We Should Be Shocked By What Inflation Is Doing To Home Prices, Because We Have Never Seen This Before
Francesco Abbruzzino, The Uncensored Report, LLC
If you are shopping for a home right now, I really do feel sorry for you. Home prices in many areas of the country have officially crossed the line into “absurd” territory, and they just keep going higher. Thanks to wild spending by the federal government and the economic malpractice that has been happening at the Federal Reserve, we now have way too many dollars chasing way too few goods and services. Inflation is showing up in every sector of our economy, but it is not showing up equally in all sectors. One area where inflation threatens to spiral completely out of control is in home prices. Right now we are seeing the wildest bidding wars in U.S. history, and in many, many cases buyers end up paying way over listing price.
Let me give you an example of what I am talking about. When a fairly ordinary three bedroom home in Berkeley, California was recently listed for more than a million dollars, the real estate agent that listed the property was absolutely stunned by what happened next…
A three bedroom, mid-century home on a cul-de-sac in Berkeley, California, with an expansive view of the San Francisco Bay was nearly a one-of-a-kind property, said Jill Carrigan, an agent with The Grubb Company who listed it this spring.
“It ticked all the boxes for a lot of people,” she said. “I’ve never had a property with 29 offers and buyers were upping their offers without us even countering. The Bay Area is always competitive, but this was something I’d never seen before.”
This wasn’t a property that was particularly special. You can see a photo of it right here. In my opinion, there is no way in the world that such a house should ever sell for a million dollars.
Of course it didn’t sell for a million dollars.
When the dust finally settled, it sold for 2.3 million dollars…
Listed at $1.15 million, the home sold in two weeks for $2.3 million in cash, double the asking price.
You might think that such extreme bidding wars are rare, but they aren’t.
In fact, CNN is reporting that 940 U.S. homes sold for more than half a million dollars above listing price in March, and 310 U.S. homes sold for more than a million dollars above listing price in that month alone.
That is just one month!