beyond sticker shock

[catndahats]

At first, I thought this thread was going to be about high grocery prices...so the joke is on me.
Other comments that I relate to:
* looking at the real estate ads is something I have done daily for fun and profit over 45+ years...both sad and comical at the same time these days.
* having lived in the Silicon Valley area circa Y2K, and realizing how crazy that real estate was out there with cash sales way over asking price back then; now the same model has come to our state---something I thought I'd never live to see.
*older people being blamed for young people not being able to buy; I've heard / read that and it's a new one on me. I've heard of tax concerns, and various other reasons not to sell--I've heard that my entire adult life. I actually understand it today, we are in that situation. At the inflated prices, if we moved the tax rate would crimp our style. Glad I'm not planning on leaving here except on a gurney.

Thank goodness that beer prices are fairly stable.

Originally Posted by fazool

I worked in retail and fast food and for four decades in industry where products are sold.

I fully appreciate inflation and know that the cost of living will go up, even a great deal in some areas. Comparing the cost of gas, milk, bread, etc. from decades ago you really appreciate inflation.

I have never been one to complain about ridiculous prices that can be explained by inflation. The two exceptions to that, for me, were health care costs and tuition. Which seemed to have increased disproportionately.

But this isn't about those.......compared to this topic, those aren't even a blip, so even those few things I used to shake my head at pale in comparison.

I just helped our daughter do some moving and house planning. We went actively house hunting in a modest midwest city (specifics deliberately excluded to avoid offending anyone.)


We looked only at 60+ year old starter homes: one-story, single bath, 1000-1400 square feet. The prices were $320K to $399K !

And the realtor said people are listing the house on Sunday, showing until Wednesday, and closing all bids the following weekend. We walked through three houses and were told bids are due at 3 o'clock. They are getting over 20 offers and all above that asking price.

Four hundred thousand dollars for a 1200 square foot starter house that needs tons of TLC ?!?

I've seen a lot of things (I ran a business in the heart of silicon valley so I know high real estate, I bought and sold a different home last year....Im not out of touch)

This is the thing that convinced me we are hurtling toward an economic implosion. This is the biggest bubble I have ever seen and I think the dot-com bubble, and prior housing bubble are going to pale in comparison when this one bursts. This is really crazy.

[fazool]

Originally Posted by catndahats

At first, I thought this thread was going to be about high grocery prices...so the joke is on me.
Other comments that I relate to:
* looking at the real estate ads is something I have done daily for fun and profit over 45+ years...both sad and comical at the same time these days.
* having lived in the Silicon Valley area circa Y2K, .....

I ran a prominently located facility in Sunnyvale, in the heart of Silicon Valley and the prices were crazy. So I agree and am familiar with the craziness of Silicon Valley. I'm just flabbergasted that this insanity has hid modest midwest towns

[Merak]

More people can work from home. A coworker is living in Montana now but his job is based out of Iowa. Those long commute towns are now part of the metro areas.

[Borderdon]

FWIW, in our locale here in B.C (Vancouver Isl.) you can pretty much increase that number x 2 1/2 and still there's no apparent shortage of buyers.

[rllink]

I don't have much first hand knowledge of the housing market across the country, only like everyone else, I have an anecdote. My son moved to LA four years ago for a job with an art gallery there. He turned thirty this year. He has a very nice little bungalow with a beautiful spacious yard and garden surrounded by a stucco wall and a three car garage. I call it the compound. I don't know what it cost him, but by Iowa standards it cost a fortune. The thing is though, that he makes a lot of money out there. He is having no problem paying the mortgage, drives a nice car and goes on vacation. So it is relative, at least in his case.

[K20C]

I find it a bit baffling that home prices can vary so much depending on which part of the country you’re in. 20 years ago we were in the DFW TX area when a headhunter approached my wife for a job in Seattle. So, we sold a large house with pool in TX for under $300k and bought a tiny house, no pool, in Seattle for over $700k. That hurt. But, it worked out pretty well.

[leew3]

Originally Posted by Slothead56

I may get this wrong but I remember seeing something recently that Boomers are being blamed for the rapid increase in home prices. As I recall the logic was as follows: Boomers are not moving out of their homes as they grow older therefore limiting inventory in many markets.

Those darn Boomers…

As a straight Caucasian boomer male I've had to become accustomed to being the proximate cause of virtually everything wrong in the world. With such power comes great responsibility.

[Neil K Walk]

We've been in our current home for 25 years. My wife has wanted to move for half that time. She wanted to live in a neighboring township with even higher taxes with the caveat that the school district was better. I think right now she knows better than to sing that tired song right now. Besides, our youngest graduates from high school next year.

Meanwhile, that college tuition is looming. Has anyone noted that tuition has pretty much increased 10x in the last 25 years? I'm pretty sure he's not going to be independent for quite some time.

[FLRon]

Single family homes in average condition here run north of $350k to start if it’s in a decent neighborhood. Less than desirable neighborhoods can be substantially cheaper. I can confirm that in the 7.5 years I’ve lived in my current home, the value of it has doubled. In fact, I’ve been offered slightly above double what I paid for it.

This is not sustainable, and I am confident that a major economic meltdown is around the bend.

[Mandobart]

I recently heard a radio news story where it was stated that in the US there were typically 4 million homes for sale back around 2015, and that number is now around 1 million, leaving a current shortage of between 4 and 7 million homes nationwide (US).

This is reportedly a major driver of spiraling home prices.

[Merak]

House prices have gone up consistently for at least the last 40 years except for 2008. Nothing new here.
https://dqydj.com/historical-home-prices/

[K20C]

Originally Posted by Neil K Walk

We've been in our current home for 25 years. My wife has wanted to move for half that time. She wanted to live in a neighboring township with even higher taxes with the caveat that the school district was better. I think right now she knows better than to sing that tired song right now. Besides, our youngest graduates from high school next year.

Meanwhile, that college tuition is looming. Has anyone noted that tuition has pretty much increased 10x in the last 25 years? I'm pretty sure he's not going to be independent for quite some time.

Tuition is nuts! When I started college in 1971, it was $9/hr. When I started Law School a few years later, a private school was $90/hr. When I graduated, it was $300/hr. Thank goodness our daughter graduated college a few years ago before it went truly insane.

[imwjl]

Originally Posted by Neil K Walk

We've been in our current home for 25 years. My wife has wanted to move for half that time. She wanted to live in a neighboring township with even higher taxes with the caveat that the school district was better. I think right now she knows better than to sing that tired song right now. Besides, our youngest graduates from high school next year.

Meanwhile, that college tuition is looming. Has anyone noted that tuition has pretty much increased 10x in the last 25 years? I'm pretty sure he's not going to be independent for quite some time.

Tuition is painful for sure and we sure feel it with a pair of 20 year olds and 22 year old starting grad school.

I'm still calling the tuition worth it, and the land grant or similar schools a bargain. Our kids had more prestigious choices but their engineering and health sciences schools within the public ivy's campus rank among the best. I can't think of another way families like us could have otherwise helped our kids get such a good foundation.

3 weeks ago at Phi Beta Kappa induction I saw a grandfather with his walker in tears for his granddaughter's achievement and praising the state university system for letting a truck driver like him able help make his granddaughter's achievement possible. The family sitting next to us had a similar story. He was a factory worker with first child in family history a college grad, and she's got med school next.

The prices are indeed high but it doesn't seem as messed up as insurance and health care.

[AX17609]

Originally Posted by FLRon

Single family homes in average condition here run north of $350k to start if it’s in a decent neighborhood. Less than desirable neighborhoods can be substantially cheaper. I can confirm that in the 7.5 years I’ve lived in my current home, the value of it has doubled. In fact, I’ve been offered slightly above double what I paid for it.

This is not sustainable, and I am confident that a major economic meltdown is around the bend.

I bought my first house in 1978 for $70K. That's equivalent to $345k today. Nothing unusual is going on.

[edcmat-l1]

There are several things that are ridiculously more expensive than they were just a few years ago.

Real estate
Plywood
Many food items. Have you seen the price of a bag of potato chips recently?

How about BEEF for goodness sakes. We have always eaten a lot of fish. It used to be more expensive than beef (generally speaking). Now, not so much.