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....... People thinking housing prices are just going to keep going up and up and up........
I don't know how many people think that houses will keep going up and up, but I sure know a lot of people who think that the dollar is going to lose lot of purchasing power and do it real soon.
Real estate and precious metals are both hedges against inflation and not much else is. Right now, mortgages are dirt cheap and that is very unlikely to last. Getting money into a place sheltered from inflation and only paying 2% interest to do it is rather attractive.
Demand has stacked up for years, and the inventory to serve the pent up demand is just insufficient.
Yep. New construction has been lagging for a decade so this is what happens when demand outpaces supply.
Quote:
Originally Posted by oregonwoodsmoke
I don't know how many people think that houses will keep going up and up, but I sure know a lot of people who think that the dollar is going to lose lot of purchasing power and do it real soon.
Real estate and precious metals are both hedges against inflation and not much else is. Right now, mortgages are dirt cheap and that is very unlikely to last. Getting money into a place sheltered from inflation and only paying 2% interest to do it is rather attractive.
This too. Real estate at these low-interest non-ARM rates is the way to go if we head into an inflationary period.
I don't know how many people think that houses will keep going up and up...Right now, mortgages are dirt cheap and that is very unlikely to last. Getting money into a place sheltered from inflation and only paying 2% interest to do it is rather attractive.
I redacted out that which I don't know about. Residential real estate is what I do. That's what I quoted, that I agree with.
If you're only paying 4% or less for one of the 3 absolute necessities (food, shelter, clothing) for a relatively fixed price for 30 years, and can invest your other dollars in other assets that have shown for decades upon decades to do better than 4% - that's about all you need to know.
What was the reported number recently, US needs an additional 4 million homes I think was the projected number. My idiot county locally here put a 90 day moratorium on new construction. Only hurts...
And now with 2x4s selling for $10/each and plywood at $75 and you can’t even buy decent tools due to computer chip shortages, we don’t even need the tyrant collectivist state to stifle building. The economy, which the tyrants destroyed, is doing it for them.
I was going to say it's not like buying an i-Phone.
Inventory has been low for years and then they lowered interest rates these young people are getting 2.5% on a 30 year fixed mortgage. Not just humans being humans...
There is undoubtedly a mania going on right now. The psychological factors -- mainly FOMO -- are the key factors driving this market, with "fundamentals" as a distant second. It's not so different from Cabbage Patch Dolls, Tickle Me Elmo and toilet paper. The frenzy will soon cool off as newly vaccinated people get into the summer swing of things. They'll soon realize that there's more to life than Redfin.
Many people experienced the pandemic as an existential threat. Understandably, perceived suburban safety became attractive.
What happens when Covid fades away?
Hmm ...
If you had a suburban house with decades of deferred maintenance, I hope you've unloaded it by now. You may not get another chance like this.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Already a lot of regrets from people jumping in with both feet. Apparently they never thought through the whole ownership cost. In our case for example, in the last few years we have spend $14,000 on all new windows, $20,000 for new roof and gutters, and $8,000 for exterior painting. But . . .that's after living here 27 years. When you pay over asking and wave the inspections sometimes big costs come up right after you buy.
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