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Started By
Message
re: Homebuilders cancelling contracts to sell for more on market
Posted on 3/28/22 at 4:14 pm to Chucktown_Badger
Posted on 3/28/22 at 4:14 pm to Chucktown_Badger
(no message)
This post was edited on 4/14/23 at 2:18 pm
0
Posted on 3/28/22 at 4:14 pm to GetCocky11
You are observing the degradation of our education system. This is not an unaffordability problem.
Posted on 3/28/22 at 4:16 pm to Dire Wolf
quote:
Here is where he got the black rock story
LINK
Your problem is that you're all basing your outrage on Burns' misleading report.
quote:
Many of the articles claiming that institutional investors are driving up single-family home prices and are competing with average homebuyers rely on research by John Burns Real Estate Consulting. One even claimed that investors are “a main cause” for the hot market, which is not what the John Burns research details. In fact, the report explicitly states that the US is “not in an investor-induced home price bubble today.”
quote:
John Burns looked at houses where the property tax records are going to a different address than the home itself, and Rick Palacios, director of research at the firm, explained that it’s not possible to tell from this data what component of these sales comes directly from institutional investors.
quote:
Marketplace’s lead anecdote in a story titled “Institutional investors are still competition for homebuyers” is about a first-time buyer who bid on six houses and was outbid by all-cash offers. But all cash doesn’t necessarily mean institutional investors. With mortgage rates at record lows, some people are using all-cash offers to win bidding wars, which have exploded in frequency over the past year.
:format(webp):no_upscale()/cdn.vox-cdn.com/uploads/chorus_asset/file/22647043/Screen_Shot_2021_06_09_at_4.07.25_AM.png)
Posted on 3/28/22 at 4:16 pm to LSUFanHouston
Pulling a stunt like this is how you get physically hurt.
Posted on 3/28/22 at 4:16 pm to GetCocky11
quote:
I've noticed a huge shift on this board. Five years ago, this board would overwhelmingly shite on any poster complaining about prices, finding a job, etc. Now, that type of "shite on the poster" comes from one or two posters in these types of threads.
people really did not like my threads a couple years ago
Posted on 3/28/22 at 4:24 pm to GetCocky11
quote:
I've noticed a huge shift on this board. Five years ago, this board would overwhelmingly shite on any poster complaining about prices, finding a job, etc. Now, that type of "shite on the poster" comes from one or two posters in these types of threads.
And you're absolutely right about the unaffordable American Dream. I make a good middle class white collar income. With these housing prices in basic middle class neighborhoods...I don't see how people are able to sleep at night with the financial stress.
To be fair, 5 years ago we were bitching about a one time trillion dollar spending bill. Congress has laughed at that the last 5 years.
Posted on 3/28/22 at 4:30 pm to Jcorye1
The moves of this administration coupled with the pandemic are the biggest reason housing is so expensive right now.
This post was edited on 3/28/22 at 4:31 pm
Posted on 3/28/22 at 4:31 pm to Jcorye1
quote:
I'll be honest and say it's just depressing. I busted my arse, turned a 2.59 GPA into a CPA firm management position, and can finally afford my dream of owning a house and it just seems like I'm getting priced out before I can. If that dream is stolen from me, I will do everything I can to go against every politician, bank, and industry that ruined it.
i graduated in December 2006, had my firstborn in January 2007 (two weeks later) and literally had to miss my first day of work due to the birth of my child.
it was a meddling entry level position making $29k a year. i got to where i really hated the position and people i worked for so started looking for another job in the summer of 2008. couldn't get anything in my smaller town so i had to branch out. Had a great interview on Halloween, they started calling my references before i was even out of town, and had the job offer Monday morning.
Put in a 1 month notice since there was no way i was going to move my family in 2 weeks and old job and new job accepted those terms. Listed house for a modest profit that my realtor thought would go quickly. This was west texas and new families were always moving in for oil jobs.
Then the market crashed and we got 0 offers for 2 months. then we got offers of $50, $30k, and other ridiculous things.
So i'm floating apartment rent and a mortgage for a while.
finally rent it out, so i'm not hemorrhaging money at this point. but i do run up a decent amount of debt making the ends meet for a while. nothing insurmountable. we're ok as a family, i change jobs again (been at this job for 10+ years now) and start to get a little ahead, but it's really slow. we finally pay off all debt, sell the house, and am clearing 100k by 2016. then gas prices go down, mortgage rates go down, we refinance, taxes get cut in 2017, and we really start getting ahead to the point where i'm not worried about our savings any more.
i'm not saying it should be handed to you, but it was a good 10 years out of college where i felt like i could actually breathe and get ahead. plenty of those were self-inflicted wounds, but when you see where the system gets their bailouts, welfare gets wasted, corporations buy houses out from under you, etc. it can definitely jade you.
Posted on 3/28/22 at 4:32 pm to Chucktown_Badger
The US also hasn't been building enough houses since the financial crisis. This problem has been brewing for years.
This post was edited on 3/28/22 at 4:33 pm
Posted on 3/28/22 at 4:33 pm to LSUFanHouston
quote:
Homebuilder is claiming they had no choice, need to sell for more money in order to cover higher than expected costs.
bullshite
Posted on 3/28/22 at 4:35 pm to GetCocky11
I think a lot of it is that there's been a fundamental shift in where people can live and want to live. They are mobile/remote now, and they're looking to flee crime, taxes, and policies in cities and states that used to have them tethered due to their job.
Just like the white flight of the 70s and then the turnaround to have people moving back into city centers in the 2000s, now it's going the other direction again.
Also, the people who are the most mobile are the high income earners, so these liberal strongholds are gonna have a hell of a time when a huge portion of their taxbase packs up and heads out. They'll get their socialist utopia with their dependent populace and no one to fund it. It's been happening in Illinois for years.
Just like the white flight of the 70s and then the turnaround to have people moving back into city centers in the 2000s, now it's going the other direction again.
Also, the people who are the most mobile are the high income earners, so these liberal strongholds are gonna have a hell of a time when a huge portion of their taxbase packs up and heads out. They'll get their socialist utopia with their dependent populace and no one to fund it. It's been happening in Illinois for years.
This post was edited on 3/28/22 at 4:41 pm
Posted on 3/28/22 at 4:55 pm to 3nOut
quote:
i'm not saying it should be handed to you, but it was a good 10 years out of college where i felt like i could actually breathe and get ahead. plenty of those were self-inflicted wounds, but when you see where the system gets their bailouts, welfare gets wasted, corporations buy houses out from under you, etc. it can definitely jade you.
That's where I'm at. My first job when I graduated was 23,714 dollars a year.
Posted on 3/28/22 at 5:12 pm to Chucktown_Badger
quote:
The difference is you think those types of people are the norm and not the exception.
It's a lot more than the exception.
quote:
nd are you suggesting that you have more of a right to that "generational wealth" than the relatives of the people who generated it?
Slow down yankee. Tell me where I said that?
The only thing worse than the dumb heirs spending it, is the government taking it and spending it.
We don't need to tax more.
We need the wealthy to understand that the more middle class we have, the better we all will be.
Posted on 3/28/22 at 5:14 pm to Chucktown_Badger
quote:
I'd also love to hear how this business makes sense for them. They're paying more than market (allegedly), not flipping them...just holding and paying the note (allegedly) and we're heading into a raising rate environment so home price growth will slow down. And as more inventory comes online there will be further downward pressure.
The more they buy up houses... the more the can raise rents.
quote:
Do we hate capitalism in general now, or only when it doesn't work to our benefit?
No one is saying we hate capitalism. Crony capitalism supported by a government that is blowing bubbles is a totally different concept.
Go eat a Snickers... you one angry dude.
Posted on 3/28/22 at 5:16 pm to tigerinthebueche
quote:
And they have young people too. You should keep
That in mind while you’re assigning blame for all the ills you see in the world. None of this is solely on one party or one generation.
LINK
Sure... lots of young and up and comers on that board of directors...
Posted on 3/28/22 at 5:18 pm to wutangfinancial
quote:
You are observing the degradation of our education system. This is not an unaffordability problem.
I'd like to hear more about this.
Posted on 3/28/22 at 5:23 pm to LSUFanHouston
This should not be an indictment of home builders as a whole, but is more about the issues associated with tract subdivisions.
For years, the developer took all the risk in this business model as it had them relying heavily on homes built on spec and hoping to find a buyer during or after completion. This ridiculous business model has resulted in a lot of high risk/high developers, who over the years, have lost BIG. Now that demand is exceeding supply in certain areas, that high risk has shifted heavily on the buyer
A builder/developer goes under contract with a buyer for a measly $3500 of escrow. From the moment that deal is signed they have a minimum 6 months of carrying costs on the land, materials, and labor. They are heavily dependent on weather and material costs, two things they have absolutely no control over. They also rely heavily on contract labor which they have little control over when it comes to cost, but none when it comes to availability.
They would be absolute idiots if they went into a deal like that without a contract written heavily in their favor. And even with a favorable contract, they only "win" if costs remained within budget, and the buyer doesn't forfeit a little bit of escrow for a better deal if supply increased. Now that the demand has gone insane, they are going in dry on anyone they can now to get theirs.
This sucks for this buyer, but other then going under contract with a different business model (such as owning the property outright beforehand), they are at the mercy of the terms of the contract the signed for this business model.
For years, the developer took all the risk in this business model as it had them relying heavily on homes built on spec and hoping to find a buyer during or after completion. This ridiculous business model has resulted in a lot of high risk/high developers, who over the years, have lost BIG. Now that demand is exceeding supply in certain areas, that high risk has shifted heavily on the buyer
A builder/developer goes under contract with a buyer for a measly $3500 of escrow. From the moment that deal is signed they have a minimum 6 months of carrying costs on the land, materials, and labor. They are heavily dependent on weather and material costs, two things they have absolutely no control over. They also rely heavily on contract labor which they have little control over when it comes to cost, but none when it comes to availability.
They would be absolute idiots if they went into a deal like that without a contract written heavily in their favor. And even with a favorable contract, they only "win" if costs remained within budget, and the buyer doesn't forfeit a little bit of escrow for a better deal if supply increased. Now that the demand has gone insane, they are going in dry on anyone they can now to get theirs.
This sucks for this buyer, but other then going under contract with a different business model (such as owning the property outright beforehand), they are at the mercy of the terms of the contract the signed for this business model.
Posted on 3/28/22 at 5:23 pm to Chucktown_Badger
quote:
I think a lot of it is that there's been a fundamental shift in where people can live and want to live. They are mobile/remote now, and they're looking to flee crime, taxes, and policies in cities and states that used to have them tethered due to their job.
No one who can work from home is moving to overcongested, overtrafficed suburbs of West Houston.
Posted on 3/28/22 at 5:29 pm to LSUFanHouston
quote:Yep.
No one who can work from home is moving to overcongested, overtrafficed suburbs of West Houston.
This idea that mobility and working from home is causing movement to the suburbs is asinine.
Posted on 3/28/22 at 5:30 pm to 14&Counting
quote:
Homebuilder is claiming they had no choice, need to sell for more money in order to cover higher than expected costs.
bullshite
So, in this economy, you are calling bullshite on unexpected costs associated with home building materials? Or are you calling bullshite on the developer/builder for doing anything he can under the contract to recoup those costs by increasing the sales price?
There is no argument that this whole process sucks for the buyer, but its not like the developer/builder chose to have an insane increase in materials coupled with a severe labor shortage.
This post was edited on 3/28/22 at 5:32 pm
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