Yves came and we warned that when employers wanted employees to return to the office, some people who invested in “remote work” housing would be burned. Although the plan to bring professionals back to Manhattan was delayed by Delta Air Lines, many companies said they wanted to sit back in their chairs, and those companies that continued to work from home would cut salaries.
It may not be advertised so much, but we suspect that a small group of buyers who bought beautiful houses far away will end up selling because they misjudged the community. For example, the “New York Times” published an article about the artistic atmosphere of New Yorkers fleeing an epidemic to Camden, Maine.
I sincerely suspect that any of them have been to Maine in winter or “muddy season” (like spring). People who run a wine shop near Brunswick, we often live in Fairbanks, Alaska. He said his winters in Alaska were milder, nothing compared to the humid and violent winds in Maine.
Wolf Richter, editor Wolf street. Originally published on Wolf street
This is a Reddit lament By a self-confessed FOMO (fear of missing out)-a Canadian home buyer. Six months ago, the couple mistakenly believed that working from home (WAH) was permanent, so they bought a house “a few hours” from Toronto. But it turns out that WAH was short-lived for them, and now they need to sell the house.
But within two weeks of the house listing, because the market was cooling, they did not receive an offer that would make them profitable or break even-the situation of having to sell the house was creepy and shocking. No immediate profit.
In their estimation, they cannot even rent out the house in a profitable manner. What kind of horror movie is this? ?
This is a horror show of buying a house in a place determined to be The second largest real estate bubble in the world, second only to New Zealand, Now the real estate bubble is “normalizing”, or “cooling”, or whatever, suddenly plans to go to waste.
Obviously, the couple can sell the house. But they have to set prices based on market prices, and the market is not what they thought, or as they were six months ago, they will have to work harder and longer to try and lower the price, and eventually they will be able to sell the house. However, the dream of making $100,000 or anything else from a house in Toronto “a few hours” within six months has been dashed.
This article caught my attention Steve Sarecki, A real estate agent in Vancouver, his work, reports, and data all appear on Wolf Street. Also pay attention to the succinct marriage nuances that this post brings in this situation-“She is very angry with this situation and refuses to live here now,” he said:
Sorry if this is a terrible format, I am not a redditor.
My wife and I bought it at the peak of the real estate market 6 months ago, and now it seems. Because we all work from home, we bought a few hours of working time (Toronto). We think WAH will be permanent. If we don’t pull the trigger, we are all afraid of missing the purchase opportunity. The wife was recalled to work full-time. I have been notified that we are going back to work part-time in September.
We listed the house two weeks ago, and there is no offer to make us break even, let alone profit. Our real estate agent told us that the market is cooling down, and if we get what we want, it will be a surprise. We have received several quotations and none of them are asking prices.
We are at a loss. My wife is looking for a job locally, but due to the nature of her job, she is unlikely to find equal pay or opportunities. She also does not want to leave her employer, where she has great upward mobility and qualifications. I personally don’t mind part-time commuting, but she is very angry at this situation and refuses to live here now.
My friends have been telling me that the Canadian market will not cool down and can only wait for it to be sold.
If we list for rent, I don’t think we will make a profit.
Any suggestions would be greatly appreciated”
For people like me who have been around the block many times, what is surprising is the naivety and surprise of the confused and frustrated potential home sellers in these eloquent words. What were they thinking when they bought the house?
They didn’t think about it. They are dominated by fear of missing out (FOMO), and the poster acknowledges this. FOMO requires you to stop thinking, act without thinking, and act immediately before someone else snaps up the expensive house under you. The real estate bubble operates on this basis. Without FOMO, you cannot sustain a real estate bubble.
This article also reveals the whole problem of buying a beautiful big house somewhere far away from the city, because now both of you can work from home, and the boss says, both of them, no, you have to go back to the office. This thing sucks. And I suspect there will be many.