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Old 04-24-2021, 07:34 PM
 
16,886 posts, read 7,181,126 times
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Quote:
Originally Posted by Roselvr View Post
Prices will be going down after this virus is under control.

As was said, not many people were selling this year because who wanted to move with the virus? I sure didn't.

Wouldn't that affect buyers and sellers equally? If sellers don't want to move, why would buyers?
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Old 04-24-2021, 08:17 PM
 
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Considering home prices went up 17 percent on average last year alone.

Even if people had put very little down in let’s say 2019. Even if they fell behind in mortgage and needed to sell. They would still have equity in their house to sell due to price increases.

We are in weird housing environment with very little inventory. I’m in florida and tons of northeast and Midwest people moving to florida. Many have jobs that are allowing people to work remotely forever. Makes relocating to florida easier with no state income taxes.

We are seeing a big divide between the halves and half nots with real estate. Unfortunately many people are being priced out of affordable homes. I’m in central florida. Even in the less desirable neighborhoods. You be lucky to find anything less than 200k and that’s 1000 square foot 30 year home single family home.
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Old 04-24-2021, 11:27 PM
 
2,408 posts, read 967,459 times
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Quote:
Originally Posted by otterhere View Post
WHY have real estate prices -- seemingly everywhere at once -- suddenly gone sky high? They're fully double the price I was looking at just two or three years ago, and I'm kicking myself for not buying then! How long can we expect these inflated prices to continue?
For as long as the money creation, now regularly in the trillions annually, persist.
A correction? Of course... because it happens every so often.
But don't expect a crash in the near or distant future.
So waiting it out may not be such a good idea.
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Old 04-24-2021, 11:55 PM
 
Location: Out there somewhere...a traveling man.
41,592 posts, read 53,829,626 times
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I doubt that there will be a crash, but a leveling off for a few years, with maybe a dip in a few areas, then the cycle of rising upwards will start again.
Our first house, a 3 bedroom, in 1948 in CA cost $4800.00 and now it's valued at $900,000. Just like the 15 cent hamburger those days inflation will continue on and on.
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Old 04-25-2021, 01:15 AM
 
9,841 posts, read 9,729,687 times
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Housing inventory can only go down, if the production of new homes is increased greatly. We are building only a portion of what is needed to fill the need.

We are not building starter homes as that is where the lowest supply is. Not building them due to cost to bring lots to the ready to build stage, including cost of land, cost to improve the lots, cost to install streets and utilities, city and county fees, and then the huge increase in cost of building materials, and shortage of trained labor, partly due to the trend for everyone to go to college.

Young families are priced out of homes today.

There can be no lowering and leveling of prices, as long as the supply of homes is far below the demand.

Our small town of 2,000 people plus another 2,000 outside of city limits, 15 homes listed, and only 4 of those are not under contract at this time. There are no old run down homes in town, as a good contractor buys every older home that comes on the market, and brings it up to top shape to keep his crews working in slow times, and then rents them out.

Our small town is above state and national median income cities and towns. It has almost no unemployment.

So there is a lot of areas especially in the west, where prices jump (County recorders office says our rent up 12 1/2% each of last 2 years).

So it is not just the hot cities where this is happening. It is a new situation for this country, and until we can get the supply increasing nearly double it is not going to go away.
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Old 04-25-2021, 03:25 AM
 
2,793 posts, read 721,346 times
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Politicians have blinders on, when you start having people with reasonable full time jobs living out of their car, well you have a serious problem. Grapes of Wrath revisited? Its lack of supply especially lack of affordable entry level homes. But also the missing bottom rungs on income ladder. And artificially low interest rates so people are chasing rental real estate as a substitute to bank cds and high quality bonds, both of which are paying diddly squat. So lot speculation in land and housing.

Notice its not just housing that has a bubble, the stock market is way over priced. Most thought when pandemic happened that FINALLY the stock market would correct and it did for a bit, then zoomed to crazy valuations DURING THE PANDEMIC.

History doesnt actually repeat, but same themes happen over and over. Read your history around the Roaring Twenties right after the pandemic of 1918/1919. Yep a century ago. When the stock market just couldnt lose, even those at low end were speculating in stocks bought on margin. And then the big crash and the reality of the 30s and the Great Depression. It wont repeat exactly, the govt is much more willing to intervene on massive scale to protect valuations of the wealthy. The country is also much more urban, most people cant just hunker down in rural area and wait it out growing big garden, heating with wood they cut themselves, etc. Lot land was give away for back taxes cause cash was very hard to come by. Land and housing is part of speculation bubble this time around, easy speculator made money looking for a profitable safe place to park itself.
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Old 04-25-2021, 03:40 AM
 
Location: Knoxville, TN
2,218 posts, read 731,329 times
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Quote:
Originally Posted by Moby Hick View Post
It's either buy now to avoid being priced out forever or it's if you buy now you'll lose it all in a soon-to-come crash.


Good luck figuring that one out young people. I haven't the slightest idea.
2008 is a huge clue how this ends. I have seen this program before. For prices to stay up forever, it would have to be “different this time”, and it is “not different this time”. The greater fool effect is still at work here.
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Old 04-25-2021, 04:07 AM
 
88,873 posts, read 86,529,881 times
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So far here in nyc and the boroughs history has not repeated itself ..we have not had a downturn in real estate since 2008 and even that was nothing really .

We sold two of the coops we owned in 2008-2009 at only 10% below the all time high ....

Most of the Time history never repeats itself the same way Twice , only historians repeat themselves .

There is something different enough each time so things do not play out as expected ..

In fact most recessions prior to 2008 were rolling recessions through different parts of the country and not the whole country effected.

Many of the chicken littles in the eco forum here left themselves a lot poorer than they should have been because they believed their own bull . We are either in a bubble or awaiting the big deflationary crash and so they never act .

Trying to predict when and what is an exercise in futility ..more money is lost in anticipation of all these asset crashes then is lost in any crash.

Of course the fact they did not do well financially and others did is the feds fault. , or any other thing or person they can blame ..it is never the fact that believing their own bull did to themselves

Last edited by mathjak107; 04-25-2021 at 04:19 AM..
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Old 04-25-2021, 06:48 AM
 
11,270 posts, read 6,239,626 times
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Quote:
Originally Posted by bande1102 View Post
Eventually, it'll be a buyer's market again. And it is a buyer's market in other places (I have a list).
Do tell! I'm flexible...
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Old 04-25-2021, 06:50 AM
 
11,270 posts, read 6,239,626 times
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Quote:
Originally Posted by oceangaia View Post
Wouldn't that affect buyers and sellers equally? If sellers don't want to move, why would buyers?
Buyers don't necessarily HAVE to move in order to buy. They could rent out their new properties, although I pity any landlord who can't evict bad tenants due to the COVID moratorium and thank God I am *not* one at the moment...
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