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Talked to a couple different real estate agents who are clients of mine. They both said the market is still crazy (FL) mostly driven by blue state ex pats or retirees. Homes that sold for 180K just a couple years ago are upwards of 300.
$160+/sf new construction costs.
I know a couple contractors, they are both busier than ever.
We have no plans to sell, but if we did, the double edge sword is unless you have a second home, you have to buy something at inflated prices (or severely downsize).
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I know two people in the last year that sold to take advantage of this market. A third is seriously considering it. He's looked at the numbers and if he sells he thinks he can retire earlier than he planned. His hesitation is where he and his wife would move to. The two that already sold, one moved into an apartment. It's just him and his wife. The other, he had a beach house already. Since he's basically a remote worker until work decided to let people back he and his wife live at the beach house. They used some of what they got from selling the house to do a few upgrades to the beach house - basically accelerated their plans by 2 years.
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(02-07-2022, 11:21 AM)rwe2156 Wrote: Talked to a couple different real estate agents who are clients of mine. They both said the market is still crazy (FL) mostly driven by blue state ex pats or retirees. Homes that sold for 180K just a couple years ago are upwards of 300.
$160+/sf new construction costs.
I know a couple contractors, they are both busier than ever.
We have no plans to sell, but if we did, the double edge sword is unless you have a second home, you have to buy something at inflated prices (or severely downsize).
What is the goal of this transaction? Are you looking for a new and updated home? Unless you seriously downsize there is no way you will benefit by selling at this time in this market IMO.
Doug
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(02-07-2022, 03:31 PM)Tapper Wrote: What is the goal of this transaction? Are you looking for a new and updated home? Unless you seriously downsize there is no way you will benefit by selling at this time in this market IMO.
Doug Arbitrage
Housing prices have not gone up the same everywhere and for every class of house.
Had a friend that got an offer ‘too good to refuse’ last year, packed up and moved to a more rural part of the state to a bigger house on more land for less money.
-Mark
If I had a signature, this wouldn't be it.
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Location: Pacific ocean now much further away!
We sold our house in Hawaii for $417 a square foot. We paid less than $170 a square foot for it a few years ago.
VH07V
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02-09-2022, 12:49 PM
(This post was last modified: 02-09-2022, 12:51 PM by Snipe Hunter.)
Some of it is caused by people leaving their state but there are shortages there too. The biggest problems are home builders being a year or more behind in construction and material and labor shortages. They're building a lot of homes, just not fast enough.
Some areas have risen a lot more than others. Contractors are busy because they are also behind and people are upgrading, adding to their homes etc. instead of moving into newer larger homes... because those homes are either non existent of too expensive. I follow home sale listings locally because my business depends on homes selling. In 2020, homes on the market fell 19% vs 2019 (in this area). 2021 they were down 40% over 2019. So, it's getting worse, not better.
If we had 2 houses, we'd sell one of them now and buy another when the market corrects.
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This only works if you are moving from a high cost area to a low cost market area. My brother sold his house for $200k more than it was worth pre-pandemic in NJ, but decided to move to Charlotte NC, and paid a bit more than his selling price for new construction, I'll admit a slightly better house, and lower property taxes, but even so.... If you want to stay in the same geography, the problem is what the heck are you going to buy, especially here in NJ, and even over the river in PA. Like everything in life, timing is everything.
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Everyone should sell right now. Uncle Sam is in desperate need of those capital gains taxes.
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Even if you can make the numbers work, if you are looking to build a new house, consider that it may take considerably longer to finish. Not just because contractors are busy, but some material, fixtures, appliances, etc are hard to get right now. A buddy of mine installs garage doors. His supplier is telling him that if he doesn't have it in stock, plan to wait 6 months, even for standard size doors. Lots of other things in the same boat.
If you are going down a river at 2 mph and your canoe loses a wheel, how much pancake mix would you need to shingle your roof?
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(02-10-2022, 11:42 AM)Bill Wilson Wrote: Even if you can make the numbers work, if you are looking to build a new house, consider that it may take considerably longer to finish. Not just because contractors are busy, but some material, fixtures, appliances, etc are hard to get right now. A buddy of mine installs garage doors. His supplier is telling him that if he doesn't have it in stock, plan to wait 6 months, even for standard size doors. Lots of other things in the same boat.
+1
We're having a 440 sq foot addition built. Almost done. And a new roof, new siding and a few windows added and some replaced. The job was supposed to be done in November. ... Well, it's February now.
The siding companies are only manufacturing a handful of basic colors now. Nothing fancy. If we waited to get what we wanted, they might start making it in April... might. We settled for gray. We wanted a light, sage green. We could not get the flooring we wanted. No estimated manufacturing date. We ordered the Pella windows the day we signed the contract in June. We got them the 2nd week of October. If we chose Marvin or Anderson, we wouldn't have gotten them till April 2022. We're still waiting on composite decking. Ordered in November. We couldn't get the sliding doors we wanted so we settled for cheap vinyl doors and I'll replace them with Pellas someday... maybe. Also ordered the gas fireplace in July and got it in 3 weeks. If we waited, we wouldn't have been able to order it. Last I looked "not available". We also couldn't get the shingles we wanted. The contractor found 50 year shingles, we wanted 30 year. We split the difference. Another big issue was the labor issues. The contractor has been great but he can't keep people. They're leaving for large signing bonuses with other, lager contractors. So a lot of lousy work had to be fixed....
I can't fathom what a whole house would be like. Unfinished houses are selling because the buyers couldn't wait any longer. I've inspected a few of them.
If you do build a house. Oder everything the day you sign the contract and rent a storage facility... so, you'll have to pay a lot .
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