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.
....... $37k seems like very little. Was it not a desirable location at the time? .........
$37K was a lot of money in 1970. 2022 dollars are not worth nearly as much and you have to give a lot more of them to buy anything. In 1970 gasoline was 25 cents a gallon and a $37K house was actually a pretty nice house. Houses were available for a lot less than that.
Today's prices might be way overpriced, or they might not be. There is no way to tell except to wait for another 10 years and look back and see what the price looks like with some maturity on it.
I agree with you I would not want to buy a house now. The homes are way overpriced. Yet people are buying them in my 4000 home subdivision here in Florida. A house rarely stays on the market a week and an offer has been made on it. I've noticed many of these homes are having the roof replaced shortly after the people move in. People buy these homes over the internet without seeing the home in person. I don't know if its like this all over the country, but that's how it is here in Florida. Definitely a sellers market down here.
This indeed happens in many places all over the US. There's so much money circling around right now. That was one of the reasons for the uncontrollable inflation happening. The rich getting richer and the poor getting poorer.
The recent adjustment in interest rate is, imo, a right step to make things back to normal. The investment rules need to be adjusted as well. The flow of money pouring into the housing markets from foreign investors ( Chinese, Middle Eastern, Japanese...), and big corporations to SFH need to be stopped. The recent raise in fees for owners of 2nd, 3rd home from investors was necessary, but still low.
Originally Posted by HB2HSV View Post
Whatever happened to NE like NYC and Philadelphia?
Plus dominated by liberals like CA, everyone is fleeing those areas too. Even allowing for differences of opinion, I can't see why anyone would want to live in the NE...at least Cali has great weather....
Meanwhile people are paying 800k over asking to live in CA.
I always wonder, if people are allegedly "fleeing" California (and NY and DC and so many other big urban areas), why are real estate prices in those places not plummeting????????? Why are their prices skyrocketing?
The way people talk about California and NY, you would think you could buy a house in those deserted, barren, inhospitable lands for pennies on the dollar.
Somebody please be sure to let me know when everyone has "fled" CA and the homes in La Jolla are 300k!
A lot of institutional investors - Blackrock and Blackstone, for example - and foreign investors buy properties at non-competitive offers in order to maintain them as rentals. As a result there's much less supply for normal people. And now the rental market is tighter, so landlords are raising rents at extreme amounts.. because they can.
So it's too expensive to own and too expensive to rent in many places. But people have to live somewhere. Hence why there's a big rush to cities and states with lower COLA.
A 2/3 empty billion dollar skyscraper in Manhattan doesn't mean jack for the city. A Chinese investor buying hundreds of rundown homes in Englewood and raising the rent 30% doesn't help Chicago. The country needs immediate legislation banning or limiting these investor homes; it just isn't working.
A lot of institutional investors - Blackrock and Blackstone, for example - and foreign investors buy properties at non-competitive offers in order to maintain them as rentals. As a result there's much less supply for normal people. And now the rental market is tighter, so landlords are raising rents at extreme amounts.. because they can.
So it's too expensive to own and too expensive to rent in many places. But people have to live somewhere. Hence why there's a big rush to cities and states with lower COLA.
A 2/3 empty billion dollar skyscraper in Manhattan doesn't mean jack for the city. A Chinese investor buying hundreds of rundown homes in Englewood and raising the rent 30% doesn't help Chicago. The country needs immediate legislation banning or limiting these investor homes; it just isn't working.
But you're arguing AGAINST the "free market principle" and capitalism.
Remember in the 80s when the Japanese investors were buying up properties in the US? There was an outcry just like yours when the Japanese bought up Rockefeller Center in NYC, a national icon. But then, the market cycle turned and these Japanese investors lost money as result.
What's the difference between a Chinese investor vs. a US Institutional investor such as Blackrock or Blackstone?
If anything, the US Institutional investors have unfair advantage over the "Mom & Pop" investors. They can borrow money at "Wall Street Rate" whereas we pay several point higher at market mortgage rate. A foreign investor bring cash and is not affected by the mortgage rate.
In this case, I am. Clearly there needs to be a balance between private enterprise and public well being, between anarchy and totalitarianism.
As it stands in this particular crisis, the pendulum is swinging far too closely to investors, and we're seeing the consequences.
If the market cycle changes, then hey, that would be great! Cheers! But that could take years. Meanwhile people are truly struggling today, and there needs to be some kind of reform to mitigate the big investors from grabbing everything they can.
Vancouver, which is struggling with the same issues, has banned international investors from buying for two years. Kind of a token, meaningless regulation IMO, but at least they're acknowledging the problem.
Also, I don't really distinguish between institutional investors and foreign. They both represent the broken market
Vancouver, which is struggling with the same issues, has banned international investors from buying for two years. Kind of a token, meaningless regulation IMO, but at least they're acknowledging the problem.
Just because Canada does it, doesn't mean the US should.
Should the US follows Trudeau's example stumping on the freedom speech of Canadian truckers?
"Home unaffordability" has been around us since the beginning of time, it's nothing new. I remember back 40 years ago I was struggling to buy my first home. Why should today's renters be any different?
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,060 posts, read 7,493,946 times
Reputation: 9787
Quote:
Originally Posted by TBideon
A lot of institutional investors - Blackrock and Blackstone, for example - and foreign investors buy properties at non-competitive offers in order to maintain them as rentals. As a result there's much less supply for normal people. And now the rental market is tighter, so landlords are raising rents at extreme amounts.. because they can.
So it's too expensive to own and too expensive to rent in many places. But people have to live somewhere. Hence why there's a big rush to cities and states with lower COLA.
A 2/3 empty billion dollar skyscraper in Manhattan doesn't mean jack for the city. A Chinese investor buying hundreds of rundown homes in Englewood and raising the rent 30% doesn't help Chicago. The country needs immediate legislation banning or limiting these investor homes; it just isn't working.
Someone-company who is buying rundown Homes, is doing that community a favor. Increases taxes, incentive to upgrade homes, better clients.
Downside, the less mobile people of limited skills and initiative are going to be displaced at some community's detriment.
YHMV
Last edited by leastprime; 04-21-2022 at 01:51 PM..
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.
