2023 Real Estate Observations (ice cream, restriction, resort)

[massnative71]

Originally Posted by id77

Enough do to push prices up. The median doesn't matter because the median isn't what sets the price. Instead of median, we really should be looking at the top quintile.

In MA, the top quintile for HHI is $142.2k, the second quintile is $89.9k, and the third quintile is $71k. The mean of the top 20% jumps up to $248k whereas the mean of the second quintile is $113k. The mean and above of that top quintile is very much in-line with housing prices in the more desirable suburbs in eastern MA, and the lower half of the top quintile is in-line with prices for the other suburbs in eastern MA.

The RE market, and particularly one with low inventory as we have now, is going to be driven by the top 20%, and the more they make compared to the next 20% and the 20% after that, the more "insane" prices are going to seem to those in the second and third quintiles. Decades ago the gap between quintiles wasn't so vast so those in the second and third quintiles remained competitive in the market. Today, with the third quintile making half what the top quintile makes, that stretching has become painful.

Not so sure about this. If the inventory increased to normal levels again, the second quintile would once again have options left. The fact that that top quintile is gobbling up both the desirable and less desirable properties, is only the result of a rare set of circumstances that are most likely temporary.

[massnative71]

Originally Posted by msRB311

Apparently the cape is having trouble renting places out:

https://www.boston.com/news/the-bost...cIpjF0cLwWiah0

We were on the cape over the weekend and my DH ordered a lobster roll that was $46. I asked how it was and he said, not good. lol. It was also $46 to add lobster to a salad.

Maybe, just maybe, it has something to do with...


"After all, the average daily rate hit $619 this year up from $525 last summer, according to the real estate group — or about what it once cost to spend an entire week on the Cape."?

[msRB311]

Yes. Im sure that has something do with it. If someone bought a house on the cape during the pandemic they bought it at an all time high. it did seem like people were willing to pay super high rent fees the past two summers..and maybe some still will, clearly some are not.

There's a hotel I like to stay at down there and it's now $1k a night. Nope. Not happening.

People are greedy. I'm tired of hearing about 'market prices'. It's greed.

[massnative71]

Originally Posted by msRB311

Yes. Im sure that has something do with it. If someone bought a house on the cape during the pandemic they bought it at an all time high. it did seem like people were willing to pay super high rent fees the past two summers..and maybe some still will, clearly some are not.

There's a hotel I like to stay at down there and it's now $1k a night. Nope. Not happening.

People are greedy. I'm tired of hearing about 'market prices'. It's greed.

If they rather see their places empty than charge a reasonable rate, they rather seem them empty. Don't get it, but who I am I to...

[newenglandgal123]

Rent in Boston has reached an all time high....$3047! https://www.wcvb.com/article/average...-says/44280426

[robr2]

Originally Posted by massnative71

Maybe, just maybe, it has something to do with...


"After all, the average daily rate hit $619 this year up from $525 last summer, according to the real estate group — or about what it once cost to spend an entire week on the Cape."?

I'd like to know how long ago that was?

[lrfox]

Originally Posted by msRB311

Apparently the cape is having trouble renting places out:

https://www.boston.com/news/the-bost...cIpjF0cLwWiah0

We were on the cape over the weekend and my DH ordered a lobster roll that was $46. I asked how it was and he said, not good. lol. It was also $46 to add lobster to a salad.

My quick check of Airbnb and VRBO shows more availability and prices that look better than what I saw last year (though certainly not "cheap").

I'm sure there are a number of factors, prohibitive prices being one of them. It's stupid expensive to go to the Cape right now. I've said for years that it's often cheaper to go to Europe for a week than do a week on the Cape. We're doing 5 days in Ireland this August and flights + hotel + car are cheaper than a halfway decent 5 day rental would be almost anywhere we'd want to go on the Cape - we looked and compared. It's a no-brainer as far as I'm concerned. I'm willing to bet that with COVID restrictions going away around the world, more people are traveling further so the demand for the Cape just isn't what it was in 2021 and 2022. It's a pretty natural shift and one I think that many people had predicted (the other side of the coin is that air travel is hot this summer).

Personally, I wonder how many people bought homes in vacation areas in 2020 and 2021 with the intention of living there full time or most of the time and are now in positions where they can't do that? It would make sense that if that's the case, they'd make those places available for renters. It's possible there could just be a glut of rentals right now.

[matrix5k]

Originally Posted by msRB311

Apparently the cape is having trouble renting places out:

https://www.boston.com/news/the-bost...cIpjF0cLwWiah0

We were on the cape over the weekend and my DH ordered a lobster roll that was $46. I asked how it was and he said, not good. lol. It was also $46 to add lobster to a salad.

By paying $46 for a lobster roll, your husband set the tone for high prices later on. I would never pay that much for a lobster roll. People with less incomes cannot afford $46 for a lobster roll and that's not right.

[wolfgang239]

Originally Posted by matrix5k

By paying $46 for a lobster roll, your husband set the tone for high prices later on. I would never pay that much for a lobster roll. People with less incomes cannot afford $46 for a lobster roll and that's not right.

At least they probably stayed at mom and dad's place, takes the sting off the prices.

[massnative71]

Originally Posted by matrix5k

-we never complain about real estate prices or anything in general about this country.

USA is the only country in the world where this would be possible. All this complaining about real estate prices baffles me. If we can do it then anyone can! USA is truly the land of opportunity.

Me and my people never complain about what others post on City-Data. Focus on the positive, son!