From Realtor dot com--Is a Housing Correction or Crash Ahead? See Where Home Prices Are Poised To Fall Next
- Thread starter GON
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You probably couldn’t build it today for that, not saying it’s worth it. @GON you better go visit these border towns for a few weeks before plopping down what must be a significant amount of money on a purchase. These houses are “affordable” for a reason, whether it be the neighbors, the lack of infrastructure, lack of jobs, lack of healthcare or other.
GON
$150 Site Donor 2025
@RhondaHonda , my Wife and I spent the month of May in Rio Rico, AZ. We shopped at the Wal Mart and Home Depot in Nogales. Everyone was super nice in Nogales. No need to lock a car. Law enforcement in Nogales pulled over drivers for traffic infractions. The area was wonderful. In Seattle/ Tacoma, my Wife with full justification was afraid to shop at Target on a Tuesday afternoon without a capable man with her. In Seattle/ Tacoma my Wife was ALWAYS exposed to carjacking just going to the grocery store. None of these issues on the border in Nogales.
One issue my Wife had, and it was significant in Rio Rico/ Nogales was the Iphone's GPS. She would speak into the Iphone "go to Rio Rico Walmart", when in Nogales, which there are no Wal Marts in Rio Rico. She would be only 1/2 mile from the Nogales, AZ Walmart. Instead, the IPhone GPS would try to take her into Mexico, and my Wife doesn't comprehend this and simply follows what the Iphone tells her. That was almost ugly. She caught the issue at the last second before entering Mexico.
Spot on. Our 3/2 home is 1200 sq ft on a good day, plus the 200+ sq ft shed we built in the back.
And it is not made that well. It would sell for... you don't wanna know.
2 to 3 million.
Very low end of that. The rich people live up the hill; I am not allowed there...
Full disclosure, while it is nice to have this incredible equity, all the neighbors know their kids can probably never live here. But ya never know, right? Twin kids next door are in 2nd year at Berkeley; one's in Mechanical Engineering and the other is in Medicine. Wow!
Jeff,
I relocated to a nice suburb of Salt Lake City and all the kids who grew up here won't be able to live here either (Homes at or near 1 million-generally). My kids have no friends who were able to stay in the nice suburb 40 miles east of downtown L.A. where they grew up either.
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Let me put some facts to that acrticel concerning Melbourne-Palm Bay MLS stats. That is my area as well as one of my MLS subscriptions. The reason there are so many 'new' listings is because our MLS system has just incorporated all MLS systems from Indian River COunty up to around Jaxsonville. That has effectively more than doubled our listing count. So these are not really new listings, just newly reported within our system. It has honestly had some adverse effects locally due to reports such as the Realtor.Com article. We had always just been Brevard County.
TH
TH
Housing market is strong and will remain so for years to come.
Much demand as inventory catches up post covid.
Sure there will be pockets of price de-escalation, always has been notably in places that have experienced double digit price increases over a 7 year period, ex. Florida possibly Long Island, NY ... who knows.
Homes are always in demand, generally like a case in Florida there are other market factors besides interest rates which are are flirting with their historical norms. Other factors there are an older generation dying off, massive increases in property and other taxes.
As a nation though? I feel we are finally getting close to a normal market post covid but not quite there yet, almost though. Demand is still high and why the high prices.
Much demand as inventory catches up post covid.
Sure there will be pockets of price de-escalation, always has been notably in places that have experienced double digit price increases over a 7 year period, ex. Florida possibly Long Island, NY ... who knows.
Homes are always in demand, generally like a case in Florida there are other market factors besides interest rates which are are flirting with their historical norms. Other factors there are an older generation dying off, massive increases in property and other taxes.
As a nation though? I feel we are finally getting close to a normal market post covid but not quite there yet, almost though. Demand is still high and why the high prices.
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When you start scratching your head on the prices, a correction can’t be far behind…
Here is a house in my neighborhood. Close to the beach, a few hundred yards away. Great schools.
It sold in 6 hours for full price.
https://www.zillow.com/homedetails/...ssage&utm_medium=referral&utm_source=txtshare
For about twice what I think it is worth. But someone was willing to pay nearly $600,000 for a tiny 1960s brick ranch with no yard.
Here is a house in my neighborhood. Close to the beach, a few hundred yards away. Great schools.
It sold in 6 hours for full price.
https://www.zillow.com/homedetails/...ssage&utm_medium=referral&utm_source=txtshare
For about twice what I think it is worth. But someone was willing to pay nearly $600,000 for a tiny 1960s brick ranch with no yard.
I said that for almost 3 years while helping a friend get into a home after his divorce. Finally bit the bullet and bought this fixer upper in a retirement community.
It's up another $80K since we got it in October last year. Crazy...
The Bay Area has always been one of the hottest markets in the nation ,it does have slumps though.
I have some family members (2 young families) that were packing up and moving south. Selling on Long Island. One on the water and one across the street from the water. Im talking the bay not the ocean.
1960s homes. Both sold had multiple offers as you describe at and around the 1 million mark. The prices escalated there over the last 5+ years from half that price.
Anyway, same deal, multiple offers, some full price, some cash, some a little below full price. Get this, the one across the street from a nice waterfront area decided to stay and not move. An email went out to the 3 who had offers on the house, one of the people raised his offer $125,000 over the asking price that was already at almost 1 million.
I have similar stories for young family members who sold in other states such as Colorado. Same price points and higher, these prices have jumped roughly 100% since all of them purchased. We are talking young families with young children.
I see it in my old Long Island hometown. Amazing, much smaller homes but not as small as you posted, yet still, all of a sudden they are selling 600k (basic home) to over 1 million if they were expanded and remodeled. These are 1950s homes on 60 x 100 foot lots that originally were in the 1800 sq ft range. AND you have the privilege of paying over $1000 a month in property taxes alone.
These numbers do blow me away but you know? I start thinking that all generations have said the same.
I sold my perfect house in the Cambrian area of San Jose after 6 years for a loss but got into the worst home Los Gatos. Sometimes you get lucky.
Now if I was smart, I would have kept Cambrian as well. Hindsight, as they say.
They increased the money supply by 40%, then the banks leveraged that up. At the start we were still in ZIRP. Surprise, surprise - that money goes somewhere. You can only store up so much extra toilet paper and home gyms, so you get $8 eggs, 9% inflation, and housing prices rising 50%.
Now that money has rolled through the economy its in the hands of wall street, so there getting in on it too, with investors buying single family homes in mass to rent or turn into airbnb. So many ways that can go wrong I won't even start.
So in the end something must change. Either we all become renting serfs to our wall street masters - just like in 1600 when people got in leaky boats to come here. Or wages rise to catch up. Or housing slides. Or maybe all 3. Median household income is about $75K, which means at 30% of gross median household can afford a $300K mortgage today.
Anyone that thinks that housing costs can go to the moon forever clearly does not understand economics at all.
Now that money has rolled through the economy its in the hands of wall street, so there getting in on it too, with investors buying single family homes in mass to rent or turn into airbnb. So many ways that can go wrong I won't even start.
So in the end something must change. Either we all become renting serfs to our wall street masters - just like in 1600 when people got in leaky boats to come here. Or wages rise to catch up. Or housing slides. Or maybe all 3. Median household income is about $75K, which means at 30% of gross median household can afford a $300K mortgage today.
Anyone that thinks that housing costs can go to the moon forever clearly does not understand economics at all.