I live in norcal, my rent hasn't been raised in at least 2 years, which is awesome. But housing prices are high and house are sold pretty damn quickly. I would love to buy a condo or house, but no way I can afford without help.
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NYT: The number of homes for sale in the USA has plummeted while home prices skyrocket and rents plummet
- Thread starter RastaMentality
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I think it's a little disingenuous to ignore that there is an ongoing global pandemic that's making it unsafe to move right now.
The article doesn't ignore that, it's part of the central thesis:
I think you'll see this affect for a little while too, as would-be retirees at ~65 or 70 avoid moving into a senior living community because of the memory of 2020. Where as seniors could generally be relied on to cash out 30 years of equity in their home to move into senior living, there's going to be a collective memory of the risk that posed even well after the pandemic is over which will stunt existing home sales.
There will be a ton of opportunity for builders though. About a ~1/4mi up the street from me is 10 plots of undeveloped land that's never been sold as developable, and about 5 years ago 'For sale' lots went up on it but nobody bought, the price was too high and they were being packaged together for a developer. I think it's likely those all go and new construction starts there soon with these prices.
What's too bad is that the pandemic is going to bring a halt to the small trend of urbanization. Prior to 2020 there were plenty of anecdotes of older people selling their properties and moving to city centers. The allure of not having to drive, not worry about your house in a managed property, and new opportunity in city centers for older people was real. The pandemic killed that.
Oh, okay. Thanks. I should have read the whole thing but just read the pull quotes this time.
Anecdotally, I was lucky in that we sold and bought right before the pandemic started (closed escrow last February, so that's how close we cut it), and if we just moved on things even a bit slower, we probably would have put off buying. We moved in May, and it was scary as shit having a bunch of movers in-and-out of our rental and then house all day. It's definitely not an experience I'd recommend for anyone else to try.
We are looking to move but the fear of not finding a house and i doubt many buyers will want to deal with a hubbard clause.
NYT: The number of homes for sale in the USA has plummeted while home prices skyrocket and rents plummet.
If I recall correctly, housing stock has been lowering for awhile, so while that may be part of it I don't think the pandemic is actually the main force at play here.
It certainly does have an effect on the fact that there are very few new builds, and lumber costs are elevated making even major home repair is much more expensive than usual. So it's part of it, but the market has been heading towards more of a bubble for the last couple of years at least, possibly accelerated by this last year
We bought in 2018 and the market was crazy then. Lost out on one house to an all cash buyer as soon as we decided to put an offer in. Then we decided on another and were able to get it.
Working on a refi because of the even better rates available now and the soaring value.
Working on a refi because of the even better rates available now and the soaring value.
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Rents are def way cheaper than you'd ever expect in a lot of cities right now. It's a strange phenomenon overall
I've always been a little wary of buying in Los Angeles, because it's possible that in 2040 or beyond, the writing will be on the wall enough re: rising sea levels that the market may collapse.
That said, I wouldn't mind a reasonably priced home. (sigh) Should have chosen a different area for that, I guess.
That said, I wouldn't mind a reasonably priced home. (sigh) Should have chosen a different area for that, I guess.
Bought my house for 380k back in 2018. Similar
but less maintained house just sold for 500k. I couldn't afford the house I live in for it's current market price. Feel lucky I ignored the "market had peaked" mentality people had back then. It's always a gamble when you buy in but damn has it gone crazy.
Homes in my neighborhood last less than a day on the open market (even the dreadfully decorated ones). I walk the neighborhood on weekends and see tons of California license plates at every open house. Phoenix market is going bonkers now people are able to work remotely.
but less maintained house just sold for 500k. I couldn't afford the house I live in for it's current market price. Feel lucky I ignored the "market had peaked" mentality people had back then. It's always a gamble when you buy in but damn has it gone crazy.
Homes in my neighborhood last less than a day on the open market (even the dreadfully decorated ones). I walk the neighborhood on weekends and see tons of California license plates at every open house. Phoenix market is going bonkers now people are able to work remotely.
Yeah, we could afford a house in late December. Now I'm not sure. The 2 bedrooms that were sitting at $600k are now $700k.
It's really depressing.
It's really depressing.
Fort Collins, CO, right now is completely absurd right now. Inventory is basically nothing and everything sells for way above asking price within 24 hours of posting. We have crazy high growth and have always been expensive (college town) but this is becoming completely untenable.
Truthfully though we have no where to grow. North? You hit Wyoming. West? Big rocks called the Rocky Mountains. South? You hit Loveland and all the major boom towns growing north of Denver. East? Republicans. Basically, there is no way to go.
Truthfully though we have no where to grow. North? You hit Wyoming. West? Big rocks called the Rocky Mountains. South? You hit Loveland and all the major boom towns growing north of Denver. East? Republicans. Basically, there is no way to go.
Closed on my first home today, but that's probably mostly due to the fact that I was buying in a very small town. One that is going to be caught as major cities nearby expand and logistics presence grows. My realtor had been echoing similar concerns about how low affordable housing stock was in Florida. I lost 5 houses before I was able to finally put in a bid on this one. Anything in the 130 or so K range is gone within days, or at worst in literal hours of listing.
Absolutely. We just got a house in Western Mass and it took about 4 months and over 15k asking price to get a nice home 30 minutes away.
My wife and I are debating what to do. We bought our home in 1999 (yes, we're old) for $337K and it is estimated at around $650K now. We were empty nesters for a bit and dead set on selling and moving to a much smaller (and maintainable and single story) home in rural western NC. But a few things happened: COVID brought my kids (21 and 24) home, the oldest is applying for jobs all over the country so maybe we'll want to be around her instead of western NC, and we spent some time in western NC and, outside of Asheville and Brevard and a few other locales it is very MAGA. So now we're in a wait and see. Part of me loves this house too and wouldn't mind dying in it (in a few decades, I hope!) but it's just too big for the two of us should the kids eventually move out (again). If someone stopped by with a $1M offer I wouldn't say no (probably), lol.
It depends. My wife and I sold our house on the outskirts of Boston nd moved to a NYC apartment in Brooklyn. We made a good amount and now are paying a much cheaper monthly payment while we decide if we want to own again. I was into houses I think cause it seemed like the logical middle class step to take but after I got our house I realized it's not necessary really.
They appreciate together but at different scales, since it's all based on percentage. For example, if your $2M house in SF and a$500k house in Idaho both appreciate, say, 10%, the SF house still appreciates way more.
Problem with way cheaper is that it isn't cheap since the cities were on a hell of a run, lol.
It feels like a free fall though, so lets see how it goes into 2022. But the issue is that even a 20% knockoff in some of the big cities doesn't feel like a difference if that drop is primarily luxury apts (which seem to be where the new developments that sneak in are focused on)
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You can get a studio in SF in the $1Ks. Unheard of before. But it's definitely apartments that were in areas centered around partying I'll say that.
I'm sure I can show the "rent plummets" to my landlord and get a discount on my $2400 two bed room town house rental, right?
I'm FINALLY at a point where I am able to buy a house, at 34 years old, and prices are batshit insane. Fucking sucks and I'm bitter as hell.
Yup, in same boat, bought our house in 2016 (NYC metro suburb) and right now is worth approximately $150-200,000 more than we paid for it, absolutely bonkers. We have friends who have been looking in the area this past year and anything sub $500,000 is gone within days at over ask prices, the entry level market is a god damn thunder dome right now
find some land. Buy multiple tiny houses but each one has a specific purpose. A gaming one, a movie theater one, a kitchen one etc etc.
Get that Elon Starlink internet and you'll be set.
My wife and I need to move, but hearing stuff like this makes my stomach churn. We've had basically the same priced rent for 10 years, same as you. It just went up $50 once we took in our cat last spring. I know we will never find a place, with all the fringe perks it provides, at this low of a price and that virtually never goes up.
When the line isn't going straight up it's considered "plummeting" by the people writing stories who don't rent because they don't need to.
my wife has been bugging me to sell for a week now. she keeps getting email offers from companies asking to buy our house - the one today was 5k more than the one a couple days ago. we built this house in 2015 and it's now like 120k higher than we paid for it or something.
the problem is.. you sell your house, and then what? buy an equally inflated house? if we could live in an apartment for a year or something then that'd be something, but that isn't going to fly with four people and four pets. plus, fuck moving forever.
the problem is.. you sell your house, and then what? buy an equally inflated house? if we could live in an apartment for a year or something then that'd be something, but that isn't going to fly with four people and four pets. plus, fuck moving forever.
yup makes sense, people worry about economy/layoffs and kids are moving back home with their parents....
My current rent has gone up $500/month over the years since I moved in. Can't even afford to look for my own place, I'm surrounded by $1m+ homes in every direction.
Was going to post "are you me?", then checked the location. Yep, COL explosion is real here.
I think they mean moreso the fact that more rental properties have been constructed over the years than houses. This would at least reflect in what we're seeing: not enough homes being built AND decreases in rent prices due to inflated supply.
Anecdotally this checks out in the Seattle area at least. Lots of apartment buildings being constructed that started *before* the pandemic having been gradually being completed, but a lot of the complexes have high vacancies.
I believe companies also tend to prefer this as there's more profit to be made there than in constructing and selling houses.