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Old 08-26-2021, 10:55 AM
 
Location: az
13,787 posts, read 8,026,883 times
Reputation: 9421

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Quote:
Originally Posted by asufan View Post
$800K in Chandler gets a nice large tract house on a smallish lot, not necessarily updated in the last 15 years. Not anything spectacular. This could change if the market softens. Right now the houses around me that are similar (large single level semi custom on a larger lot) are going from $1.1 to $1.3M. New builds are even worse just for having the option of picking your own finishes and usually those are in inferior locations further away.
I own a 2500 sq. ft 4 bed/2.5 bath home in Chandler. Lot is 4700 sq.ft. The homes were built so close together the downstairs gets almost no natural light and there's this: I've never seen a 2500 sq ft looks so small. The master is fine but the other bedrooms are 10 x 10. This home was built in 2007 and sold for 290k. The original owner defaulted in 2010 and I picked it up early 2011. Today new builds in the area roughly the same size sell for 500k.

In any case 600-800k can still buy a very nice home in many parts of the Phx metro.

 
Old 08-26-2021, 11:40 AM
 
Location: Phoenix
30,404 posts, read 19,200,796 times
Reputation: 26330
Quote:
Originally Posted by asufan View Post
$800K in Chandler gets a nice large tract house on a smallish lot, not necessarily updated in the last 15 years. Not anything spectacular. This could change if the market softens. Right now the houses around me that are similar (large single level semi custom on a larger lot) are going from $1.1 to $1.3M. New builds are even worse just for having the option of picking your own finishes and usually those are in inferior locations further away.
Have you compared that to a place like Bellevue and Redmond, Wa? $800K there gets you a tiny house on a tiny lot that was built in the 80's and hasn't been updated. $1.3m there gets you a house you could buy in Chandler for about $600K.
 
Old 08-26-2021, 12:31 PM
 
9,747 posts, read 11,174,324 times
Reputation: 8498
Quote:
Originally Posted by Sno0909 View Post
[mod cut - deleted post].
[mod cut - off topic]

Back on topic: See https://arizonarealestatenotebook.co...e-price-index/ which shows PHX has gone from a STEAL with a Case-Shiller Index of 68 in the year 1990 (100 is "average home index") to 262 (2.62 times higher than the average) in May of 2021 and climbing. In summary, there has been some crazy home price growth!

Last edited by VTsnowbird; 08-26-2021 at 05:24 PM..
 
Old 08-26-2021, 12:52 PM
 
4,624 posts, read 9,283,149 times
Reputation: 4983
Quote:
Originally Posted by Tall Traveler View Post
Have you compared that to a place like Bellevue and Redmond, Wa? $800K there gets you a tiny house on a tiny lot that was built in the 80's and hasn't been updated. $1.3m there gets you a house you could buy in Chandler for about $600K.
Right, I'm aware of the supply/demand issue in Seattle. I actually know a few people that live up there. I agree $800K can still get a nice house in Chandler (may be a little dated if it's a large home for a family). Just pointing out it will likely be a tract home on a smaller lot, not something extravagant.
 
Old 08-26-2021, 12:57 PM
 
4,624 posts, read 9,283,149 times
Reputation: 4983
Quote:
Originally Posted by MN-Born-n-Raised View Post

You have to be smiling rather wide these days. Congrats on your SFH investments!
Thanks brother. It's not like I timed the market or anything though, 6 of my 7 rentals I've had more than 3 years. The net worth on paper is fun to look at but the increases in rental income have also been nice. Like I always say though, it's not my money till I sell and it could go down before then. Contrary to all of the optimistic pundits I do see a possibility for a small correction and am holding the properties even with that in mind.
 
Old 08-26-2021, 01:15 PM
 
9,747 posts, read 11,174,324 times
Reputation: 8498
Quote:
Originally Posted by asufan View Post
Thanks brother. It's not like I timed the market or anything though, 6 of my 7 rentals I've had more than 3 years. The net worth on paper is fun to look at but the increases in rental income have also been nice. Like I always say though, it's not my money till I sell and it could go down before then. Contrary to all of the optimistic pundits I do see a possibility for a small correction and am holding the properties even with that in mind.
I'll put the probability of at least some correction around 100%. Before then, it's going to go up some more. So if it goes up another 10% and it corrects down to 10-15%, I'm very sure people will be pouncing on the topic calling it a "crash".

I've been watching the 3rd "correction" in my industry. As in, the 3rd, 10% price hike. My point being, I expect inflation to wash out the gains more than a correction. But just as NO ONE predicted the massive hike in prices, we have no idea what the future holds. All I know is for the foreseeable future, a lot of people will be renters. This spike is good for people with multiple homes or willing to move to a lower COL area. But not so good for the average Joe or Jill.
 
Old 08-26-2021, 02:25 PM
 
Location: 415->916->602
3,143 posts, read 2,662,141 times
Reputation: 3872
Not surprised.
 
Old 08-26-2021, 04:44 PM
Status: "Dad01=CHIMERIQUE" (set 5 days ago)
 
Location: Flovis
2,934 posts, read 2,019,228 times
Reputation: 2629
Wth is going on over there. East PHX valley cost almost as much as scottsdale. Phx proper costs 50-70k more than Vegas and Fresno. Phx is catching up to Reno, SLC, and Riverside! I remember when the whole point of moving to Phoenix was for cheap housing because there was endless land. Last time I checked, there's still a ton of land. Your market doesn't make much sense from an outsiders perspective. Prepare for a correction.

Arcadia tract house
https://www.zillow.com/homedetails/4.../7837490_zpid/

Custom Fresno house
https://www.zillow.com/homedetails/7...18718917_zpid/

Edit: seems like the west valley and condos are only things not severely overpriced.
 
Old 08-26-2021, 05:08 PM
 
Location: Chandler, AZ
4,072 posts, read 5,154,276 times
Reputation: 6169
Quote:
Originally Posted by dontbelievehim View Post
Wth is going on over there. East PHX valley cost almost as much as scottsdale. Phx proper costs 50-70k more than Vegas and Fresno. Phx is catching up to Reno, SLC, and Riverside! I remember when the whole point of moving to Phoenix was for cheap housing because there was endless land. Last time I checked, there's still a ton of land. Your market doesn't make much sense from an outsiders perspective. Prepare for a correction.

Arcadia tract house
https://www.zillow.com/homedetails/4.../7837490_zpid/

Custom Fresno house
https://www.zillow.com/homedetails/7...18718917_zpid/

Edit: seems like the west valley and condos are only things not severely overpriced.
Kind of a stretch calling that an "Arcadia" home. That is in Camelback Foothills/Heritage Hills almost PV.

The typical question is going to come up. If you sell your primary home, where do you move? Further out? Different state? Downsize? May as well stay put.
 
Old 08-26-2021, 06:03 PM
 
Location: northwest valley, az
3,424 posts, read 2,923,056 times
Reputation: 4919
Quote:
Originally Posted by dontbelievehim View Post
Wth is going on over there. East PHX valley cost almost as much as scottsdale. Phx proper costs 50-70k more than Vegas and Fresno. Phx is catching up to Reno, SLC, and Riverside! I remember when the whole point of moving to Phoenix was for cheap housing because there was endless land. Last time I checked, there's still a ton of land. Your market doesn't make much sense from an outsiders perspective. Prepare for a correction.

Arcadia tract house
https://www.zillow.com/homedetails/4.../7837490_zpid/

Custom Fresno house
https://www.zillow.com/homedetails/7...18718917_zpid/

Edit: seems like the west valley and condos are only things not severely overpriced.
my house in the west valley has DOUBLED in price in 4 years; overpricing is EVERYWHERE
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