A bubble is people getting into bidding wars for sight unseen McMansion's that can't even last the duration of a 30 year mortgage. We are nearing the "Suzanne Researched This" FOMO period.Tingting1013 wrote: ↑Sat Mar 20, 2021 2:24 pmA bubble would be if those winning bids were funded by zero-down interest only mortgagesBarryZuckerkorn wrote: ↑Sat Mar 20, 2021 1:52 pm As someone in the market for a single family house in the DC area, it is hard to not feel like there is something off here. We have put four different offers on four different houses recently. Each offer was over asking and without contingencies. Two offers were 20% over asking. We lost all four offers to all cash buyers. We have toured houses that later sell for almost 40% over asking and one that sold for $250k more than the next highest house that has ever sold in the neighborhood. Effectively, list prices don't mean anything, except start the bidding.
It is hard not to feel like this is something like a bubble, which indicates we should pull back from our search. We have diligently saved for many years to buy a house, so it is discouraging to just wait and hope it gets better. Not much else we can do except stay in the hunt and don't let the excitement or fatigue drive a bad decision. At some point renting may become the best option, but prices are high there too for single family houses with limited inventory.
Two cents on how it is going out here.
All cash offers implies instead that there are just a lot of people with a lot more money than you
People paid all cash for beanie babies and pets.com stock.