Real estate thread

cosine

Woodpecker
Looking on redfin it seems like there are parts of the country like Ohio, Western Pennsylvania, West Virginia, upstate NY that don't seem to have gone through home price bubbles. Why have Western markets like Arizona, Utah, Idaho, (apart from the obvious rich places like California and Seattle) getting so many buyers but other cities are relatively ignored?

If someone can work remotely and wants to buy a cheap house it still seems there are plenty of markets where you can get a huge single family home for <250K with a good chunk of land as well.
I like mountains. I like open space, national parks, and the like. I like climbing and skiing.

I could be interested in Upstate NY, W. Virginia, Kentucky, New Hampshire as they all have some amazing climbing. They have crappy snow though, so crappy skiing.

Ohio and Pennsylvania types are a non-starter for me personally.

Denver and SLC have pretty excellent job markets.
 

paternos

Robin
Catholic
Looking on redfin it seems like there are parts of the country like Ohio, Western Pennsylvania, West Virginia, upstate NY that don't seem to have gone through home price bubbles. Why have Western markets like Arizona, Utah, Idaho, (apart from the obvious rich places like California and Seattle) getting so many buyers but other cities are relatively ignored?

If someone can work remotely and wants to buy a cheap house it still seems there are plenty of markets where you can get a huge single family home for <250K with a good chunk of land as well.
Speculation.

Federal banks pushing inflation to a level. That keeping money in your bank account is losing you at least 5% of value per year.

With a deposit of 20% banks were willing to lend the other 80% on a 2% interest (so having a loan makes you money)

Then there is appreciation of the houses. The last years +10%.

Then there is rental capability. If buyers can charge rent up to to cost of the loan they run little risk.

(Rental prices in some states are low)

Then there is the fact that tech has been getting a lot of free money from the bankers. These people like rental property within 3 hours drive to rent out. A lot of money in California.

Just 10 minutes ago the biggest rate hike was announced in years. If they follow through things will look very different.

Tech boys loosing stock value. Cost of capital going up. Lower house prices. People not able to put the rent.

As quick as the investors come in they will want to go out. It's just like the stock market. Up until February everyone wanted tech. Today they want dollars. Everything can change in an instant.
 

cosine

Woodpecker
Speculation.

Federal banks pushing inflation to a level. That keeping money in your bank account is losing you at least 5% of value per year.

With a deposit of 20% banks were willing to lend the other 80% on a 2% interest (so having a loan makes you money)

Then there is appreciation of the houses. The last years +10%.

Then there is rental capability. If buyers can charge rent up to to cost of the loan they run little risk.

(Rental prices in some states are low)

Then there is the fact that tech has been getting a lot of free money from the bankers. These people like rental property within 3 hours drive to rent out. A lot of money in California.

Just 10 minutes ago the biggest rate hike was announced in years. If they follow through things will look very different.

Tech boys loosing stock value. Cost of capital going up. Lower house prices. People not able to put the rent.

As quick as the investors come in they will want to go out. It's just like the stock market. Up until February everyone wanted tech. Today they want dollars. Everything can change in an instant.
The population is still increasing and the production of new housing has slowed due to inflation of goods, supply chain issues, labor shortages, etc.

Housing will still be in demand despite rate hikes.

Many people(like me) are fully remote, so will choose to live in desirable areas. Desirable areas will be in demand forever and will remain good investments.
 

Dilated

Woodpecker
Other Christian
Looking on redfin it seems like there are parts of the country like Ohio, Western Pennsylvania, West Virginia, upstate NY that don't seem to have gone through home price bubbles. Why have Western markets like Arizona, Utah, Idaho, (apart from the obvious rich places like California and Seattle) getting so many buyers but other cities are relatively ignored?

If someone can work remotely and wants to buy a cheap house it still seems there are plenty of markets where you can get a huge single family home for <250K with a good chunk of land as well.

People love to rag on places like Ohio (‘OMG it’s so boring!) but truth be told what comes with that boring is less degeneracy…and more reasonable living costs. $250k would get you a decent property in some markets here. I bought a solid home in OH in 2020 for less than that.

I still say the Midwest is the best place in USA to raise a family.
 

cosine

Woodpecker
People love to rag on places like Ohio (‘OMG it’s so boring!) but truth be told what comes with that boring is less degeneracy…and more reasonable living costs. $250k would get you a decent property in some markets here. I bought a solid home in OH in 2020 for less than that.

I still say the Midwest is the best place in USA to raise a family.
It's true, a lot of people who grow up as teenagers especially in exciting ski towns have so many "highs" doing exciting things that they have effectively been on drugs even if they happen to be sober.
Big contrast with eastern european mountain climbers. For them there were periods under Soviet control where climbing was one of the only acceptable freedoms. My issue there is their risk tolerance is so high, they don't really seem to value their own lives even when the threat of avalanches and etc is very high.

I haven't spent as much time in the midwest, but I believe you; they're generally wholesome people.
 

NoMoreTO

Hummingbird
Catholic
I think real estate is solid. People will always need a place to live. If things go poorly for you as an owner, you can always spend time cleaning up your house and such, put sweat equity into your property.

If there is a pullback here because of rising interest rates, then I think that there could be some good deals. In the long run, I'm a believer the currency will only continue to devalue, and real estate prices will inflate. There's skill in the timing of it all, but I like real estate long term.
 

MartyMcFly

Pelican
Other Christian
People love to rag on places like Ohio (‘OMG it’s so boring!) but truth be told what comes with that boring is less degeneracy…and more reasonable living costs. $250k would get you a decent property in some markets here. I bought a solid home in OH in 2020 for less than that.

I still say the Midwest is the best place in USA to raise a family.
Some parts of Ohio seem promising, but a lot of the smaller cities (ex. Dayton, Lima, Springfield, Portsmouth) seem rundown and using hard drugs seems to be a top hobby for many there. However, I notice that one can buy a home in a low crime small town for a good price and live within a 20-30 minute drive from a place that has your basic needs.

I have felt that Ohio and Indiana to a lesser extent are the states that best represent both the good and the bad points of the USA.
 

Dilated

Woodpecker
Other Christian
Some parts of Ohio seem promising, but a lot of the smaller cities (ex. Dayton, Lima, Springfield, Portsmouth) seem rundown and using hard drugs seems to be a top hobby for many there. However, I notice that one can buy a home in a low crime small town for a good price and live within a 20-30 minute drive from a place that has your basic needs.

I have felt that Ohio and Indiana to a lesser extent are the states that best represent both the good and the bad points of the USA.

The sweet spot is a place like Findlay, OH. It’s a smaller town but has a monster company headquartered there. Low home prices and good wages. It’s a safe city too.

It’s all about the margin between wages and living costs. And how degenerate the culture is.
 

Thomas More

Crow
Protestant
Housing prices look like they may have never been this high in the US. This data is only until January 2022, prices have continued rising as long as Zillow tracks data, which would mean the average home in the US costs the median working American 8 years' salary.

View attachment 41430
Until a few months ago, this was offset by historically low interest rates. The higher prices were fairly affordable with 3% interest mortgages. However, now that mortgages have shot over 5% in the past few months, I bet the affordability is really getting bad.
 

budoslavic

Eagle
Orthodox
Gold Member


FSk3BBYVEAESXXK

FSk3NIfVEAounRY


 

MartyMcFly

Pelican
Other Christian

To be honest, it is silly to ask a real estate agent if the neighborhood is low-crime. He or she wouldn't want to tell you bad things unless it is to upsell you to another neighborhood. It is like asking a car salesman if the car you are looking at is a good value or reliable.

I wonder which race they are talking about when they say 'high-crime neighborhood.'

The idea it is wrong to use a church as a landmark is also pretty stupid. I wonder if you can use a mosque, temple, or synagogue as a landmark.

I wonder if the real estate agent is allowed to give printed statistics about the neighborhood from a directly cited source and not be in violation. The real estate agent is not using his or her opinions and only giving factual information to someone that wants it which would include data provided by the Census Bureau. Hopefully this is legal.
 

MartyMcFly

Pelican
Other Christian
Warning: Language.


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This is what happens when corporations are allowed to buy homes. When greed goes too far, it leads to authoritarian socialism as the proletarians lose hope of living a decent life while watching the oligarchs prosper. Of course, this presents its own problems and is often worse.

It seems there need to be bans on corporations and foreigners buying homes and perhaps a limit of one or two homes per person.
 

Thomas More

Crow
Protestant
Warning: Language.


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I am sympathetic to the plight of people facing unaffordable housing prices. However, I rather doubt any house was listed at $540K and sold four days later at $935K, especially if it was brand new 8 years ago at $185K.

Likewise, rent going from $800 in 2019 to $2800 now is unrealistic. If anybody knows any examples of this, please post them.

I could see run down houses being fixed up as an area gentrifies, and going up 3x in 8 years. However, a brand new house going up five times in 8 years is hard to believe. Also selling for $400K over asking is unlikely.

Same with rent. I can see rent going up 60-90% in three years, but 3.5x is too much to believe.
 
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