[aswontsp]

Originally Posted by airics

We sold our house in 12 hours. List price. 384,750. Accepted price 384,500

Why did you sell?

[MaryoVilla]

Originally Posted by Cubicle Dweller

I've been looking to buy and that's been my observation - we're looking in the high 300's and up. Anything that's decent below $380k goes fast - it seems houses priced above that mark just sit unless it has a real WOW factor or is aggressively priced. Last month we put in two offers that were below asking price based on comps for similar homes but the comps had new / better upgrades or at least from pictures appeared to be in better condition. We thought we had one in the bag (even the seller's realtor did) but ultimately both offers were shot down and the sellers wanted asking price... And a month later both are still sitting - let someone else overpay is my philosophy.

We've decided to sit out the summer and see what happens - the recent price increase make me nervous and seem unsustainable (10% in a few months an 18% in a few years?!) based on the research I've done. Seems like prices have overshot from the last downturn. I'd at least like to wait for prices to stabilize.

I'd like to see the answers to your question aimed at recent sellers...

Which zip code/area are you looking to buy? We are planning on selling in early spring 2019, I'm in the Providence masterplan area, thought I'd ask lol

[Cubicle Dweller]

Originally Posted by MaryoVilla

Which zip code/area are you looking to buy? We are planning on selling in early spring 2019, I'm in the Providence masterplan area, thought I'd ask lol

North / west Summerlin. Been renting there for awhile and love the area. If we sit on the sidelines for longer and our bet pays off with dropping prices (that could still be two years off) then we figure we’ll have more cash stockpiled and can get an awesome house instead of just a nice house which is what we’re looking at now. There’s also the risk of relocating for a job since LV doesn’t offer many opportunities for us (we have remote tech jobs and took our N.Y.-metro area salaries with us). The risk of buying now, then 2-3 years from now we have to relocate but the market drops so we’re stuck taking a big loss and it takes 8 months to sell isn’t appealing. If we bought when we first moved out here we would’ve done well but we didn’t know if we’d like Vegas.

OTOH, if we’re wrong and prices never drop then we’ll have thrown away another year or two’s worth of rent At lease we’ll still have more cash on-hand for a better house.


I can’t recall from earlier threads if the hot seller’s market is part of your motivation to sell - is it, or is it moreso that you’re relocating for a change?

[airics]

Originally Posted by aswontsp

Why did you sell?

Moving to florida

[airics]

Originally Posted by Cubicle Dweller

North / west Summerlin. Been renting there for awhile and love the area. If we sit on the sidelines for longer and our bet pays off with dropping prices (that could still be two years off) then we figure we’ll have more cash stockpiled and can get an awesome house instead of just a nice house which is what we’re looking at now. There’s also the risk of relocating for a job since LV doesn’t offer many opportunities for us (we have remote tech jobs and took our N.Y.-metro area salaries with us). The risk of buying now, then 2-3 years from now we have to relocate but the market drops so we’re stuck taking a big loss and it takes 8 months to sell isn’t appealing. If we bought when we first moved out here we would’ve done well but we didn’t know if we’d like Vegas.

OTOH, if we’re wrong and prices never drop then we’ll have thrown away another year or two’s worth of rent At lease we’ll still have more cash on-hand for a better house.


I can’t recall from earlier threads if the hot seller’s market is part of your motivation to sell - is it, or is it moreso that you’re relocating for a change?

Dropping prices not going to happen. You are already losing money by renting

[OmegaSupreme]

Originally Posted by Cubicle Dweller

North / west Summerlin. Been renting there for awhile and love the area. If we sit on the sidelines for longer and our bet pays off with dropping prices (that could still be two years off) then we figure we’ll have more cash stockpiled and can get an awesome house instead of just a nice house which is what we’re looking at now. There’s also the risk of relocating for a job since LV doesn’t offer many opportunities for us (we have remote tech jobs and took our N.Y.-metro area salaries with us). The risk of buying now, then 2-3 years from now we have to relocate but the market drops so we’re stuck taking a big loss and it takes 8 months to sell isn’t appealing. If we bought when we first moved out here we would’ve done well but we didn’t know if we’d like Vegas.

OTOH, if we’re wrong and prices never drop then we’ll have thrown away another year or two’s worth of rent At lease we’ll still have more cash on-hand for a better house.

How are you stockpiling money by renting? Unless you have bad credit, it is more often less expensive to buy a house (repayments vs rent) add to that all the free capital gain + future capital gain and you will be well ahead and have far more cash to buy a nicer home.

The mania hasn't set in yet, house prices have nowhere to go but up.

If you're going to gamble, gamble for the win.

[airics]

Here’s how I figure rent vs buy..

House today is 350,000
Same House next year 402,000 based on 15%
Rent is 1500 x 12 = 18000

Buy next year, you lose 70,000. (18000+52000)

[lvmensch]

Originally Posted by airics

Here’s how I figure rent vs buy..

House today is 350,000
Same House next year 402,000 based on 15%
Rent is 1500 x 12 = 18000

Buy next year, you lose 70,000. (18000+52000)

I would be quite skeptical of 15%. I would however not be surprised st 8 to 10%. And I would not make any bets on a price break between now and 2020. Could happen but I think only in a major US recession which does not appear to be in the cards right now.

Basically the home market at this point highly favors a home buy the reason being that you will be able to bail out even in a year to two years rather than the normal 3 to 5 years.

There are some exceptions. A couple of the higher end condos are showing relatively strong resistance to price increases. But most of the low end ones are chugging right along.

I would also be careful of interest rates if financing. Could easily end up a point higher in a year.

[MissTee_]

Originally Posted by Cubicle Dweller

North / west Summerlin. Been renting there for awhile and love the area. If we sit on the sidelines for longer and our bet pays off with dropping prices (that could still be two years off) then we figure we’ll have more cash stockpiled and can get an awesome house instead of just a nice house which is what we’re looking at now. There’s also the risk of relocating for a job since LV doesn’t offer many opportunities for us (we have remote tech jobs and took our N.Y.-metro area salaries with us). The risk of buying now, then 2-3 years from now we have to relocate but the market drops so we’re stuck taking a big loss and it takes 8 months to sell isn’t appealing. If we bought when we first moved out here we would’ve done well but we didn’t know if we’d like Vegas.

OTOH, if we’re wrong and prices never drop then we’ll have thrown away another year or two’s worth of rent At lease we’ll still have more cash on-hand for a better house.


I can’t recall from earlier threads if the hot seller’s market is part of your motivation to sell - is it, or is it moreso that you’re relocating for a change?

Have you looked at South Summerlin? I'm currently couple blocks away but thinking about moving to South Summerlin.


lvmensch: Any insight on the downside of 5brd/2.5bath house vs 3/2.5 for similar price?

[Cubicle Dweller]

Originally Posted by MissTee_

Have you looked at South Summerlin? I'm currently couple blocks away but thinking about moving to South Summerlin.

We have and we would definitely get more for our money, but we're pretty set on the area. Just saw the perfect house listed today - the one we've been waiting for which checks all the boxes... I'm still concerned about needed to sell 2 - 3 years from now for a job relocation and getting burned big time - this time is different from last time until it isn't even though there are aren't NINJA mortgages this time around. On the real estate thread, a realtor recommended running the price of an average home versus average income in Vegas and that puts the market at about 20% overvalued which is in line with what the naysayer pundits are saying. I know, a lot of retirees in Vegas, but historically areas with tourist-driven economies are more susceptible to swings.


Where I moved from in the northeast, house prices have only gone up the normal 3-5% yearly in the past few years with the exception of a few sought-after areas with easy access to transit which have increased a bit higher. OTOH, 18% in a year and 10% in a few months just doesn't seem normal.


As for the stockpiling cash question - credit is not an issue, but the bigger the down payment, the less will be paid in interest and rates are only going to be going up. What we pay in rent in Vegas is a little less than the state income taxes and sky-high property taxes that we paid in the northeast so I try to look at it that way. None of us posting can really predict what the housing market will do - only time will tell us that.