I guess I'm a sadist so let's talk about California residential real estate.
Did you know it's bonkers? Like just completely bananas. Let's look at some examples.
Did you know it's bonkers? Like just completely bananas. Let's look at some examples.
I live in Los Angeles but also pay close attention what's happening in the Bay Area and the desert. Lots of folks still buying in the Bay Area and lots of folks decamping to the desert. All of these markets are completely absurd.
Oh this one's fun. Are you sitting down? Yes, it's lovely. Oh my god, it's so lovely. And it just sold for 76% over asking. It was listed for $1.119M and sold for $2.12M.
3-bed, 3-bath in Mount Washington (Los Angeles).
redfin.com/CA/Los-Angeles…
3-bed, 3-bath in Mount Washington (Los Angeles).
redfin.com/CA/Los-Angeles…
Maybe with the above house you're like "but Sally, it's just SO lovely." That doesn't matter! Look at this 3-bed, 2-bath in West LA. It's a "normal" house. Just a cute little ranch guy.
Listed for $1.299M and sold for $1.48M. That's $181,000 above list.
redfin.com/CA/Los-Angeles…
Listed for $1.299M and sold for $1.48M. That's $181,000 above list.
redfin.com/CA/Los-Angeles…
It doesn't matter if the home is spectacular or average, if it's in a desirable area or not, homes everywhere are selling for hundreds of thousands over the list.
This 2-bedroom in Berkeley is less than 1,000 square feet and just sold for $1.377M, which is $478,000 above list.
This 2-bedroom in Berkeley is less than 1,000 square feet and just sold for $1.377M, which is $478,000 above list.
Oops here's the link to the above listing redfin.com/CA/Berkeley/22…
This 1,126 square foot home in Bernal Heights (San Francisco) just sold for $405,000 above list. Originally listed for $1.195M and after a bidding war the final sale was $1.6M.
What a world.
redfin.com/CA/San-Francis…
What a world.
redfin.com/CA/San-Francis…
It's not just the major cities.
- In Hercules (SF suburb) this home sold for $66K above asking: redfin.com/CA/Hercules/30…
- In Torrance (LA suburb) this home sold for $181K above : redfin.com/CA/Torrance/39…
- In Joshua Tree, this home sold for $61K above: redfin.com/CA/Joshua-Tree…
- In Hercules (SF suburb) this home sold for $66K above asking: redfin.com/CA/Hercules/30…
- In Torrance (LA suburb) this home sold for $181K above : redfin.com/CA/Torrance/39…
- In Joshua Tree, this home sold for $61K above: redfin.com/CA/Joshua-Tree…
Sorry, but list price doesn't matter. Portland's median sale price is up 16.8% YoY and 64.9% of homes sell above list price, which is a 47% increase YoY.
https://twitter.com/Leupp/status/1396871605431590914?s=20
There are no rules right now. Comps are useless and people are throwing money at literally piles of bricks. It's a free-for-all. Everyone's getting rich and fucked at the same time.
https://twitter.com/ansellundberg/status/1396870679715188738?s=20
It's happening everywhere. And it's terrifying.
https://twitter.com/jdeerhake/status/1396874836434055170?s=20
The hardest part to accept when trying to figure what the hell is going on is there's no one reason. It's not because realtors are purposely undervaluing homes to entice a bidding war & it's not because inventory is historically low. It's for several dozen reasons, sorry!
I hear a story like this a couple times a week.
https://twitter.com/CryptVanWinkle/status/1396864646137536514?s=20
Let's dive back into examples. This completely normal 1,346 sq. ft. home in Culver City (LA) just sold for $1.628M, which is $233,000 above list.
redfin.com/CA/Culver-City…
redfin.com/CA/Culver-City…
This home in Oakland just sold for $555,000 above list. redfin.com/CA/Oakland/582…
BTW it was purchased in 2016 for $899K and just sold for $1.55M which means it gained more than 125K in value YoY for five straight years. WHAT.
BTW it was purchased in 2016 for $899K and just sold for $1.55M which means it gained more than 125K in value YoY for five straight years. WHAT.
List is important because it's what you get prequalified for from a bank. "You're approved for up to $1.5M..." So you go looking for homes under $1.5M. But all those homes end up selling for $1.75+. It's horrible for buyers.
https://twitter.com/emeyerson/status/1396883767088668677
I think that's it for now. Sorry for ruining your day!
Okay one more RT because I hear this story at least 2x a week.
https://twitter.com/thesillysully/status/1396888925118009346?s=20
VERY different. In 2008 people had taken on loans they couldn't afford because lenders were being lazy. Now the buyer pool is extremely prepared (800+ credit score, $500K cash for the down payment, excellent job stability in lucrative industries).
https://twitter.com/KenDeuel/status/1396895224274866179?s=20
Nailed it. High earners saved A LOT in the past 15 months and only care about how much the monthly mortgage will be. The actual final sale price isn't a huge factor.
https://twitter.com/dbreunig/status/1396903203191484417
Also house hunting TikTok has been amazing this year
Please watch this. It’s really like this.
Lol look what just landed in my inbox.
"California house sells for $1 million over asking after 29 offers"
To be clear, this entire thread is not a recent phenomenon. @BrockKeeling and I both covered residential real estate for years at @Curbed (SF) and we regularly wrote up this kind of story
To be clear, this entire thread is not a recent phenomenon. @BrockKeeling and I both covered residential real estate for years at @Curbed (SF) and we regularly wrote up this kind of story
https://twitter.com/krupali/status/1397237148894572545
From the CEO of Redfin (digital first real estate brokerage):
https://twitter.com/glennkelman/status/1397189637207121929?s=20
Ooo...oh my god.
"63% reported having bid on a home they hadn’t seen in person."?????????????
"63% reported having bid on a home they hadn’t seen in person."?????????????
https://twitter.com/glennkelman/status/1397189644178141185
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