towards people who might try them also.
I was merely stating that a "million dollar study" is pointless. It is a waste of money to determine the obvious.
Who's paying top dollar for houses in the areas that everyone is supposedly fleeing from. Wouldn't those homes be selling for less?
No. When the tide rises, EVERYTHING that floats also rises. They are not selling for less, but obviously not selling for as much as RE in more desirable areas.
@@jamesvelvet3612 I agree with most of what you said except I must point out one thing. When the tide rises everything not floating will be in way over its head. Time will tell what floats and what will sink.
It’s due to limited inventory, unless you’re offering new builds. We have investors calling & texting us WEEKLY for about 2 years wanting to pay us what we paid 6 years ago for our home.
And the wild thing is, we overpaid for the area 6 years ago - but I saw the potential for my area. And now this happened along with people on our street doing a lot of remodeling during the stay at home orders.. homes, guns, gold and gas always seem to inflate every election year - without fail lol.
@@cwalt6558 so it’s not cash flow positive unless they can buy it for its value 6yrs ago..hmmmm
It's like buying ammo. Stop buying it and the price will go back to normal and realistic prices.
Or if all the people from out of state stoped paying over asking price.
It's best to save as much money as you can to purchase your home. That's what I am doing now.
1000000%
Patience is 🔑!
That's because people are ignorant. Buying other peoples ideas sadly spending all that money just to settle that's why you build your own home get everything you want
England, Canada, Australia and New Zealand have had unprecedented increases in housing prices in almost every part of those countries that has lasted for years and what has looked like housing bubbles in these respective countries has just become the new norm. I am afraid there may be a new norm forming in the united states where young people looking for a home will be priced out as corporations and wealthy investors buy and hold single and multi family homes around the country and charge high rents to create a permanent renter class and high property prices especially in major cities and their respective suburbs' in what appears to be almost every state at the moment.
Thank your local central bank for keeping rates at zero and forcing capital to seek a return on investment. Once equities out priced earnings real estate was the last available option.
Honestly as someone living in a trendy area of tampa, I’m extremely thankful we bought 6 years ago. And maybe after the bubble pop all of these idiot investors will stop texting & calling about “we’ll buy your house cash” 🙄
Hedge funds buying houses pricing regular buyers out. Why can't the news ever get it right.
If new construction homes are costing an additional 36k due to inflated lumber cost, what happens to the home values when the material cost come back down?
It seems to me that these buyers are all going to be way upside down on there purchases for a long time to come.
Yes Sir, nobody is having that discussion.
Guess no fees are payed reselling a home.
Either enough people will stop buying, and prices will fall that way, or the Federal Reserve will increase interest rates and that will end this faster. Or, people are unable to make payments on these and we start seeing mass foreclosures and bankruptcies just like in the late 2000s. One way or another this is coming to an end.
For the “many” that become priced out, 1000 more become priced in. Especially with all of the country moving to Florida
You're right. It's all the out of state buyers who are moving here. They sold their houses in their liberal shithole state and then come here to Florida and buy for a fraction of what they're used to paying.
I wanted a house in Tampa but got out bid on three homes and now the houses went up over a 100000 more then last month so it is true and everyone was bought by cash wth it is very sad even dumps are going for over 200000 with land and with interest rate low it is very hard to buy also all the out of states from cal and New York are moving there
Remember, those blue state buyers will bring their blue state values.
My humble opinion is low rates push prices higher. Lenders lowering fico requirements to keep up with demand. People had nowhere to go during pandemic so they saved and improved financial position plus stimulus checks increased savings. Builders too scared to build during pandemic causing shortage in housing. Finally influx of out of state/country cash buyers.
Who’s doing the buying & turning around & reselling so quickly? More to it than a homeowner changing their minds!
Right
Definitely foreign investors
If you think Tampa Bay is bad, Vegas is worse.
It's ridiculous, people buying these houses are the same ones that rented a U-Haul last year and went to Walmart to purchase all the toilet paper.
Low inventory is not the problem...Las Vegas City alone has 1800 3b bedrooms available.
Its called idiot's over paying for homes!
Who wants to live in the desert? Beaches or Desert? Easy answer!!!! I dont think ppl are idiots and want to go live out there and gamble their life away.
@@Dontbeeadummy Florida is more then just beaches and palm trees. #5 for worst natural disasters.
@@mikebobson2768 lol. No one is scared man. Ppl take chances driving to work amd getting in your car. A beach is more pleasant than a desert.
@@Dontbeeadummy I agree a beach is better then a desert but Florida is much more then beaches and sunshine.
@@mikebobson2768 yea! Fine woman, great fishing, amazing food and good weather.
BS. After commissions, closing fees, that 50K is a wash, not profit.
Yeah but to come out even is still crazy.
@@cyphi1 agreed, but the reporting is inaccurate, misleading and sensational unnecessarily.
Here in Orange County California my home has raised in value 4.5% per month over the last 5 months... 20% more and I’m gone, I’ll sell and buy a home half as expensive to reduce exposure
I'm a Capitalist through and through but this is insane.
It's called the end... The end of the great experiment of democracy and capitalism...
3-5% downpayment Tampa News, not 20%. 20% is only required typically for Bank Loans and land purchases.
Supply demand and it’s normal, basic economics. The only real “asset” in America is property currently, stock market is manipulated. It’s way different now and Americans realize that. This is going to continue the solution is too make more money.
Too much flipping profit. It only hurts Florida. It seems like nobody moving in.. they just want buying n selling.. period.
The same thing is happening here in parts of Arizona, we're being bought and priced out because of Californians moving here/fleeing their liberal state.
Republicans are so ignorant. I suppose you think Democrats are doing this to the housing market. Fool. Republicans are all over this mess. Rich getting richer. The poor keeping their heads above water. Grow up. Liberal State. You sound really ignorant and uneducated. Go watch real news.
Same thing happened innColorado.
2 housing market bubbles in 20 years has fleeced so many working Americans out of so much money, with skyrocketing rent prices and vast homelessness. These low rates are criminal, turning the lives of everyday folks into a casino. Just remember: The House always wins.
For that to happen people will have to stop moving to Florida. There will be no crash. It may level out but no crash.
With the pandemic coming to an end and a lot of people choosing and being forced to return to work less people will move to Florida. On top of that this year is going to be really bad with hurricanes so it would not surprise me if that affects the market somewhat badly.
my realtor said that EXACT statement in 2006 to me lol...I kid you not!
Just dont buy it until it comes down, i hate over pricers