[AviationGuy]

The market value of my little 1400 sq ft 1960s home in Austin has increased now from $525K to $747K in only 1.5 years. A home in my neighborhood was sold for $125K over asking price yesterday, and it will have to be completely renovated. It sold for $806K. I saw the photos and they were frightening. Many homes in the neighborhood, even 1950s and 1960s homes, are selling for well over $1M. Those are usually larger than mine. I get daily updates from my realtor neighbor. He says there's almost no inventory, so people will pay whatever it takes to get this close-in location. They're coming not only from the east and west coasts, but also from within the state.

The bidding wars are so hot in the city that homes get contracts (usually cash) before a sign is put out in the yard. I have received letters almost demanding that I sell. To me it's nuts but I also understand why it's happening.

I really don't know what's happening in the Austin suburbs. I'm pretty sure things are pretty hot there as well, although not to the extent as here in the city.