Home Prices Inflated or Not?

**Sanity Check** · 10-01-21, 05:21 PM

This should answer your question.

**LongBall52** · 10-01-21, 05:47 PM

Originally posted by Sanity Check

This should answer your question.

I 'm guessing too complicated..

**LongBall52** · 10-01-21, 05:49 PM

As a saver, would like to see interest rates go up.
In an economy that's fragile (if that's a good word), who knows and most don't care anyway.

**MinnesotaFats** · 10-01-21, 06:03 PM

I kid you not my property tax bill went up 30% the last year and my nat gas bill has doubled.

This is insane and unsustainable and frankly- disastrous to the economy.

**Snowball** · 10-01-21, 06:09 PM

Originally posted by MinnesotaFats

I kid you not my property tax bill went up 30% the last year and my nat gas bill has doubled.

This is insane and unsustainable and frankly- disastrous to the economy.

they don't need an ecomomy anymore.
that's the scary thing.

**Sanity Check** · 10-01-21, 07:03 PM

Originally posted by LongBall52

I 'm guessing too complicated..

Its not too complicated.

Ben Bernanke was the federal reserve head around that time, which is why he's fielding questions on rates and real estate.

All you have to know is there was a housing bubble that popped around 2008.

**TheMetsSuck** · 10-01-21, 07:27 PM

My home went up around 300k in value in the past 2 years. Housing market is wild right now. Houses don’t stay on the market very long.

**Okieirish** · 10-01-21, 10:05 PM

Housing is inflated due to Corona shutdown. Down the road from me a double wide on 5 acres brought over $180,000. That is crazy money and happening all over out here. It will probably crash again,but may take a year or two.

**louisvillekid** · 10-01-21, 11:30 PM

Houses around me have been going for 80-100k over what they were valued just a year, maybe 1.5 years ago.

It's bonkers.

**louisvillekid** · 10-01-21, 11:43 PM

Originally posted by MinnesotaFats

I kid you not my property tax bill went up 30% the last year and my nat gas bill has doubled.

This is insane and unsustainable and frankly- disastrous to the economy.

30%? Thirty? That's a huge jump. I don't own, I rent. But I'll ask my parents or siblings that own homes how much their property tax went up, and i'll be shocked if it's even close to 30%.

I know some houses around me have been going for probably 30% over what they would've been listed for a year or so ago. But I doubt the actual property tax assessment has been adjusted to reflect the higher prices being paid for homes.

I'm not sure when property taxes come out. I think it's soon. But I'm definitely curious how much my family will say their assessed values jumped since last year.

**Sanity Check** · 10-02-21, 12:03 AM

Originally posted by Okieirish

Housing is inflated due to Corona shutdown.

Mass migration from blue states to red states like texas/florida.

Leaving california and NY, decreases demand for living space, decreasing real estate values in those areas.

Moving to florida and texas, increases demand, increasing real estate value.

Most price shifts come down to basic supply / demand.

...

Its been said cost of real estate and rent in california declined by as much as 30%. There definitely was a dip in the value of NY real estate as well, which led to a buying spree, due to people thinking the market was undervalued.

Real estate development over the last 10 to 20+ years (I don't remember the actual number it could go as high as 50 years) hasn't kept pace with population growth, making real estate a scarce commodity. If there ever is a construction boom, the cost of real estate could decline more than most realize.

**KnuckleHeadz** · 10-02-21, 12:29 AM

Its been said cost of real estate and rent in california declined by as much as 30%

That’s so far from the truth.
The same issues going on here as mentioned above. Homes are all going for over the asking price by 80k+
You can’t rent a 3br 2ba for less than $3500

**Sanity Check** · 10-02-21, 02:15 AM

Originally posted by KnuckleHeadz

Its been said cost of real estate and rent in california declined by as much as 30%

That’s so far from the truth.
The same issues going on here as mentioned above. Homes are all going for over the asking price by 80k+
You can’t rent a 3br 2ba for less than $3500

Nvm.

Rent in san francisco was down 30%.

It’s Not Over: Rents in San Francisco Down 30%, in Silicon Valley Down 19%, both at Multi-Year Lows. But Inland Rents Spike

Apr 29, 2021

The US rental market has been thrown into turmoil. But in no major city have rents plunged from so high by so much so fast as in San Francisco.

San Francisco, which still has the most ludicrously expensive rents of any major city in the US, keeps getting less ludicrously expensive amid painfully low occupancy rates and massive churn of renters looking to upgrade and save – recent rent “recovery” rumors to the contrary.

The median asking rent for one-bedroom apartments in San Francisco in April fell to a new multi-year low of $2,600, down 30% from the peak in June 2019, according to data provided by Zumper:

It’s Not Over: Rents in San Francisco Down 30%, in Silicon Valley Down 19%, both at Multi-Year Lows. But Inland Rents Spike | Wolf Street

https://wolfstreet.com/2021/04/29/rents-in-san-francisco-down-30-in-silicon-valley-down-19-both-at-multi-year-lows-but-inland-rents-spike/

I assumed home prices would trend in the same direction, for the state. (Derp fail

)

Guess not.

**LongBall52** · 10-02-21, 10:27 AM

Good Info here, Thanks to all. Side note: I would leave NY and California out of the general discussion. Both states have the Extreme.

**LongBall52** · 10-02-21, 10:32 AM

Is this a fair statement: As Interest rates rise, housing prices drop. In the overall population?

**Sanity Check** · 10-02-21, 12:06 PM

Originally posted by LongBall52

Is this a fair statement: As Interest rates rise, housing prices drop. In the overall population?

The affect interest rates have on anything is usually overrated.

Housing prices drop due to fewer people being able to afford the cost.

The government offers incentives and subsidies for those who can't afford to buy a house, the way they do with student loans. With similar effects.

**mcaulay777** · 10-02-21, 03:54 PM

Here in Central Iowa houses are still flying off the market i live in the middle of nowhere about 1 hour outside Des Moines these are harder to sell so mine would stay the same but in the Suburbs houses once 175 are going for well in the upper 2twentys now. Tons of new construction which are selling. I Think here because of schools.Iowa was just ranked as the 5th rudest state of people. In the country people are sweat but in the polk county area it full of millennial dreck.

**RockBottom** · 10-02-21, 03:55 PM

Originally posted by LongBall52

Good Info here, Thanks to all. Side note: I would leave NY and California out of the general discussion. Both states have the Extreme.

They are leaving Chicago also.

**LongBall52** · 10-03-21, 10:13 AM

It's crazy.
I saw a sign outside the premises of a large mall here.

"Learn To Flip Houses" Call XXX XXX XXXX"

**LongBall52** · 10-03-21, 10:14 AM

Banks and fatcats, must LOVE that kind of thing.

**str** · 10-03-21, 10:28 AM

Originally posted by LongBall52

It's crazy.
I saw a sign outside the premises of a large mall here.

"Learn To Flip Houses" Call XXX XXX XXXX"

This actually has nothing to do with teaching you about flipping or building. It's all about giving you a hard money loan from their network of hard money lenders. And any contacts like appliance places, etc. where you need to purchase expensive equipment, they get a kick back for getting them the business.
At the end of the day, you do all the work and the lenders make 10%-15% on their cash. If you don't sell or repay, they take the house.

Things that have to do with money and real estate are rarely what they are made to look like.

Hope that helps .

**LongBall52** · 10-03-21, 10:38 AM

Originally posted by str

This actually has nothing to do with teaching you about flipping or building. It's all about giving you a hard money loan from their network of hard money lenders. And any contacts like appliance places, etc. where you need to purchase expensive equipment, they get a kick back for getting them the business.
At the end of the day, you do all the work and the lenders make 10%-15% on their cash. If you don't sell or repay, they take the house.

Things that have to do with money and real estate are rarely what they are made to look like.

Hope that helps .

Thanks! That really opens my eyes. I've seen sign for years: "We Buy Houses" with Ph #. But this was a new one for me.

**str** · 10-03-21, 01:48 PM

Originally posted by LongBall52

Thanks! That really opens my eyes. I've seen sign for years: "We Buy Houses" with Ph #. But this was a new one for me.

Well, that sign is different. We buy your house in 7 days and we buy homes. Sure they do. They offer you so little for it and offer to pay your closing costs and offer to pay for your move. But they under pay you a ton of money. They can make an offer without seeing the property in person because they will screw you so badly on the offer, they can’t lose.
That’s not an exaggeration. I’ve seen it plenty of times. All they are doing is screwing the uneducated seller.
It’s the biggest investment most people have and many know nothing at all about it.
Because it is cash, people that need money quickly go for it. Without a doubt the worst way to sell your house .
Sad but true.