Posted on 10/01/2021 8:45:28 PM PDT by SeekAndFind
If you're looking for more evidence the housing market is in a bubble, look no further than this single-family home in Melrose, a suburb of Boston, Massachusetts.
A little more than a month ago, the 1,857 sqft, three-bedroom home built in the 1960s was severely damaged in a fire where much of the inside was charred now for sale for a whopping $399,000.
The burned-out house, sitting on a 4,500 sqft lot, or about 1/10th of an acre, is listed on multiple real estate websites. The agent selling the home writes in the description: "attention contractors!" referring to the idea that contractors can buy at a steep discount and flip the house for a potential profit in an environment of low inventory. Here are comparables in the neighborhood:
"House is in need of a complete renovation or potential tear down and rebuild. Buyer to do due diligence. House being sold as-is," the listing states.
The listing comes as home-priced growth soared to a new record in July as low inventory sparked bidding wars across the country. According to the S&P CoreLogic Case-Shiller National Home Price Index, a measure of home prices across 20 major cities, rose 19.95% YoY (yet another record high)...the 14th straight month of accelerating price increases. July was the highest annual rate of price growth since the index began in 1987.
"The last several months have been extraordinary not only in the level of price gains but in the consistency of gains across the country," said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices.
There are plenty of examples of homeowners selling burnt-out homes or even uninhabitable shacks for impressive sums of money amid the latest housing craze.
Nice.
Are the trash bags included at no extra charge? 🤔
That’s the price of the lot. It’s not rocket science.
This can’t last.
There’s a nice house in our neighborhood that has been a rental for years - the last buyer wound up underwater after the last housing boom receded, and decided to rent it out.
Now the value is back up to what he paid for it, and he’s put it up for sale - and the next buyer is going to wind up in the same position.
I’d say much of the outside was charred too.
But, I am not a realtor, so...
It’s rocket surgery!
🚀🚀🚀 👨⚕️👨⚕️👨⚕️
Location, location, location.
I bet the price of the property would be the same even if there was NOTHING standing on it.
Should buff out.
Early Woke/BLM Fixer Upper
Nope,fairly pricey town……someone will pay just for the lot.
.
With the federal injections to house illegal immigrants, we have a huge inflation going on. So long the deep state feds support the RINO Koch , Cactholic charities robber barons , other Bush Walmarters along with the democrats pimping their customers, this will not end.
“Build Back Better” means sell trash high, tax payer financed.
Esactly. The investors hope to get free government HUD money.
All kinds of land being bought and constructed by HUD around my area lately.
Your tax money for illegals and communist terrorist brownshirt troops...
Agree. Lots in affluent Houston area/med center location go for that and more.
Exactly. So many of these houses are tear-downs anyway. Having it charred and structurally weak cuts down on the demolition cost.
That “uninhabitable shack” must have been pretty nice when it was put up. It’s a two-story log cabin with a stone fireplace and a great view. Unfortunately, the slope it was built on is giving way, and there doesn’t appear to be any way to save it.
Actually, the lot price is substantially higher. To get a buildable lot, that house must be demolished and hauled away. Add $50k to $100k.
Actually, the price would be HIGHER!
(No demolition expenses.)
Regards,
No doubt. We sold our money pit and are waiting out the insanity. We are paying more for a rental than expected, but still in great shape. Someone tried to sell is a house aaying prices are going to go higher and essentially never come down. I called hogwash.
Nah, money supply is up 75% since 2006 and 35% since 2019. This is largely inflation combined with housing more important with people working from home.
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