House Hunters - General Discussion

[snarts]

Temecula, CA: they've lived in a one bedroom condo for 20 years. Why buy a six bedroom house now when the kids are teens? They didn't win the lottery, they just got better jobs. It would seemingly make more financial sense to buy a three bedroom house for less money.  A quick search shows at least 20 three bedroom homes in Temecula for less than $600k. Maxing out their housing spend, that family could be one illness/injury away from losing that house.

Lititz, PA: it was nice to see someone not scoff at wood cabinets and trim. I thought they made the best choice for them, seeing as he really wanted to be in his hometown. I just hope that they ripped out that nasty carpet before moving in. So much easier to replace flooring without furniture. A lesson I learned early on :)

[CrazyInAlabama]

I'm wondering if the Irvine couple had another source of the down payment, inheritance, or some other source they didn't mention?   Since they live paycheck to paycheck, then I suspect even selling the condo wouldn't give them enough for a downpayment on that mansion they bought.   I suspect that they will be broke and foreclosed on, because they'll still spend every penny they make.       Look at the dog they bought, a French Bulldog puppy starts at $3500, and goes up from there, so they never go for the affordable option on anything.  

The second I saw the covered pool table, then I knew that they owned the third house. 

Edited April 14, 2022 by CrazyInAlabama

[cameron]

5 minutes ago, CrazyInAlabama said:

I'm wondering if the Irvine couple had another source of the down payment, inheritance, or some other source they didn't mention?   Since they live paycheck to paycheck, then I suspect even selling the condo wouldn't give them enough for a downpayment on that mansion they bought.   I suspect that they will be broke and foreclosed on, because they'll still spend every penny they make.       Look at the dog they bought, a French Bulldog puppy starts at $3500, and goes up from there, so they never go for the affordable option on anything.  

The second I saw the covered pool table, then I knew that they owned the third house. 

Felt sorry for the younger daughter having to share a bed with the older sister. That older sister was huge; looked bigger than her own father.  Unless it was a king size; it's is going to be really crowded.  Looked more like a double to me.

[Grrarrggh]

There was obviously more to the Temecula story, though I do have to point out they didn't mention how long they'd had their better jobs. Could have been for 5-10 years... And just because they had a dog doesn't mean that bought it. 

[cameron]

1 minute ago, Grrarrggh said:

There was obviously more to the Temecula story, though I do have to point out they didn't mention how long they'd had their better jobs. Could have been for 5-10 years... And just because they had a dog doesn't mean that bought it. 

Think they said two years at the most.

[Dehumidifier]

10 minutes ago, cameron said:

Think they said two years at the most.

Yes, they did.

[rhofmovalley]

I live in an all-studio apartment building where the units are about 425 square feet. One unit has four adults living in it. Another unit is rented by a woman with two children. People will do whatever it takes to have a roof over their heads.

Buying more than is practical is a large part of what caused the big mortgage crisis of 22-ish years ago. People were talked into way more house than they could reasonably afford. I truly hope that family doesn't end up losing their home. They seemed like nice enough people.

[cameron]

7 minutes ago, rhofmovalley said:

I live in an all-studio apartment building where the units are about 425 square feet. One unit has four adults living in it. Another unit is rented by a woman with two children. People will do whatever it takes to have a roof over their heads.

Buying more than is practical is a large part of what caused the big mortgage crisis of 22-ish years ago. People were talked into way more house than they could reasonably afford. I truly hope that family doesn't end up losing their home. They seemed like nice enough people.

While nice people; thought that their whole list of needs/wants  was unrealistic considering their previous living situation, starting with that very expensive dog.

[Lady J]

On 4/7/2022 at 3:32 PM, Cetacean said:

OMG, I love Kathleen.  And every word is true.  People that just "can't live with/without" or look at a perfectly serviceable abode and declare everything is a gut job just make me stabby. Entitled twits, most of them.

We old fogies grew up without "place spaces", media rooms, and walk in closets in houses with actual walls and one bathroom for the whole family.  Most of us grew up to be productive members of society.  Shocker.

Kathleen is the best !

[Pj3422]

15 hours ago, CrazyInAlabama said:

She's actually saying she wants a two story, with her bedroom in the back, so burglars won't get to them (no, not making that up).

 

The look on the realtor’s face when the husband said, “so you won’t get murdered!”  I’ll bet he was muttering under his breath, “well, not by a stranger, anyway…”

[Grrarrggh]

58 minutes ago, Pj3422 said:

The look on the realtor’s face when the husband said, “so you won’t get murdered!”  I’ll bet he was muttering under his breath, “well, not by a stranger, anyway…”

Really? Because if I was entering their abode to murder one of them (which I swear I never normally do) it would have been him, no question. Between laziness and obsession with his childhood, yuck. 

[pdlinda]

3 hours ago, cameron said:

Think they said two years at the most.

YES,  The wife said TWO YEARS.

[pdlinda]

7 hours ago, laredhead said:

I am curious as to how much the monthly utilities will be on the large Temecula house will be, and how much the home owners insurance will be, especially with the pool.  A lot more than what they were paying in an apartment I'm sure.

That was my first thought!!!.....along with cleaning and furnishing that massive house.  The cash flow one would need to maintain a house of that size would be HUGE AND with the teenage girls heading (perhaps) toward higher education there's a lot of $$$$ the parents might be responsible for along with the house.  

1 hour ago, Pj3422 said:

The look on the realtor’s face when the husband said, “so you won’t get murdered!”  I’ll bet he was muttering under his breath, “well, not by a stranger, anyway…”

They're both RN's in a hospital ICU so I'm guessing they see the victims of crime on an ongoing and continuing basis!  That might be an influencing factor in that type of reference.  

[rhofmovalley]

1 minute ago, pdlinda said:

That was my first thought!!!.....along with cleaning and furnishing that massive house.  The cash flow one would need to maintain a house of that size would be HUGE AND with the teenage girls heading (perhaps) toward higher education there's a lot of $$$$ the parents might be responsible for along with the house.  

Not to mention it gets HOT in Temecula in the summertime. Like in the high 90s to 100 degrees F. They're not within close proximity to the coast like they were in Irvine. For a house that size I would expect electric bills over $500 per month in the summer.

Yes, they can swim when it's hot but you can't sleep in the pool. Oh yeah, the cost to maintain the pool will add to the electric bill. Let's add another hundred to that estimate.

I hope they don't end up similar to many pro athletes who get drafted straight out of college and spend all of their money on clothes and cars and going to da club and end up broke when they can't play anymore.

[Dehumidifier]

17 hours ago, BAForever said:

Lititz,  PA ICU nurses. She was quirky. Knew they'd end up in his preferred area. OMG, how much oversized sweaters did she own? I was fascinated- she wore them with dresses and pants and what looked like an apron.  Wanted to see her closet.

I was wondering if she was hiding a pregnancy.

[LittleIggy]

11 hours ago, Grrarrggh said:

There was obviously more to the Temecula story, though I do have to point out they didn't mention how long they'd had their better jobs. Could have been for 5-10 years... And just because they had a dog doesn't mean that bought it. 

People don’t find Frenchie puppies at an animal shelter. I couldn’t believe they lived like that for twenty years. Those poor kids, especially the younger one.

[amarante]

Who knows what the real back story is for the Temecula couple but their house had a lot of solar panels on the roof which would really cut down electrical costs and since there was no grass they wouldn’t have water bills which are a huge expense. 

Implication was she worked for Disney and a corporate position could be lucrative as well as very stable. She had mentioned getting the job within the past two years. 

[CrazyInAlabama]

One brief lay off, or other issue, and that house will be gone.     I'm wondering about electric bills, even with the solar panels.    You have to find out if they're owned by the seller, and paid off, or leased, and what kind of shape the system is in.   

I thought all of the talk of how Temecula was too expensive, so they looked in Murietta first, then picked the highest price house to maintain in Temecula was funny.    The second I saw how big the third house was, and the covered pool table, and the giant bedroom for the one daughter, and the pool, I knew that would be the house they bought.    I'm really wondering if they knew exactly what that house will cost them for all of the utilities, and maintenance, and what they want to do to the house?      

[laredhead]

HH is so overdue for some episodes of HH Where Are They Now.  They could run 2 years of episodes without ever repeating any.

[mojito]

18 minutes ago, laredhead said:

HH is so overdue for some episodes of HH Where Are They Now.  They could run 2 years of episodes without ever repeating any.

Did they ever run episodes that showed people's fortunes drained by the purchase of their homes? (I never watched a HH Where Are They Now episode.)

[mojito]

Anaheim area

At the beginning, the husband stated that culturally, the philosophy is: you like her, marry her and work things out. So they did, and in the course of maybe 15 months, they met, got engaged and married, and are now pregnant. Anyway, watching this couple, I was convinced that they'd probably be together forever.

They both seemed easy-going with no strong demands, no snarky criticisms. It wasn't even evident if they were temperamental opposites, or that one was the more dominant. In the end, they picked the house that made the most sense, and accepted that they'd make renovations along the way. I'd be queasy about forgoing inspections and appraisals, but I'm not in the California market. 

As house hunters, they'd be among my favorites because they didn't act like entitled little snowflakes.

[cameron]

50 minutes ago, mojito said:

Anaheim area

At the beginning, the husband stated that culturally, the philosophy is: you like her, marry her and work things out. So they did, and in the course of maybe 15 months, they met, got engaged and married, and are now pregnant. Anyway, watching this couple, I was convinced that they'd probably be together forever.

They both seemed easy-going with no strong demands, no snarky criticisms. It wasn't even evident if they were temperamental opposites, or that one was the more dominant. In the end, they picked the house that made the most sense, and accepted that they'd make renovations along the way. I'd be queasy about forgoing inspections and appraisals, but I'm not in the California market. 

As house hunters, they'd be among my favorites because they didn't act like entitled little snowflakes.

Only thing that I didn't like was that their agent talked them into not doing an inspection, having a contingency, etc.  That could spell big trouble.

[ehall1052]

Anaheim: what a nice young couple. And I liked their realtor, too. He was very knowledgeable and looked so professional. Unlike some realtors on this show that looked like they just got done doing yard work.

Edited April 16, 2022 by ehall1052
Misspelling

[LittleIggy]

55 minutes ago, ehall1052 said:

Aneheim: what a nice young couple. And I liked their realtor, too. He was very knowledgeable and looked so professional. Unlike some realtors on this show that looked like they just got done doing yard work.

He was a sharp dresser. And tall!

9 hours ago, amarante said:

Who knows what the real back story is for the Temecula couple but their house had a lot of solar panels on the roof which would really cut down electrical costs and since there was no grass they wouldn’t have water bills which are a huge expense. 

Implication was she worked for Disney and a corporate position could be lucrative as well as very stable. She had mentioned getting the job within the past two years. 

I don’t see going from a barely getting by job to top Disney corporate position.

[cameron]

6 minutes ago, LittleIggy said:

He was a sharp dresser. And tall!

I don’t see going from a barely getting by job to top Disney corporate position.

Totally agree with that assumption.

[pdlinda]

5 hours ago, laredhead said:

HH is so overdue for some episodes of HH Where Are They Now.  They could run 2 years of episodes without ever repeating any.

I'd surely watch that series!!

[rhofmovalley]

3 hours ago, LittleIggy said:

He was a sharp dresser. And tall!

I don’t see going from a barely getting by job to top Disney corporate position.

Not only that, but the commute from Temecula to Disney offices in Anaheim would be brutal.

Did they say they got corporate jobs with Disney? I don't recall if they said they did or someone just assumed that.

[cameron]

2 minutes ago, rhofmovalley said:

Not only that, but the commute from Temecula to Disney offices in Anaheim would be brutal.

Did they say they got corporate jobs with Disney? I don't recall if they said they did or someone just assumed that.

She said at an amusement park, which certainly doesn't imply corporate.  More like a general all around employee.

[amarante]

1 minute ago, rhofmovalley said:

Not only that, but the commute from Temecula to Disney offices in Anaheim would be brutal.

Did they say they got corporate jobs with Disney? I don't recall if they said they did or someone just assumed that.

She mentioned she had a job with the major theme park in Orange County - for SouthernCalifornia residents that means Disneyland.

She mentioned that within the past two years she had gotten a very good job - presumably a good job with Disney and not a minimum wage pretzel vendor.

They also mentioned the husband had gotten a much better job - as I recall it was doing some kind of building of "clean labs" 

I am not sure why their finances are viewed with more suspicion than other homeowners. They were approved for a substantial mortgage. Either they owned the small condo and sold it for some amount of profit after all those years OR they had been paying a very low rent and managed to save a substantial amount.

 

[cameron]

24 minutes ago, amarante said:

She mentioned she had a job with the major theme park in Orange County - for SouthernCalifornia residents that means Disneyland.

She mentioned that within the past two years she had gotten a very good job - presumably a good job with Disney and not a minimum wage pretzel vendor.

They also mentioned the husband had gotten a much better job - as I recall it was doing some kind of building of "clean labs" 

I am not sure why their finances are viewed with more suspicion than other homeowners. They were approved for a substantial mortgage. Either they owned the small condo and sold it for some amount of profit after all those years OR they had been paying a very low rent and managed to save a substantial amount.

 

Good job at Disney could just imply steady employment with good benefits.  If it took them 18 years to find good jobs; I have to wonder what their definition of good is.

[rhofmovalley]

Re: Temecula, if the job is with Disney or Knott's I hope it's remote. I commuted from a bit further north of Temecula to Orange County and it took me an hour and a half to get there in the morning and over 2 1/2 hours to get home. And that was while taking the toll roads.

[snarts]

1 hour ago, amarante said:

I am not sure why their finances are viewed with more suspicion than other homeowners. They were approved for a substantial mortgage. Either they owned the small condo and sold it for some amount of profit after all those years OR they had been paying a very low rent and managed to save a substantial amount.

I question many of the HHs financial decisions. 

In this case, they had four people living in in a one bedroom condo for 20 years in a "rent to own" situation and have only had "good" jobs for the last two years. Everything about that screams financial issues.

Not to mention most of us are or have been homeowners and we know that the amount mortgage companies will approve you for is absolutely crazy. 

So yes, I am judging them for spending more than the max.  It was stupid.  Again, why six bedrooms?  Especially when you've been living in one.

[CoppersMom2021]

NEVER EVER pass on the inspection! I really wish these agents would stop suggesting that option because "homes are going fast". You know what else will go fast? Your money when you get in and discover all the problems an inspection would've informed you of before the sale. 

[CrazyInAlabama]

I agree with others who said never waive inspections, or the financing clause, unless you can pay cash, and have unlimited funds to pay for repairs.   Also, the price the mortgage people qualify you for is ridiculous.   My personal budget was $150k, and I was approved for more than double that.    I would never waive inspections, and if the homeowner insisted on that, I would guess they knew there were bad issues. 

I doubt the Temecula people realize the actual costs of ownership.  Besides the down payment, mortgage, mortgage insurance (when you pay less than 20% down, unless it's VA or FHA where you can pay less, but FHA I think charges PMI for the entire loan period), taxes, HOA or other fees, and utilities.    Pools don't last forever either, so there is ongoing maintenance, and someday it will need major work or replacement.    In a HOA community, you can also have special assessments.       In Temecula, if one or both parents work in Anaheim, there are commuting costs, and that will be very expensive.       I hope they chose wisely.  

I suspect that small kitchen was for people who don't cook very often, just get meal services, or take out, or microwave a lot.     

Edited April 16, 2022 by CrazyInAlabama

[BAForever]

3 hours ago, CrazyInAlabama said:

  Also, the price the mortgage people qualify you for is ridiculous.   My personal budget was $150k, and I was approved for more than double that.   

1000 times yes. Hubby and I were approved for literally double what we had in mind for a max house cost. I've heard realtors on HH comment " that will only add $200 a month, that's just eating out money". Guess what, we like to eat out. Temecula fam may be totally overcompensating. They went from tiny to huge. They seemed nice, but I always worry about overspending budgets. 

Edited April 16, 2022 by BAForever

[Hedgehog2022]

12 hours ago, cameron said:

Only thing that I didn't like was that their agent talked them into not doing an inspection, having a contingency, etc.  That could spell big trouble.

OMG!!! That was stunning!!! It was shocking that as first time buyers they would not get the home inspection...I just couldn't believe that. We've bought and sold three homes during the course of our 43 year marriage and always had a home inspection...two houses had some minor issues but upon inspection the third house needed a new roof ASAP and needed a new water heater. Because the issues were done by a home inspector we did not have to pay for either of these big ticket items...the seller paid for the roof and the new water heater. Both were expensive and we were glad we had the home inspection before going through with the sale! A foolish mistake by them...I hope that they did not find a major problem that they have to pay for. 

I was surprised that they opted for this house at the exorbitant price they paid since the kitchen basically sucked. A big house with a narrow galley kitchen? Even if they have a gut job renovation, how would they widen the kitchen without extending it into another room and then cramping that room? Seemed like a lot of $$$ for a so so house...California is just ridiculous right now with real estate...the homes are way over priced and it's making it very hard for young couples to buy anything that is half way decent.

5 hours ago, CoppersMom2021 said:

NEVER EVER pass on the inspection! I really wish these agents would stop suggesting that option because "homes are going fast". You know what else will go fast? Your money when you get in and discover all the problems an inspection would've informed you of before the sale. 

Right???!!! OMG! If I hear a realtor say one more time, "This one won't last long...there will be multiple offers by the end of the day so you need to act fast" I'm going to tear my hair out! 

[Dehumidifier]

The mere fact that for twenty years, ok let's say sixteen, since the older daughter was born, they didn't manage to move to even a two bedroom apartment seems to indicate poor financial judgement. There are many middle grounds between a one bedroom apartment and a six bedroom house with a pool.

I felt bad for the older daughter when she said she was embarrassed to bring friends home -- so her parents decided to put their situation on TV.

I felt bad for the younger daughter when her parents said she "happened." Ooopsie!

Edited April 16, 2022 by Dehumidifier

[chessiegal]

It's not just California that has a hot market. We have friends in Birmingham, AL that want to downsize. They found out a house they were interested in was going on the market the next day. They offered $10K over asking. The house had 25 bids the first day and they were way out bid.

Edited April 16, 2022 by chessiegal

[mojito]

15 hours ago, CoppersMom2021 said:

NEVER EVER pass on the inspection! I really wish these agents would stop suggesting that option because "homes are going fast".

There are a whole lot of agents out there scrambling to make money and fewer available homes to sell. Both the agents and the potential buyers are getting more and more desperate. I just read an article yesterday about how new cars are sort of becoming a luxury because people can't afford them. Cars. 

I used to think of FOMO as just a temporary impatience thing that will pass. But now I have a feeling that in the next 5-7 years, you'll have to grab that house or that car when you can because they will not get more affordable, your salary won't keep up with price hikes, and there will continue to be a short supply. 

Be grateful if you already have the shit you want.

Think I need to tune into a kitty video right now.

[CrazyInAlabama]

I think a lot of the inventory issue is that people who want to move, or downsize, have to buy somewhere to go to, because houses sell so quickly.     My neighbor was thinking of selling or renting her property out, but not right now.   Then, some people who put their place on the market, and it sold quickly, were driving around asking if any houses on our street were for sale, or rent?,   I called the neighbor's son, he contacted his mom, and the people are paying cash, and moving in in a couple of weeks.     My neighbor only sold because the people offered a very generous, cash offer, but she wouldn't have if she didn't already have somewhere else to live.     Around here, the turnkey places sell immediately, the fixers have been on the market for months. 

[Dehumidifier]

On 4/16/2022 at 12:38 AM, Hedgehog2022 said:

Right???!!! OMG! If I hear a realtor say one more time, "This one won't last long...there will be multiple offers by the end of the day so you need to act fast" I'm going to tear my hair out! 

I want to hear one say: "Inventory is plentiful. There are empty houses and apartments all over. Prices are dropping like parachutes. I'm thinking of applying for food stamps."

Edited April 17, 2022 by Dehumidifier

[cameron]

3 hours ago, Dehumidifier said:

The mere fact that for twenty years, ok let's say sixteen, since the older daughter was born, they didn't manage to move to even a two bedroom apartment seems to indicate poor financial judgement. There are many middle grounds between a one bedroom apartment and a six bedroom house with a pool.

I felt bad for the older daughter when she said she was embarrassed to bring friends home -- so her parents decided to put their situation on TV.

I felt bad for the younger daughter when her parents said she "happened." Ooopsie!

Have to wonder what they did with whatever they earned - maybe dance clubs.  Totally agree that when they couldn't even make the move to a two bedroom after all those years; has to be a lack of financial responsibility on their parts. 

[Dehumidifier]

2 minutes ago, cameron said:

Have to wonder what they did with whatever they earned - maybe dance clubs.  Totally agree that when they couldn't even make the move to a two bedroom after all those years; has to be a lack of financial responsibility on their parts. 

Wonder what they would have done if the second child was a boy.

[laredhead]

A good friend who is a long time realtor, said that she can barely keep up with the pricing on houses now, and people who are "frantic" to buy a house.  At a sales meeting last week, the speaker, a mortgage loan officer, said the motto from realtors to buyers seems to be "if you sleep on it tonight, you won't sleep in it tomorrow".  

I have bought several houses in my lifetime, but never have seen a market like this in my city.  I could sell my house for a very nice profit tomorrow, but where would I go?  I'd have to buy something more expensive, or downsize into something that cost the same.  Nope.  I'm staying here until I go to the "home" - be it the old folks home or the funeral home, lol.  

[rhofmovalley]

The market really is that bad.

My brother was trying to buy a house late last year in Southern California. His budget was $550,000.  Had to raise it to $600,000.  He told me "I'm making a list of houses I like and at the end of the week I'll send emails asking to view them".  And I told him "They'll be gone by then".  He scoffed and told me he'll view them when HE'S ready to view them.  Well, shockingly, not one of the houses on his list was still available at the end of the week.  He texted me, aghast.  I didn't say "I told you so", but, well, I did tell him so.  He also found no one would schedule a viewing unless and until he had a pre-approval letter from his mortgage company.  He refused at first until he found he couldn't view anything, so he gave in and got the letter.  He finally found a place after a month of frantic searching and ended up having to go into the high $600,000s with a house he doesn't really like in an area he doesn't really want to live in. But the house he had been renting sold and he only had two months to search, buy and move. It's nuts right now.

My son and his spouse bought their condo in late 2019 for about $325,000.  Today it appraises at over $415,000.  But they won't sell because then they'd have nowhere to live!

[CrazyInAlabama]

I'm watching the older episode marathon on OWN, and it's so funny.   I actually remember almost all of the episodes too.    In a 2010 episode, the couple buy a train wreck of a foreclosure, and I wonder if they ever fixed it up?     Then, there's a 2015 episode near Atlanta, and the wife can't stand white cabinets.   Things certainly have changed in home buying taste in the last six plus years.   

I had to laugh at the new build a couple bought, she demanded that there be no toilet paper holders.     Then, she changed the main bedroom double sink top for a more expensive one, and the new one looked so cheap. 

I have to wonder what the realtors are thinking when the home buyer says they have to build a fence, and there aren't any other fenced back yards.   Some HOA CC&Rs don't allow fences, and no exceptions are made.   There were a couple of HH couples that moved to a cheaper area, because they couldn't afford to stay in L.A. or somewhere more expensive.   The couple I'm watching now had to scrimp and save to get a down payment, so how do you plan to afford the costs of owning a house?     

Again, the OWN marathon includes LaPeachez house hunting in Huntsville, AL.   She seems to appear every Saturday. 

Edited April 16, 2022 by CrazyInAlabama

[Hedgehog2022]

1 hour ago, laredhead said:

A good friend who is a long time realtor, said that she can barely keep up with the pricing on houses now, and people who are "frantic" to buy a house.  At a sales meeting last week, the speaker, a mortgage loan officer, said the motto from realtors to buyers seems to be "if you sleep on it tonight, you won't sleep in it tomorrow".  

I have bought several houses in my lifetime, but never have seen a market like this in my city.  I could sell my house for a very nice profit tomorrow, but where would I go?  I'd have to buy something more expensive, or downsize into something that cost the same.  Nope.  I'm staying here until I go to the "home" - be it the old folks home or the funeral home, lol.  

Exactly! Where we live, Fairfax County, Virginia, the market is insane. A house down the street from us just sold for $970,000. This house sold five years ago for $535,000. It is a  four bedroom Colonial with a finished basement. Same as all the others in our neighborhood. Not only did it sell for $970,000, the original asking price was $845,000, which we thought was ridiculous. They had one open house and had mulitiple offers the next day and a bidding war that raised the final sale to $970,000 with no rent to be paid by the seller from January to June when the seller will move. Unbelievable. The seller will be moving to a new build in another area of Virginia...they had locked the price of the new build down sometime ago. When people tell me we should sell, I just say, where will we move to? Some place else where the homes cost more? At some point, this will level out and the prices will too...it can't go on forever.

[laredhead]

38 minutes ago, Hedgehog2022 said:

At some point, this will level out and the prices will too...it can't go on forever.

Hedgehog2022, they might level out, but they need to drop to a more realistic level, like closer to a normal appreciation.  This is panic buying.  Some appraisers in my area are refusing to appraise houses at those hugely inflated prices.  Buyers in many cases are having to make up the difference in the appraised value (on which is what the mortgage company basis its loan), and the selling price.  In a few years when those buyers try to sell, they are probably going to be in for a shock when they can't get $900,000 for a house that is really worth only $600,000.  The pigeons will come home to roost.

[rhofmovalley]

2 hours ago, laredhead said:

In a few years when those buyers try to sell, they are probably going to be in for a shock when they can't get $900,000 for a house that is really worth only $600,000. 

Exactly.  I remember when the market went bust last time and my brother joked that the home he owned at the time was so far under water he needed scuba gear.  It took him another ten years or so for some equity to build back up.

I presume the buyers these days are either looking to turn it around and make a quick profit OR they're planning to stay in their homes for many years.  Which I guess is no different than usual lol.

[amarante]

Today's Los Angeles Times had an article on a house in South Pasadena that was listed at $1.2 million and sold in a week for $2.5 million. It was a charming Craftsmen but was a relatively small 1900 square foot three bedroom/ONE bath with bathroom and kitchen which had not been updated. 

https://www.latimes.com/california/story/2022-04-16/lopez-column-south-pasadena-house