Daily Money - About those sky high home prices …

Plus swimming pools for rent + an update on mortgage rates
July 24, 2021 | Issue #1
Money Moves
Good morning! I’m Sam, the real estate editor at Money and I am so excited to offer you a sneak peak of our newest newsletter: Money Moves.

Every Saturday morning I’ll get readers up to speed on the latest housing market happenings. Whether you’re looking to buy a house ASAP or just love browsing Zillow, my goal is to help you feel in the know.

Like what you see? Subscribe to Money Moves.

To the moon
Gatsby
How much do you think Gatsby would have asked for his home across the bay from Daisy? Photo: Courtesy of Everett Collection
A few years back, a very-rich man invited me to tour his home, which he thought he could sell for $1 billion. (Yes, that's a billion — with a b.)

It had a massive private beach, a nine-hole golf course, separate wings for each of his children and a guest cottage larger than the house I grew up in. Honestly? It was spectacular. But $1 billion?! That’s just crazy.  

In the world of very-very-rich men and ultra-ultra-luxury real estate, this kind of “aspirational pricing” has been going on for a while. In today’s crazy housing market though, even owners of more modest abodes are trying to aspire their way to bigger profits. 

With home prices soaring, some homeowners figure it can’t hurt to shoot for the moon. But, as Aly Yale explains in her uber-popular story on the trend, overpricing your home actually comes with big costs — like longer time on market and lower sale prices in the long run.
Home
Sellers — don’t get greedy. Work with a knowledgeable real estate agent to price your home. Comparable sales data — not emotion — should be your guide. These days, there’s a good chance buyers will bid the price up higher than you could have dreamed anyway.

I don’t think this is how negotiations are supposed to work …
 
Graph
For two months now, more than half of homes have sold for above list price. Faced with abysmal inventory and routine bidding wars, homebuyers are pushing prices up instead of down. 

While being a little aggressive is sometimes necessary, buyers could be setting themselves up for heartache — and big losses — if they’re not careful. Before offering more for a home (or falling for a seller’s unrealistic expectations), consider the long-term prospects of your local market and whether you can wait out a downturn.
Home
Read more on this trend and get tips: Half of Homes Are Selling for Over Asking Price

Tiki break
If that over-asking stat is stressing you out — I feel you. Take a deep breath and admire this lovely Philadelphia rowhome, which happens to have a Tiki bar in the basement. If you buy this home, please invite me over for Zombie Punch.

Price: $299,000, dogs in Hawaiian shirts not included.
Dogs
Source: Compass
Thanks for guessing the price in our Twitter real estate challenge. How close were you?
Home
Bonus: Is it ever a good idea to put pets in listing photos?

How low can they go?
The average rate for a 30-year fixed-rate mortgage inched down to 2.78% this week. In case you aren’t also obsessively tracking interest rates — that’s incredibly low.

How low? The month I was born, the average mortgage rate was 10.27%. If you’re thinking I must just be getting old, consider that rates never dropped below 3% until last summer and the lowest they’ve even fallen is 2.65%.

Lower rates make the same sized mortgage more affordable. They are a big reason why home buying and mortgage refinance have been on fire for the last year or so.
Home
The hard truth? Now is the time to grab a low rate — the challenge will be finding a home you love at a price you can afford.
Home

Low rates are great — if you can get them
It got a lot harder to qualify for a mortgage last month, according to the Mortgage Bankers Association. 

When the coronavirus pandemic hit last year, lenders responded to the economic uncertainty (and a flood of refinancers trying to take advantage of low rates) by getting a lot stricter. The average credit score necessary to secure a mortgage went up and overall credit availability went down. 

Mortgage availability hadn’t fully recovered from that downturn, but things had been steadily improving for more than six-months — until June.
Home
Don't panic. The tighter standards are not being applied to everyone or every loan type. Refinancers, investors, self-employed buyers and second home buyers are most likely to run into trouble.
Home
For more on the outlook and how to improve your odds read: It's Getting Harder to Qualify for a Mortgage

No trespassing required
Pool
Good news: You can stop plotting to sneak into your neighbor's yard for a quick dip.

Swimply, a startup helping homeowners rent out their swimming pools, exploded in popularity during the pandemic. You can think of it like Uber or Airbnb, but for backyard fun. Over the last 12 months, Swimply has facilitated over 122,000 bookings and currently has more than 13,000 pools listed on its site. Some homeowners are earning six-figures from the setup.
Home
Home
Bonus: Look for another way to make money from your pool? Consider selling

Parting wisdom
“When sellers start hearing how hot the market is, they get tunnel vision,” says Phillip Salem, a Compass agent in New York City. “They think their property is the hottest one on the block.”

Happy hunting,
Sam
P.S. Share your stories about overpriced housing with me on Twitter @samsharf or via e-mail at sam.sharf@money.com.

P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this e-mail or send them to the Money Moves subscription page.

Money’s Essential Home Buying Resources: Summer 2021
This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money.

Privacy PolicyAdvertise With UsWe're Hiring!

To stop receiving these emails, unsubscribe or manage your email preferences.

Copyright ©2021 Ad Practitioners, LLC. All rights reserved.

Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA

Older messages

Not Your Parents’ Mutual Funds: How Gen Z Is Investing

Friday, July 23, 2021

Why you should worry about the next crypto crash July 23, 2021 So much for babysitting or busing tables. Today's young adults are using the internet to make money, and not chump change either.

Prices for Used Cars Are Soaring, and That Could Cost Drivers Who Aren’t Even Looking to Buy

Friday, July 23, 2021

The amount you receive if your car is a total loss may fall short of its replacement cost. July 23, 2021 INSURANCE Prices for Used Cars Are Soaring, and That Could Cost Drivers Who Aren't Even

Gen Z Is Rewriting the Rules for Personal Finance in Real Time. That’s Good, Right?

Thursday, July 22, 2021

They're working really hard to build wealth in new ways that feel ultra necessary for these post-pandemic times. The hard thing? Figuring out if... July 22, 2021 EVERYDAY MONEY Gen Z Is Rewriting

Issue #103: What do you say we talk about IRAs today?

Wednesday, July 21, 2021

plus a secret cafe + healthy Teletubbies July 21, 2021 • Issue #103 Dollar Scholar Dollar Scholar Hi y'all — Life is full of hard choices. When my alarm goes off at 8:30 every morning, for example,

Why You Should Worry About the Next Crypto Crash (Even if You Don’t Own Crypto)

Wednesday, July 21, 2021

With $1 trillion in market value, they are bound to be reverberations. July 21, 2021 INVESTING Why You Should Worry About the Next Crypto Crash (Even if You Don't Own Crypto) With $1 trillion in

Adelman's VC-style bets — Lazard pay raises — Brilliant Earth's growth plans

Monday, September 27, 2021

View in browser Insider Finance Insider Finance Subscribe Welcome to Insider Finance. If this was forwarded to you, sign up here. Plus, download Insider's app for news on the go – click here for

Are we running out of power?

Monday, September 27, 2021

Finshots Are we running out of power? In today's Finshots we talk about the power crisis brewing in this country Policy The Story There's a power crisis brewing in this country. Several coal-

📅 We’ll See You There: This Week's Events!

Monday, September 27, 2021

Including: getting back to the financial basics. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

😱 China. Bans. Crypto.

Sunday, September 26, 2021

No one puts bitcoin in a corner | Nike fails to do "it" | Finimize Hi Reader, here's what you need to know for September 27th in 3:09 minutes. 💸 The world's biggest companies are

The Ellevest Debit Card 🤝 Your Budget

Sunday, September 26, 2021

The debit card that makes room for fun. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🚀 How to get a startup internship

Sunday, September 26, 2021

A cold email template + tips! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Longreads + Open Thread

Saturday, September 25, 2021

Protein & Wheat Diplomacy, Org Charts, Death, Algorithms, Machiavelli, Strauss ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Bullish sentiment toward crypto assets increases with 8 of 10 people seeing bitcoin bounce above $56,000 by year's end, says Voyager Digital

Saturday, September 25, 2021

Cryptocurrency-asset broker Voyager said 85% of respondents to its sentiment survey believe bitcoin is now in a bull market. View in browser Business Insider Business Insider Business Insider Subscribe

China’s big dilemma

Saturday, September 25, 2021

Bloomberg Follow Us Get the newsletter Everyone's freaked out about China's latest crackdown on crypto and the future of Evergrande Group, the beleaguered Chinese property developer trying to

Weekly Wrapup: There is no such thing as a Free Lunch

Saturday, September 25, 2021

Finshots Weekly Wrapup: There is no such thing as a Free Lunch In this week's wrapup, we talk about the Modern Monetary Theory, Evergrande Crisis, Urban Planning, the Zee-Sony merger, and lastly