The housing market

[Dusten]

I think smart lending will help avert another crash, but we are closing in on a point where people will struggle to sell a home and buy a better home.

I know we bought ours ~3 years ago and its worth almost 200k more than we paid.

 

[RedRocketMike]

Can't be that strong w/the stock market dip we just had...

I make a living off the market. Are you looking at a 2 month chart? That's the only way it looks anything short of incredible to me. With all of Obama's hot air monetary policy (Quantitative Easing) maintaining the gains created by cheap money, while raising interest rates is extra work. Pro business policy equated to immediate serious gains in all the indices. I remember the pre-market the night Trump won. I think the DOW dropped 900 points, down to like 16,990. Market drops since election have been caused by uncertainty, not something actually negative. When will it correct, who knows. I'm surprised it didn't yet regardless of the economy.

Stocks are high, houses are expensive. I think the real drive in these lower priced homes, 100-250k, are the abundance of people diversifying into a rental. All these husband and wife teams are getting a rental property or three and overpaying so they have something to brag about to their friends. Classic car market is even worse.

 

[Never_Enough]

I think smart lending will help avert another crash, but we are closing in on a point where people will struggle to sell a home and buy a better home.

I know we bought ours ~3 years ago and its worth almost 200k more than we paid.

We're already at the point where anyone with a modest income is being priced out of buying a home.

 

[Dusten]

We're already at the point where anyone with a modest income is being priced out of buying a home.

Depends on area. My brother is a lineman for our local pud. He's 27. His wife is 26, and a dental tech.

He just bought this.

425k

 

[Never_Enough]

Depends on area. My brother is a lineman for our local pud. He's 27. His wife is 26, and a dental tech.

He just bought this.

425k
View attachment 1474453View attachment 1474454

True, I should have specified depending on area. Like my area. $425k is well above a modest home price IMO.

 

[Coiled03]

Depends on area. My brother is a lineman for our local pud. He's 27. His wife is 26, and a dental tech.

He just bought this.

425k
View attachment 1474453View attachment 1474454

That doesn't look worth 425k, and 425k isn't a modest income home no matter where you are.

 

[Buckwheat 1]

Zoning/permitting and not enough construction workers.

And materials going up 12% or more annually


Sent from my iPhone using the svtperformance.com mobile app

 

[OETKB]

Around Raleigh, Cary and Apex the new neighborhoods are $450K to $800K for production built homes of questionable quality and appearance. To get around $250K you have to build in the adjacent counties.

I sold an old house on an expensive lot last summer right in town to unload it since it was basically worth the value of the land, but I sure as heck can't figure out what to do next, or when. I don't mind renting this townhouse for a couple of years, but the first year is almost up and I gotta decide whether to sign another one year lease.

 

[Dusten]

That doesn't look worth 425k, and 425k isn't a modest income home no matter where you are.

2600 sq feet. 2400 sq foot shop. 10 acres. Appraised at 460k.

True, I should have specified depending on area. Like my area. $425k is well above a modest home price IMO.

Median home price here is 375+ so 425k isnt far off from normal. My point was he's not doing anything career wise a normal person cant do, neither is the wife.

According to a quick search with 20% down 72k a year buys that house.
65k a year is median.

 

[zeus201]

True, I should have specified depending on area. Like my area. $425k is well above a modest home price IMO.

That doesn't look worth 425k, and 425k isn't a modest income home no matter where you are.

Bruh..this is SVTP! 425k is chump change around here.

I agree, 425k can buy an amazing house majority of the US. Here in Iowa, that'd be many acres of land plus an awesome house.

 

[OETKB]

Around here, $425k gets a poorly constructed new 2300 ft house on .2 of an acre, but there's more!
You get an HOA!!

 

[Coiled03]

Bruh..this is SVTP! 425k is chump change around here.

I agree, 425k can buy an amazing house majority of the US. Here in Iowa, that'd be many acres of land plus an awesome house.

Yeah...I don't ball like most of SVTP. If the rest of the guys are in the NFL, I'm in, like, the arena league. Mayhap I should just excuse myself from the site. Don't want to bring the overall financial base down.

 

[Dusten]

Around here, $425k gets a poorly constructed new 2300 ft house on .2 of an acre, but there's more!
You get an HOA!!

Look in the bay area. 425k is trash

 

[DriftwoodSVT]

A 10 acre lot kiddy corner to ours just sold for $500,000 recently.

Just the land. No house or structure.

 

[OETKB]

A 10 acre lot kiddy corner to ours just sold for $500,000 recently.

Just the land. No house or structure.

Raw farmland is selling in the county for $60,000 an acre to production home builders buying it 20-150 acres at a time, developing it themselves, and throwing up these $400k-$800 3,00-4,000 foot homes on quarter acres lots. And it's happening everywhere around the Raleigh area.

 

[nickf2005]

Look in the bay area. 425k is trash

I happened to come across House Hunters as I was channel surfing yesterday. A 1,140 sq. ft. house built in 1908 was listed for $899,000. Not sure what part of San Francisco it was.

 

[Voltwings]

I happened to come across House Hunters as I was channel surfing yesterday. A 1,140 sq. ft. house built in 1908 was listed for $899,000. Not sure what part of San Francisco it was.

That's the only reason California has a hot "house flipping" market. There is nowhere else in the country where you can find a house priced $200k below the comps in the area, dump $100k in reno into it and then profit $50k-100k said and done. Nowhere else has the insane prices to support ridiculous spreads like that, in Houston $200-300k homes are pretty much the bread and butter... a flipper would be lucky to find something $20-30k under comps in the area, and what reno are you going to do for that amount and still be able to turn a profit? There was a foreclosure in a neighborhood we saw that was listed for $230 and the median home price was still $250 - 300. Not a lot of wiggle room.

Not that i want to flip or am interested in it, but it's just ridiculous to watch these shows on HGTV (admittedly, i do enjoy flip or flop ...) and see the prices things go for in California for a basic, "run of the mill" house.

 

[Dusten]

Raw farmland is selling in the county for $60,000 an acre to production home builders buying it 20-150 acres at a time, developing it themselves, and throwing up these $400k-$800 3,00-4,000 foot homes on quarter acres lots. And it's happening everywhere around the Raleigh area.

Just found out an empty plot about 2 miles from my house sold. They're putting 170 homes on it. Fml

 

[OETKB]

Just found out an empty plot about 2 miles from my house sold. They're putting 170 homes on it. Fml

It reminds me of a Star Trek episode where the Borg were taking over.

Your ass will be laminated.

 

[Coiled03]

It reminds me of a Star Trek episode where the Borg were taking over.

Your ass will be laminated.

Resistance is futile.