Has anyone else paid attention to Housing prices? Wow

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SLOPAR72

SLOPAR72

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I am in the market to puchase a home with some land and luckily have a nice home but looking at current prices in my area the numbers is nuts. Low inventory, extremely high prices, and they sell quick. And on top of that what I call fixer-uppers are getting stupid money. I don't know if this is really getting juiced by the Stimi deals out there now but wow IMO when the bubble burst it will get ugly and quick....

What say you,
JW
 
I have noticed it has really caught fire recently with the rates being lowered again. It seems a house is pending in 3 days and a fixer up goes pending within a month. I fear another crash but time will tell.
 
I have been following the Financial reporting about the rise in the housing market for several months now. It’s starting to look more and more like it’s not a bubble...and may never pop.

There are no financial mechanisms behind the rise such as sub-prime mortgages. In fact, qualifications for loans and buyer financial health requirements have only gotten tighter since the virus began. This appears to be mainly a supply and demand phenomenon and while demand may cool, supply isn’t likely to suddenly jump. Pricing may stop rising, but is unlikely to suddenly fall.

These prices look like they may be here to stay.
 
Ddaddy said:
I have been following the Financial reporting about the rise in the housing market for several months now. It’s starting to look more and more like it’s not a bubble...and may never pop.

There are no financial mechanisms behind the rise such as sub-prime mortgages. In fact, qualifications for loans and buyer financial health requirements have only gotten tighter since the virus began. This appears to be mainly a supply and demand phenomenon and while demand may cool, supply isn’t likely to suddenly jump. Pricing may stop rising, but is unlikely to suddenly fall.

These prices look like they may be here to stay.
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Where do you think the money is coming from that allows people to put 20% down now on top of paying less than 250k for a dwelling and really that's the lowend now IMO..... But you are right about lenders and the requirements....

JW
 
SLOPAR72 said:
Where do you think the money is coming from that allows people to put 20% down now on top of paying less than 250k for a dwelling and really that's the lowend now IMO..... But you are right about lenders and the requirements....

JW
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Well, the stimulus packages haven't pumped enough money into people’s hands to suddenly have enough to make a down payment on a house. 20% on a $250k house is $50k.

Also, most of the buyers are not first time buyers, but rather people who already own property that is now worth more. Add to that the fact that a lot of the market sat idle since the last housing bubble and those owners who waited it out have built substantial equity in the past decade. It looks like now they are cashing in and spending it.

In previous cycles, owners took their equity out as it came available with home equity credit lines. After the last bubble burst, they couldn’t get at it so easily with the tighter bank restrictions and so sat on the equity rather than spend it. Now they are getting at it by selling and buying something else better at the very low mortgage rates available. They get more at the same monthly payment level because they have more to spend and get the loans for less per $1000 spent.

It’s really a very interesting phenomenon of owners surviving the last bubble and holding out to build equity...and then finding extremely low borrowing costs. Almost a perfect storm.
 
House prices around me have gone crazy.
Had a realtor come knock on the door wanting to know if I was interested in selling.
Said there was no reason I couldn't get $250K to $275K out of my house that I paid $130K for just 6 years ago. Said if I was willing to invest $40K in some renovations and landscaping, it was possible to see north of $325K.
Homes around me are selling in the $300K to $400K range the past two years.

It's not just homes that are getting stupid prices, has anyone tried to buy a used truck lately?
 
$250k for a house????...not here....You guys have it good. Up here, standard house is $1M... down payment is $250k.....Want a nice place,acreage, garage... go up from there.
 
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I’ll raise you, 1000 sqft fixer on a 5000 sqft lot for 1 million. Median home prices are @ $920,000.
 
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gunbunny said:
House prices around me have gone crazy.
Had a realtor come knock on the door wanting to know if I was interested in selling.
Said there was no reason I couldn't get $250K to $275K out of my house that I paid $130K for just 6 years ago. Said if I was willing to invest $40K in some renovations and landscaping, it was possible to see north of $325K.
Homes around me are selling in the $300K to $400K range the past two years.

It's not just homes that are getting stupid prices, has anyone tried to buy a used truck lately?
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I see a tremendous windfall in your future!



https://images.app.goo.gl/uMN9SMPmMzRwGp4EA
 
Yes we're experiencing the same thing around here. It will pop it always does.
 
In 1945 the government financed my grandfather’s farm/ranch after the war. 300 acres, he was paying $75 a month up into the 1970’s.

Damn it if they didn’t move the decimal place on us a few times!!
 
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
 
65Val said:
Thats what everyone around here would like.... been going up since 1987.....
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I know nothing about the Canadian market, but the US economy is very fragile now it's been surviving the covid crisis with stimulus bumps I feel the real test will be in a couple 3 months when adjusted unemployment begins to run out and no more free money.it doesn't seem anyone has a crystal ball on this subject right now.there's a lot more money to be made in a fluctuating market than a steadily climbing one. Not for most but for the ones with the most money.
 
Our place is gone up 70 percent in the last 7 years but we also have no sales tax and very high property taxes so if you're not in the market to sell your place inflated prices do nothing but drive your taxes up:mad:we're talking about cutting and running but it's a big gamble.
 
Listen I live in a suburb of Boston and I live in the house I grew up in a 3 bedroom colonial by the water, my parents purchased the home in 1958 for the grand total of $18,000 my home assessment now is $525,000, in my opinion the amount of debt we now have in the United States is going to be a huge problem for people that are not prepared, it now takes 2 incomes to pay for home expenses and now with the Biden administration adding even more debt along with this fake virus shutdowns of businesses you are going to see a real estate bubble burst that you could not have even imagined, down town Boston has more commercial real estate vacancies than there are occupied tenants. This is going to be very bad so much so that I am preparing to sell my business and move to Taiwan where my wife has a 5000 square foot home that is paid for along with free health care I really believe that the United States is in decline and everybody better start to prepare for that
 
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Ron816 said:
Listen I live in a suburb of Boston and I live in the house I grew up in a 3 bedroom colonial by the water, my parents purchased the home in 1958 for the grand total of $18,000 my home assessment now is $525,000, in my opinion the amount of debt we need have in the United States is going to be a huge problem for people that are not prepared, it now takes 2 incomes to pay for home expenses and now with the Biden administration adding even more alone with this fake virus shutdowns of businesses you are going to see a real estate bubble burst that you could not have even imagined, down town Boston has more commercial real estate vacancies than there are occupied tenants. This is going to be very bad so much so that I am preparing to sell my business and move to Taiwan where my wife has a 5000 square foot home that is paid for along with free health care I really believe that the United States is in decline and everybody better start to prepare for that
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To me that is one of the most likely scenarios. I just don't see how we escape without a scrape.
 
Monkey see monkey do. Everyone does what the media tells them thinking there getting a deal, but once that **** blows out the real deals will roll in.
 
for us Old Farts it's a great time to lock in a reverse mortgage based on those sky high prices, but I can't imagine being a young guy trying to buy a first house...
 
SLOPAR72 said:
I am in the market to puchase a home with some land and luckily have a nice home but looking at current prices in my area the numbers is nuts. Low inventory, extremely high prices, and they sell quick. And on top of that what I call fixer-uppers are getting stupid money. I don't know if this is really getting juiced by the Stimi deals out there now but wow IMO when the bubble burst it will get ugly and quick....

What say you,
JW
Click to expand...

We're in a similar boat - albeit on the opposite side of the country. We're looking to get out of the suburbs and buy a place with room to build a shop and get away from neighbors. The good thing is our current house would sell in a week and bring good money. The bad news is any place we would want to buy would cost even more (we're looking at a 50% increase). At least rates are still low, I guess. At some point, we stopped worrying about a 'bubble' knowing that we'll be at whatever house we buy for a loooong time.

How old are you, anyway? The fiance and I are both 38.
 
mopowers said:
We're in a similar boat - albeit on the opposite side of the country. We're looking to get out of the suburbs and buy a place with room to build a shop and get away from neighbors. The good thing is our current house would sell in a week and bring good money. The bad news is any place we would want to buy would cost even more (we're looking at a 50% increase). At least rates are still low, I guess. At some point, we stopped worrying about a 'bubble' knowing that we'll be at whatever house we buy for a loooong time.

How old are you, anyway? The fiance and I are both 38.
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I’m 58
 
SLOPAR72 said:
I am in the market to puchase a home with some land and luckily have a nice home but looking at current prices in my area the numbers is nuts. Low inventory, extremely high prices, and they sell quick. And on top of that what I call fixer-uppers are getting stupid money. I don't know if this is really getting juiced by the Stimi deals out there now but wow IMO when the bubble burst it will get ugly and quick....

What say you,
JW
Click to expand...
I’m in Nova and a barely “freshened up” 34 year old townhouse next door just had a bidding war up to $475k. Market is nuts right now.
 
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