Sarasota's Median Sales Price for Single Family Homes reaches $500,000 (real estate, credit)

[Major Markus]

Many professional people we know already have taken the money off the table - sizeable gains, some gains were not just sizeable but enormous, many in a very short horizon/time period.


These kinds of gains for them and others, were impossible to ignore. They have tons of "gimme cash" in their pockets. I didn't blame them. Their personal choice and rationale was they could sit out the local, or state market for 12-18 months and watch, being flush with new money, or they could exercise other options such as moving out of already over-crowded SWFL even to other states that might experience even more of a future decline in housing prices after the Election.


Who knows, but I can witness for myself the irrational acceleration of prices at the expense of quality and size - house size and lot size.


All that glitters ain't Gold, it might be fools gold. Cash of course in the pocket, stays in the pocket if you want it to.

[beach43ofus]

The dollar worth of cash you had in your pocket a year ago is worth about 92 cents today, but a house that was worth $500,000 last year, is worth ~$600,000 today.

I've potentially doubled my money by purchasing a new home here in the past 3.5 years, so I sure am glad I didnt sit on the sidelines waiting for the market to bottom out....instead it took off like a rocket, & Im up $550k if I wanted to sell it this week.

Houses in my 'hood are selling in a day or two for over asking in bidding wars.

I took most of my cash off the market, and bought Silver Eagle's w/ it instead...& some TIPS inflation protected bonds.

[Trying941]

Originally Posted by Major Markus

Many professional people we know already have taken the money off the table - sizeable gains, some gains were not just sizeable but enormous, many in a very short horizon/time period.


These kinds of gains for them and others, were impossible to ignore. They have tons of "gimme cash" in their pockets. I didn't blame them. Their personal choice and rationale was they could sit out the local, or state market for 12-18 months and watch, being flush with new money, or they could exercise other options such as moving out of already over-crowded SWFL even to other states that might experience even more of a future decline in housing prices after the Election.


Who knows, but I can witness for myself the irrational acceleration of prices at the expense of quality and size - house size and lot size.


All that glitters ain't Gold, it might be fools gold. Cash of course in the pocket, stays in the pocket if you want it to.

Yup, the best place to preserve wealth during inflation is cash!!

[Major Markus]

To each his own. I'm not selling spending advice, or anything else.


All I know is that your house ain't worth chit, unless you sell it, or borrow against it which creates a high priced debt and perhaps a credit "hit".


Paper gains are, in essence, MEANINGLESS, and smoke and mirrors.


People can not control the so-called "value" of a physical structure in a free market. I do know that people can control decisions about CASH in their own pockets - their OWN pockets, not "tied up" and sometimes buried in a illquid physical structure, which is held hostage by outside forces that are not, and can not be influenced by the owner. The owner can control his own cash. Markets are all cyclical, that includes all volatile housing markets.


If a person is overly concerned about the value of the US Dollar, okay, fine. Sit in your house and hope the market prices don't decrease. The facts are again, you house is not "worth" chit in terms of a real-dollar gain, unless you sell it, or borrow against the equity. It seems very very easy to realize that cash in your pocket provides viable, real options and flexibility. Having a ton of illiquidity of so-called "paper-gained Equity" is hardly comparable.


If cash were not king as they say, Banks would not exist, investment firms would not exist, credit unions would not exist, hedge funds would not exist, stock and bond markets would not exist...people are free to do what they wish with their cash including sinking their cash money into an illiquid physical structure called a house. Cash exchanged for illiquidity. Some think that's smart, er,....fine....okay. No matter.

[Major Markus]

Just for grins ONLY:


I have a very good friend of mine who is now a surgeon.


He got married to a girl he was dating for about 4 years if I remember correctly..


They purchased (together, during the marriage but he was the one who "wrote the check") a nice but not extravagant pool home in Lakewood Ranch....for cash...HIS cash.


Things went sideways with his marriage unfortunately. The wife divorced him. The Court through its proceedings ruled in favour of the wife (of course in FL/Sarasota)....ordered an equitable split in all assets acquired during the marriage. The paid for house (his cash, not her's) had risen in "market value" well over doubling his purchase price a very short time earlier. He was ordered to PAY his ex-wife one-half of the gain.


If my dear friend had simply never initially paid cash for the house, and simply had a big mortgage, and even taken out a HELOC (debt), he could have avoided taking such a "hit" in the divorce, had he simply kept his initial cash in his own pocket, or even a coffee can or in easy to locate untraceble locations.


The circumstances and story are a bit too long for additional discussion. This is just anecdotal of course.


If he had simply renamed "in debt", the outcomes may have been less severe...in retaining cash

[newtovenice]

Originally Posted by Major Markus

To each his own. I'm not selling spending advice, or anything else.


All I know is that your house ain't worth chit, unless you sell it, or borrow against it which creates a high priced debt and perhaps a credit "hit".


Paper gains are, in essence, MEANINGLESS, and smoke and mirrors.


People can not control the so-called "value" of a physical structure in a free market. I do know that people can control decisions about CASH in their own pockets - their OWN pockets, not "tied up" and sometimes buried in a illquid physical structure, which is held hostage by outside forces that are not, and can not be influenced by the owner. The owner can control his own cash. Markets are all cyclical, that includes all volatile housing markets.


If a person is overly concerned about the value of the US Dollar, okay, fine. Sit in your house and hope the market prices don't decrease. The facts are again, you house is not "worth" chit in terms of a real-dollar gain, unless you sell it, or borrow against the equity. It seems very very easy to realize that cash in your pocket provides viable, real options and flexibility. Having a ton of illiquidity of so-called "paper-gained Equity" is hardly comparable.


If cash were not king as they say, Banks would not exist, investment firms would not exist, credit unions would not exist, hedge funds would not exist, stock and bond markets would not exist...people are free to do what they wish with their cash including sinking their cash money into an illiquid physical structure called a house. Cash exchanged for illiquidity. Some think that's smart, er,....fine....okay. No matter.

I thought the exact same thing.

And when everyone's house value rises, no one's does. Since there is truly no gain.

The gain would be if you sold and then moved into a tent.

[Trying941]

Originally Posted by newtovenice

I thought the exact same thing.

And when everyone's house value rises, no one's does. Since there is truly no gain.

The gain would be if you sold and then moved into a tent.

The amazing thing is it works the other way too! Even if there is a market crash, and stock prices drop, if you do not sell you have lost nothing!!

This is the new math, right?

[loves2read]

Originally Posted by newtovenice

Some will, probably. I would guess it would be more seasonal rentals than long term leases.

Families cannot afford to pay the current $2500+/month rate.

Vacationers can.

The 2 houses that sold on my block ... 1 is now a VRBO and the other is empty. Not sure what's up with the empty one.

Our HOA does not allow short term rentals but there are probably 2 or more doing in from reports on NextDoor—takes money to go to court and enforce the HOA rules so as long as tenants are not disruptive (and some have been) people pretty much ignore the violation…

Someone bought house next to ours around Christmas—still has not moved in—lives in NJ—
Had to call her about bamboo on her fence line that was too tall and hitting power lines
She sounded nice—said she bought house intending to move with her fiancé but he died from CoVid soo after purchase—so no idea what is going on with her now
Grass is about dead because sprinklers are not running—she has someone doing pool maintenance but it often needs water cause we can hear the pump noise…and she has grass cut but if it dies then she won’t need that…
Wish she would move in or put it up for sale…

House down street on corner has been empty for going on 2 yrs now—
Some houses in our neighborhood owned by people overseas—they might have had problem during CoVid coming in person…

[MOforthewin]

Originally Posted by loves2read

Our HOA does not allow short term rentals but there are probably 2 or more doing in from reports on NextDoor—takes money to go to court and enforce the HOA rules so as long as tenants are not disruptive (and some have been) people pretty much ignore the violation…

Someone bought house next to ours around Christmas—still has not moved in—lives in NJ—
Had to call her about bamboo on her fence line that was too tall and hitting power lines
She sounded nice—said she bought house intending to move with her fiancé but he died from CoVid soo after purchase—so no idea what is going on with her now
Grass is about dead because sprinklers are not running—she has someone doing pool maintenance but it often needs water cause we can hear the pump noise…and she has grass cut but if it dies then she won’t need that…
Wish she would move in or put it up for sale…

House down street on corner has been empty for going on 2 yrs now—
Some houses in our neighborhood owned by people overseas—they might have had problem during CoVid coming in person…

Can the county do something? Code enforcement?

[loves2read]

Originally Posted by Trying941

The amazing thing is it works the other way too! Even if there is a market crash, and stock prices drop, if you do not sell you have lost nothing!!

This is the new math, right?

That is old math—because it has happened several times in my lifetime…