Is this propaganda to help relax the home owning population?
If the jobless rate and GDP continue to suffer I can’t see this being anything but bad for rural and suburban real estate.
If the jobless rate and GDP continue to suffer I can’t see this being anything but bad for rural and suburban real estate.
Who would buy a nice place in, for example, St. Louis right now?!
>Who would buy a nice place in, oh, for example St. Louis, right now?!
People who want to live there regardless and see an opportunity to spend less money doing so. They're the same people who buy real-estate on the cheap after it's value has been depressed by a "fresh in people's minds" disaster in any other location.
Live in a city. Deal with city problems. If you want to live in Nebraska don't be surprised if a tornado flattens your property. If you want to live in Florida don't be surprised if it's underwater. Having rioters burn your home to the ground is simply the mode of destruction you accept some risk of by living in a city.
Personally I'd rather deal with nature trying to destroy my stuff rather than people trying to destroy my stuff but I can understand why people want to live in the city.
Just because there are protests, etc. going on doesn't mean the entire city is on fire...
Protests swept the nation. Many cities had increased vandalism. A small number had anything approaching riots.
I am renting a house very near the city center. Were it not for the home prices, I would love to own here... though another poster made a good point. All the good reasons to live in the city (night life, people watching, proximity to friends and services and hobbies) are closed down. At least I can walk to the grocery store.
You say that like it's a past event. Portland is still seeing riot activity. They have done a fair amount of damage downtown. I feel sad for the peaceful BLM protestors because much of the general public will not draw a distinction, so this kind of behavior will blunt their message.
Is this phrase the same as "I disagree with the parent"?
For what it's worth, the average person in Tornado alley will live their entire life without ever seeing an actual tornado, much less get flattened by one.
Behind the Bastards did an episode on it.
https://www.iheart.com/podcast/105-behind-the-bastards-29236...
Are you suggesting Florida has no cities?
850,000 residents in 1950 and 300,000 now. You are right, Covid had nothing to do with it.
My guess is that hot areas are getting hotter and colder areas are getting colder, but COVID hasn’t changed that trend yet.
(I'm also in Seattle and waiting for that to happen before I buy)
Paid way too much recently for a townhouse in Ballard, but at the end of the day it seems like a pretty sound decision (we aren't buying for investing, but for living).
Another factor that is (unexpectedly) making my family reconsider intown living is the school closure decisionmaking. If this turns out to be a 1 or 2 year ordeal, and urban school systems end up going full virtual for that time while (some) rural school systems are still fully face-to-face, then that becomes a huge factor for us.
Why do you think it would impact rural and suburban properties specifically? It seems like a bad economy would depress city property values as well.
The market is sorely overdue for a massive "correction" to respect the near 40% unemployment in the US, widespread rioting, and crippling pandemic. Id put the counter at six months, but so far everything has defied the yield curve inversion and continued to run like a race car on nitrous. sooner or later somethings got to give.
It's current appraisal sits at $275,000.
That is just unbelievable. It's not realistic. It's completely removed from any sort of reality. I mean, we have a nice house, don't get me wrong, but it's not worth over a quarter of a million dollars.
And that is every house within 20 miles of me. In the last two years our values have skyrocketed, and nobody knows why.
What is worth a quarter million? How do you assess the value of your home?
I'm saying I have a decent home, but that amount of money is unrealistic. It cost $100,000 to build, 11 years ago. I cannot be convinced it almost tripled in value, in any realistic market, in 11 years.
The math just isn't there.
Anyway, if we start with an actual "cost" of $150,000, you get to $250,000 with 11 years of compound interest at 5%. If we instead completely ignore your labor input, 11 years at 9% gets us from $100,000 to $250,000. Can you really not be convinced that "realistic market" might not have a 5% (or 9%) yearly increase in value? That's not to say it will always go up that much, but it doesn't seem unrealistic that it might.
The bigger question of course is how we determine "value". Is $250,000 for a house today any more "realistic" than $100,000 to build it 11 years ago? Not by any objective measure. They are both just numbers, determined by how much people are willing to pay, which in turn depends on how much they have in their bank accounts, which in turn depends on how much someone is willing to pay them, which (circularly) depends on how much someone else is willing to pay for something else. There's nothing "realistic" about any particular numeric value.
That doesn’t tell the whole story, however. The 2008 stimulus plan basically printed money in the form of increased stock valuations and cheap mortgages. Stocks and housing have inflated well over 3% per year since then, while consumer prices have not.
Eventually that has to unwind. One option is for the federal government to claw the money back. That will lead to deflation and immediate economic ruin, so they can’t do it.
The more likely option is that we eventually hit a patch of high consumer price index inflation as workers start charging a living (housed) wage for their time.
Pretty much only the west coast has seen inflating home prices. For the rest of the country, inflation adjusted price per square foot hasn't really changed [0]. And Inflation adjusted Annualized S&P 500 Returns with Dividends Reinvested for the past 15 years are 6.738% versus 7.690% for the 15 years before that [1].
0]: https://www.supermoney.com/inflation-adjusted-home-prices/
Try to sell it, see what kind of offer(s) you get--that's exactly to the penny what the home's value is.
Tripling in value after 11 years, when you bought at the bottom of the market doesn't seem surprising at all.
Prices are high because of stupid low interest rates, an economy that had been strong till March, and probably a few demographic trends (echo boomers finally having kids).
When we pay the piper for this crisis I think we’ll see prices drop, but not at 2008 levels