General Investing and Economics Discussion - No Politics

[MountainBuzzMan]

Going back to home prices, I have been in the market to invest in a home for about a year now and have been getting my arse kicked in the offer phase, especially this year in particular. Can anyone explain why home prices are suddenly getting jacked up in GA through this Covid pandemic? It's almost like Covid has spurred the economy instead of setting it back like I would have thought. Heck, people are now offering about 10% more than asking and willing to pay cash for the difference between offer and appraisal while guaranteeing the purchase "site unseen". My realtor wouldn't recommend I do any of this and is as perplexed as I am on the situation.

People did not want to move during covid may be part of it. We were thinking about selling our house, but my wife was concerned about having strangers who may have covid going through our house. (We are vaccinated now so not a problem) I think another problem is the low interest rates. Jacked up the number of buyers. I still want to sell, but it needs a little more fixing up as most people want move in ready. But then again here is South Forsyth they barely stay on the market for a few days and they are gone. There are also more people wanting to go into certain regions. as an example, you say Georgia. But Midtown has not seen the price pop that we have seen here.

 

[orientalnc]

Going back to home prices, I have been in the market to invest in a home for about a year now and have been getting my arse kicked in the offer phase, especially this year in particular. Can anyone explain why home prices are suddenly getting jacked up in GA through this Covid pandemic? It's almost like Covid has spurred the economy instead of setting it back like I would have thought. Heck, people are now offering about 10% more than asking and willing to pay cash for the difference between offer and appraisal while guaranteeing the purchase "site unseen". My realtor wouldn't recommend I do any of this and is as perplexed as I am on the situation.

Lumber Prices Break New Records, Adding Heat to Home Prices

Home buyers and renters are bearing the brunt of rising wood costs, while sawmills are poised for another quarter of big profits.

www.wsj.com

 

[ramblinwreckguru]

People did not want to move during covid may be part of it. We were thinking about selling our house, but my wife was concerned about having strangers who may have covid going through our house. (We are vaccinated now so not a problem) I think another problem is the low interest rates. Jacked up the number of buyers. I still want to sell, but it needs a little more fixing up as most people want move in ready. But then again here is South Forsyth they barely stay on the market for a few days and they are gone. There are also more people wanting to go into certain regions. as an example, you say Georgia. But Midtown has not seen the price pop that we have seen here.

We're in the Savannah area, and on the last offer, the house opened for showings on a Thursday, 5 pm, the seller took offers until 6pm on Sunday, and it went contingent the next day by 7 pm. The one before that opened for showings with an open house at noon on a Saturday, took offers up to 6 pm on Sunday (the next day) and went contingent by 7 pm the next day. About the only way I can describe the market right now is literally insane.

 

[orientalnc]

Going back to home prices, I have been in the market to invest in a home for about a year now and have been getting my arse kicked in the offer phase, especially this year in particular. Can anyone explain why home prices are suddenly getting jacked up in GA through this Covid pandemic? It's almost like Covid has spurred the economy instead of setting it back like I would have thought. Heck, people are now offering about 10% more than asking and willing to pay cash for the difference between offer and appraisal while guaranteeing the purchase "site unseen". My realtor wouldn't recommend I do any of this and is as perplexed as I am on the situation.

A friend here in Oriental (not a real estate hot spot) wanted to sell his 2000 sq foot condo and move into house. When he and his wife started looking about 1-2 years ago the cost to build on a lot he already owns was in the 400s. Last year he got two quotes for the same plans north of 700k. The reason? The price of lumber has doubled and is rising.

So, he made a full price offer on an existing house nearby that had just gone on the market. Turned down because the house was already under contract for $100k more than the asking price. In two days.

 

[BuzzStone]

Going back to home prices, I have been in the market to invest in a home for about a year now and have been getting my arse kicked in the offer phase, especially this year in particular. Can anyone explain why home prices are suddenly getting jacked up in GA through this Covid pandemic? It's almost like Covid has spurred the economy instead of setting it back like I would have thought. Heck, people are now offering about 10% more than asking and willing to pay cash for the difference between offer and appraisal while guaranteeing the purchase "site unseen". My realtor wouldn't recommend I do any of this and is as perplexed as I am on the situation.

I have been looking for over a year for a good deal. I have purchased a few houses in the previous years as investments and now my "good deal" contacts send me fixer uppers for retail prices. It is hard to invest in Real Estate right now if you think the market is over inflated. I see the prices coming down in the next year or two and then I hope I can scoop up a bunch for a good deal

 

[Deleted member 2897]

Here is the M1 money supply - read it and weep. Look at the ludicrous amount of money that we printed last year:

M1

View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits.

fred.stlouisfed.org

It’s the confluence of multiple things. Free money has banks throwing it around like there’s no tomorrow. Companies are borrowing and investing at cheap interest rates, and homeowners too. The stock market is way overextended and super high, so people who invest are flush with cash. Things got shut down last year and took a long time to restart because people could make more money not working. Our GDP last quarter was a crazy 6%, but would have been 10% if not for the drawdown in inventories. People can’t keep up so they’re charging extra. Nearly every asset category is in hyperinflation. People are moving out of cities now that they know they can work remote and they don’t ha e to put up with that high cost of living and ridiculous shut down rules. They’re calling the move places Zoom Towns and Charleston is one of them. And finally it’s supply. When the market is hot and increasing, nobody wants to sell. Our metro area should have 7,000 homes on the market and we have 900.

We got multiple offers on our home recently and it’s not even listed for sale. . The latest one was $400,000 higher than what it was appraised for last July. . So we’re probably going to list it. (Yes we may turn down that silly offer LOLOL). We were going to move in a couple years anyway because our kids will then both be gone. Make money while you can.

 

[orientalnc]

Be careful what you buy. This bubble too will pass.

 

[herb]

Dogecoin passed 50 cents today.

@LibertyTurns watching his little Doges run. Soon, a Dogecoin millionaire

 

[GT33]

I'm new on here so pardon my ignorance. Did the title of this section change because some of the posts look familiar like I read them before? I thought I remembered an an investing thread on here and was looking for it.

 

[LibertyTurns]

@LibertyTurns watching his little Doges run. Soon, a Dogecoin millionaire

$66.12 away from living the dream!

 

[Deleted member 2897]

I'm new on here so pardon my ignorance. Did the title of this section change because some of the posts look familiar like I read them before? I thought I remembered an an investing thread on here and was looking for it.

Various threads have been killed multiple times by the Mods due to the nature of some comments by the users. I guess they changed the title in this thread to have a reminder for people to avoid certain topics.

 

[Deleted member 2897]

I think we’ll see more of this. Most of the country is at full employment. A bunch are in a massive labor shortage at 2%-3%s unemployment.

And the states that have been shutdown like California and New York are re-emerging, so I’m sure we’ll see their economies surging shortly.

Montana plans to cancel unemployment benefits to address ‘severe workforce shortage’

Montana plans to stop some of its federally-funded unemployment benefits to address its "severe workforce shortage,” which will leave many out-of-work residents without any support at all.

www.yahoo.com

 

[orientalnc]

I think we’ll see more of this. Most of the country is at full employment. A bunch are in a massive labor shortage at 2%-3%s unemployment.

And the states that have been shutdown like California and New York are re-emerging, so I’m sure we’ll see their economies surging shortly.

Montana plans to cancel unemployment benefits to address ‘severe workforce shortage’

Montana plans to stop some of its federally-funded unemployment benefits to address its "severe workforce shortage,” which will leave many out-of-work residents without any support at all.

www.yahoo.com

We still have 6% unemployment nationally. And the economy is really taking off. I wonder if workers in the 50+ age group will ever return to work. As you say, when NY and CA reopen completely it could get interesting very fast.

Who is at 2% unemployment?

 

[Deleted member 2897]

We still have 6% unemployment nationally. And the economy is really taking off. I wonder if workers in the 50+ age group will ever return to work. As you say, when NY and CA reopen completely it could get interesting very fast.

Who is at 2% unemployment?

12 states are now in the 3%s or less, several in the 2%s. It will even get better in another month.

Unemployment Rates for States

www.bls.gov

 

[orientalnc]

I saw that data as well. 2.9% is not 2%. Unless you are a uga grad.

Sorry. I may have to warn myself for a personal attack.

 

[684Bee]

I think we’ll see more of this. Most of the country is at full employment. A bunch are in a massive labor shortage at 2%-3%s unemployment.

And the states that have been shutdown like California and New York are re-emerging, so I’m sure we’ll see their economies surging shortly.

Montana plans to cancel unemployment benefits to address ‘severe workforce shortage’

Montana plans to stop some of its federally-funded unemployment benefits to address its "severe workforce shortage,” which will leave many out-of-work residents without any support at all.

www.yahoo.com

Should’ve happened already.

 

[Deleted member 2897]

I saw that data as well. 2.9% is not 2%. Unless you are a uga grad.

Sorry. I may have to warn myself for a personal attack.

I said 2%s and 3%s. Think “in the 2s and 3s”. But it’a insanely below full employment either way. That’s not a healthy labor market when many of the people who are unemployed are just collecting checks too.

 

[orientalnc]

Normally, 4%-5% is considered full employment. I think the problem we are facing right now is that people have aged out of the unemployment data without finding jobs. There are beginning to be jobs begging for employees, but the unemployed are either not yet ready to relocate to those jobs or don't have the requisite skills. How long have have hospitality workers been unemployed and when do you think they will return in large numbers?

 

[Deleted member 2897]

Normally, 4%-5% is considered full employment. I think the problem we are facing right now is that people have aged out of the unemployment data without finding jobs. There are beginning to be jobs begging for employees, but the unemployed are either not yet ready to relocate to those jobs or don't have the requisite skills. How long have have hospitality workers been unemployed and when do you think they will return in large numbers?

Theyve been unemployed since the restaurants were forced to shut down and they will return when it doesn’t pay more to not work. Restaurants just don’t have the margins to pay everybody 20% more, so they’re currently operating on reduced capacity and hours.

 

[LibertyTurns]

I said 2%s and 3%s. Think “in the 2s and 3s”. But it’a insanely below full employment either way. That’s not a healthy labor market when many of the people who are unemployed are just collecting checks too.

It’s freaking insane that I have over 100 open jobs at the moment and am in a bidding war again for talent. #1 competitor, unemployment line. You make $35k to have every day off, tax free. $70k if you’re a couple.

Oh yeah come work for me for $5k/month, pay $600/month for health insurance. I don’t know but your MTR is probably 8% or $400/month. You get clipped 7.65% for SS & Medicare, or another $380/month.

You net about $700/month to get up and work 175 hrs/month or a whopping $4/hr. Hope you live less than 30 miles from work otherwise you just ate it all up commuting back & forth to work.