The Glut Cometh

[2manyrocks]

What is concerning is the speed in increase and the amount of increase over the past two years coupled with the willingness to waive inspections and appraisal contingencies. Prior to 2008, there were people pointing to trouble to come who went ignored until the meltdown came. Currently, a study published by the Dallas fed reached the opinion of over exuberance in many housing markets. I can understand the race to borrow and buy when home mortgages can be had at less than 3 percent over 30 years when the inflation rate is officially 9 percent. But for most, homes are shelter. When the overall ecominics of living get enough out of whack to be sustainable, corrections are coming.

 

[ultrarunner]

What is concerning is the speed in increase and the amount of increase over the past two years coupled with the willingness to waive inspections and appraisal contingencies. Prior to 2008, there were people pointing to trouble to come who went ignored until the meltdown came. Currently, a study published by the Dallas fed reached the opinion of over exuberance in many housing markets. I can understand the race to borrow and buy when home mortgages can be had at less than 3 percent over 30 years when the inflation rate is officially 9 percent. But for most, homes are shelter. When the overall ecominics of living get enough out of whack to be sustainable, corrections are coming.

For many today's high price would be looked back as a bargain... or so the thinking goes... jump on while you can before prices increase.

We have Panda Express here and like just about wherever you look is a sea of help wanted signs...

Panda ads say work here and earn $19 to $30 hourly plus benefits... Jack in the Box starting $16 no experience...

Balance that with Target Date Retirement accounts down 20% ???

 

[Larry Caldwell]

One of the big selling points when I bought my present house was that it had a gravity-fed water system, and propane cookstove & hot water. Don't get city water pressure by a long shot, only ~20psi, but it's enough to do anything we need to do, including shower. The PO didn't have a woodstove, but that got put in first year we lived here. The house itself is almost 200 years old, and I don't think electricity came thru here until the 1930s, so for the first 100 years of this house's existence the residents got along just fine.

We have to fire up a generator to shower, but can get a bath pretty easily by heating a 12 gallon laundry tub of water on top of the wood stove, then tempering it with cold water in the tub. I don't mind running a generator for a couple hours a day for electrical stuff, but hate generator noise with a passion. One of the delights of living here is the silence. The only sounds are the wind in the trees, the water in the creek, and the assorted chirps, hoots, and grunts of the local wildlife. A generator wrecks that.

 

[Dftodd]

Please stop bragging about how little you all pay in property taxes. It's making this NYer cry.

Last house 2,000sqft on two acres, property taxes were $950/ year

 

[Gale Hawkins]

We have had one for a few years now and love it, one of the new gimmicks that actually works, bit like the microwave.

Thanks for your thoughts. I noticed the daughter got one at their shower last night.

 

[Larry Caldwell]

My rule of thumb has been that house prices should reflect 3x the neighborhood median gross annual income, but that was from the days when a 7% or 7.5% mortgage was the norm. Higher incomes can exceed that because other expenses don't increase rapidly as your income rises.

The sensible thing has always been to buy what you can afford and pay for it. We have been mortgage-free for 14 years, and that has gone a long way toward a comfortable retirement.

 

[kenmbz]

Last house in NJ .6 acre, 3200 square feet , $16000/year (now up a few thousand to $19K according to my old neighbor.)
In PA my prop taxes went up about $100 since I moved here almost 6 years ago.

Since many houses are going at variable, balloon, interest only and low down-payments, we will have another correction. We see inventory started to exist again in NY, but not in my area of PA yet, where even the big, to be built houses qt 1.5 to 2.5 million, are selling.

Wonder what these people do for a living (interest only loans double your ability to buy due to lower monthly payments, until you hit 5 years, then principle gets added to double the monthly, or you have to get a new loan (balloon payment).
This is what happened in NY/FL and collapsed the housing market a few years back. Now seeing in California. Is this happening down south too?

Still have one going for 7.5million across the street. Their indoor pool is probably as big as my house. Can't imagine why that one is not selling.

For my new light duty propane grill, I spent less on it then my super cheap 3 burner grill 4 years ago. It is 5 burner plus side burner, Home Depot looks like they got flooded as last years orders got caught up and arrived with this years orders.

Still short supply of meats around here though and gas still at around $5 a gallon mid-grade.

 

[lman]

Is 15k little for 1200 square feet 1950's rancher in East Oakland California?

How many acres you got with that or is it municipal?

 

[Jstpssng]

Please stop bragging about how little you all pay in property taxes. It's making this NYer cry.

Another member from your state posted how much his taxes were a while back. I almost messed my pants the shock was so great! I believe that it was about half the appraised value of my property.
I hope that you get something in return.

 

[tacticalturnip]

Another member from your state posted how much his taxes were a while back. I almost messed my pants the shock was so great! I believe that it was about half the appraised value of my property.
I hope that you get something in return.

I'm under the impression that their ROI is worse than ours, lol.