Calculated Risk: House Buying Frenzy

[Beet]

"The real estate market has gone crazy. At the low end we've been seeing many offers per house for some time, and recently agents have been telling me there is almost no inventory. Jim the Realtor has been reporting on this in San Diego, see: Hot All Over and The “Euphoria Express”

And from Diana Olick at CNBC today: Lunacy in Las Vegas Housing (ht Larry)

Olick include an email from a real estate agent to a client "Katie":

You must be logged in to read this quote.

And more ...

It definitely seems crazy."

http://www.calculatedriskblog.com/2009/10/house-buying-frenzy.html

Let's see what happens when the tax credit expires- yes it should be allowed to expire.

[Sbane]

It's the same in the Stockton area. The good deals are being snapped up in mere days. Your bid has to be at least 25-30% above the asking price for you to have any chance. On the other hand the market in upscale markets is more or less stagnant and slowly falling.

[memphis]

We've got plenty of low end housing that's not going anywhere down here. People in CA are just too damned trendy.

[Sbane]

We've got plenty of low end housing that's not going anywhere down here. People in CA are just too damned trendy.

Well did house prices fall 60-70% in the downscale areas around Memphis? I think not. Plus it's not as if this is occurring in inner city areas like Oakland or Compton. This is happening exclusively in the exurbs and only at prices where people can buy the houses with cash (from around 100-150k).

[jokerman]

How many actual, physical houses do we have in the United States?  How many of these are vacant?  And now how many people are homeless, or under-housed, in the US?

[phk]

How many actual, physical houses do we have in the United States?  How many of these are vacant?  And now how many people are homeless, or under-housed, in the US?

~last year, there was like a 2.5 million surplus of houses.

[jokerman]

How many actual, physical houses do we have in the United States?  How many of these are vacant?  And now how many people are homeless, or under-housed, in the US?

~last year, there was like a 2.5 million surplus of houses.

I haven't been able to find exact answers to these questions yet but I imagine they would shed a dubious light on the free market.