Posted on 06/22/2021 8:52:57 AM PDT by millenial4freedom
Yet another overpriced 'starter-home' in the city I grew up in that recently sold at nearly 20% over the asking price... 830k for 1.8k sf. The house last sold for 300k in 2008.
What's particularly sad is that Melrose was once a blue-collar middle class city in which the children of residents eagerly wished to remain. Prices have been on a tear since 2012, but they, like those everywhere else, have been accelerating rapidly since the plandemic.
I would like to especially thank our clueless, arrogant, obnoxious elites at the Federal Reserve (yes, you JPow), the arrogant, entrenched executives at Blackrock, Blackstone, etc who have turned the real-estate market into a giant casino! Because of you *sshats, young people don't stand a chance of ever owning a home, let alone a small condo!
People who “flee” California and ditch their half-million dollar bungalow want to stash the money from their old home in the purchase of their new home.
They want to avoid capital gains taxes.
A very astute business associate and close friend of mine who runs a real estate development company once said to me: "Take a look at the Forbes 400 list of the wealthiest Americans, and notice how FEW of them made their fortunes in real estate."
This was a guy who made a killing back in 2007 when he bailed out of all his residential projects right before the crash.
I’m from MA but could never afford to go back and have no desire to. Lived in FL for 25 years and left because I could see us being priced out of the game so we moved to MO ten years ago and bought a hunk of woods.
Zillow is way over on it estimates imho. I could never get what it thinks my house is worth.
A 1.6 million dollar home in California? What is it, a shed?
Their anti-capitalism boils down to, “Daddy! You promised me Legos! These are Playmobil! IT’S NOT FAIR!”
I paid cash for a $325K house.
Old house with mortgage burned down. Insurance on structure paid off the mortgage. Sold the lot with the burnt out shell for $325K.
Took the $325K to New Mexico and bought a house for cash that was 3X bigger than the old house.
Yep. It’s crazy out there.
They certainly don’t want to give up their self-phones and certainly don’t want to pay “fair trade” prices to those who designed them, tested them, built them, or supplied the parts. They want it as cheap as possible.
Wow. And it’s only a 2 BR house.
“Yep I wonder where it will all end.”
I bought my first house in ‘72 for $10k. Sold it in ‘77 for $15k and never looked back. I’m about to sell my next to last one for about $500k (already own the newest one). Been through 3 real estate crashes, retired off them 12 years ago. Fortunes are made during crashes and lost during booms.
It’s all about the timing.
I’m a real estate investor and real estate has been very good to me for almost 50 years. But the huge money lately has been made in energy and tech.
I’m a gnat compared those guys but I’m very comfortable thanks to real estate and energy investing.
Between inflation, gentrification, extremely tight market (low supply, high demand), and fixed up very nicely - yeah prices are high.
I'm in PA. You can find a very nice starter home here for less than $30k. If you want to roll up your sleeves, you can get a starter for under $10k. I've gotten a few of them for FREE (needing a roof or other major needs). And these aren't bad places in bad neighborhoods. Solid older homes that have been neglected or abandoned to the tax office; places where owners have gone to nursing homes or to relatives who don't know or care about cleaning out and selling the house; landlords fed up with tenants. I'm working on one now, 22 rooms, in good shape except for tenant trash and a wrecked kitchen -- bought it for $7500. I've been doing this since I turned 18 and have yet to burn my fingers on an investment. Never had a mortgage either. But if you NEED to live in or near a big city, go for it!
My son and his wife tried to buy a house here in Rio Rancho. They pre-qualified for $200K and, at that time, there were plenty of houses in their price range.
Within a couple of weeks all of the “starter” homes had skyrocketed in price. Crappy homes were being listed at $185K, but selling for $220K. It seems that realtors were encouraging sellers to list low to draw interest and encourage bidding wars. Plus, that agent then advertised that they sold X house for over $30K over asking.
Cheapest crap house is now listing for $204K.
To make matters worse, their apartment complex is raising their rent from $1000 to $1200 a month.
This is not a good time to be a young couple.
IMO with Realestate you make you $ going in not out
My dad bought his first property in another medium-sized city outside of Boston in the mid-80s and sold it in the early-90s for a near 50% loss. Luckily, he, like so many others in Melrose, has built up a ton of equity after owning our home for a few decades. So he’s made out ok.
I vowed to myself that I would never buy a house during a ‘boom’ period - I’m just sitting here waiting for a bust, even if it’ll take a few years to materialize.
“People who “flee” California and ditch their half-million dollar bungalow want to stash the money from their old home in the purchase of their new home.
They want to avoid capital gains taxes.”
There are no capital gain taxes when you sell your principal residence unless you make over $550k in profit.
Been looking for a few weeks down in FL. It’s just nucking futs. Houses are on the market for a day and there is an offer.
Screw it. Sure signs a crash is coming.
I’m selling now and maybe buying later. Getting old enough it’s just for fun now. I did buy a piece of recreational land last year and put a trailer on it for hanging out. The heirs can sell it.
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