Moving to the Triangle - Real Estate insanity

[bundabergdevil]

Plenty of inventory here in Manhattan at low prices, at least low compared to where they were. Lots of people are leaving the city so suburban prices are high. And depending on the outcome of the mayoral primary next week, there could be even more people leaving...

Signed,

Guy who bought a Manhattan apartment at the peak of the market

I have to imagine you’ll be fine in the medium/long run. I think the city flight is real but exaggerated and things, particularly with employers, will get back to some level of normalcy. It’s amazing what we can put in the rear view mirror.

My employer already seems to be having some regret about flexible arrangements made. Lots of office employees moved to lower cost or no income tax areas and management is starting to realize it may have gone overboard.


Didn’t MS just tell it’s Manhattan employees to be back by Labor Day?

[YmoBeThere]

and of course a lot of current sales are consummated with cash...

Some might contend this is part of the problem. How many people have a spare 450 to 550k around to pay cash for a home? Which suggests to me that many(not all but many) of those buyers are not families moving into an area, trading up, etc.

[elvis14]

I assume the concern is that things could be even worse​ in a year or two.

I thought about that. Obviously I have no idea if things will get better or worse.

Hey, Elvis, how many mothers-in-law do you have? 😀

LOL, just two. They both live here in Raleigh. Let's just say that an be 'interesting'. Thank goodness my parents are still in South Carolina.

We have thought of that but are worried about getting priced out of nicer areas or losing the sq ft we need for our family. We are ready to pull the trigger this weekend for 50k over with a 100k due diligence. That SHOULD be enough to get it done but we shall see!

Good points. I hope you get that house!

[CrazyNotCrazie]

I have to imagine you’ll be fine in the medium/long run. I think the city flight is real but exaggerated and things, particularly with employers, will get back to some level of normalcy. It’s amazing what we can put in the rear view mirror.

My employer already seems to be having some regret about flexible arrangements made. Lots of office employees moved to lower cost or no income tax areas and management is starting to realize it may have gone overboard.


Didn’t MS just tell it’s Manhattan employees to be back by Labor Day?

MS's CEO just said you better be back by Labor Day (preferably sooner) or else, and no NY salaries if you are not here. Goldman has been aggressively bringing people back. Dimon also really wants his people back. Other banks and companies are not being as forceful about it. I think it is critical, particularly for the development of junior staff, for people to be in the office at least occasionally. I am in my 40s but started my job remotely last April and it was absolutely miserable - my teammates were helpful and we had plenty of technology to simplify things, but it just was not the same.

Outside of NYC, cash offers notwithstanding, I think low interest rates are also driving home prices as you can get more bang for your buck.

[YmoBeThere]

MS's CEO just said you better be back by Labor Day (preferably sooner) or else, and no NY salaries if you are not here. Goldman has been aggressively bringing people back. Dimon also really wants his people back. Other banks and companies are not being as forceful about it.

When I was in the military years ago, it was well known (and certainly not shocking) that the generals liked to see their troops on parade.

[bundabergdevil]

MS's CEO just said you better be back by Labor Day (preferably sooner) or else, and no NY salaries if you are not here. Goldman has been aggressively bringing people back. Dimon also really wants his people back. Other banks and companies are not being as forceful about it. I think it is critical, particularly for the development of junior staff, for people to be in the office at least occasionally. I am in my 40s but started my job remotely last April and it was absolutely miserable - my teammates were helpful and we had plenty of technology to simplify things, but it just was not the same.

Outside of NYC, cash offers notwithstanding, I think low interest rates are also driving home prices as you can get more bang for your buck.

Not to mention tight supply chains for new home construction materials.

[PackMan97]

Some might contend this is part of the problem. How many people have a spare 450 to 550k around to pay cash for a home? Which suggests to me that many(not all but many) of those buyers are not families moving into an area, trading up, etc.

Come on man...this is the internet! We all have 450-550k laying around. I do need a fourth vacation home somewhere that I can sail to on my private yacht.

[budwom]

Not to mention tight supply chains for new home construction materials.

yeah, home inventory is low almost everywhere...it's going to take time to work this out.

[bundabergdevil]

Come on man...this is the internet! We all have 450-550k laying around. I do need a fourth vacation home somewhere that I can sail to on my private yacht.

I need a yacht where I can land my helicopter.

[Dr. Rosenrosen]

House next to me had almost 100 viewings and sold in three days for $110k over asking price. Final sale price was 200K more than the original owner paid… in 2017. Insane doesn’t even begin to describe what’s happening here in the Cary/Morrisville area.

[acdevil]

House next to me had almost 100 viewings and sold in three days for $110k over asking price. Final sale price was 200K more than the original owner paid… in 2017. Insane doesn’t even begin to describe what’s happening here in the Cary/Morrisville area.

Here in Westchester (suburb of NY), houses usually don’t last past the weekend. One of my neighbors listed their house, first couple came in made two offers - one normal and another 50k higher if they would take it off the market right away and not show it anymore. They ended up well over 100k north of their asking price.

Even with all of these dynamics, my house still probably wouldn’t go for what we paid at the peak (July 2006 - awful timing).

[LasVegas]

So we ended up going $55k over asking to $505k with a $50k due diligence. Should hear back today. Wild market. On a related note, the due diligence fee that exists in North Carolina is bogus. Gives even more power to the seller. Especially considering they don’t have to disclose information on the disclosure form. The sellers have SO MUCH power nationally right now but they have even more in NC.

[elvis14]

So we ended up going $55k over asking to $505k with a $50k due diligence. Should hear back today. Wild market. On a related note, the due diligence fee that exists in North Carolina is bogus. Gives even more power to the seller. Especially considering they don’t have to disclose information on the disclosure form. The sellers have SO MUCH power nationally right now but they have even more in NC.

I hope you get your house!

If you need any help once you know where you're going, I have a pickup truck and trailer that can be useful and I could lend a hand. I'm in NW Raleigh so it's a bit of a drive to Holly Springs but with our charity work, we are used to driving all over the triangle area anyway.

[jimsumner]

So we ended up going $55k over asking to $505k with a $50k due diligence. Should hear back today. Wild market. On a related note, the due diligence fee that exists in North Carolina is bogus. Gives even more power to the seller. Especially considering they don’t have to disclose information on the disclosure form. The sellers have SO MUCH power nationally right now but they have even more in NC.

Fingers crossed.

[LasVegas]

I hope you get your house!

If you need any help once you know where you're going, I have a pickup truck and trailer that can be useful and I could lend a hand. I'm in NW Raleigh so it's a bit of a drive to Holly Springs but with our charity work, we are used to driving all over the triangle area anyway.

Thanks. I appreciate the offer but probably just going to hire some muscle to get all the items moved from storage and stuff.

We didn’t get the home. They had 35 offers.

[Acymetric]

We didn’t get the home. They had 35 offers.

Whelp, time for me to start looking for a new place to spend the next couple decades!

[bundabergdevil]

Thanks. I appreciate the offer but probably just going to hire some muscle to get all the items moved from storage and stuff.

We didn’t get the home. They had 35 offers.

Wow.

[-jk]

Thanks. I appreciate the offer but probably just going to hire some muscle to get all the items moved from storage and stuff.

We didn’t get the home. They had 35 offers.

Ouch!

-jk

[Skydog]

Happening lots of places. I’ve been watching the Zillow, Redfin estimates on our house creep up 20% over the last year in Chester county, PA. Our old realtor has practically been begging us for referrals.

Your post got me to check Zillow on my own house and wow… if their estimates are accurate my Durham home has gone up 33% in the last year! I had no idea prices in my neighborhood were increasing that rapidly. In prior years I would be aware from prices on neighborhood For Sale signs but I haven’t seen those in the last few months.

Nationwide home price inflation is weird. It really doesn’t do current home owners a lot of good but it is hell for those who currently don’t own. Hope you find what you want LasVegas.

[budwom]

Your post got me to check Zillow on my own house and wow… if their estimates are accurate my Durham home has gone up 33% in the last year! I had no idea prices in my neighborhood were increasing that rapidly. In prior years I would be aware from prices on neighborhood For Sale signs but I haven’t seen those in the last few months.

Nationwide home price inflation is weird. It really doesn’t do current home owners a lot of good but it is hell for those who currently don’t own. Hope you find what you want LasVegas.

yes, it's musical chairs, except it's with houses. Tough time to be caught without one.