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Old 03-09-2022, 08:42 AM
 
Location: Round Rock, Texas
13,447 posts, read 15,466,742 times
Reputation: 18992

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Quote:
Originally Posted by Wolverine607 View Post
The thing about if covid helped homes go up in price due to work from home, well how would that be. Whether you work from home or in the office, you have to have a house to live in regardless. Its not like before work from home became more common, people were sleeping and living inside the office outside of working hours. So why would work form home cause more demand for homes. Well maybe homes in rural areas that were once too far away to commute, but homes closer by then wouldn't demand drop for them. Just does not make sense in either case.
The flexible work arrangements that many jobs offer nowadays has removed "commute" as a con for living in the suburbs, and as a result there has been an even greater influx of buyers. This has resulted in a sharp uptick in prices making suburban living no longer affordable for many.
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Old 03-09-2022, 09:36 AM
 
956 posts, read 509,831 times
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Quote:
Originally Posted by Brandon Hoffman View Post
People needed extra space or room for a home office because they were working at the dininng room table. They were home more so they wanted a nicer home since they were in it more, a pool in the backyard, or since they weren't going in to the office 5 days a week they moved out of the populated areas to a place with a bigger yard and more privacy, or to another state even sometimes and work remotely. Lots of reasons unique to the people moving.
True although that would make people want bigger and larger homes. Though it has not driven down or flatted the price of smaller starter homes in such a case?
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Old 03-09-2022, 09:38 AM
 
956 posts, read 509,831 times
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Quote:
Originally Posted by riaelise View Post
The flexible work arrangements that many jobs offer nowadays has removed "commute" as a con for living in the suburbs, and as a result there has been an even greater influx of buyers. This has resulted in a sharp uptick in prices making suburban living no longer affordable for many.
True for homes in suburbs, but has it dented demand for homes in inner cities and downtowns walking distance to everything at all?
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Old 03-09-2022, 11:24 AM
 
Location: Columbia, SC
10,966 posts, read 21,972,507 times
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Quote:
Originally Posted by Wolverine607 View Post
True although that would make people want bigger and larger homes. Though it has not driven down or flatted the price of smaller starter homes in such a case?
We are short at least 4 million homes by even the more conservative estimates I've seen. People in apartments and condos are moving into small homes as a first time buyer, people that own small homes are buying bigger homes. New construction is all bigger homes. I wish had builders building a product under 2000 sf, but most are 2500 or 3000 sf for the smaller homes in a subdivision and going up from there.
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Old 03-09-2022, 11:29 AM
 
Location: Round Rock, Texas
13,447 posts, read 15,466,742 times
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Quote:
Originally Posted by Wolverine607 View Post
True for homes in suburbs, but has it dented demand for homes in inner cities and downtowns walking distance to everything at all?
No.
Just about everywhere here is in high demand. There's plenty for everyone. Many people like living in the city and that hasn't changed.

I was talking specifically about my suburban market, which has been helped by covid. One of the reasons folks had shied away from suburban cities is because they were "too far out". My city has loads of amenities because it is established, has attracted some big business (Dell corporate headquarters is here for example), has lots of parks/recreation, etc....but it is still 20 miles from downtown, which remains an employment hub. This has translated into lower housing costs.

The advent of telecommuting has caused an influx of buyers who may have purchased closer in simply because they didn't want to commute. These particular people now can have their cake and eat it - they can get more house and more land, plus good schools and still be close to work since they are working out of their home offices. This activity, coupled with overall scarcity, has driven up prices. In my neighborhood homes start in the 800s. The people buying have no problems affording it, so that now the homes are rising up to the 900s.

Local buyers are really feeling the pinch because they are having a hard time competing.
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Old 03-09-2022, 12:20 PM
 
Location: Raleigh
13,705 posts, read 12,413,557 times
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Quote:
Originally Posted by Wolverine607 View Post
True although that would make people want bigger and larger homes. Though it has not driven down or flatted the price of smaller starter homes in such a case?
Bigger is relative. "Twice the space" if you're in a 500 sf apartment, or even 1000 sf place, isn't a huge place.
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Old 03-09-2022, 02:01 PM
 
Location: NC
3,444 posts, read 2,814,454 times
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Quote:
Originally Posted by jbgusa View Post
That was the theme of the Lewis book The Great Short and the subsequent movie.
I was smack dab in the middle of it as an account executive for Countrywide Home Loans on the sub-prime side. Left there as things got crazy (I left in early 2007) and went to another subprime lender for the next 18 months when the ultimate crash happened. That company did not do the Fannie Mae Alt A stuff and provided a generous severance package when they closed their doors. Unlike Countrywide where the CEO sold off all of his stock just before the crash and left all the employees holding worthless stock options they have earned over the years of working there. They also got no severance, were just told to pack up their desks and go. Some of them worked there for more than 20 years. It was totally cut throat. I have the few stock options I earned while working there, BOA has them now and I think I will be getting a whopping $200/month from them when I retire.
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Old 03-09-2022, 05:09 PM
 
956 posts, read 509,831 times
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Quote:
Originally Posted by riaelise View Post
No.
Just about everywhere here is in high demand. There's plenty for everyone. Many people like living in the city and that hasn't changed.

I was talking specifically about my suburban market, which has been helped by covid. One of the reasons folks had shied away from suburban cities is because they were "too far out". My city has loads of amenities because it is established, has attracted some big business (Dell corporate headquarters is here for example), has lots of parks/recreation, etc....but it is still 20 miles from downtown, which remains an employment hub. This has translated into lower housing costs.

The advent of telecommuting has caused an influx of buyers who may have purchased closer in simply because they didn't want to commute. These particular people now can have their cake and eat it - they can get more house and more land, plus good schools and still be close to work since they are working out of their home offices. This activity, coupled with overall scarcity, has driven up prices. In my neighborhood homes start in the 800s. The people buying have no problems affording it, so that now the homes are rising up to the 900s.

Local buyers are really feeling the pinch because they are having a hard time competing.
Yeah cause there is a shortage of housing. Covid did not do anything to drive up prices as everything is going up. Its just a coincidence that prices started to go up when covid hit as they would have anyways otherwise.

Or maybe its because apartment livers near cities moved out. So has apartment rental demand went down. If not covid had nothing to do with it. It just so happened coincidentally that home prices surged when it hit and it would have happened as much or even more without covid as economy would not have taken a brief even if short sharp nosedive.
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Old 03-09-2022, 06:28 PM
 
Location: Round Rock, Texas
13,447 posts, read 15,466,742 times
Reputation: 18992
Quote:
Originally Posted by Wolverine607 View Post
Yeah cause there is a shortage of housing. Covid did not do anything to drive up prices as everything is going up. Its just a coincidence that prices started to go up when covid hit as they would have anyways otherwise.

Or maybe its because apartment livers near cities moved out. So has apartment rental demand went down. If not covid had nothing to do with it. It just so happened coincidentally that home prices surged when it hit and it would have happened as much or even more without covid as economy would not have taken a brief even if short sharp nosedive.
I've already explained the pandemic-effect on my city. Scarcity has existed before the pandemic. You can argue as much as you like, I'm no longer interested. I've given a variety of reasons besides the pandemic, and honestly, it really doesn't matter as the end game is the same.

I'll just leave this and then I'm moving on.....

Key takeaways: How the pandemic impacted Austin real estate

Nearly every ZIP code in Austin has become more competitive: Of the 65 ZIP codes we measured, all but three saw at least some decrease in the median number of days that homes there stayed on the market. In some ZIPs, the median DOM (days on market) dropped from nearly three months to less than one week.

Areas just outside out Austin saw massive drops in DOM as the need for commuting decreased: There was a huge drop in DOM on the edges of commutable distances to Austin (such as Lago Vista) as Austin residents perhaps became more comfortable living further away from the city center. In a post-pandemic world where people may commute just one to three days a week, a long drive is no longer a deal breaker.

Sale prices for homes are up as much as 68% in some ZIP codes compared to pre-pandemic: In 29 ZIP codes, median sale prices for homes in Austin were over $100,000 more than they were in the months before the pandemic.

Austin’s northern and southwestern neighborhoods and suburbs became especially expensive: Communities such as Wimberley, West Lake Hills, and Leander all had massive jumps in median sale prices, and South Austin, Cedar Park, and Round Rock saw some of the largest increases in price per square foot in the area.
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Old 03-10-2022, 10:53 AM
 
Location: Raleigh
13,705 posts, read 12,413,557 times
Reputation: 20217
Quote:
Originally Posted by Wolverine607 View Post
Yeah cause there is a shortage of housing. Covid did not do anything to drive up prices as everything is going up. Its just a coincidence that prices started to go up when covid hit as they would have anyways otherwise.

Or maybe its because apartment livers near cities moved out. So has apartment rental demand went down. If not covid had nothing to do with it. It just so happened coincidentally that home prices surged when it hit and it would have happened as much or even more without covid as economy would not have taken a brief even if short sharp nosedive.
Not quite. Supply took a hit. Lumber mills shut down, construction temporarily stopped, lumber prices shot up, from what I understand things like the glue needed for plywood or OSB were constricted so plywood was unavailable or awhile. Everyone expected the housing market to crash with the economy and acted accordingly. Except it didn't, at least not for more than a couple months. And, all of a sudden folks had more money in their pocket to make that move happen a little faster; they weren't commuting, travelling, or eating out like they had been.

This is my opinion: A lot of people moved for more space, but that didn't happen across the whole of the housing market; folks with a certain amount of space saw no need to move. But a family of 4 in a three bedroom house that was adequate when Dad commuted to work and 3 kids went to school became extremely cramped. But that same family in a bigger house? Stayed put. That parts my opinion.
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