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I was telling my coworkers what a great time it was to buy 4 years ago and the most enthusiastic response was a yawn... they are are the same ones that said they were priced out in 2007.
I guess when the item you want is on sale it is no longer as desirable?
I'm in a Seattle suburb and prices here are INSANE. We rented a home in Woodinville from 2012-2014 that was appraised at $420K. That same home is worth $780k now.
I was looking recently, and there is hardly anything out there for less than $800K.
Folks are correct in that even in places like California there is a great range, divide really, in terms of real estate appreciation and bubble/economic recovery or lack there of. Coastal areas in/near cities and the Bay Area in general are a whole other animal compared to inland suburbia and rural areas. Places like Merced are still amongst the worst areas in the country struggling to claw its way back anywhere close to bubble prices. But around these parts it is polar opposite to places like Ohio with "throw away" house prices.
Close in neighborhoods close to downtown and the coast are definitely above bubble pricing around here, all the nice, but modest sized houses on city lots in this neighborhood are selling for $800k-$1.1M. We bought our place for $178k in late 1996, and that was actually less than it was valued 10 years earlier (the past bubble), and now it is valued over $1M, so I won't be giving my place away anytime soon. Of course with inflation considered it is not near the appreciation one might hope, but it still seems to be a worthwhile investment so far.
Too bad I love my house, neighborhood and city so much I can't see ever moving to cash in my chips as it were. But it's nice to know that I could if I had to (of course it would only then make sense to move to a distinctly cheaper area in the country- and they are cheaper for a reason).
Yes, the job market isn't as strong, overall. If you've already got a job lined up, or are planning to retire, it's great.
I'm in a Seattle suburb and prices here are INSANE. We rented a home in Woodinville from 2012-2014 that was appraised at $420K. That same home is worth $780k now.
I was looking recently, and there is hardly anything out there for less than $800K.
I don't know how people can afford to buy here.
I think a lot of buyers are getting the "green handshake" from their parents.
A couple that rented a house from me bought a 350k house when they moved out. I saw their credit/finances when I screened 'em 2 yrs earlier and there is no way in HELL they gained enough ground to go from my $950 per month rental to buying a 350k house without some help (I didn't ask where they got their money).
Could very well be... Gift Letters remain popular as ever.
It's never happened to me... it has for a lot of my married friends... parents and grandparents want to know the kids are settled and come up with the cash.
Between parents and Grandparents a wide net can be cast.
One lady I know is the only daughter... her parents are thrilled with the marriage and had set aside 20k for a wedding...
She sat down with them and said it was very generous and giving... she then broached the subject about a simple wedding at the church with a reception at the church hall... her parents thought about it for a few minutes and said whatever she did not spend on the wedding was hers for a down payment...
Banks are still lending to those with sub par credit.
Banks are still lending to those with the minimum down payment of 3%
Banks are lending to a pairs of couples or unrelated peoples.
Banks are still playing fast and lose with income levels.
Banks are still lending to people up to 44% DTI
Banks are still suckering morons into ARMS
Banks are still approving rehab loans with little oversight.
People are still getting lean to qualify then buying a bunch of crap on credit once they have the house.
People are still fudging the numbers with their income.
People are going in with no contingency offers not knowing what they are getting into.
People are still buying into the hysteria that houses will never be affordable again in a certain area so get into a frenzy to buy at all costs RIGHT NOW.
The interesting thing to me is that so many don't see history repeating its self.
I was told all the same crap when I bought into the hysteria in the last bubble. I heard all the same arguments. People denied there was a bubble. Said everything was fine made all sorts of excuses why it was a healthy market and I had several realtors feed me lines like "if you don't buy now it may be too late." "Its due to low housing stock and plentiful jobs, the economy is really healthy." "Interest levels will never be this low again" "Cash investors from California are snagging up all the houses." blah blah blah.
3 years later I was so screwed and upside down. I should have known considering the average wage didn't support the home prices.
I'm not buying into the hype this time and no one else should either. While it may be different this time it will crash. This time the crash will be centered on the errosion of the middle class. Home buyers will lose jobs, causing those in the housing industry to lose jobs, and it just becomes a chain reaction.
The big crash in 2025-2030 will be baby boomers dying off en mass. 60/70 year olds sitting in mega mansions in the burbs will die in record numbers and there will be a net adult population growth rate decline. Record numbers of houses will be available for sale and no one will be able to afford them so in non urban areas house prices will drop like a rock outside of urban centers.
This is known and one of the reasons the powers that be don't intend to do anything meaningful about illegal immigration. They want to offset the mass die off with new blood/cheap labor and strong sales to mindless consumers.
I'm in the greater Fort Myers area. Cheaper, older small homes are going quick as investors buy them to rent out. In Cape Coral just across the bridge it'a a much nicer city and a lot of very nice 12 year old bigger homes (with city water and sewer, which not not all homes in the city have) can't find buyers for $189K. 919 Se 5th Ct, Cape Coral, FL 33990 - Home For Sale and Real Estate Listing - realtor.com®
How much would this home sell in your area?
Interesting to see. My house is a one-story California contemporary (stucco, tile roof) with desert landscaping on a pool-sized corner lot. Aside from the style, much the same: built in 2000, 1,618 sq.ft., open floor plan, upgrades throughout the interior and exterior, spacious master suite, two-car garage. Solid school district and above-average amenities for a Tucson, AZ, suburb. As I noted before, I paid $275,000 in 2006. Today a Realtor would probably list for around $200K but I wouldn't get it. I'd probably have to settle for what that Cape Coral house lists for. A brand-spanking new version of my house would be much farther from civilization, on a tighter lot, with builder-grade everything, and would sell for more than $300,000. Go figure.
$900K
For the land alone.
In my neighborhood, land goes for $3+M per acre.
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Love living in the city.
