I just spent the last five hours cross referencing MLS numbers across various real estate listing sites like Zillow and almost all of them are listed at double the price of what they were listed at ten years ago. Many of them were bought by property investment groups for $170,000 and are now being sold for $240,000 two or three years later. One example was literally $130,000 May 5th 2010 vs $259,900 April 10th 2020
What the fuck is going on? Wages haven't gone up nearly enough to justify this kind of inflation and you can't find an entry level home in a decent area for under $150,000... On top of finding an incredible deal.
The market hasn't reflected the current state of affairs yet but I estimate that those people were already people at the end of their agreements at the properties they rent or cash buyers who were already dead set on buying.
Dylan Nguyen
Population growth. Meaning higher demand for real estate.
Dominic Sanders
Us birth rate is trash.
Boomers trying to dump.
Henry Evans
But that population is largely making sub-$15/hr so they're not the ones buying homes. That population largely is losing their non-essential jobs and they're fucked for the foreseeable future?
What justifies going from affordability on a single income with money to spare versus mandatory 40 hour work weeks for married couples? That's insane levels of inflation over a ten year period.
Joseph Lewis
Look at immigration numbers dummy
Easton Hughes
You’re comparing a near market bottom to a near market top, but yeah shit’s fucked yo
Caleb Morgan
house prices go up due to inflation, at 3.33% it will double every 20 years.
then you have other factors, are more people wnating to live in this area than before? new employers? growing local business? lowering crime rates?
Then also you the thing these online prices miss is, what was the house like when they bought it, and how much did they spend on repairs&improvement.
Charles Brown
inb4 'reddit spacing'
Christian Ross
It's already crashing, theyre just imposing stricter guidelines. Reminder if you aren't paying your mortgage you're paying someone else's.
Hudson Campbell
So that makes the inflation rates even less sustainable. Paco isn't making enough to buy these entry level houses @ $250,000
I make $68,000/yr as a skilled laborer and this is nearing unaffordable on my salary unless I want to sign a 30 year mortgage.
>at 3.33% it will double every 20 years So by 2040 zoomer's kids are gonna be looking at $500,000 homes and still making the same 8 bucks an hour we have as our minimum wage? That's unsustainable and insane.
>muh sekrit klub I use double spacing because it looks good. I was posting on this mongolian throat singing board before you were a chunk of splooge in your father's ballsack nigger
Angel Butler
>immigration numbers Do immigrants have the money to buy property the local regular population is not able to buy or...?
David Young
Our system is unsustainable and insane. The clown world meme isn’t a meme.
>Wages haven't gone up nearly enough to justify this kind of inflation Quantitative easing explains all of it, the FED printed money and handed it out to banks. Whats the only asset that is totally dependent on credit availability? Real estate. With so much money available and with investors looking for better profits than treasury bills offer they flooded the real estate market, which explains the prices going up.
That is and has been my theory, can anyone come up with a better one?
Only temporary, rich people will start buying up all the houses, but you will get your chance too.
Asher Diaz
When user I need to buy a house. My wife is graduating soon.
Justin Rivera
The price of real estate is determined by mortgage rates. The lower the rates go, the higher the prices go.
Christian Hughes
>complaining about 150k If you want to buy within a 1hr commute of Sydney or Melbourne you're looking at 600k, and anything closer is even more
Ian Stewart
Also keep in mind that the real estate market is highly local, think about things that happened in the last ten years.
Las Vegas went through hell with housing so it is very possible that prices doubled from what they were ten years ago because ten years ago it was a ghost town, same thing with Miami and other parts of Florida, Arizona, Indiana and others.
Think about plant closures and industry closures like in the rust belt area, or again Indiana, Michigan, Ohio and others
Think about the oil boom, places like Youngstown or other places in Oaklahoma, Washington state all had major housing shortages when oil prices went way up.
Think about the tech boom that began in 2007 after the recovery from the dot com bubble along with the smartphone driven markets that sprung up that will explain housing prices in California, think of the labor market, think of the retirees, think of legacy values, current values there are huge factors that can justify pricing other than just investors and weird supply and demand issues.
Andrew Cox
But what will "rich people" do with all these houses?
If you buy at a too high price, you never recoup the money or even lose much of it, if the rent you try to demand is too high for those around the area to live in them. So either the house is empty (lowers value, raises costs and no income in the meanwhile) or rented out at a reasonable price.
Angel Cruz
Maybe if the US government didn't blow trillions of dollars bombing desert mud huts things would be better
Bentley Foster
Nothing about our system is sustainable. Buckle up, money printer about to go BRRRRR like never before
Tyler Hernandez
you have population declines in countries where housings gone up 25% in the last four years
John Anderson
You need to time the mortgage default which will inevitably occur. We won't see 2008 levels of market crash but rather a nice correction in the neighborhood of 20 to 25% in most markets. I expect this will happen in July
Oliver Rivera
real estate have doubled in price every decade for the past 100 years wtf are you clueless moron talking about
Nathan Turner
Landlord here. The ones that know the market don't lose money renting. We may not perfectly time the market but it don't matter. We are renting it out and making it. So even if we break even on sale price after 5 years, we made that rental money. Though, usually we buy upcoming areas only. Again, it's all about location. Where I am, I literally have over 20 applicants with a Craigslist add in a day.
Hudson Harris
>I expect this will happen in July I see more of a slow slide downwards until jan/feb next year.
Foreclosure will be delayed by the state, small savings touched and the realisation that things cannot stay the way they are will sink in.
Jack Myers
>We won't see 2008 levels of market crash Curious what's the logic here? Why wouldn't it be worse considering things are worse now?
Ian Edwards
things are wrose, but there's also more people tough call
Eli Morales
Rich people who roll up property dont even use their own money to roll up property, the accountants figure it out, then the owner goes and sells the company worth hundreds of millions.
Blake Brooks
They set up corporations and get money from fund managers and banks.
Logan Hall
You're a fucking retard. People with money hoard properties and rent to the unwashed immigrant masses, then they use the rent money to buy more properties. Unless you kill the demand, i.e. gas all the immigrants the housing prices will go up forever.
William Martinez
>after 5 years, we made that rental money I rent out a couple of small flats in my hometown myself and I think you talk about a quite specific case. A lot of the neighbouring flats and houses around my area were bought, sometimes "renovated" into "luxury"-apartments over the past decade and then sold to heavily leveraged "investors" who cannot afford to rent out these apartments under a certain level of rent.
As soon as there is leverage involved, we undoubtedly will see selling. Otherwise the current expenses simply cannot be met by the rent.