Are we in a housing bubble?

Amazon
QCaT83

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QCaT83
Jan 17, 2021 63 Comments

Housing market in Seattle and east-side suburbs is crazy right now. Any decent house in the market is being sold for 200K to 250K over list price( or Redfin estimate). I have lost 4 offers till now. Are we in a bubble right now? Houses are already being listed for 20% over last year’s price point and I don’t understand why buyers are still offering 20 to 25% over list price. Should I cave in and offer 200K ( 20%) over list price or wait for situation to settle down?

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  • Amazon
    hNOT10

    Go to company page Amazon

    hNOT10
    Not a bubble, people are just realizing the benefits of more space and living in a suburb.
    Jan 17, 2021 6
  • Just bought 750k house as new grad in Seattle yeeeeeeeet
    Jan 18, 2021 8
  • Wait why are people still buying houses in Seattle now that they can work remotely from any place that’s not a hell hole
    Jan 17, 2021 4
  • Amazon
    apollo35

    Go to company page Amazon

    apollo35
    US government has a big debt, they take new loans with low interest rates to replace the old loans. As a result, they cannot raise interest rate before they get rid of the debt. Because if they raise interest rate, the income of US government won’t be able to cover the interest, so it will bankrupt. With almost zero interest rate and overly printed dollars, it is expected tens of trillion dollars will be injected into the economic system. This will push up the prices of assets in high demand.
    Jan 17, 2021 10
  • Google
    John_D

    Go to company page Google

    John_D
    Do not overpay. It can be disaster.
    Keep looking and make offers with the value estimates from your realtor.
    Why overpayment is a disaster?
    1. You may have trouble to get it apprised and will have to add additional own money for down payment in order to close loan.
    2. If you do decide to sell this asset, your losses will start not at 6% (closing costs) but at 6% + any amount you have overpaid over “market” price.

    Keep looking and keep bidding.
    Work on your offer quality.
    Try to make it cash-like with no contingencies (make inspections during viewing) and fast closing times (Flying Homes or others sources of cash).
    Jan 17, 2021 1
    • Amazon
      lvEg64

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      lvEg64
      For #1, getting home appraised is completely based on who is doing it, that one person and sometimes it’s waived off.. haven’t seen somebody complaining about it a lot and you have lot of options to go for 3% down payment instead of 20 if at all you don’t get the appraisal that you are looking for..

      Every time I tried buying house, looked expensive but once I got it, the market is almost always going up.
      Feb 19, 2021