Real estate prices......are they going crazy where you are too?

Peabody said:

It's crazy around here too.

We moved in to this place in 2000 and paid $175k. Right now we could easily get a mil but we both really like it here - her a lot more than me. If it was just me I'd take that mil and buy a place a few hours north or east for $125k and bank the rest.

But it ain't just me.

Ain't that the truth. 

My wife and I were talking about this last night. If we didn't have kiddo, if we were single and not together, etc. Life would look a lot different, some things much better, some things much worse. 

What's the point of selling? Any other house near where the jobs are also costs stupid money and you have to bid against investors with big wallets for it. Move to where houses are cheaper and you find no jobs there. Unless you are ready to retire, have plenty of money and don't mind living in Podunk, It's better just to stay put. 

wearymicrobe said:

Got another unsolicited offer and its high enough that I really need to sit down and do the math and think if I should take it. Its big enough that I could pay cash for something not on the coast. I could build a 1-1.5K shop and have zero payment. Would double my commute but it means my wife could retire before she was 50 if she wanted. I fired back with a number 50K higher and they said they would take it back to the buyer who has seen the home. 

 

Its bonkers out here again. ~400 single family homes are available in the county that are priced in line with the real world. 400 homes for 3.2 million people in the county. 

My best friend bought a house in Spring Valley and had a pool put in sometime in 2016 all for under 500k. He bought it cash and does not regret leaving the coast. I go there every year and he has a view of all of San Diego without all the traffic and expenses.

I have another friend who lives inland too and she has acres that she didn't pay much for (comparatively). Before, she was in Pacific Beach with a house on Mission Bay. She had no regrets moving further inland and buying cash. 

I'm a Gen. Y'er, for my entire life a house has seemed only slightly more attainable than a personal space station.

And then the COVID19 situation has somehow only made it worse by jacking up the prices of the less-unaffordable housing. I don't think this situation will last long though, right now business real estate is in limbo, with property owners not getting paid by business owners to not evict them from the property that's not being used, all on the promise of quickly resuming business at some point. Eventually something will give, either things will go back to the only slightly less insane previous state of affairs, or business real estate will eat E36 M3 due to widespread remote work and be replaced by residential, increasing supply and reducing prices.

I grew up in San Diego and for me, there's no way I'd move back there unless I was in a beach community.  Why deal with California crap if you can't take advantage of the beach/ocean?  At that point I'd rather be where I am in Denver, a 2 hour flight away from the beach.

Another point to bring up is house flipping.  Know several people that buy foreclosures, fix them up and sell them for a profit for a living.  Since Covid hit, no one can get foreclosed on so there are no houses to buy and flip.  Therefore those people aren't making any money either.

Placemotorsports said:

Another point to bring up is house flipping.  Know several people that buy foreclosures, fix them up and sell them for a profit for a living.  Since Covid hit, no one can get foreclosed on so there are no houses to buy and flip.  Therefore those people aren't making any money either.

There are no foreclosures in Dallas. If you can't make your house payment here you can list your house and get five offers the next day. Probably why they are ringing my phone off the hook trying to buy my place. 

Frankly, the housing market is almost depressing. 

Labor rates have skyrocketed - I attribute this to increased cost of insurance and the increase cost of housing. Nobody can work for free, obviously, but now any independent contractor needs to make above-average wages. As the number of tradesmen decreases and the number of non-tradesmen increases, the vast majority of us are not making above-tradesman wages. Supply and Demand. Which means you either go broke buying a new house, or you go broke renovating an existing house, or you do it yourself. The vast majority of homeowners can't do large scale renovations themselves. As a result, our housing stock kinda sucks. 

Meanwhile, rental investors are driving up prices with little concern for housing conditions, so market rates are based on junk homes. 

I guess the good news is the ROI on improvements and updates is relatively good. 

I'm starting to wonder about the trade-offs to just buying a new home and not touching it for 30 years, then selling it with no updates. Right now it almost seems like a better deal than a fixer-upper. 

pheller said:

 

Meanwhile, rental investors are driving up prices with little concern for housing conditions, so market rates are based on junk homes. 

 

Hey now. Us evil people have to eat too 

mr2s2000elise said:

pheller said:

 

Meanwhile, rental investors are driving up prices with little concern for housing conditions, so market rates are based on junk homes. 

 

Hey now. Us evil people have to eat too 

But you guys eat that nasty smelling fire and brimstone stuff. 

I got a call out of the blue by somebody who was ready to make a cash offer on my house.

Oh? Ok, let's hear it.

Then they wanted to ask a bunch of questions about the house.

So, no, they were not ready to make an offer. Jackass, say what you mean. 

Now, if I'm getting cold calls about selling, I'm guessing demand is really high. I'm now considering talking to my neighbors to try and see if they're interested in pooling our properties together as one large lot of about 4 acres of land (6 houses). I wonder if we can get it rezoned as commercial or something, too.

I haven't received any calls asking about selling.  Although I have a spam blocker on my cell number and my land line number is active but there isn't a phone connected to it, so anyone calling that number will never get an answer. If that helps reduce the number of spam calls I get, then I'll call the few $ I pay for a land line I don't use a worthwhile investment in my sanity.

mr2s2000elise said:

pheller said:

 

Meanwhile, rental investors are driving up prices with little concern for housing conditions, so market rates are based on junk homes. 

 

Hey now. Us evil people have to eat too 

Baller

I have friends and family who own rental properties. I have nothing against people diversifying their investments. 

I just wish there were some solutions. I love debating ideas:

- I still think that states should allow cities to restrict 2nd home (single family) home ownership. 

- Vacancy taxes might work, Paris and Vancouver have noticed some added liquidity to their markets since implimenting those taxes, but demand is still so high that it does little to lower prices. 

- Land Value Tax (Hey George!) 

- Changing Zoning Laws to allow more infill development, although this only benefits people with capitol. 

- More trades programs. 

As someone who just got an offer accepted on a house yesterday, the market is pretty crazy up here in Seattle. We will close on this one the day before Thanksgiving. The last time I owned was in Phoenix in the early 2000s, I'm spending multitudes more this time around.  Houses are on the market for less than a week in most cases here. 

We looked at one a few weeks ago, put in an offer contingent on inspection.  That was the best 500$ i've ever spent as that house needed full electrical, plumbing, venting and various other items.  Someone with more money than sense will end up with that house and I feel sorry for them.

yupididit said:

mr2s2000elise said:

pheller said:

 

Meanwhile, rental investors are driving up prices with little concern for housing conditions, so market rates are based on junk homes. 

 

Hey now. Us evil people have to eat too 

Baller

I wish ! I would have a G waggen and you would get the first invite to come and drive it ! 

Snowdoggie said:

What's the point of selling? Any other house near where the jobs are also costs stupid money and you have to bid against investors with big wallets for it. Move to where houses are cheaper and you find no jobs there. Unless you are ready to retire, have plenty of money and don't mind living in Podunk, It's better just to stay put. 

There are plenty of places with jobs outside the top-10 markets. You just need to have some skills. 

http://zillow.mediaroom.com/2020-01-09-Silicon-Prairie-Communities-Top-List-of-Up-and-Coming-Tech-Markets

z31maniac said:

Snowdoggie said:

What's the point of selling? Any other house near where the jobs are also costs stupid money and you have to bid against investors with big wallets for it. Move to where houses are cheaper and you find no jobs there. Unless you are ready to retire, have plenty of money and don't mind living in Podunk, It's better just to stay put. 

There are plenty of places with jobs outside the top-10 markets. You just need to have some skills. 

http://zillow.mediaroom.com/2020-01-09-Silicon-Prairie-Communities-Top-List-of-Up-and-Coming-Tech-Markets

 

I have the skills. I just don't want to live in podunk. Why should I sell out and move anyway? I don't need the money and I dispise moving around. 

In reply to Snowdoggie :

Metro areas  have many good and great features  Including art,Theater,  music, and sports. Plus medical,  educational, and clubs that share your interest. 
Rural areas lack that but offer solitude, independence, self reliance, and  space.  

Land can be cheaper but skilled labor to build the sort of home you seek is likely more expensive.  Finding a grocery store that has the things people from urban areas expect is going to be harder. But non perishables can be ordered and stock piled.  

frenchyd said:

In reply to Snowdoggie :

Metro areas  have many good and great features  Including art,Theater,  music, and sports. Plus medical,  educational, and clubs that share your interest. 
Rural areas lack that but offer solitude, independence, self reliance, and  space.  

Land can be cheaper but skilled labor to build the sort of home you seek is likely more expensive.  Finding a grocery store that has the things people from urban areas expect is going to be harder. But non perishables can be ordered and stock piled.  

 

Umm. Explain to me again why I want to move in the middle of a Covid Pandemic and build a new house when materials are stupid expensive and labor is unobtainable. We have two houses, one paid off and another that will be paid off in less than three years. Both of us have good jobs here and lots of connections in our field. Everything we want is here. Her relatives are all here, she was born here and she doesn't want to leave. My Grandfather was also born here. The house in town is close to Whole Foods and Central Market not to mention Downtown Dallas and art, theatre, etc. The one out in the suburbs and near the lake is close to Tom Thumb and Kroger. All of those places deliver. 

Your reasons for "staying put" are your own. If you are happy with those reasons, that's all that matters. 

You're rhetorical question of "why would I want to move?" Was addressed by others who have different opinions than yours. They weren't answering your query directly, they were answering "what are the pros and cons to paying higher prices in metro areas, or low prices in rural areas in 2020." 

Nobody is trying to convince you to move. 

pheller said:

Your reasons for "staying put" are your own. If you are happy with those reasons, that's all that matters. 

 

You're rhetorical question of "why would I want to move?" Was addressed by others who have different opinions than yours. They weren't answering your query directly, they were answering "what are the pros and cons to paying higher prices in metro areas, or low prices in rural areas in 2020." 

 

Nobody is trying to convince you to move. 

Sure about that? I think the house flippers who keep calling me are paying you guys. 

This thread reminds me of this movie...

Not going to do the "M" word. 

Snowdoggie said:

pheller said:

Your reasons for "staying put" are your own. If you are happy with those reasons, that's all that matters. 

 

You're rhetorical question of "why would I want to move?" Was addressed by others who have different opinions than yours. They weren't answering your query directly, they were answering "what are the pros and cons to paying higher prices in metro areas, or low prices in rural areas in 2020." 

 

Nobody is trying to convince you to move. 

Sure about that? I think the house flippers who keep calling me are paying you guys. 

I promise no one is paying me. And no one was attacking you. I was just sharing, that even though the majority politics here aren't great, we have one of the best race tracks in the country. I'll stop with the proselyting 

So for those of us who has to move every 3 or 4 years, what do y'all suggest?  Lol