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Old 04-25-2021, 04:09 PM
 
Location: Not the end of the Earth, but I can see it from here
4,718 posts, read 5,001,248 times
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Quote:
Originally Posted by luv4horses View Post
I would say that this time there is one big difference. People earning big salaries in expensive cities are moving far from where they worked because it is cheaper and that inflated salary goes further in the suburbs. What remains to be seen is if those high salaries continue when the boss sees they are working from home in cheaper areas.
Do understand that a lot of employers also have the right to adjust salaries of remote workers to match the cost of living in their (new) area. Companies aren't stupid - they understand that allowing employees to work remotely in a area with a much lower cost of living shouldn't be a windfall, and they'll claw that money back in a heartbeat.

I have a friend who works for a very prominent Silicon Valley firm who recently moved out of the South Bay to Tennessee. His salary was lowered to match the area he moved to.

There are numerous companies that do this as a service for companies. Runzheimer is one of the larger ones.

RM
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Old 04-25-2021, 06:28 PM
 
12,984 posts, read 7,643,266 times
Reputation: 9300
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?

Inflation. More specifically, the beginning of an inflation.

That's when you typically see household fight for goods and buy as many as possible because prices are expected to raise a lot in the future. Also, the smart money always get in first and buy up assets that offers protection before the public becomes aware of what's happening. This is what we're seeing in the housing market - the smart money is already in; but I think we're still in the first inning of the housing appreciation. Housing prices will go higher. Not only housing prices, but everything will cost more.

The fight for goods starts with housing and eventually trickle to toilet paper. People will say they want to wait until frenzy dies, the problem is, by that time housing price will be crazy.

Materials cost have already shot up. Labor cost will follow. Then transportation cost. Then all other cost. So housing has nowhere to go but up. If you think prices is high now, you ain't see nothing yet.

Sorry, you missed the boat but you still have time to get in before it's too late. This is not inflated prices, this is inflation prices.

Btw, I normally tell people to be patient and only buy when the time is right. But this different, mate. The writing is on the wall for over a year. Inflation is here. This is what happens to the housing market in an inflation.

.

Last edited by beb0p; 04-25-2021 at 06:51 PM..
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Old 04-25-2021, 07:51 PM
 
Location: Pittsburgh
6,218 posts, read 8,023,146 times
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I mean, that might be the case. But the people lending money for long-term periods don't seem to have looked at the walls.
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Old 04-25-2021, 08:14 PM
 
Location: Berkeley Neighborhood, Denver, CO USA
16,069 posts, read 24,359,644 times
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Quote:
Originally Posted by Mason3000 View Post
I think we're in for a big housing crash before the end of Biden's presidency.
I look forward to your post here on January 22, 2025 where you write: “I am an {idiot|genius}”.
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Old 04-25-2021, 10:08 PM
gg
 
Location: Pittsburgh
21,935 posts, read 21,078,676 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?
As a 20 year Realtor I can tell you this.

1. Interest rates are VERY low
2. There is now where to put your money due to interest rates.
3. The stock market is at its top.

Therefore, if banks are giving away free money, you have one place to put it. Real estate.

There is no crash insight. Why? Banks aren't over extending. Sorry, you missed the boat.
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Old 04-25-2021, 10:40 PM
 
9,841 posts, read 9,729,687 times
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Quote:
Originally Posted by Igor Blevin View Post
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.
Wrong: Prices will not come down until the supply increases. As it is not increasing, prices are apt to raise even more as the supply diminishes even more. This is the first time, that the supply of homes has fallen as it has of late.
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Old 04-25-2021, 10:50 PM
 
6,248 posts, read 2,039,028 times
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This is not a bubble like 2008 was. That being said, it's likely that prices are reaching near-peak levels and will taper off (not burst). I would expect a significant drop in the prices of homes (total of 5%-10%) quite rapidly (5-6 years).
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Old 04-25-2021, 11:29 PM
 
Location: NJ
16,935 posts, read 25,423,531 times
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Quote:
Originally Posted by bande1102 View Post
In my area, there are a couple of things happening: 1) mortgage forebearance, 2) eviction moratorium, 3) property tax auctions have been put on hold in my county, 4) nobody is moving right now for fear. I know of several landlords who are trying to sell with tenants in place (because they can't eviction them).

Interestingly, the people that I know who are in forebearance aren't paying their property taxes. Interesting to see how that plays out.

I don't think you can time the market. We had made plans to sell in 2020 because that was part of our long term plan to relocate. So we did.

In my area, sellers are starting to refuse VA or FHA loans. If you can pay cash or go conventional, I think you're ahead of the game.

Finally, anytime someone says, ”this time is different”, I stop listening. Housing goes up and down. Eventually, it'll be a buyer's market again. And it is a buyer's market in other places (I have a list).

In the meantime, we're investing our cash in our businesses.

That's why I said there will be homes coming on the market once COVID dies down because people legally aren't paying their mortgage. We had ours on hold too for a few months, thankfully although my hub was out of work from March, we paid until June, then started again in October. Bank of America wants that money as soon as you start paying again, on top of paying the mortgage payment. For people not paying taxes too, they will be way under water.

We're going to be seeing people listing, people doing short sales and foreclosures at least in my area.

As I said, houses had cost between $400k and $500k when new back in 2008. They've been selling about $300k. The last house that sold was back up to $450k. I can't see prices staying that high.

There's a new development going in connected to mine and the one next door, it's actually the last stage of the 2 developments. The company that built my house finished, I'm not sure about next to me. It's by a 3rd builder. Houses started in the mid $200k's. I'll have to drive through the next time I go out to see if they're currently building while lumber prices are high. I don't recall seeing a new sign saying prices went up yet.

It amazes me that someone will pay $200k more in my development for a used house then buying a brand next house next door. Maybe our floor plans are better, I don't know, I'll have to look the builder up online.
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Old 04-26-2021, 04:25 AM
 
88,880 posts, read 86,555,812 times
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Quote:
Originally Posted by gg View Post
As a 20 year Realtor I can tell you this.

1. Interest rates are VERY low
2. There is now where to put your money due to interest rates.
3. The stock market is at its top.

Therefore, if banks are giving away free money, you have one place to put it. Real estate.

There is no crash insight. Why? Banks aren't over extending. Sorry, you missed the boat.
The stock market Is at its top ? And you know this from your crystal ball ?

As a realtor your view of things is quite myopic ...
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Old 04-26-2021, 04:39 AM
 
183 posts, read 154,097 times
Reputation: 176
Quote:
Originally Posted by mathjak107 View Post
The stock market Is at its top ? And you know this from your crystal ball ?

As a realtor your view of things is quite myopic ...
Some realtors I’ve followed have been screaming the RE market and stock market have peaked for > 12 months now, calling tops isn’t easy and would’ve cost a lot of people a lot of $

With that being said, there is a huge issue with rent moratoriums and mortgage forbearance that can’t be extended in perpetuity.
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