Housing Blues in Sun City,AZ

[Jimrob1]

Originally Posted by Sno0909

This has been beaten to death, but a home is worth what someone is willing to pay. Who are you to make the determination that a specific home is only worth $150,000, when it's listed for $250,000?

Well it hasn't been beaten to death by me, because I wasn't on here discussing it until yesterday. As far as making a determination what a house is worth. When we buy a house I think we all are determining, what we should or not be paying for it. Just because these so called hot markets sell homes at a certain price, or people are willing to pay these high prices. Doesn't mean those houses are worth the selling price, and people should just plop down whatever they ask and pay it. I think eventually the pool of buyers dwindles down over the high cost of homes. It's fine with me if people want to pay those prices that's their business. However I do think the homes in the locations mentioned are over priced, and its another example of what a retiree means to the business world. Money and nothing more.

[rcarbuilder]

Supply and demand dictates what houses are worth. If you can`t afford it then it`s time to look in another area. Retirees are considered a drag on the economy. They say we are getting "entitlements" even though we paid into it for 40 years. SS needs to be fixed. Instead we play diversion games.

[carrob]

@jimrob - I agree with your sentiment.

There reaches a point at which more and more people cannot afford the down payments for these homes...or perhaps the jobs they have or are moving to no longer support the exorbitant home prices. There are only so many cash buyers (minus those pesky corporate entities who want as many Americans as possible to be perpetual renters). At this point, the low interest rates are basically cancelled out by the high costs of homes. And even if you made a killing on the home you are selling in order to move, the home prices at your destination are just as insane, with one added caveat...the supply in all locations are slim to none...creating a backlog in which more and more people will just stay put. Then there are even fewer homes for sales, higher and higher prices..and the cycle continues.

Prices must stabilize eventually! It may not result in a crash like 2007, but this rise cannot continue indefinitely.

IMO, the only people who are truly benefiting from this insane housing market (besides maybe realtors) are people who are selling their rental properties, vacations homes, etc...and already own the home in which they are currently living in. I am one of those who will be selling a rental property (townhouse) on the Treasure Coast of Florida with an approximate 120K profit in 7 years since I bought it. Do I truly think that this rise is worth it based on factors like average salaries in the area? NO...but I am not going to argue.

[Tall Traveler]

Originally Posted by carrob

@jimrob - I agree with your sentiment.

There reaches a point at which more and more people cannot afford the down payments for these homes...or perhaps the jobs they have or are moving to no longer support the exorbitant home prices. There are only so many cash buyers (minus those pesky corporate entities who want as many Americans as possible to be perpetual renters). At this point, the low interest rates are basically cancelled out by the high costs of homes. And even if you made a killing on the home you are selling in order to move, the home prices at your destination are just as insane, with one added caveat...the supply in all locations are slim to none...creating a backlog in which more and more people will just stay put. Then there are even fewer homes for sales, higher and higher prices..and the cycle continues.

IMO, the only people who are truly benefiting from this insane housing market (besides maybe realtors) are people who are selling their rental properties, vacations homes, etc...and already own the home in which they are currently living in.

I agree except everyone involved in the selling and processing of real estate sales are also profiting. We have sold 2 of our 4 houses in the last few months and have profited significantly. Some landlords, like us, are also selling because of an expectation of higher capital gains taxes coming.

[Sno0909]

Originally Posted by carrob

IMO, the only people who are truly benefiting from this insane housing market (besides maybe realtors) are people who are selling their rental properties, vacations homes, etc...and already own the home in which they are currently living in. I am one of those who will be selling a rental property (townhouse) on the Treasure Coast of Florida with an approximate 120K profit in 7 years since I bought it. Do I truly think that rise is worth it based on factors like average salaries in the area? NO...but I am not going to argue.

Many realtors are actually struggling to pay the bills right now. With such low inventory, some are winning but most are losing - especially buyers agents.