Does anyone here dabble with real estate?

-
tom999w

tom999w

Well-Known Member
Joined
Mar 30, 2024
Messages
781
Reaction score
871
Location
New York
If anyone here is good with real estate, then I have a question. How is the median home in this (or any) town $860,000, when 80% of the residents make less than $200,000 a year (which is the minimum amount to be able to afford an $860k house)? The numbers are just not adding up...

I don't think it's one or two bazillion dollar homes skewing the figures, because if you look at the map below, 90% of the homes for sale are near or above $860k....

housing cost1.jpg


housing cost2.jpg
 
In 2011 bought house in Douglas county CO for 375k. Sold it in 2017 for just under 500k, now it lists for over 800k. That's how it happens.
 

tom999w said:
If anyone here is good with real estate, then I have a question. How is the median home in this (or any) town $860,000, when 80% of the residents make less than $200,000 a year (which is the minimum amount to be able to afford an $860k house)? The numbers are just not adding up...

I don't think it's one or two bazillion dollar homes skewing the figures, because if you look at the map below, 90% of the homes for sale are near or above $860k....

View attachment 1716480835

View attachment 1716480836
Click to expand...
Depends. It could be median sales price for a given month. One house sold for $ 800,000 and one other at $ 920,000. Voila !

Sales prices often are reflected as median price as that's up to date information on the current market.
 
Median is the true middle of a set of numbers and not a mathematical middle. I don't know if your map is new listings with asking price or sold houses. In either case, there are nearly twelve over $1m and sixteen under $1m. That's a pretty fair split.

How that compares with earning potential, its like others have said, owners that have been there long enough to have bought in when things were half the current asking price.
 
Yes like said, INFLATED VALUE is the answer.
People that own R/E (hard assets) since the crazy inflation since Covid, they are sitting pretty, unless it all collapses.
Those that own no-hard assets, with the inflation, they get a small raise and the cost of living is more than that.
Is there any wonder so many young (ish) people feel they will never afford to own a home? One answer is, start at the bottom and work up with home ownership!
 
The real answer is your dollars are worth less and less as they print more and more money, the true value of the home is stable but the amount of dollars to purchase it keeps going up. What you should compare is how many ounces of gold would purchase the same house over time.
 
bcschief said:
The real answer is your dollars are worth less and less as they print more and more money, the true value of the home is stable but the amount of dollars to purchase it keeps going up. What you should compare is how many ounces of gold would purchase the same house over time.
Click to expand...
Gold, at right at $4000/oz. today, maybe just pay for the house in fiat $ and keep the gold. It is heavy anyway!! :thumbsup:
 
bcschief said:
But you get my point on why houses seem so expensive, it's because the dollar is worth less and less, so it takes more dollars to buy that house or an ounce of gold.
Click to expand...
There a lot of reasons why homes are so high today, and it is not just the shrinking $. The list is long. Sad part is that there is no easy cure.
 
Yes vales have tripled in the last 10 years.

Most people have probably lived there way longer than that.
 
The second rental house we bought in 2015, for 77,000 is now valued at over 245,000.
 
Also, if you notice, the pricing trend is down.

That's only been that way for about 6 months.

It's welcome, though.
 
I don't see a bubble nor a reset. When the economy finally takes off sales will pick up. I get calls every month inquiring if I have property to sell. There's interest/ money sitting looking for sound investments other than Cryto, precious metals or the stock market.

History shows steady growth, despite some people leaving California.

The bubble burst in '08 when anyone with a pulse could get a loan with Wall Street shenanigans.
 
Around here Home prices are going down...

A sell for a house just a few doors away just lowered the price of his house by $70K (!!!) It's been on the market for less than a month. He's either VERY motivated, or tried greed and decided against it.

But, the point is, property values are beginning to relax.
 
Frankie said:
Around here Home prices are going down...

A sell for a house just a few doors away just lowered the price of his house by $70K (!!!) It's been on the market for less than a month. He's either VERY motivated, or tried greed and decided against it.

But, the point is, property values are beginning to relax.
Click to expand...

That's just it though. My deceased Stepfather was a self employed Appraiser for over 40 years commercial and residential. Long term prices only go up. Period.

One of his takes on the market was you had to know the circumstances of each deal-transaction to justify values. I took that as sage advice.

We all know that how California goes so goes the Nation. I believe after the New Year folks will have a better take on navigating the waters as changes are coming for better or worse in the short term.
 
Workingdog1 said:
That's just it though. My deceased Stepfather was a self employed Appraiser for over 40 years commercial and residential. Long term prices only go up. Period.
Click to expand...
That absolutely true. and it's usually disproportionate to everything else, too.
Workingdog1 said:
One of his takes on the market was you had to know the circumstances of each deal-transaction to justify values. I took that as sage advice.
Click to expand...
Yep. Excellent.
Workingdog1 said:
We all know that how California goes so goes the Nation. I believe after the New Year folks will have a better take on navigating the waters as changes are coming for better or worse in the short term.
Click to expand...
The market around here follows the national market to a certain extent. When I first moved here in the 80's, housing was the best deal around. You could buy a standard 3 BR/2Ba on a 2/3-3/4 acre lot in a good school district in the $40-60K range. at the same time in NJ a comparable home with the same size lot was selling in the $100K+ range.

We purchased our Georgia House in the 80's. in a gated neighborhood, on a golf course, 3000sf, 4BR/2.75 Ba. on 2 acres for $97K ( there's a story there lol) My home in NJ at the same time, very similar in similar and size was list for $225K. Two very different areas of the country, two VERY different markets, price wise, and two very similar homes and properties.
 
Well a no brainer long term prices go up...on most everything.
Real estate is the falsely driven inflated prices due to the greed/corruption of SOME/MOST real estate agents. Why are "they" needed? Most just take pics....ooohhh
Take a bldg inspector (unlicensed, so grain of salt) or an experienced contractor.
Yeah I bought in 02 for $120, now "worth" $600...lol. They DONT make land.
Remember 08/09?
 
Oh and the "trick" is to fetch as many listings as possible, then if another agent sells, you still get commission, all the while doing nothing. However if you as the listing agent also "get the sale" well you get double commission while doing "next to nothing" lol
 
It's NONE of what's posted above.

It's the location.

The pricks that live in 99% of those houses are not native Colorado pricks. They're pricks from California that were poor, Looney Toons pricks living in some 600 sq. Ft. California shitpile that they bought in the '80's for $100k that the pricks sold ten or fifteen years ago for $1.5M, and moved to Colorado to become instant rich pricks and basically rinse, lather, and repeat.
 
You must log in or register to reply here.
-
Back
Top Bottom