Crazy housing market

[Bill Douglas]

Originally Posted by look 171

What's the reasoning for housing to shoot up down there? Lack of it or low interest rates?

I've just done an edit. It was 30.3% increase in 12 months. Crazy stuff. We traditionally pay higher interest rates in this country as it's overseas borrowed money and other countries only lend us money if the high interest rate/return makes it worth the risk of lending to us. But the fact that interest rates are almost nothing there has been a big increase in borrowing for expensive things like houses. Back in the '80s and '90s I was paying 18% on some loans. It worked though. As we know it's all about the numbers.

Also a big % of population increase so supply demand going on.

[look 171]

Originally Posted by Bill Douglas

I've just done an edit. It was 30.3% increase in 12 months. Crazy stuff. We traditionally pay higher interest rates in this country as it's overseas borrowed money and other countries only lend us money if the high interest rate/return makes it worth the risk of lending to us. But the fact that interest rates are almost nothing there has been a big increase in borrowing for expensive things like houses. Back in the '80s and '90s I was paying 18% on some loans. It worked though. As we know it's all about the numbers.

Also a big % of population increase so supply demand going on.

18%? I don't think we ever got that high in the 80s and 90s. What's the APR now for a 30 year loan, Bill? do you have 30 year loans there?

[Chocaholic]

We live on a lake outside Atlanta. Prices here have also skyrocketed. Would love to sell and supplement retirement but...would have to buy a house at a similarly inflated price. Oh well...beautiful sunrise over the lake this morning. Another cup of coffee is in order...

[craigster59]

Originally Posted by look 171

Time to buy up some old homes up in Idaho Falls or Boise and wait for the next wave.

Where in ID is your friend retiring to? I talked to a couple others who are looking up there as well. My childhood friend Mike is thinking about the same thing.

Last time I drove through there a few winters ago, the first thing they looked at was my lic plate when we stopped to eat.

He's originally from Jerome but doing his new gig near Couer D'Laine. He still does well here in Santa Clarita, a lot of people here selling and moving to Id, Az, Tx and Tenn.

He told me in northern Idaho it's not unusual to get 50 backup offers on a home with buyers offering sellers up to one year free rent in their old place until they find a new home.

[look 171]

Originally Posted by craigster59

He's originally from Jerome but doing his new gig near Couer D'Laine. He still does well here in Santa Clarita, a lot of people here selling and moving to Id, Az, Tx and Tenn.

He told me in northern Idaho it's not unusual to get 50 backup offers on a home with buyers offering sellers up to one year free rent in their old place until they find a new home.

Those that are from your area are the long time LA folks with good heads on their shoulders who grew up in the heart of LA or the Valley. They too see the changes of what they call LA today. I am talking political and ideologies, so they are leaving to those states. The new folks are those living in typical areas like west side, Silverlake and east side of LA (where I am) are usually from elsewhere with their new political point of view. I dislike that attitude myself, generally speaking anyway.

I visited my friend who moved to Prescott a couple years ago. He pointed out the 4 families that are from CA on his block. 3 are from socal. They sold homes in CA , make out, settle down in these states. I hear the other hot area is SC.

[craigster59]

Originally Posted by look 171

I visited my friend who moved to Prescott a couple years ago. He pointed out the 4 families that are from CA on his block. 3 are from socal. They sold homes in CA , make out, settle down in these states.

That's what I'm seeing in my search for homes in areas of Arizona. Most listings are "pending" and those that aren't are selling over $500k. When you click the link, their last recorded sale is in 2019-20 for in the high $200-300k range.

[3rd_gear_Ted]

As my Daddy said, there is a reason its called Real Property. There is only a finite amount of it in the world.

[Superman]

I grew up near the Coeur d'Alene area. Can't recommend it highly enough. If your buddy can afford a place on the lake, then strongly suggest this to him. A long bay to the east of Cd'A is very close to town, but spendy and a busy place during the summer. Best bay on the lake IMHO is Mica Bay, a few clicks from town to the south. Still spendy, but much quieter. Coeur d'Alene Lake is quite large, and rivals places like Tahoe for beauty. Deep lake (over 100' deep nearly everywhere). Perfect cool water for swimming. Property on that lake will explode in value, even though it has already exploded. One of the nicest lakes anywhere.

Several years ago, the median selling price for homes in Seattle was $640K. I bought a humble King County house around that time for $240K that would sell for $500K right now.

[3rd_gear_Ted]

A friend who lives right on the beach by Tijuana works @ the NASSCO shipyard in San Diego. The house cost him less than $300K and he is living where the best weather in the country is and he is making bank $$$. 40 minute commute with a SENTRI pass.

BTW, NASSCO is currently hiring hundreds of workers

[Bill Douglas]

Originally Posted by look 171

What's the APR now for a 30 year loan, Bill? do you have 30 year loans there?

Ours are only fixed rate for up to five years. Then it's the floating rate. Or you can fix it again for anything between six months and five years but at rate applicable for the time.

A friend told me his son in Holland fixed his for 30 years at 3% - I'm jealous.

I tell young people these days anything under 10% is a bargain, don't sweat the details.

Here in NZ we are a bit of a banana republic, sure the nicest banana republic you'll ever meet, so for others to lend us money it's got to be worth the risk.

[LeeH]

I kicked around selling my house here in Phoenix six months ago. At the time, it was worth about $430k. Decided to rent it out instead. Comps showed rent at about $2200/month. I posted it at $2600 and had a deposit 4 hours later. Today, it's probably worth $530K. It's a hillside lot which is fairly sought after so bidding from Californians could easily take it higher. I paid $202k in 1999.

California plates are everywhere here now.

[GG Allin]

My house was pretty much flat for 20 years. Last 6 months, up 25%.

[pwd72s]

Originally Posted by 3rd_gear_Ted

As my Daddy said, there is a reason its called Real Property. There is only a finite amount of it in the world.

Some fools, once the mortgage is paid, actually think they own their homes. They don't.
The government does. Through zoning laws, the government tells you what you can or can't do with "your" property. Try not paying property taxes for a spell, see how long you're allowed to use "your" property.

The actuality is, you merely rent the place and the government is your landlord.

Those happy over home values skyrocketing won't be so happy when property taxes based on value come due.

That said, we all have to live somewhere. I've never felt joy over the cost of living going up...which is what's happening.

[jyl]

looked up my house, Zillow says $1.2MM. I don’t think it was even $1MM a year ago. I’ve been a bull on housing but this feels toppy. Granted, “feels” are unreliable.

[red-beard]

My Business partner had to get a bigger house (mother with dementia had to move in). He finished fixing his house up last week and went on vacation Saturday.

Open house Sunday. It produced a full price offer. The Real Estate agent was not happy. She wanted a "bidding war". He accepted full price offer! On market 1 day. His house in in the edge of Preston Hollow in Dallas.

[pwd72s]

I take no joy in the escalating housing prices. With so many being priced out of the market, we could be seeing the beginning of the end of the American dream.

Think about it...are you enjoying your home more now than when it was valued less? Dunno about you, but Cindy & I find ourselves enjoying the place pretty much as we did decades ago, in the same manner. Only the local tax collector is benefiting from the increased value.

[Superman]

I am tired of government-bashing, PWD. Every topic can be about that, but only if you make it.

[pwd72s]

Originally Posted by Superman

Several years ago, the median selling price for homes in Seattle was $640K. I bought a humble King County house around that time for $240K that would sell for $500K right now.

And you're happy about this?

[Bill Douglas]

Originally Posted by pwd72s

I take no joy in the escalating housing prices.

Oh I do. While others were sitting in he pub I was working two jobs (and at one time three jobs) to be able to buy houses as a money making investment. That and the stock market. It was like a really big bet on the horses. And as it turns out for me, I won.

[speeder]

I don't undesrstand...from reading PARF and this forum, I learned that CA. is going broke and everyone is leaving, especially people with means. Meanwhile, here on earth, RE is white hot and people are snapping-up houses the minute they go on the market for crazy prices. One of my friends has a house in Malibu, (Pt. Dume for the familiar people), 2 years ago before the pandemic, she wanted to sell and could not get out from under it. The market in Malibu was kind of dead after the big fire that destroyed a lot of houses.

Fast forward to 2021 and she puts it back on the market. It sold in one week for $3M over asking. Yes, you read that right.