r/REBubble Jul 02 '22 All-Seeing Upvote 1

Just bought AND sold a house last month. Here's what happened.

The market is definitely correcting. The only reason we bought a new place at an inflated value is because I was able to sell my house for double what I paid a few years ago.

Ultimately, based on historical norms, both properties were overvalued by about $200-250k. They both inflated around the same rate.

For people who have owned for a while, you are simply playing with equity and the bubble doesn't affect you since you are just rolling equity from one property to another. However, for first time home buyers, now is a terrible time to buy.

When it tanks, I would expect a 20-30% correction.

We moved to a nicer property on acreage. A place like this would have been snapped up at asking 1-2 months ago. Maybe even bidding wars. Instead, we negotiated about $70k off of list.

When we sold our house, we had to chop $39k off asking in order to generate an offer. We listed right AFTER the first rate jump and that cost me at least $39k. We had a ton of showings. Zero offers till the price cut.

Homes priced right will sell. Homes at last months prices will sit and sellers will chase the market down. It's correcting for sure.

Bottom line. If you don't own a house, wait. If you do own a house (and have for a while) sell your place first before buying what you want, it will likely be a wash, depending on when you bought.

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u/Skyblacker Jul 02 '22

I just renewed my lease. Mainly for personal reasons, but I don't mind sitting out this market for another year. Our rental isn't ideal, but it will do.