Those pricks!
Does anyone here dabble with real estate?
- Thread starter tom999w
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jos51700
Green Bearing thread connoisseur
Those pricks are moving to Georgia next. If I was you, I'd tell everyone your state is full, the weather sucks, there's meth in the water, and everyone has herpes on their fingertips.
In some places, that's about right.
Also, @ everyone leaving, please note, as big as Texas is, it is FULL!!
OK Austin still has some room!
OK Austin still has some room!
bcschief
Well-Known Member
We have area's like that in Florida too.
How real estate "recovers" from hyperinflation is
by prices stagnating until the rest of the economy catches up vis a vie "normal" inflation.
Actual sales prices for specific houses may go down a little, but unless it's a full on "bust" like 2008, they just hover.
Recent anecdote- one of the last vacant 1/2 acre lots down the street had a new house built on it over the lazy course of 2 years. It listed last month and sold in less than 3 weeks.
Median price in the 2.5 street neighborhood that has 1500-2500 sf houses as old as 1971 and as new as last moth is 345,000 (up from 125,000 in 2002, when I bought mine).
That new house was listed for 425,000. I have no idea what the actual selling price as (until the property appraiser's site is updated in about 3 months) but it sold fast.
by prices stagnating until the rest of the economy catches up vis a vie "normal" inflation.
Actual sales prices for specific houses may go down a little, but unless it's a full on "bust" like 2008, they just hover.
Recent anecdote- one of the last vacant 1/2 acre lots down the street had a new house built on it over the lazy course of 2 years. It listed last month and sold in less than 3 weeks.
Median price in the 2.5 street neighborhood that has 1500-2500 sf houses as old as 1971 and as new as last moth is 345,000 (up from 125,000 in 2002, when I bought mine).
That new house was listed for 425,000. I have no idea what the actual selling price as (until the property appraiser's site is updated in about 3 months) but it sold fast.
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I said way back when Covid was first starting to affect everything, it would take years for it to straighten out, and it has and is. Sad part is how Biden (and handlers) handled it all plus having one of the worst (inapt) guys running the Fed in a while.
Bubble is a ready word for Wall St. and pother things. I think Wall St . can be a bubble boy for sure, and a lot due to the amateur investor working alone. But the market will correct itself one way or another. I am too old put risk any money I can't afford to lose, but I did study Ag Econ many decades ago, worked in Ag all my life one way or another, so I enjoy watching and listening to the knowledge talking heads some days. Mostly concerning Ag but everything in our economy touches on all of it.
The country's money supply. Yes, the amount of $ not invested at any one time, sitting on the sidelines, is sure a factor, not for the typical home buyer but the investor /speculator. But everything affects everything else, one way or another. When Trumps Bill takes affect in 25 (and into 26) look for the economy in general to get busy. A new Chair will take over the Fed. in what? May, and they say it will be friendly. They will try to lower rates, but inflation is always a concern, as is unemployment, and the effects of AI on unemployment?? What will be the effect of AI will only be determined as time marches on for sure. 2025/6 will probably be interesting from my peanut gallery.
I agree with Frankie, prices around here are starting to some what relax (homes). If a buyers or sellers market, can vary from one time to another and sure does ! But the real factor is the market in a said location! We live way out of the city, my wife has a "country" r/e business she has been involved for 20 odd years. Agent not a broker. We work with several brokers also as agents. 98% timber tracts, 5 % rural homes, 1 % commercial, and an occasional farm or ranch" This is Piney Woods country. Interesting part is the amount of $$$ out there looking for an investment home. Here it is timber tracts.
In Frankie's example, lets look at fair market value and just say, one sale does not make the market. Maybe that guys home was way overpriced and reality set in (like in our hobby!), or maybe illness,, whatever. But take note of 5-6 sales of like homes in a certain area, a knowledge buyer, r/e agent takes note. Same here in timber tracts. If a hedge fund mgr. is buying up adjoining tracts (of his 12,000 ac) and paying obvious $ over FMV, the little guys around start to take note and in their minds, adjust the "value" of their ground even if no thought of selling. (Like the idiots that watch BJ and Mecum and say 'we know what we got and ain't takin no less!). All of a sudden, the price of timber tracts that do come on the market in general esculated a lot in price, just like that.
I saw such happen back in S.W. Mo. before I moved to Tx. 2016. Price of pasture was about $1500-2000 /ac. Then a family that owned a 1000ac tract (retired from owning a large interest in TA Truck Stops) bought an adjoining 1000 ac tract for $3500/ac. Next year everyone thought theirs was worth $3500/ac!
I see that happening here in upstate New York too, but it's the cold season now, and no one wants to go house shopping in the snow. In the spring prices typically go up, when people start shopping... Also a factor here is failed Air BNB's. The general geographic area where I live was an Air BNB cash cow during and right after Covid ended. Now "get rich quick" people who jumped on the BNB bandwagon and bought BNB's for $50k or more above the listing price, are stuck with second or third homes that are not renting out.... So up goes the "for sale" sign, along with paying two mortgages and a big $$ loss until the house sells...
One a side note, I wonder when the sellers on FB Marketplace begin to realize their listing at 2-3 times present market value will never sell, unless their ask price gets closer to reality?
In R/E, when a seller over prices the home/ acreage/farm and it does not sell for a length of time, the phycological effect is that is scares off potential buyers. If overpriced, the seller needs to drop the price in a shirt- ish length of time. Same in our hobby. Who wants to call or should I say text on a project or even done car obviously way overpriced?
Well my mom was an agent/broker for alot of years, and she said that if a house doesn't appraise for the high price then banks are not going to lend on it. The banks only lend on what a house is worth, not on a rediculous price that the seller thinks it's worth. Then the only way to sell a 2-3X priced house is if someone buys it with cash.
Interjecting a sobering note. As AI washes out a bunch of high paying jobs, high income earners will be downsizing. Watch how many big companies are laying off or firing thousands.
On a separate but related note my step son saw how much his house increased in value and thought he would make a killing. Listed and sold his house almost immediately and then started looking for a place to move to. Disaster.
On a separate but related note my step son saw how much his house increased in value and thought he would make a killing. Listed and sold his house almost immediately and then started looking for a place to move to. Disaster.
Musk says that AI is going to wash out most jobs. The only people that will be in business will be laborers and people that do physical work, until they get replaced by robots in the next few years... It's interesting that the major supporters of AI don't have a plan of what to do with all the people now that they won't have jobs... I guess that's where extermination of humanity comes in..
Like watching a train wreck. You can't look away and you can't stop it.
That's "the rub" of high prices.
They're still high when you want to buy something.
Gotta think things through.
It was a very expensive lesson. Guess who footed the bill?
I get it. He moved out of a nice house in the suburbs with a 3 car garage and the houses he could buy for the same money had cracked foundations or crooked floors or a driveway that drained into the living room or a train track in the back yard. I couldn't let that happen to my grandkids, I'm a softy. BTW he's pissed at me now and not talking to me. No good deed goes unpunished! lol
All so very true. And another thing, you will hardly ever see a wealthy man pay more for a home than it is actually worth, usually the other way around, plus he will use a banks money before he uses his.
Perfect example of bottom dwelling RE Agents...
And the buyer seems "happy" 
And the buyer seems "happy"
A good r/e agent is worth their weight in gold. A bad one is not worth the bullet to ......... A good buyer understands the market.
The funniest thing is the guy that puts up the sign "for sale by owner", in general around here. IMHO
The funniest thing is the guy that puts up the sign "for sale by owner", in general around here. IMHO
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