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Ahh so when you said 100% the last three years in your state you actually meant 2014-2022 (8 years) for one specific house, or 2017-2022 (5 years) for another specific house.
Thanks for clearing that up, I totally get it.
Yes and in my field, wages have gone up since 2014 by about 22%. That doesn't nearly make up for the difference and our applicant pools are absurdly dry and in quite a few cases garner ZERO applicants or at best people from hundreds of miles away that ask if they can do the job remote.
Businesses around town are literally going to high schools and begging the seniors to apply.
Either a wage-price spiral is going to happen, housing values need to decline, or we will not have a functioning economy. Something else I've seen businesses do is just close their doors when staffing dries up, & put a sign on the door that says something like "not enough staff today."
Yes and in my field, wages have gone up since 2014 by about 22%. That doesn't nearly make up for the difference and our applicant pools are absurdly dry and in quite a few cases garner ZERO applicants or at best people from hundreds of miles away that ask if they can do the job remote.
Businesses around town are literally going to high schools and begging the seniors to apply.
Either a wage-price spiral is going to happen, housing values need to decline, or we will not have a functioning economy. Something else I've seen businesses do is just close their doors when staffing dries up, & put a sign on the door that says something like "not enough staff today."
Yep I get it man, when I talk about housing prices in a state over the last three years I'm usually actually talking about 5-8 years for two houses.
Dude just stop, you've built this amazing reputation as a serial exaggerator and master of hyperbole on here but despite people pointing out to you that it doesn't bolster your argument you can't resist. Stop lying about everything and people will take you more seriously.
Yep I get it man, when I talk about housing prices in a state over the last three years I'm usually actually talking about 5-8 years for two houses.
Dude just stop, you've built this amazing reputation as a serial exaggerator and master of hyperbole on here but despite people pointing out to you that it doesn't bolster your argument you can't resist. Stop lying about everything and people will take you more seriously.
General problem is still real. Okay I stand corrected on the margins which were more acute to my two houses since I live in somewhat hotter market within the state. Doesn't make the problem not real.
Based on the numbers you pulled, statewide it's a 76% increase over 5 years. That is not good.
Not "everyone" or even most who bought during the run-up is close to "maxed out" - most that bought recently conformed to the standards for mortgages with 28% or less in payments that is the standard for ensuring that the mortgage is affordable and within budget. The "run up" is just supply/demand economic forces - that is what is justifying these prices.
The "maxing out", or not maxing out, is a secondary debate. The primary debate is whether housing prices have risen too much, too fast... in which case, even prospective buyers who are flush with cash, ought to forebear.
Just as it's inadvisable to dump idle cash into the stock market at a presumptive high, so too with real estate. But with stocks we can buy incrementally, whether by dollar cost averaging, or some alternative. If we make a mistake, it's a small one, because of incremental contributions. With owner-occupied houses, we by definition buy exactly one. Housing therefore is much more of a leap of faith, and in buying a house, we have far less reliance on market-history and depend far more on serendipitous timing.
On in other words, with stocks it's time in the market, not market-timing... whereas with houses it's very much a matter of market timing.
Who knows if this guy is correct? And the title is a bit sensational (he only expects a 30% drop in certain markets), but his is an interesting and well thought out thesis.
Who knows if this guy is correct? And the title is a bit sensational (he only expects a 30% drop in certain markets), but his is an interesting and well thought out thesis.
I once briefly watched a thumbnail preview of one of his videos on YouTube. It was pretty sensational at the time, but like all bears the market may be catching up to his prediction.
Why I would be suspicious, is that after I briefly watched part of that video my feed was flooded with videos from him and others who were even bigger doomers like Epic Economist. It seemed like an unhealthy YouTube nexus.
Yeah the rural areas with like 4k people and no jobs have only risen by 70%.
According to Redfin, Oregon's median home value is around $518,800, Portland's is about $565,000. The real estate appreciation rate in Oregon and Portland has been about 45% and 33% respectively over the last three years, that is not close to 100%. The rest of OR has risen faster than Portland, closing the gap in prices significantly. Here is Redfins data on Oregon https://www.redfin.com/state/Oregon/housing-market and Portland https://www.redfin.com/city/30772/OR...housing-market .
With 20% down, a monthly payment would be about $2500 so a salary right about $100K would be able to buy the average house in Portland, about $90K required in the rest of the state.
The "maxing out", or not maxing out, is a secondary debate. The primary debate is whether housing prices have risen too much, too fast... in which case, even prospective buyers who are flush with cash, ought to forebear.
Just as it's inadvisable to dump idle cash into the stock market at a presumptive high, so too with real estate. But with stocks we can buy incrementally, whether by dollar cost averaging, or some alternative. If we make a mistake, it's a small one, because of incremental contributions. With owner-occupied houses, we by definition buy exactly one. Housing therefore is much more of a leap of faith, and in buying a house, we have far less reliance on market-history and depend far more on serendipitous timing.
On in other words, with stocks it's time in the market, not market-timing... whereas with houses it's very much a matter of market timing.
That many are "maxed out" was a claim that I was responding to and is part of the primary debate because if most are "maxed out" then prices can not appreciate and would be a sign of a bubble - but I believe few are maxed out. It is very presumptive to say that the topic of maxed is a secondary debate, because it really is not.
Housing is really not a leap of faith because it is replacing the rent that would be required in its place - if the house never appreciated, you would still have the value regardless of any appreciation instead of lost toward rent payments. Also I have more than one owner occupied house currently - some do have more than one at a time.
Long term for both houses and stocks, it is not about timing - both will recoup from a downturn.
Who knows if this guy is correct? And the title is a bit sensational (he only expects a 30% drop in certain markets), but his is an interesting and well thought out thesis.
On the bright side for those that have bought within the last ~12 years, it seems like a 30% drop would only roll things back to maybe values of ~2 years ago. Even for those that bought within the last year that could be made up relatively quickly if increases then revert back to historical norms of 4-5% per year. What 5 or 6 years?
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