Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
this is like trying to predict the stock market when rates rise .
gundlach swore at 3% the markets would crumble . actually they did pretty well up until the tariff's , the chaos in washington and the fed may be pushing things to hard .
so there are so many other factors involved that set pricing in real estate and equities including fear , greed and perception .
Yes, it's very complicated. My premise that in the last 30+ years lower rates caused prices to rise over the long term only accounts for a partial explanation. I believe it to be a cause, but there must be other significant reasons for multi decade high inflation in home prices.
I can think of other possible causes. I've been at least somewhat interested in following the real estate market since I was in grade school. Then it was looking at the print ads and playing guess the price of a house games with my family in front of an open house. I got really good at that, where I could guess the price of a house by about a couple %. I bought and sold 2 houses making about 300k. It may have been part luck, but I see how much timing matters. Now, I'm more interested in the macroeconomics.
Another theory about why there has been high single family home inflation in the past 30 years is freeways and scarcity of land to build single family homes. I believe in most major metropolitan areas that the freeways were build out to suburbs around the 50s and 60s. This led to a very large amount of single family homes to be built and people could commute to work in city centers with light freeway traffic. Population has grown in these areas, doubling and tripling and it continues. Suburbs near city centers got built out. Population grew more. Farther out suburbs got built out. Population grew more. Commute times grew due to distance and more population growth. The problem with freeways is that they were built 50 years ago and can't practically be made wider. So there is finite land and houses near jobs. Living far away and commuting is unattractive due to longer and longer rush hour windows. So a large amount of single family homes in areas close to jobs have just gotten bid up, regardless to any other factors.
We are commuting to work on 1960s technology. I may be being a little unrealistic in expecting a better means of transportation in my lifetime, but I hope that there will be a system of hyper loop tunnels in the future, so that Americans can have access to both jobs and affordable homes.
will rogers said buy land , they are not making anymore of it .
boy was he wrong . battery park city in lower manhattan sits right where the water once was . about 10,000 people now live in a spot once water that technology found a way to make in to land
will rogers said buy land , they are not making anymore of it .
boy was he wrong . battery park city in lower manhattan sits right where the water once was . about 10,000 people now live in a spot once water that technology found a way to make in to land
Lots of the marina and financial district was filled in in san francisco. Large neighborhoods that used to be filled with graveyards in san francisco (sunset district), had all their graves dug up and trains took the bodies/coffins on a train to the city Colma, which is south of San Francisco. This was so that more houses could be built.
I think we are past the times of moving graves and filling in shorelines to build. I really hope we can make more land with transportation. Just like in the 50s and 60s with freeways. We have tons and tons of open land. The problem is that no one want to spend 4 hours a day commuting to work. That's the problem to be solved.
During the 1980s interest rates were very high but house prices were extremely low, there were tons of decent homes selling under 100k I don’t understand why people didn’t just pay cash on these homes. I can have only two reasons:
1. Most buyers simply did not have the funds to buy back in the 80s and 90s
Or
2. Purchasing real estate wasn’t a good investment back then due to deteriorating market conditions
During the 1980s interest rates were very high but house prices were extremely low, there were tons of decent homes selling under 100k I don’t understand why people didn’t just pay cash on these homes. I can have only two reasons:
1. Most buyers simply did not have the funds to buy back in the 80s and 90s
Or
2. Purchasing real estate wasn’t a good investment back then due to deteriorating market conditions
I'm not sure. My dad was a new real estate agent in the late 70s and early 80s. He got an award for selling the most real estate in his office at the time and shortly after it all went away.
will rogers said buy land , they are not making anymore of it .
boy was he wrong . battery park city in lower manhattan sits right where the water once was . about 10,000 people now live in a spot once water that technology found a way to make in to land
There you go again, It's all Manhattan to you. It may be the center of the Universe to many but it's not to all. Yes they are not making any more, you have the odd example of manmade Islands in Dubai or volcanos creating more land but what he said is correct for 99.9999% of land.
Do me a favor put me on ignore .... i only talk about real life situations and what I am exposed to and my own experiences . Don’t like it , there is a simple answer. Ignore...... You can Keep talking about all the mythical straw people you like to refer to
Do me a favor put me on ignore .... i only talk about real life situations and what I am exposed to and my own experiences . Don’t like it , there is a simple answer. Ignore...... You can Keep talking about all the mythical straw people you like to refer to
You are the one having an issue so you can put me on ignore if it would make you happy.
Done ....it really is not productive having discussions with you . You only keep repeating the same things and skew what others said in to something they never said .
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
