jmaccallum, thank you for your posts #98, 100, and 101.
Very interesting reading — and based on your own experience with the reality of realty throughout varying markets.
I liked that advice you gave about buying the least expensive place possible and moving up later — although who really knows where the market will go — but even so, I can’t see how this thing we are in now can be sustainable. At some point surely the “duh” factor will kick in and buyers will come to their senses and home prices will calm down.
TV buyers might be coming in with a lot of cash from their sales of their long-owned houses elsewhere — but if they can’t find exactly what they want — or if the prices make them feel had — the compromise of buying a less expensive home, getting on with life in TV, and waiting to see where it goes could make really good sense in this market.
The issue with trying to buy less expensive homes anywhere right now though is that the flippers or landlords are after them too which causes prices to go up. But, like you said, the investment would be less. And if the buyer is cash-carrying, keeping the change should feel really good.
I am a believer in keeping a moat of cash around other investments. Even though cash pays nothing in the bank, it’s still cash — liquid — liquid freedom.
And, about those agents who are supposed to be raking it in — some certainly are, but I just heard that there are 8 realtors for every listing in the country. A lot of agents have to be spinning their wheels.
A realtor I know up north who is long-experienced and very successful said this market is oddly a version of a realtor’s nightmare. She had 35 bids on one of her listings. That’s a lot of juggling and a whole lot of disappointed and upset people to deal with.
As frantic as this market is right now, the fat lady eventually will take the stage and sing. But, for now, I don’t see her waiting in the wings yet, and I don’t even think I can see her limo approaching. But she will be here. She always shows up.
(Of course, each buyer has to figure it out for their individual situation. There is no one-size-fits all in this one. But it is kind of fun to talk about from different perspectives.)
Boomer
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