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#16
05-08-2021, 04:45 AM
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#17
05-08-2021, 04:47 AM
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We have seen this before. We will probably see this again. An imbalance in demand (related to low interest rates, pandemic-related changes in values and needs, changes in demographics and population distribution, etc.) and supply (many folks are reluctant to move in his environment if they feel safe, and I’d bet there aren’t as many relocations related to new hiring as there were two years ago) in some (but not all) locations leads to dramatic price changes in relatively short time periods.
The travel industry is still depressed: 30% or more below “normal”...which has resulted in increased spending in other areas (alcohol sales are up 10+%; home improvements and remodeling is up); some of this money may be displaced into securing different housing, or purchase of vacation properties. At some point, supply and demand will come back into balance. The rebalancing process might be gradual or it might be sudden. We live in interesting times....
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#18
05-08-2021, 08:37 AM
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Yes, it is crazy around me in eastern mass.
Houses are always selling above asking price, and there are often bidding wars which drive the price even higher. The price for a simple older starter home around here is half a million dollars. It’s insane!
__________________
Be nice.
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#20
05-08-2021, 09:10 AM
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Originally Posted by woodbox:
Do you hear that sound? Yes, that cracking noise? Is that the thin ice beneath our feet? Quote:
What will trigger it? I read recently that 40% of the money currently in circulation was recently added by stimulus, not production, not earnings. FORTY PERCENT !! ... is fluff. The higher the top, the longer the drop. Sooner or later the rent comes due.
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#21
05-08-2021, 09:10 AM
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We’re happy that both our sons/d-i-ls (and most extended family) are well-entrenched in homes. I feel sorry for those young couples wanting to start a family who “were close to being ready” to buy, only to now find themselves priced out of the market. It must be so disheartening.
__________________
Tom '21 Martin D-18 Standard | '02 Taylor 814c | '18 Taylor 214ceDLX | '18 Taylor 150e-12 | '78 Ibanez Dread (First acoustic) | '08 CA Cargo | '02 Fender Strat American '57 RI My original songs
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#22
05-08-2021, 09:20 AM
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It is certainly nuts currently across Texas, and has been getting expotentially crazier for several years. The housing market is at a whole new level of nuts now!
20yrs ago I briefly lived in N. California, and the market was like our current national market. VERY modest homes listing for $300k and selling for $500k cash. I moved back to TX partially due to the fact that I could not afford even a dump or mobile home on my teacher salary. Bought a similar modest water view home in TX (near Galveston) for $75k that was akin those in selling in CA for half a million in the early 2000's. Sold the home 3yrs ago for a "make me move" asking price to the first person that looked, and almost tripled our money---a first in my lifetime. I think we sold near the top of the curve and our new house purchase was still at the bottom of the curve. Currently, the county we live in (Austin/San Antonio area) is the fastest growing county in the US. House prices are doing what I witnessed in CA 20 yrs. ago...selling immediately for way above asking price to out of state cash buyers and people moving from CA. type real estate environments. Bidding wars, prices are skyrocketing are forcing local first time buyers out of the market. Our grown kids had a hard time finding an affordable first home in the area and finally settled 20+ miles away from their desired area. The "why" part is somewhat unclear to me. Interest rates have been very low leading people to buy, but past observations are that low interest rates lead to higher prices....so, it could be part of the issue. The other "why" in our area may be the influx of new state residents and out of state investors that have sold out/cashed out of historically very high real estate areas and are moving to areas with historically low real estate prices and are willing to pay above market prices. I hope the market settles since one of the effects is rapidly rising property taxes, and that is not good for us in our retirement years. I do not see any good long term effects from the current environment. Quote:
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#23
05-08-2021, 09:46 AM
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__________________
2018 Guild F-512 Sunburst -- 2007 Guild F412 Ice Tea burst 2002 Guild JF30-12 Whiskeyburst -- 2011 Guild F-50R Sunburst 2011 Guild GAD D125-12 NT -- 1972 Epiphone FT-160 12-string 2012 Epiphone Dot CH -- 2010 Epiphone Les Paul Standard trans amber 2013 Yamaha Motif XS7 Cougar's Soundcloud page
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#24
05-08-2021, 10:49 AM
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Is it crazy around you?
Rob....It's NUTS! One year ago my daughter snatched up the 30 year old house next door -did not bid, argue, quibble, make demands-just paid asking price and moved in. Turned out to be a great buy....housing has exploded just in my subdivision. The California market has always been way over valued-but it keeps on ticking up! Hoping you find a place soon. JD
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#25
05-08-2021, 10:52 AM
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Yup
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#26
05-08-2021, 10:55 AM
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Yup
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#27
05-08-2021, 11:41 AM
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I live in a fairly modest three bedroom two bathroom home that we have been in since 1994. Three car unattached garage. It is a nice place, a little small by today's standards but well maintained. We've talked about moving to a larger city forty minutes south, closer to the bigger airport. But we just never get beyond talking. A realtor friend is after us to sell it. She says now is the time, that it would sell before it got the market. But the next step up is a hundred thousand more than we could get for our house. I'm surprised that there is nothing between. The other option is a two bedroom town house and that would be pretty much an even trade. I don't really want to live in a town house. We had a condo in San Juan, PR that we sold two years ago. I did not like that living arrangement and the town homes that we've looked at seem to be the same thing. I guess what I'm saying is that there doesn't seem to be much out there to buy.
__________________
Please don't take me too seriously, I don't. Taylor GS Mini Mahogany. Guild D-20 Gretsch Streamliner Morgan Monroe MNB-1w https://www.minnesotabluegrass.org/
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#28
05-08-2021, 12:32 PM
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Quote:
__________________
"One small heart, and a great big soul that's driving"
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#29
05-08-2021, 06:55 PM
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We bought a Vacation / future retirement home in North Carolina... its beautiful but I want to sell our NY home while the market is hot.... The wife wants to wait a few years... That is a concern to me...
I do see a rise in apartment buildings going up all over Long Island... my guess is it won't be long before owning a home is a thing of the past for the younger generations....
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#30
05-08-2021, 08:19 PM
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I sold Real Estate back in 1987. Things were flying high in my neck of the woods. Then the stock market tanked a bit and property values followed suit. The market was over-valued and with the 'correction' most recent home buyers were stuck behind the eight ball. It was so disheartening to do a listing interview with folks that for whatever reason needed to move their property in that situation. They were losing money. I thought we would learn a lesson from 1987 and not go hog wild again. I was wrong. Todays Real Estate market will break in my opinion as it cannot sustain itself. Pay attention to the economy in general and rising interest rates. Inflation may show it's ugly head and a big 'correction' will follow. I don't know when but I sense sooner rather than later. My sister has a chance to 'cash' in on her current property which is great. But there is nowhere to go from there as listings locally are limited and priced to the max. A two edged sword. Works both ways I'm afraid.
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