I know we were hoping to buy and settle in but more and more the signs I think are pointing to renting long term. Maybe even moving into another bigger rental. What brought this on?
Well my neighbors with the 4 bd/2.5, 2000 sq ft home sold today for $712.5k. That makes it $313/sq ft, highest in the area and a record. My neighbors next door in July 2015 same exact layout, same size 4 bd/2.5 ba, 2000 sq ft home bought for $570k. So in 8 months (they bought the 1st weekend of March) the house went up $142.5k in 8 months or 25% in 8 months. The annualized return is 37.5% so the house should be worth in July $783k if the prices keep rising on track.
But I wonder what sort of people participate in a bidding war and end up paying $80k over asking price. Do they have any regrets? Was that always the plan and were they planning on spending more? Did they realize they were setting a new bar for price/sq ft? Do they even care?
But I'm concerned. We left an expensive area for an area that is still cheaper but I'm wondering if in 1-2 years will be just as expensive? We sold around $400/sq ft and but that seemed to be the cap in the sense that it's going up maybe 3-5% a year. Not going 37.5%/year.
So right now I'm not sure it's a sustainable market. Maybe I'm wrong and it's time to buy before it goes up another 40%. But if it goes up another 40% then this "entry" level home will be $1 million.
Thoughts?
maybe we're renters
April 20th, 2016 at 01:13 am
April 20th, 2016 at 02:03 am 1461117809
April 20th, 2016 at 04:52 am 1461127946
April 20th, 2016 at 11:15 am 1461150950
Renting is different, but we are okay with it for now. We will settle and buy when my husband retires.