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Everything is down because there is not much for sale out there. My house had an offer before it hit the MLS and sold on the first day it was on the MLS. Guy made an offer we can't refuse. Now we have to find a house to buy or rent.
We didn't want to buy in this market but may be forced to.
My house is desirable because there's no new houses and nothing else for sale. People living here have relatives that want to move here, same for the guy that made the offer, plus that first offer for asking price, her sister lives here, has friends here.
We hope to be paying cash when we buy so no mortgage for us. I have another showing lined up where someone has all cash over my highest offer.
I miss the days when my International Money Market Fund consistently paid 17% on my deposits. However, that was a symptom of wide-spread economic problems, and I hope that we don't return to those days.
People who read the news during 2007 might recall words such as mortgage fraud. Who knows what is going on! I have noticed one house where supposedly a sale has happened, but I also see the same people (most likely owners) still living there after more than a month!
Those are buybacks for sure. Cost of housing remains high because retail is out of the game. Currently, the Corp ownership are coming up with various schemes and one of them is to buy your home at a tad over FMV. Then former owners are proposed to stay in the homes and rent back from the new owners. Most retail sellers think that homes will comoe back down and renting is a better option to sit it out and re enter the market after the crash. I just have a feeling that this will not happen. Has anyone seen the current "renters crisis" up in Canada? That problem is coming, if not here already to the U.S. As the WEF likes to say "You will own nothing, but you will be happy".
I was reading today that there are a lor more investors competing for homes now, and able to offer all cash, which is increasing the competition for houses. It was something like a 22% increase in homes being sold to investors, investment companies, etc. vs a couple of years ago.
A lot of corporate investment in being landlords in the recent past. Aside from apartments and houses, they buy up trailer and mobile home parks, jack the land use rent from $300 a month to $850 a month, and sit back. They don't care about the people at all. I saw a presentation to investors for mobile home parks, they said you can't lose. Either they pay the increased rent, or they walk away from their paid-off mobile home/trailer because they can't afford to move it. And then you rent it to someone else. It was very cold.
I think a lot of these factors combine to make it extremely tough today, especially for younger families looking for affordable homes.
Those are buybacks for sure. Cost of housing remains high because retail is out of the game. Currently, the Corp ownership are coming up with various schemes and one of them is to buy your home at a tad over FMV. Then former owners are proposed to stay in the homes and rent back from the new owners. Most retail sellers think that homes will comoe back down and renting is a better option to sit it out and re enter the market after the crash. I just have a feeling that this will not happen. Has anyone seen the current "renters crisis" up in Canada? That problem is coming, if not here already to the U.S. As the WEF likes to say "You will own nothing, but you will be happy".
Selling your house just to rent it back from the new owner is foolish. Reverse mortgages are rarely a good idea but even that is a better option if what you’re looking to do is take out the equity in your house.
Selling your house just to rent it back from the new owner is foolish. Reverse mortgages are rarely a good idea but even that is a better option if what you’re looking to do is take out the equity in your house.
Leasebacks may be a foolish idea, but there is a lot of VC money backing these new Startups engaged in the industry. And as long as these new kids on the block continue to buy at the rate they are doing, it will definetely price retail (regular home buyers) out of the market. Let alone the Black Rocks and Black Stones of the RE sector.
You and I (I'm in my 50's) would thing that these ideas are absoutely stupid. However, the new generation thinks differently. Case in point, online Grocers like Gorillas, Gettir, and Gopuff are in the tech sector to deliver your groceries in 10 - 15 minutes at your door. I would be like......why? I can't get my own groceries. But.....you'll be surprised the amount of people using these services.
Leasebacks may be a foolish idea, but there is a lot of VC money backing these new Startups engaged in the industry. And as long as these new kids on the block continue to buy at the rate they are doing, it will definetely price retail (regular home buyers) out of the market. Let alone the Black Rocks and Black Stones of the RE sector.
You and I (I'm in my 50's) would thing that these ideas are absoutely stupid. However, the new generation thinks differently. Case in point, online Grocers like Gorillas, Gettir, and Gopuff are in the tech sector to deliver your groceries in 10 - 15 minutes at your door. I would be like......why? I can't get my own groceries. But.....you'll be surprised the amount of people using these services.
I don’t see the correlation between paying for the convenience of having food delivered to you and selling your house just to rent to live in the same house.
And are corporations really buying up significant amounts of properties in NJ? I’ve heard that happening in other parts of the country, and even then only about 15% of all real estate sales so the effect may be overstated.
I don’t see the correlation between paying for the convenience of having food delivered to you and selling your house just to rent to live in the same house.
And are corporations really buying up significant amounts of properties in NJ? I’ve heard that happening in other parts of the country, and even then only about 15% of all real estate sales so the effect may be overstated.
The correlation is that it doesn't make sense to the younger generation to own anything anymore and the nomad culture is fueling this sentiment. Blueground, for example, is a company where you'd rent a fully furnished apartment and you don't have to worry about utilities, laundry, groceries, or whatever else anymore. They manage everything for you from your app. I don't know how else to rephrase it. Not criticing you...just not sure how to say it in a way that would make sense to you. There are a lot of companies engaged on the purchase of single family homes reinventing the wheel; and as long as these VC backed startups can raise capital to pursue growth, the competion for real estate will be fierce.
Corporations having a 15% of all real estate sales may only account for publicly traded companies (Black Rock, Black Stone, Zillow, etc.) But a lot of purchases are being made by privetely owned companies, and most of them create series LLC's (by markets) to ring fence the Corp. or parent company. Who the heck can really tell?
I think the mania is somewhat muted in NJ (compared with AZ for example) due to property taxes. I do also think that prices are badly inflated. This is the era of NFTs, after all. All of these things have become the focus of speculation. Things will calm down.
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