Overnight Buyers Market

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y

Still a very strong sellers market here. All 6 offers I wrote in the last week were multiple offers. Sold a listing yesterday and it was well over list.

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  • Michael Tyler
    Rental Property Investor · CA · Member since 2019 · 65 posts · 53 votes
    6y
    Originally posted by @Jennifer S.:

    @Victor Vella

    Did you have to reduce your rental price at all compared to pre-virus market rate?

    Up here in Boston, we are under contract for a multifamily house and will have two units to rent for annual leases (not STR). I'm wondering if we will still be able to rent at pre-coronavirus rates or if we will need to reduce a smidge to get the units rented amidst a lot of unfortunately newly unemployed folks and/or people hesitant to move. Am curious to hear what folks in other cities are experiencing in that regard.

    I'll have an answer to that soon. We're rehabbing our duplex in north Austin to increase to market rent. The first unit went up for rent just days before the panic started. We're in no desperate situation, can wait it out, so we'll see what bites come our way.

    0Reply
  • Jim R.
    Rental Property Investor · MD · Member since 2015 · 24 posts · 8 votes
    6y

    Adding to the mix, interest rates have bumped up quite a bit. A month ago I was looking at < 3.5% but that is nearing 5% now if you can get a lender to even respond.

    0Reply
  • Billy Smith
    Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
    6y

    So, the lenders put a value on the virus risk that bumped up the rates.

    Now we know why a paper for a rental is a higher rate plus more down payment you have risk on top of risk.

    0Reply
  • Betty Cruz
    San Antonio, TX · Member since 2016 · 240 posts · 163 votes
    6y

    @Joseph Cacciapaglia I wish I could say the same about my STRs. All bookings for March and April have canceled. How have you maintained bookings?

    0Reply
  • Tom V.
    San Francisco, CA · Member since 2014 · 345 posts · 281 votes
    6y

    I don't think anyone has enough data to make a reasonable guess as to how his/her local market is doing.  

    Wall Street has shredded real estate companies as badly or worse than other industries.  Anyone who things his local single family home market will be unaffected or remain hot when hotels and home builders have been cut in half is IMHO, kidding himself.  

    If you can sell something within 5-10% of pre-COVID prices, you should in a hearbeat.  

    The place to be buying now is on Wall Street, from panicked investors desperate for liquidity.  If anything, this advice is too early.  

    There is "blood in the street."

    There are plenty of "fearful" people, so one should be "greedy."

    Finally, (sort of a cynical aside, sorry) but take note of the people who said a year ago that Dave Ramsey/Suze Orman types had it wrong and have a lot of debt.  The borrowers won't be the ones buying now.

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  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Betty Cruz:

    @Joseph Cacciapaglia I wish I could say the same about my STRs. All bookings for March and April have canceled. How have you maintained bookings?

    When I said our STRs aren't doing as bad as expected, hopefully that didn't give the wrong impression. We have lost some bookings, just not all of them. We've also picked up several new bookings for people wanting to stay here for longer periods, either because they got stuck, or they are trying to escape their state. We have a premium product, which tends to do well when there is softness in demand. We also use dynamic pricing, because some revenue is better than none. We've booked some longer stays lately, which probably wouldn't have booked with last month's pricing (but we're not giving them away either). Our out of town properties are doing well for the "shelter in place" type people, and we have some product by the med center as well. It's certainly a challenging time. Our STR team has just adjusted to it quickly, and is doing a great job of minimizing the damage.

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  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    The market hasn't shown many problems yet here in Denver and Colorado Springs. Had three closings in the last week, got another under contract this week. That's not to say it's not coming. Mass layoffs will have an effect; it's just a matter of time till it trickles into the market. But right now, inventory remains low. Demand is still relatively strong, and that's continuing the sellers' market in this state. 

    That will change. But how much it changes and when, who knows. 

    0Reply
  • Danny Webber
    Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    6y

    need to wait for things to develop more

    0Reply
  • Brett Kash
    Flipper/Rehabber · Milwaukee, WI · Member since 2016 · 153 posts · 84 votes
    6y

    @Marcus Auerbach I was thinking about this on my morning run today and feel the same way about the principles of supply and demand holding steady but I started thinking about unemployment. Depending on how long these shutdowns continue I could see it having some pretty severe economic impacts to families who’s jobs are impacted which could begin impacting demand. Hard to say right now what the value of that impact would be but that’s where my concern is. I’m sure the next 1-2 weeks will start to darken the lines on the picture a bit.

    1Reply
  • Marisa R.
    Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    6y

    Anyone give me an update on how Atlanta market is performing, still a sellers market


    thanks

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    I agree with you gents @Robert Ellis and @Michael K Gallagher, Columbus is still very much so a buyer's market. I have had multiple clients have to bid up in order to get into a deal. 

    2Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @James Carlson:

    That will change. But how much it changes and when, who knows. 

     My thoughts exactly

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  • Tom V.
    San Francisco, CA · Member since 2014 · 345 posts · 281 votes
    6y
    Originally posted by @Zeke Liston:

    I agree with you gents @Robert Ellis and @Michael K Gallagher, Columbus is still very much so a buyer's market. I have had multiple clients have to bid up in order to get into a deal. 

     When people say, "It's a sellers market" that means there are a lot of buyers, so advantageous to sellers.  

    When people say, "It's a buyer's market" that means there are a lot of sellers, so advantageous to buyers. 

    You think there are a lot of buyers bidding up, which would imply a seller's market. 

    I think your buying pool will be diminished in a matter of weeks, and eventually there will be a lot of sellers, therefore for the buyers who remain it will indeed be a "buyer's market."  But not like what you describe.  

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    @Tom V., I'm sorry, I made an error. I meant seller's market. There's a chance that may happen, at this point, it's hard to tell. Do you invest in the Columbus area? 

    0Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    6y

    Yesterday in Bend, OR (Sunriver) I had a broker that was showing properties and wanted to show my house in Sunriver. It was a party of 6, and the tenant didn't want to allow over 2 people in at a time (the buyers), and the broker didn't want to work with that (supervision), so it wasn't shown. 

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  • Tom V.
    San Francisco, CA · Member since 2014 · 345 posts · 281 votes
    6y

    Hi Zeke - I do not live in Columbus and you know your local market better than I do.  I'm making my comments about a likely downturn based on the global pandemic that has already seized global capital markets.  Real estate does not escape from this untouched.  

    2Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    6y

    Here in Shasta County and surrounding areas we have a huge demand for housing as so many homes were destroyed in the wildfires. However; CA is on Shelter in Place, and real estate is deemed "non essential" so no face to face showings. We are trying to figure out ways to sell houses via video, photos, etc. with contingencies to do final approval when the order is lifted. It's a surreal world. However; if this gets over relatively quickly, I think it'll bounce back strong. 

    @Jay Hinrichs is your wife still able to go show properties? and what about you, are you isolating yourself? 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Karen Margrave:

    Here in Shasta County and surrounding areas we have a huge demand for housing as so many homes were destroyed in the wildfires. However; CA is on Shelter in Place, and real estate is deemed "non essential" so no face to face showings. We are trying to figure out ways to sell houses via video, photos, etc. with contingencies to do final approval when the order is lifted. It's a surreal world. However; if this gets over relatively quickly, I think it'll bounce back strong. 

    @Jay Hinrichs is your wife still able to go show properties? and what about you, are you isolating yourself? 

    we are in Vegas its not shelter place but most everything is closed.  at this time my wife just has listings of our properties so no need to show anything.

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  • Olu Oyelade
    Rental Property Investor · Oakville, CA · Member since 2018 · 23 posts · 7 votes
    6y

    @Jenny Roman so you advising a hold of cash closings ?

    0Reply
  • Jenny Roman
    Lender · Member since 2020 · 89 posts · 69 votes
    6y

    @Olu Oyelade Not what I expressed at all. My opinion is that there will be a shift in the market and buyers will be in a better position to renegotiate contracts. However as I am seeing here, all markets are different. Furthermore the current uncertainty in the market will likely affect as well. Who is to know.

    1Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    6y

    The effects won't really be felt in the real estate market for another few months.  That being said, tenants are already starting to bargain on their next month's rent payment.  Taking advantage of every opportunity your lender is offering will help.

    0Reply
  • Charlotte Casey
    Member since 2019 · 18 posts · 14 votes
    6y

    I've been trying to buy in the Seattle area for a while now but prices and competition for larger, updated houses, in a nice neighborhood, have been unattainable.  We found 1 we love today, no offers (Yet.  DOM 9) and they just lowered the price.  It's indeed a scary time to buy a house but might be the ONLY time we won't have to compete with other buyers and can actually get it at asking or maybe a little below..?  So that's my 2 cents, the competition is down - but who knows if you'll lose your shirt if you DO get the house but the market tanks.  Interest rates are not what they were hyped up to be.  LOTS of layoffs but Seattle is built on Amazon, and Amazon is booming so I "think" this city will be ok.  But other markets will take a hit for sure as the long term layoffs trickle down to their communities.

    0Reply
  • Danielle Thomas
    Atlanta, GA · Member since 2019 · 9 posts · 5 votes
    6y

    @Jenny Roman

    What are some ways that you are seeing buyers currently under contract managing to renegotiate? I have a new construction house under contract in South Atlanta (East Point). I was planning to house hack by getti g roommates but now am thinking about walking away from the deal if I'm not able to renegotiate. I expect housing prices in the area to drop in the next 6 months and am not sure if rents would drop in that area as well. This is my first deal, so am not sure how renegotiating might work, but it seems like I would need to for the deal to still make sense.

    1Reply
  • Hai Loc
    OP
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y
    Originally posted by @Charlotte Casey:

    I've been trying to buy in the Seattle area for a while now but prices and competition for larger, updated houses, in a nice neighborhood, have been unattainable.  We found 1 we love today, no offers (Yet.  DOM 9) and they just lowered the price.  It's indeed a scary time to buy a house but might be the ONLY time we won't have to compete with other buyers and can actually get it at asking or maybe a little below..?  So that's my 2 cents, the competition is down - but who knows if you'll lose your shirt if you DO get the house but the market tanks.  Interest rates are not what they were hyped up to be.  LOTS of layoffs but Seattle is built on Amazon, and Amazon is booming so I "think" this city will be ok.  But other markets will take a hit for sure as the long term layoffs trickle down to their communities.

    The steam in Toronto's market definitely slowed a bit.There are still multiple offers and sold over market value

    I was speaking to an agent on FB and she said her market tanked 52%.. dont know which market yet but I feel there is opportunity there

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  • Charlotte Casey
    Member since 2019 · 18 posts · 14 votes
    6y

    Seattle market seems to be holding strong....inventory is being held back for the most part so I think when lockdown is lifted there will be a surge of homes (and buyers).

    That being said we just got an accepted offer on a family home for us.  We love it, it works for us, we got it under asking and no competitors which was amazing. The monthly payment amount still makes me panic but hoping for a great rate which will help with that.  Even if our home decreases in value in the impending recession I think long term it will come back and we didn’t want to lose it...fingers crossed for all of us!

    1Reply
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