Real estate thread

Dilated

Woodpecker
With all due respect... do you have a learning disability? I can't even believe this especially given the state of the homes I'm seeing on the market. Did you at least walk through it?

Thanks for the concern. While not an official inspection I walked through it with professional contractors and felt good enough about it to pull the trigger. No problems with the house.
 

DanielH

Pelican
Orthodox
Home “inspections” are a racket.
I just avoided buying a home due to the inspection. Inspector found a series of leaks in the roof, issues with the flashings, gutters, to the extent that the roof would need to be replaced. Estimated 18k roof replacement. He also found a number of other issues, which I could have used to negotiate the price of the house down (was being sold as-is so no repairs would be done). Best $600 I ever spent. (Cc @EndlessGravity )

Median Household IncomeHome CostHome Cost/Income Factor
1970$9,870*$23,000**2.33x
2021~$68,400 (2020)****$287,000***4.2x

Using the above data, we can calculate that purchasing a home in real terms today is roughly 80% more expensive than in 1970 - but that doesn't even factor in the tax burden and the lack of opportunities there are for people starting families today. I am looking for a house right now but I'm thinking it may be best to wait for the market to return to more sane levels. From what I have been able to find, the lowest price you can find a habitable move in ready home in a rural area suitable for a new family - the people society should be helping - is around 190k, 200k if you want enough land to sustain yourselves, which is still much more than the 1970 median real home cost. I mention that because some people may justifiably question the zillow 2021 home price I quoted.

*https://www.census.gov/library/publications/1971/demo/p60-78.html
**http://www.mybudget360.com/40-years...-values-in-gold-ounces-real-estate-expensive/
***https://www.zillow.com/home-values/ (287k as of June 2021)
****https://dqydj.com/average-median-top-household-income-percentiles/
 
A boomer couple just bought the house next to my parents. It's their 3rd house. The other two are in two different states. I don't know why they need 3 homes but it seems kind of gross to be buying a 3rd home when there is a housing shortage.

This is because interest rates are at rock bottom. There is no point in keeping cash in the bank when you won't get a decent return. It's better to invest your money in tangible assets like property. This is why property prices are so expensive in the West.

In an ideal word interest rates would be allowed rise, but the central banks / governments don't want this to happen. For example, If interest rates rose then people on variable mortgages (majority in Europe) would be in big trouble financially. People are already having trouble making ends meet as wages have been stagnating for decades.
 

Roosh

Cardinal
Orthodox
Heated housing market shows signs of cooling down
After months of heated activity, homebuyers across the country are pulling back amid rising prices, new reports show — and it’s no different in Las Vegas.

Nationwide, the pace of homebuilders’ sales last month fell 5.9 percent from April to the slowest rate in a year, according to a report Wednesday from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

The median sales price last month, $374,400, was up just over 18 percent from May of last year, the report shows.
 

C-Note

Ostrich
Gold Member
Heated housing market shows signs of cooling down

The commuter traffic in my area has almost returned to pre-pandemic levels, so it may be that people are starting to pull back from their quest to find a great teleworking home in the outer suburbs.
 

Talus

Sparrow
The commuter traffic in my area has almost returned to pre-pandemic levels, so it may be that people are starting to pull back from their quest to find a great teleworking home in the outer suburbs.

In the same vein, the company I work for just mandated that all remote workers are suppose to return to their standard work site starting tomorrow.
 

Dilated

Woodpecker
In the same vein, the company I work for just mandated that all remote workers are suppose to return to their standard work site starting tomorrow.
Curious to see how many companies (who just recently announced a return to office) reverse course and go back to remote working this Fall when the Delta virus arrives.
 

Robert High Hawk

Kingfisher
The commuter traffic in my area has almost returned to pre-pandemic levels, so it may be that people are starting to pull back from their quest to find a great teleworking home in the outer suburbs.
Just like with Lumber, prices will go down a little, but still be higher than before the pandemic. And then also urban prices will go up again as well. Just my off the cuff prediction. I don't see any housing crash when the gov is still giving insane amounts of free money to big companies to buy up all the houses around America.
 

Roosh

Cardinal
Orthodox
Frenzied U.S. Residential Market May Be Passed Its Peak
Although asking prices for U.S. homes continue to rise, there are signs that the red-hot housing market has passed its peak, according to a report Thursday from Realtor.com.

The median listing price was up 12.2% in the week ending Saturday, compared to the same time in 2020, the data showed. That’s the 45th week in a row in which price growth was in the double digits.

Despite the rise, the pace of annual price growth has been slowing since its high of 19% in early April, according to the report. If the downward trend continues, prices could return to a “more typical seasonal price pattern” in the next six months.

Additionally, new listings rose 4% year over year last week, as sellers look to take advantage of the frenzied market, the report found. The increase in options has helped curbed prices, as well as giving buyers more options.
 

C-Note

Ostrich
Gold Member
Past the peak doesn't mean the prices will drop to where they should be. Rather, it means they'll be increasing at the slower "normal" rate. Anyone who doesn't have a house probably won't ever. Those who have homes will be crushed by increased property taxes.
If the Biden Administration succeeds in federalizing the suburbs, housing prices will eventually fall as crime rises and school ratings drop.


I live in a Democratic-controlled county, and they're already talking about how they want to increase the number of federally-subsidized town houses and apartments in the county and spread them throughout all the neighborhoods, especially the areas with schools with high academic ratings.
 

DanielH

Pelican
Orthodox
If the Biden Administration succeeds in federalizing the suburbs, housing prices will eventually fall as crime rises and school ratings drop.


I live in a Democratic-controlled county, and they're already talking about how they want to increase the number of federally-subsidized town houses and apartments in the county and spread them throughout all the neighborhoods, especially the areas with schools with high academic ratings.
But prices anywhere a reasonable person who values their life would consider to live would go up (safe rural areas and elite metropolis neighborhoods). Time to flood Appalachia with more opioids and immigrants I guess.
 

Caractacus Potts

Woodpecker
Gold Member
Before I speak to a tax attorney I thought I would tap into the cabinet of advisors that make up RVF...

My mom is 81, the taxes on her house do not go up thanks to a "senior freeze" and the house is held in trust. Her property taxes are half of what the new buyers on the street are paying. Without the "senior freeze" her taxes would probably be $25,000+. When she passes away will the taxes be adjusted up or does the fact that the house is held in trust have any effect?

I may have to move into the house in the next few years to help out and when she passes I would like to be able to keep the home in the family for my daughters or one of my nieces or nephew. Can anyone offer any general advice before I contact the tax attorney$$$ and estate planner$$$?

CP
 

C-Note

Ostrich
Gold Member
Before I speak to a tax attorney I thought I would tap into the cabinet of advisors that make up RVF...

My mom is 81, the taxes on her house do not go up thanks to a "senior freeze" and the house is held in trust. Her property taxes are half of what the new buyers on the street are paying. Without the "senior freeze" her taxes would probably be $25,000+. When she passes away will the taxes be adjusted up or does the fact that the house is held in trust have any effect?

I may have to move into the house in the next few years to help out and when she passes I would like to be able to keep the home in the family for my daughters or one of my nieces or nephew. Can anyone offer any general advice before I contact the tax attorney$$$ and estate planner$$$?

CP
Looks like you would need to tell us a little more about what kind of trust it is:

 

aynrus

Pelican
Before I speak to a tax attorney I thought I would tap into the cabinet of advisors that make up RVF...

My mom is 81, the taxes on her house do not go up thanks to a "senior freeze" and the house is held in trust. Her property taxes are half of what the new buyers on the street are paying. Without the "senior freeze" her taxes would probably be $25,000+. When she passes away will the taxes be adjusted up or does the fact that the house is held in trust have any effect?

I may have to move into the house in the next few years to help out and when she passes I would like to be able to keep the home in the family for my daughters or one of my nieces or nephew. Can anyone offer any general advice before I contact the tax attorney$$$ and estate planner$$$?

CP
It depends on the state law, as trusts and property taxation are regulated on the state level.
Also you didn't explain what is "senior freeze", is it age-based tax exemption for seniors or is it a tax increase freeze based on continuous ownership of primary residence. Age-based exemption isn't going to transfer by all chances except for surviving spouse (in the trust or not, the state aren't fools and they equate a trust to a person if they need to). Continuous ownership exemption can sometimes transfer, in some states such as California/Prop 13. State law question... You can call the county tax office, actually, to get started (or township, depending on the state).
 

aynrus

Pelican
I can't even believe this especially given the state of the homes I'm seeing on the market. Did you at least walk through it?
Right now it's pretty normal to waive inspections to get competitive edge, as it's a multiple offer situation more often than not. If someone understands a bit about houses and doesn't mind going into attic and crawlspace to take a look, it's all good. Unless it's some kind of complicated case where there're foundation cracks, etc, some obvious issues that require further investigation. Some inspectors are total junk and I've seen one not go into attic and miss mold and claim there's no access to the attic, while it was right there in plain view, another one walked right by black mold like if it's not there claimed couldn't see it. Having a contractor to take informal look is good.
 
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aynrus

Pelican
Frenzied U.S. Residential Market May Be Passed Its Peak


They seem to waive the carrot of slowing down market and increasing inventory for some time this year.
And then there're hope-crushing articles like this:

Yes, Real Estate Prices Are Soaring, and No, It’s Not a Bubble​


There had been some articles in the last few days mentioning potential "crash". Probably BlackRock spreading the rumors/trying to put a damper on prices before they buy everything out (joking, but never know)
 
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