[quote=sdrealtor][quote=CA renter][quote=sdrealtor]Alot more than you think. I was blown away by the interest level. I figured 3 to 5 offers. They must have gotten 20 in a weekend. I figure most were at, above or close to asking price. I also figure most if not all were taking loans on $697K or less telling me there are a sh*tload of people walking around with $300K or more looking for a nice house and this one was nice but hardly spectacular or a spectacular deal.[/quote]
This isn’t the least bit surprising to me. With the Fed trashing the dollar, and with interest rates effectively at zero, it has been exceedingly painful to be sitting in cash — for most of this decade, actually. Investors are forced either to take great risks with stock, bonds, commodities, currencies, etc., OR they can buy a house if they need one. Many are deciding to throw in the towel and buy. This is exactly what the Fed/govt has been trying to do — force savers into risky asset purchases in order to keep prices artificially inflated…just like during the runup to the “credit crisis.”
Will they ever learn????[/quote]
Or quite possibly there are lots of people looking for a house like that who can easily afford it. My clients can and not a single point you made applies to them.[/quote]
sdr,
I can assure you that someone sitting on a significant amount of money is more willing to part with it in this “zero rate” environment than in a higher-rate environment. We also know enough people with money who have all expressed their frustration with savings and investment returns, and have decided to throw in the towel and overpay for a house because they “just wanted to get it over with.”
It is this mentality (money is a “bad investment”) that the Fed/govt is counting on to keep asset prices inflated. Nobody really knows how long this can last.
