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All Forum Posts by: Jeremy Lee

Jeremy Lee has started 35 posts and replied 118 times.

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @John M.:

@Jeremy Lee

Was reading with interest your home buying adventure.... wow that is insane.  Just curious are you renting right now?

I am renting right now in Irvine and was toying with the idea of buying a place.  But even though I have a good income and could probably spend up to $800k by myself, I don't have enough liquidity for a 20% down payment and I don't want to go into a lot of debt.   And after reading how crazy the market is right now, I am thinking I just don't want to get caught up in FOMO madness, and the better choice is to just do nothing and keep banking my paycheck.

What you said here:

"I think over time, more and more people (particularly middle class) will get priced out of living in CA in general and the ones left will be the ultra wealthy, upper middle class and the poor/homeless"

This is a pretty sad commentary considering I was born and raised in LA and lived most of my life in SoCal and your above description sounds like a third world country, not the California dream :(.  But this seems to be happening all over the place and you can't deny it's happening.

I would love to do another deal, but real estate in general all over the US seems kind of toppy to me... so not sure how I feel about it.



@John M - yes we are currently renting in Laguna Niguel. I agree though - buy what you can afford and nothing more. I think more and more people are getting forced out of state with all this madness. It's probably going to take some time before things settle down as far as dog-eat-dog/Ebay housing bidding wars. 

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7

Update #2: our offer for $925k on the last house was exceeded by an all cash offer that was well above every other offer (according to the realtor... he didn't disclose a range/number so I'm very curious what someone was willing to spend on a 3/2).

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @Dillon Cook:

@Jeremy Lee

For the last 6 months, we hear about Californians exiting CA. Theoretically there are fewer people coming in than leaving. Do you agree with this? If so, why would RE prices (especially in your area) continue to act this way? That's crazy.

It's uncommon if I see less than 10 offers in on a starter home in Tampa. I also see many folks coming in from the Northeast. Literally every day I think I speak with someone new from New York moving down here.

Hi Dillon,

I think there are definitely more Californians leaving the state but I don't think it's nearly as many to reduce the demand so that the supply can keep up - there is a housing shortage in CA and home building/residential land development has not been a big priority here (at least around where I live). 

Also, I think a lot of renters or those with smaller homes in LA (especially those in tech or those with generational wealth) are realizing that WFH is a thing, and are leaving the bigger metros for the suburbs (my realtor said that in most metro areas and places near universities, etc apartment/multi-family landlords are experiencing higher vacancy rates and having to offer more concessions to get people in). Regarding OC, a lot of people from LA are migrating south and getting more for their money (the LA market is even crazier than it is here from what I've heard, so it must seem like a bargain for anyone who was considering living in LA but can now WFH in OC). That's my theory in explaining at least part of it. According to the seller's agent at the place where we were outbid by $60k, these people were moving from Hollywood Hills and were already outbid 5 times and got fed up with it. 

I think over time, more and more people (particularly middle class) will get priced out of living in CA in general and the ones left will be the ultra wealthy, upper middle class and the poor/homeless. Homelessness has increased seemingly exponentially too - it feels like yesterday when we would drive the 5 or 101 from OC to LA and vice-versa and you'd see maybe a few tents here and there. Now in many places (beginning around downtown LA and north through Griffith Park area) there are patches of mini-tent cities. I think it's worse along the 101 actually. It's pretty sad how bad things are getting, and I fear it'll only get worse. I think the frenzy and desperation are settling in as far as people wanting homes. 3/2 and 4/2 SFRs seem to be the highest demand and are commanding the most drastic overbids.

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7

Quick update on the current market in South OC: 

Last week, we put in an offer of $915k + over 40% down and removal of appraisal and inspection contingencies in addition to a $2500 escalation clause on a 4/2 home listed at a little under $880k in Laguna Hills. Someone outbid us by a margin of $60k and barely $100k over the asking price.

Yesterday, we put an offer of $925k + 40%+ down and removal of appraisal and inspection contingencies (no escalation clause) on a 3/2 home listed at $900k. I'm pretty certain this isn't going to be enough and someone will buy it for $950-$960k at least. We are expecting to hear back on a decision by tomorrow or soon after. I'm not optimistic about any of this. It's absolute madness.

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7

Haha thanks for the clarification! Makes sense now :)

Do any of you guys see much 'relief' in terms of home pricing in the years to come? I'd prefer not to be stuck in a long-term rental situation if I don't have to. But the current scene is just insane. It just feels like everything is way overpriced and people are settling for it all. Since my last post, I saw a couple homes going for $50-100k more than the listed price. On one hand, you hear people saying don't jump into the fray and wait it out but I feel like if we don't try to get it now it'll be even worse 1-2 years later and homes that are selling for $800-900k currently will be selling in the millions (factoring in appreciation and inflation). What do you all think?

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @Joaquin K.:

Hi David - Did you buy in Laguna Niguel or in Laguna Woods?  Laguna Woods is a 55+ community that's pretty luxurious (plenty of amenities and a relatively high HOA). I don't believe activity there is representative of the market in Orange County. Activity in Laguna Niguel is likely much more representative of the general market conditions.

Is all of Laguna Woods exclusively 55+? I thought there were some neighborhoods/areas that were standard condos/townhomes/SFHs...? 

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @David Soria:
Originally posted by @Jeremy Lee:
Originally posted by @David Soria:
Originally posted by @Jeremy Lee:

The situation seems even crazier now. From what it appears like in my area (South County/Laguna Niguel) people are going in (presumably for primary residences) as much as $50k-$100k over asking price. It's insane. Talking to my realtor it seems as though the only "correction" may come in the form of properties having less competition on them due to the slowly rising interest rates. But as far as the current appreciation and inflation, the demand spurring the accelerated appreciation is "doing some damage" as far as home buyers are concerned. Great for homeowners/investors though. We're looking to buy a primary home around here and it's pretty discouraging and frustrating. 

Coincidentally, I just bought my first primary residence in Laguna Niguel a little over a week ago (closing on track for 3/15). We bid on about 6 properties.  We were out-bid on all. Here are the results (forgot to record 1st, but lost it to a higher than asking bid):

Asking - Our Bid - Final price

$620k - $622 - Cash offer for $620 and no contingencies won

$610 - $620 - Last we heard, it was at $670 (cash)

$630 - $636 - Sent multiple counter offers for $700

$640 - $645 - Last we heard it was at $770!! $130k over asking

$578 - $572 - This is the house we ended up winning. Right place/Right time situation.  Appraisal just finished today too.  We were getting really discouraged as well, especially since we were so quickly getting out bid by things we had no chance of competing with. Fortunately, we snagged this place and did not overpay. 

The week we ended up locking in our rate is the week that it started creeping up. 3bd/2bath. Had to make some compromises on things like 2 car garage (only got 1) and a backyard (got front courtyard and open back area), but we are looking at it from an investment standpoint and plan on using it to jump to something better next. 

Just keep reminding yourself not to overpay. It can be easy to get caught up in the frenzy of outbidding others and just trying to finally win something, but make sure you're making the right financial decision. 

Congrats!!! Sounds like a wild ride. I feel like the line is becoming blurred between what is considered "overpaying" and the "new normal" at this rate. Also, a lot of agents are purposely under-listing properties in hopes of instigating aggressive bidding wars (and it's working). We'll see what happens but I feel like things are only going to continue getting worse (more in the ballpark the 2nd, 3rd and 4th properties you looked at). Were those properties more "turnkey" and highly upgraded compared to the first property and also the property you're about to close on? $572 sounds like a heck of a deal around here for a 3/2 - is this a SFH and was it off-market or something?

Have definitely seen the underpricing/bidding frenzy.  Some are extremely obvious, but the annoying ones are the ones that make you think you have a chance.

The other properties were all around the same. Not 100% remodeled with the latest and greatest, but all basically turn key. Completely livable upon moving in, but we would have done minor things, like changing or refacing cabinets, repainting, floor changes in some rooms based on preference, etc. 

Ours is a condo (another compromise, 2 shared walls). It was actually in a location we had put on our "hard no" list a while ago, because the area didn't look that great in pictures. Our realtor suggested we drive down and walk it one day and it turned out to be different than we expected. Out of 5 homes currently available in that area (Laguna Woods), ours seemed to be on the better looking side with the best view, so we jumped on it. The next upgraded home with same floor plan sold for around $580 I think. So I guess another suggestion would be to keep an open mind and actually drive the areas that you don't think look great in pictures. Obviously, depends on your individual price range and needs for a home. We HAD to have work space available since we both work from home.

Makes sense - we sold our place in Irvine (condo) back in September and kind of regret it now with the prices soaring sky high the way they are. Although, it became really hard living there especially within the past few years as we were downstairs and the last two renters above us were extremely noisy. I couldn't stand the thought of being there for much longer. After that incident, we vowed to never live in a downstairs unit ever again. Preferably no shared walls either. But around, here things like that cost a premium :) We too are looking for an extra room that can be used as an office since I WFH as well. Currently we're renting a 2 bed 1 bath apartment - we've gotten used to it but it's nuts thinking that we were in a 3/2 before this. We have two kids, ages 5 and 4 hahahaha.

Anyway, we may be forced into a situation where we have to just rent for a couple more years. 

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @David Soria:
Originally posted by @Jeremy Lee:

The situation seems even crazier now. From what it appears like in my area (South County/Laguna Niguel) people are going in (presumably for primary residences) as much as $50k-$100k over asking price. It's insane. Talking to my realtor it seems as though the only "correction" may come in the form of properties having less competition on them due to the slowly rising interest rates. But as far as the current appreciation and inflation, the demand spurring the accelerated appreciation is "doing some damage" as far as home buyers are concerned. Great for homeowners/investors though. We're looking to buy a primary home around here and it's pretty discouraging and frustrating. 

Coincidentally, I just bought my first primary residence in Laguna Niguel a little over a week ago (closing on track for 3/15). We bid on about 6 properties.  We were out-bid on all. Here are the results (forgot to record 1st, but lost it to a higher than asking bid):

Asking - Our Bid - Final price

$620k - $622 - Cash offer for $620 and no contingencies won

$610 - $620 - Last we heard, it was at $670 (cash)

$630 - $636 - Sent multiple counter offers for $700

$640 - $645 - Last we heard it was at $770!! $130k over asking

$578 - $572 - This is the house we ended up winning. Right place/Right time situation.  Appraisal just finished today too.  We were getting really discouraged as well, especially since we were so quickly getting out bid by things we had no chance of competing with. Fortunately, we snagged this place and did not overpay. 

The week we ended up locking in our rate is the week that it started creeping up. 3bd/2bath. Had to make some compromises on things like 2 car garage (only got 1) and a backyard (got front courtyard and open back area), but we are looking at it from an investment standpoint and plan on using it to jump to something better next. 

Just keep reminding yourself not to overpay. It can be easy to get caught up in the frenzy of outbidding others and just trying to finally win something, but make sure you're making the right financial decision. 

Congrats!!! Sounds like a wild ride. I feel like the line is becoming blurred between what is considered "overpaying" and the "new normal" at this rate. Also, a lot of agents are purposely under-listing properties in hopes of instigating aggressive bidding wars (and it's working). We'll see what happens but I feel like things are only going to continue getting worse (more in the ballpark the 2nd, 3rd and 4th properties you looked at). Were those properties more "turnkey" and highly upgraded compared to the first property and also the property you're about to close on? $572 sounds like a heck of a deal around here for a 3/2 - is this a SFH and was it off-market or something?

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7
Originally posted by @Caleb Brown:

On my market what's driving the prices and fats DOM is high demand and no inventory. That with rates being historically low is a perfect mixture for prices to soar. I don't think it'll slow unless rates go up or something shifts in the market. People are investing into RE like crazy so the multi fam market is on fire. 

I'm assuming you're talking about multi-fam especially in the more urban city center areas? Seems like a lot of people are exiting these areas due to the shift from having to work in an office to being able to work remotely from home. I've heard this particularly is the case up in SF. Are a lot of MF landlords now selling to get out of it?

Post: What does everyone think of the current market?

Jeremy LeePosted
  • Laguna Niguel, CA
  • Posts 125
  • Votes 7

The situation seems even crazier now. From what it appears like in my area (South County/Laguna Niguel) people are going in (presumably for primary residences) as much as $50k-$100k over asking price. It's insane. Talking to my realtor it seems as though the only "correction" may come in the form of properties having less competition on them due to the slowly rising interest rates. But as far as the current appreciation and inflation, the demand spurring the accelerated appreciation is "doing some damage" as far as home buyers are concerned. Great for homeowners/investors though. We're looking to buy a primary home around here and it's pretty discouraging and frustrating.