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That's crazy, that means when the new price goes to the tax assessor it will most likely increase. It's already almost $2K a month in just taxes which is insane and not sustainable for most retirees unless they have a great retirement package or a great 401K. I don't know if these programs/savings are protected from catastrophic illnesses but very few seniors will be able to pay $2K a month in taxes on just social security.
westchester is filled with retirees . there are very affluent people in the tristate area . in fact we are thinking of eventually relocating to hartsdale in westchester .
real estate taxes tend to be higher but nyc has an income tax so depending on state and local taxable income the higher real estate taxes and no city income tax may be a better deal. especially because these areas of westchester have very good schools .
we lived in queens and both our kids were in private school until 8th grade so everything is a trade off . had we lived in westchester they would have been in public school .
I had an acquaintance in the early 90s who had a studio apartment off of 34th street near midtown. He was renting, and it wasn't huge, just a kitchen when you came in and then a main room about the size of a bedroom and a bathroom. He said it was for sale for about $30K and I told him to buy it. I lost touch with him, he was from Texas so maybe he didn't understand Manhattan property, I'm sure that studio condo is worth a small fortune now.
we did very well with ourr manhattan real estate . the stuff in the boroughs not so much . our market investments blew away the returns on the queens apartments . but manhattan was a different story . but mostly because the bulk of the profit was made on the buy with it being special situation deals .
Last year, I bought a lovely home in a good area, and I had to outbid two other buyers to get it. I'm told that this year, the market is even hotter, and that houses are being sold within hours of being listed.
I've got a couple friends that are Realtors, and they're telling me that the market is super-heated right now with no sign of cooling off.
Have we come to the end of another real estate cycle? Are prices going to drop off a cliff soon?
Is it possible?
Certainly
Is it inevitable?
No
Some of the toxic "assets" that foolish investors and crooked slime were passing around like worthless unsecured "credit default swaps", thankfully are not part of this housing market.
Then again, other shenanigans could be going on that we are not yet aware of.
Oh please. There are barely any houses for sale. The market is cooling because there simply isn’t any supply.
I received some glossy “we sold in your area.” One area a place sold for 2.4 million. Another sold at 600,000 for a townhouse. 25,000 over asking. Next door to my old townhouse it sold for 520,000 almost 8 months ago.
Yeah, sales are down because lack of supply . Long time owners have low taxes and maybe paid off mortgage so what’s the motivation to move .
If people think prices are going down they might be motivated list their home, but most likely only if they are moving far away or out of state .
People that plan to live in the house forever and have stables jobs and families are still unlikely to list though .
It’s going to be interesting to see what happens .
Valuations have been outpacing income growth for quite some time. At some point, this will cause a leveling off of price increases in many markets. "Crash" is probably overblown with the economy doing as well as it is and structural changes in the residential real estate lending market.
Quote:
Originally Posted by JustMike77
The only thing I DO know is that people don't keep making 10% more money every year FOREVER, so take that as you will.
In some locations, income is not the main driver of the price of housing; some people move wealth from one asset class (say, equities) into another (say, housing).
Could you give a ballpark for what a "mid-priced home" in your area is selling for?
Here in Hampton Roads, a mid-priced home is probably in the high 300s, and that does not seem affordable to me. :/
In Park City, you can buy a low-end 500 sf 1/1 condo for about $400K. An average house for maybe $1.5M. A luxury house (6K sf) for $4-8M, and an estate (20K sf) for $10-20M.
In Park City, you can buy a low-end 500 sf 1/1 condo for about $400K. An average house for maybe $1.5M. A luxury house (6K sf) for $4-8M, and an estate (20K sf) for $10-20M.
All of the posts here about how strong the real estate market is, e.g. the tons of buyers pushing prices up way above ask is a sign of a market that either is or is on the way to being overheated. This is no different than an equities market that starts to go up at an ever increasing rate, at some point it becomes unsustainable. The part we don't know is whether it is soon or 2X, 3X higher than here.
We are a long way into this economic cycle. I'm not saying it is done (I'm betting that we haven't seen the high in the equity market for the year), but I do worry that there is much more risk now than a few/half dozen years ago.
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