It’s all California money causing inflation elsewhere. Somebody must be buying their homes back in California. Who would buy for such high prices when everybody is leaving ?
I’ve also been watching the homes near mine selling for extraordinarily high numbers. I don’t see how this can possibly be sustainable, particularly with all the economic damage that’s been done. I’ve been predicting a wave of foreclosures crashing the market for quite a while, but so far there hasn’t been any sign of slowing. It’s been nuts.
Think of the impact on property taxes.
Are these people kidding?
Home prices where? In calif?
All over
They lost congressional seats in blue states and FOX wants Us to Pretend there’s a Biden economic surge
I can’t even go to dinner here in Texas. Can’t go out on a Saturday
This place is packed
My house value has doubled. It went up 12 % last year alone
These people are disgusting propagandists
People are running from blues states
Home prices are not soaring.
There is a mass exodus.
Hello!!!
2008 Redux? Great.
I wish my home was worth $5. Insurance would be much lower. It is likely not going to be sold until I die and if I could replace it for $5 what difference would it make? I don’t need, or want two.
Nobody brags about their socks being worth $100,000. It is far better them being worth $1.
The prices of even modest 3 bedroom homes are stunning.
I don’t see how middle class people can afford these houses. When you do the mortgage calculations using traditional criteria, such as, you can afford a house costing 2 1/2 times your income, and support a mortgage of twice your income, very few middle income people have comfortable six figure incomes needed to qualify for the mortgage.
I know the “gift letter” is part of many mortgage applications nowadays, a gift from parents or other relatives to help the buyers make the down payment.
I’m out of the loop, and haven’t had to get a mortgage in decades, thank God, so I’m not sure what types of “creative” financing may be out there, to support the current prices.
What goes up, must come down.
Don’t mean to be a Debbie Downer..,.....
We’re not benefiting, because this is a property tax dependent state. That 12% price increase in one year leads to a roughly 12% increase in my property tax bill.
20% per year is nothing. My coffee creamer went up 50% in a year!
We put our house in northern Colorado on the market in early April. Two days later we had 8 offers with 3 of them being $70k over asking and closing within 4 weeks. Oh, and they waved appraisal and limited inspections to safety and structural only.
I wonder if it has to do with the rapid increase in lumber prices in particular and commodity prices in general. My house is your typical softwood lumber construction with plywood and insulation. Everything is mass-produced. It's all commodities. Maybe what we're looking at is the "commodification" of housing prices?
Over three years of lunatic high prices in my area, five times what they were five years ago, houses, rentals, apartments, ranches, enormous ranches, tiny former railroad shacks, frightening private palaces, from here to the Canadian border.
I've been here for three real estate booms now, all of which ended with one thing: a bust just as big as the boom.
“”The housing market is running full steam ahead,”
Then came 2007.
In my little backwater town 900Sqft is going for over $300k in a mostly white neighborhood.
I am certain that will not sustain.
Median household income is about $63k.
At current interest rates that’s a payment of around $1300 after-tax with $60k down.
That family of 4 is bringing home about $3,800 per month.
“Who would buy for such high prices when everybody is leaving ?”
As others have posted, foreigners.
Virtually all Indians and Chinese, probably more of the former now then the latter in NorCal. Mexicans buy the bottom end in LA and Santa Clara County.
As a white escapee I knew said, “we left when they put the fifth language on the garbage cans”.
With unemployment going up, and Biden/DEMs prohibiting banks from foreclosing on homes, we have ~3 million people that are 30 days late and about 2.5 Million that are more than 90 days late
Add to that the rapid building going on, due to COVID pandemic relaxation and demand for houses with increasing demand
When those 30+ days behind on payments, plus those unemployed, plus many businesses hurt by the lock down are allowed to foreclose - many are too far behind on payments to catch up
Eventually there will be a huge surge of foreclosures to hit the market
Uh, Selma...what about the role of interest rates in real estate sales? The fed is no longer working to contain inflation and that is going to lead to higher interest rates (which is going to be a disaster for the federal government with its staggering debt load).
Yeah, I could sell my house and buy a mid-range Ferrari now, but where would I live? It would have to be in the Ferrari.
And it’s all a house of cards.
President Trump was awesome but even his economy couldn’t justify the rapid rise in home prices.
Now, toss in material costs, which will be here for a while, are only making it worse.
GCS are canceling contracts due to the rise in material costs.
Don’t celebrate skyrocketing home prices. It’s inflation, signaling the demise of the real US economy.