Real Estate Boom or Bubble

[Paul DeSilva]

Hey BP,

The NYC surrounding areas are seeing HUGE amounts of activity in Real Estate since the reopening has started, so much so that all the local newspapers are talking about it. Over asking price offers just days on market, properties being bought sight unseen, sellers demanding proof of funds just to enter properties, NOT business as usual stuff. People moving from the urban areas to more rural ( @brandonturner 's voice) areas in droves. Will it last? I know that it has effected me as a multifamily investor, we have recently made several offers on new to market listings only to get a "what's your highest and best offer, we have a multiple offer situation" or "we have already accepted an offer". We are trying to stay competitive but have to stick to the numbers that work for us. Is anyone else experiencing this here or elsewhere?

[Joseph Cacciapaglia]

We're having a very similar experience here in San Antonio, TX. There is some weakness in the 5+ multifamily market, but not enough to counteract the changes in lending standards and terms. The only real deals I've seen lately have been tenant occupied single family properties. Almost everything else has had multiple bidders.