Has anyone else paid attention to Housing prices? Wow

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I make 150k where are these young people getting the money to afford these 500-600k homes ?
 
My wife and I swapped rent for a mortgage as fast as we could after we got married. VA loan is what got me through the door. We bought the most rundown townhouse in our neighborhood at $390k back in 2014 when I was 27. I’ve renovated the whole thing by myself for cost of materials. Between equity, the market, and what I put into it, I’m sitting on a gold mine (for now......). Only problem is, I can’t sell, because I’d just have to turn around and buy high too! My dream house in the “country” around here starts at about $1.2m so I guess I’m fucked either way. I hate northern Virginia.
 
Don’t apply extraneous factors on it. It is simpler and easier to understand than it may seem.

Clarity of understanding yields clarity of thought.

This isn’t a bubble falsely created by external factors. It is a natural market phenomenon.

Supply is down, demand is up...and qualified buyers have more resources to apply than they have had in nearly 20 years. Add in exceptionally low interest rates for borrowing money and the explanation becomes clear.

Occam’s Razor...the simplest explanation is usually the correct one.
 
Ddaddy said:
Don’t apply extraneous factors on it. It is simpler and easier to understand than it may seem.
I disagree, where I live there are many new units being built problem is they are extremely expensive and some building
Clarity of understanding yields clarity of thought.

This isn’t a bubble falsely created by external factors. It is a natural market phenomenon.

Supply is down, demand is up...and qualified buyers have more resources to apply than they have had in nearly 20 years. Add in exceptionally low interest rates for borrowing money and the explanation becomes clear.

Occam’s Razor...the simplest explanation is usually the correct one.
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The problem I see is interest rates are low and banks are not requiring 20% down they allowing as little as 3-5% down so the monthly Mortgage payment is so high it requires 2 person income to afford the home so when 1 person loses there job which is going to happen you will have a lot of foreclosures just like what happened under the Obama administration and home prices will plummet.
 
Ya'll may think prices are crazy now or think it's got to crash eventually, but where I'm at, our prices have just been starting to pull away from what they were in the housing bubble of 2006! That was 15 years ago, so.....barring some new financial meltdown/depression.....I think we may be witnessing just the beginning of a new upward slope.

I doubt that building materials, labor or transportation costs will be getting cheaper either.
 
The only way prices continue to clime is if people’s pay increases across the board, do you really see that happening? Especially under this new administration? I highly doubt it
 
I own 11 properties outside of Boston and I have every one of them on the market right now, I am confident enough to capitalize on the idiots that are going to be buying at inflated prices I listed all a week ago and have offers on 8 out of the 11 I’ll be laughing all the way to the bank because these 30 something year olds haven’t a clue on what they are doing and have no idea that within. A few years they are not going to be able to afford a $3000-$4000 a month mortgage but hey that’s not my problem
 
Lori and I have been watching and looking for about 3-4 years ago. We live in a town of 2500 population. All services(ng, munic water/sewer, water is flat rate not metered, garbage/recycling, street lights, roads plowed.) Cant really ask for much more. Taxes low, approx $2500/year. We have a decent amount of equity but by no means mortgage free. I've been here 20 years and want something different with more property and a bigger shop. In order to do that we would have to double our mortgage amount due to the jump in pricing. Lori and I both aren't comfortable doing that. Not at "50-ish" lol. Where we are looking prices have doubled in price. "New Canadians" and others have moved from the larger populated areas (Toronto is 90 minutes west of us) closer to us and the smaller populated areas. They sell their $1Mill house in T.O. take the $500k profit and move here mortgage free. New toll road extension (Hwy 407) came within a 1/2 hr of where we are. Another reason for the price climb. Millbrook is where we wanted to move, or somewhere close. New subdivision houses there are $650k, F that! You can hear the neighbour fart for f sakes.
We will probably stay put and sink$$ into an addition on the house and one for the shop too. We got good neighbors that dont cause issues and occasionally catch her coming outta the hot tub!:thankyou:
Over 8000 sq ft lot so not a postage stamp, but a 1/2 acre would be nice.
We have 3 kids and worry they will never own a house.
 
Ddaddy said:
Don’t apply extraneous factors on it. It is simpler and easier to understand than it may seem.

Clarity of understanding yields clarity of thought.

This isn’t a bubble falsely created by external factors. It is a natural market phenomenon.

Supply is down, demand is up...and qualified buyers have more resources to apply than they have had in nearly 20 years. Add in exceptionally low interest rates for borrowing money and the explanation becomes clear.

Occam’s Razor...the simplest explanation is usually the correct one.
Click to expand...
I tend to agree with you.
I think this is going to be the way it is for the next few years.
However, I do see a possible wrinkle, that being the eventual dying of the baby boom generation.
I think that process has already begun. Vietnam vets aren't spring chickens, hell Desert Storm was 30 years ago.
There has been 3 new nursing homes built on Clough Pike near Amelia and a huge Senior housing project going up now in Amelia.
Senior housing is taking off around here and that will ultimately create a void.
 
We've been in our house for nearly 27 years. We've pulled money out a couple of times, but never maxed out the value. We had a dip when the '07 bubble burst, but not below what we owed. We just refinanced again (we'll never get it paid off, but that's fine). We currently owe a little more than twice what we paid for it, but our payment is lower. Also, my retirement income is pretty close to what I was making working at the time, but we have a few more expenses. The money we just pulled out will go toward building a second two-car garage, RV parking, dual pane windows, and kitchen remodel if there's money left over. Oh, and our payment went up $28/month.

As for what young people are doing. I can only answer for my sons. They both own houses worth more than our place. Our older son on a truck driver salary and our younger son as an application engineer (sort of) and his wife's salary in IT at a private university (pay too low). They are in their mid-30s.
 
gunbunny said:
Not likely!
I can't afford to go anywhere.
I'm just hoping the county doesn't raise my taxes along with the values around me.
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There IS greener grass on the other side of the fence.

there is plenty of cheaper real estate in rural America. Rural America. There still is much less expensive land!!!!

move to those places and your dollar goes further.

I keep trying to tell everyone that there are (kinda, basically) 2 economies in America-big city/north east/California and then rural America. The poor barely skilled labored people where I live all have land and homes, maybe double and single wides, with grandma CLOSE next door in a short single wide-but land and homes,

the poorest (pay attention people with money) are renting lots and living in CHEAP trailers, sometimes without sanitation facilities-no sewage, maybe a burning barrel, not always running water-but paying for the lot and electricity all the same.

I understand that many ‘need’ to live near cities and jobs, but cheap land IS available to buy elsewhere.
 
I just sold my house I had for three years, made 50 k on it, am building a Barnamimium here in Hot Springs ar on 6 acres we just bought, should have little to no mortgage, took us a while and a couple of house flips but it is all coming together. Prices here going up, a house doesn't stay on the market long. California, Texas and Colorado license plate are everywhere now.
 
greymouser7 said:
I keep trying to tell everyone that there are (kinda, basically) 2 economies in America-big city/north east/California and then rural America.
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There are, at least, three economies in California alone. My house (worth around $300k) would be over $1mil less than 150 miles away and likely on a smaller lot. AND, I live in a "good" part of Fresno...
 
Inventory is one reason. Inflation is the other systemic issue. The cost of building materials is for the Move-up or replacement home is way up along with the cost of labor. You have the deflation of your money taking place while the government prints paper at unprecedented rates. Your dollars buy less so it takes more of them. It's here to stay too. This is no bubble.
 
44070dart said:
Used to be about 2% a year was average. We have had ours for 15 years and it as gone up 70% in a part of NY that hasn't seen anything like that. Be nice to cash in BUT where do we go. Probably down south to shake off the property tax here I guess
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That's our plan.
 
Or, liquidate your real estate assets and live on a sailboat in the Caribbean sailing from island to island.
Just a thought.
 
I remortgaged in December and mine appraised higher than I thought it would which is a good thing I suppose...:)
 
Dartswinger70 said:
I remortgaged in December and mine appraised higher than I thought it would which is a good thing I suppose...:)
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Our part of the country is expensive compared to what you get for your money. our son and fiancee are looking near Lansdale and North Wales. Half a mil doesnt get you what you think it would. What part of Pa. are you from? My wife is from Sanatoga.
 
fratzog lover said:
Our part of the country is expensive compared to what you get for your money. our son and fiancee are looking near Lansdale and North Wales. Half a mil doesnt get you what you think it would. What part of Pa. are you from? My wife is from Sanatoga.
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Live up in Oley but grew up in Pottstown. Know Sanatoga real well or at least I did, don't get down that way much any more . I know what you mean I know folks in NY who sold and relocated to North Carolina. They bought a mansion for what an 1100 sq foot house costs here. well lets say twice as much house anyway :)
 
I am a custom home builder. Before the plandemic I could build you a "custom" home for around 200.00 a sq.ft and have a very nice home on a great lot with lots of mountain views.
Now, since about December of 2020, new home prices here are about 265.00 a sq.ft. That's at the lowest rate I'm going to touch a home for you. The plandemic shut down the warehouses where people make the materials we use to build houses. Material costs have risen from between 40% and 100% and labor has all but disappeared, especially up here in the mountains. Now I have to pay about 30% more for my laborer's who aren't as skilled as the last laborers for less money.
Some how, with a few thousand dollars from our wonderful government, people are able to sit around and not have proper jobs any longer.
The people that I am building homes for as of late and the next few are all from California. They want out of that crap hole. Every one of them has stated to me that they will be moving here as they are tired of the ridiculous laws that california has in place. I vet my clients pretty well and try not to help people who want to come here to my mountains and change the laws here.
Anyway, I live in a unique little bubble area where demand is high as this is the prettiest most breathtaking location in America. We have 5 different mountain ranges that all terminate, or start, here in the central valley so we have about 5 sunrises a day and about 5 sunsets a day.
This bubble will break to some sense.
During Obama, I purchased a bunch of homes down in Florida due to foreclosures. The next bubble burst is going to bring foreclosures to the far more populated areas and not Florida. Florida is booming right now and will probably ride out this democrat problem.

I've been building for 30 years. I've seen that every time a democrat gets in the prices go up, labor goes down and I make way less money. This isn't going to be any different than every 4 to 8 year turn around I've seen in the last 35 years of my life.

Is anyone here old enough to remember a democrat who actually got the building market to boom? JFK? has it ever happened?
 
We have a neighbor beside us who works for a quality custom home builder. She is in the admin end of things. When prices started to rise we met with the company to discuss renovating ours vs buying land and building new. This is approx 2 years ago when we met. They could build us one for approx $350/sq ft that includes everything( permits/applications etc). The land purchase isnt included in that price. Now vacant land is near extinct and apparently the house builder isnt touching anything for under $500k.
 
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