Real Estate Days on Market?

[2manyrocks]

2008-2010, around here foreclosure properties wouldn't even bring half of the appraised value. I have an unproven suspicion that the Fed got so spooked at the prospect of bank failures that they decided to print so much $ that real estate would sell for such a price that few banks would go under by the time they were done. But now they've way overshot.

I see houses in Middle Tennessee that were purchased a year ago in the $300,000 range where they are asking $100,000-$150,000 more this year. That sort of thing isn't sustainable. It used to take 10-20 years to see that kind of price escalation.

 

[Oaktree]

Oh, have also learned some of the tract builders have found new ways to cut corners on houses with 1/4inch sheetrock and now installing 4 gauge wire with 15 amp circuits rather than what was code where 12 gauge wire and 20 amp 110 circuits...Driveways are now joint drive ways even on rural roads.

Do you mean 14 gauge wire? 4 gauge is pretty heavy duty stuff.

I've usually used 3/8" sheetrock on my houses with no problems. 1/4" seems a little thin though.

The economy isn't that great where I live, though there are a lot of second homes. Not a ton of new development, but a lot of really run-down dumpy places that have sat for years have sold in the last couple years. I guess it's better than letting them continue to rot.

 

[Jstpssng]

1/4" seems a little thin though

It is, I used some in my out building. I'm not sure that it would even meet specs in some places.

 

[JasperFrank]

This thread had me curious as to the Zillow listings in my area. Surprised to learn that a prop up the hill from me was listed at 1.7 Million. I know that property sold for about $700K in 2012, 53 acers, nice view and a rental house, yet the main house is a small traditional farm house that was renovated in the late eighties. The rental is a converted live stock shack.

And two other interesting things is that our property is the lesser valued of all of the houses in the area. I am very happy about that. No need to enlighten the property tax man.

The real surprise was another local house, built on 2.2 acres, in the forties, though the listing says build in 1993. That I know had been flood damaged at least two times, last sold in 2019 at 150K and is valued, according to Zillow and some other evaluation sites at 380,000 dollars.

I think the evaluation algorithms got broken. No sensible person, would say this property was worth that, cause the house really needs to be torn down entirely and rebuilt to be flood hardened.

Seen this before, in the Seattle area in 2006 or so, where by there where "Shacks" with 650,000 dollar asking prices. Seeing it all over again, on a twenty year cycle. Its it a generational thing?

We are in another bubble. Get liquid, and pick up the pieces when this market collapses again.

 

[ultrarunner]

Already thinking new neighbors have remorse and not yet moved in…

On the other hand when you out 50% down chances are not walking away at the drop of a hat.

 

[plowhog]

This thread had me curious as to the Zillow listings in my area. ....

I think the evaluation algorithms got broken. No sensible person, would say this property was worth that,

Zillow uses a computer-generated number that can be very inaccurate.

For example: I own a property much more valuable than neighboring properties. Years ago, I bought out a co-owner who owned 50% equity. But Zillow "thinks" the amount paid was to purchase the entire property, not half equity.

The Zillow "value" for my property is quite inaccurate. Their "values" of neighboring properties are also wrong. Their 50% value mistake made about my property seems to have leaked over to the neighbors.

I've found Redfin's value algorithm to usually be a bit more accurate than Zillow's. I don't know what they do differently. But neither of them are comparable to a live appraiser.

 

[ultrarunner]

Redfin seems to be more accurate here too.

I bought AS-IS at a discounted price and the other online sites have very low neighborhood values as a result.

 

[riptides]

Zillow uses a computer-generated number that can be very inaccurate.

For example: I own a property much more valuable than neighboring properties. Years ago, I bought out a co-owner who owned 50% equity. But Zillow "thinks" the amount paid was to purchase the entire property, not half equity.

The Zillow "value" for my property is quite inaccurate. Their "values" of neighboring properties are also wrong. Their 50% value mistake made about my property seems to have leaked over to the neighbors.

I've found Redfin's value algorithm to usually be a bit more accurate than Zillow's. I don't know what they do differently. But neither of them are comparable to a live appraiser.

Hey, Zillow thinks one of my plots, my eight acres is 1.1 million. No house or anything. It's not the algorithms in my case, it is the plots themselves and how they are linked into Zillow.

 

[2manyrocks]

Remember this? Zillow to lay off 25% of its workforce and shutter house-flipping service

If they were so good at estimating values, how did that happen?

 

[bmg88201]

What I have seen here in Arkansas is folks from the West coast and East coast wanting to get out of those immoral sewers and coming here. A place down the road from me sold recently for $550,000, three years ago it sold for $285,000. I actually talked to the new owners. They said they sold their home in CA which was comparable to the one bought here for $1.3 million. So, they made out like bandits buying a ridiculously over priced house here. The only problem with that is they are bringing their liberal vote with them. If we get enough form the West and East coast coming here then we begin to resemble the sewer that they left behind.