Decided to get a quote on a full re-model of my home (paperwork says it was built in 1927, but is actually much older). When it came in at $247,000 we thought, "okay, maybe just buy something that's updated."
Thing 1: We go to some open houses, and homes are getting dozens of offers their first week. Along with low rates, there appears to be an eastbound exodus from New York City.
Thing 2: We view a home that seems decent. My realtor finds out there's only 5 offers, and says to us, "there must be something wrong with the house." We remind her that they listed it as a 5 bedroom, but it's really 3. In the end, we don't make an offer.
Thing 3: We see a nice home listed for $489,000. We offer $513,000, and don't get it. There were 40 bidders.
We have our open house next weekend, and I'm thinking we might just bank the cash and rent. I was house shopping in 2007, and this is pretty much how it was. I was pre-approved for an insane amount of money, and told I could borrow much more than that, homes were getting multiple offers over asking price, and everyone thought there was some kind off housing shortage.