Love Letters. Real Estate

[goeduck]

The real estate prices being what they are make finding a suitable property with the land, house, and buildings we require is nearly impossible in our local area, even with the generous offer, and ability to make a "cash deal", we would likely have to relocate several hours away.

That is exactly the problem, if you sell at these prices you have to buy at these prices. These are odd times with everything adjusting due to the impact of the pandemic. Where it will settle, no one knows.

Immigration is creating a demand for housing which drives up prices, that is a factor as well.

 

[Sigarms]

That is exactly the problem, if you sell at these prices you have to buy at these prices. These are odd times with everything adjusting due to the impact of the pandemic. Where it will settle, no one knows.

Immigration is creating a demand for housing which drives up prices, that is a factor as well.

Completely agree with you.

However, what we've found is condo pricing in a "nice" community isn't as bad as we thought vs homes and land pricing right now.

Since my father in law passed early this year, my MIL is thinking about moving about 20 minutes away, as she is currently about a 70 minute drive away.

Seems like with her modest stone house, she could make a pretty pretty vs about 7 years ago what they paid for the house, and move into a "retirement" community that has everything for her and still put a decent amount of money into the bank to boot.

She's in her mid 70's, and they've had someone doing their lawn care for the last 3 years or so, and being by herself, things are getting harder for her. That said, a somewhat unique situation with a older single homeowner whose spouse has died.

 

[plowhog]

So while the median-income person couldn't afford to buy the median house today, the expensive house he owns now was affordable back when he actually bought it.

... property tax increases restrained by Prop 13 to 3% per year ...

Agree with your observation, although Prop 13 restricts to 2% per year ...

 

[check]

The high median price homes bought and sold now are often bought by retirees from SF, or the wealthy who have investment income along with salary. And the median price is inflated by a lot of very expensive places, as illustrated in that advertising section. The median income people are living poorer with long commutes, or many to a house. (Lots of farm labor here). Not the same people.

Putting median income and median home price sales today in the same sentence is just for shock value.

The point is to show how decent housing is nearly impossible to find to buy today, even this far from a major city. Where the disparity is even greater. I suspect lots of the best and brightest techie kids in the Bay Area (SF and Silicon Valley) have their housing supplemented by parents so that they don't have to live an hour+ away. I know of several cases ....

Absolutely right, California. None of this affects us right now, because the only figures that count are when you buy and when you sell. I wouldn’t want to buy in Toronto right now. Average detached price is $1.42 million - and that is just the average!

So what do your kids do? Bank of Mom and Dad, it seems.

On the other hand, prices of water front property here in cottage country (2.5 hrs NW of Toronto) have doubled during the pandemic. People are wanting to “escape from Alcatraz” in my view, and this new “4th wave” of Covid is not helping things.

 

[Sigarms]

So what do your kids do? Bank of Mom and Dad, it seems.

Find a place they can afford either by renting or buying if they aren't already renting or own to begin with.

Now, if they are living with you now, and pricing is stupid high for either of the above, you wait the market out for a while.

 

[Pixguy]

I agree Sig, we want a place out in the woods and preferably on water so we made an offer on an overpriced lake house (more like a camp) that we'd upgrade but offered about 75% of asking and what we feel it's worth. We'll probably lose out on it, and save myself a lot of work, but that's ok, we're not paying ridiculous prices, we can wait. And No, no love letter. Lol

 

[California]

Agree with your observation, although Prop 13 restricts to 2% per year ...

Thanks for catching that, I went back and corrected my post to 2%.

I voted against Prop 13 when it was enacted, its pretty much a war by the boomers against the younger generation buying their first home. "I've got mine so s--- you". No wonder they are PO'd.

But I've benefited personally, tremendously. I inherited a half-interest in this orchard and paid cash into Dad's estate to be Sis's inheritance, for the other half. County assessor said so long as the next owner is a direct descendant then 100% of the tax relief goes to the new owner and it doesn't have to be our primary home. I pay about 1/5 the property taxes of more recent neighbors. Thanks neighbors!

Similar for our home in town over in the Central Valley. Zillow shows comparables at 10x what we paid in 1978. Taxes are far lower than recent neighbors. If we ever move, the Prop 13 tax relief will carry forward to our next home.

Much of the support for passing Prop 13 was corporations that locked in their tax rate at the time, again, making things more difficult for newer competitors.

 

[Jstpssng]

MSN

www.msn.com

 

[Sigarms]

I agree Sig, we want a place out in the woods and preferably on water so we made an offer on an overpriced lake house (more like a camp) that we'd upgrade but offered about 75% of asking and what we feel it's worth. We'll probably lose out on it, and save myself a lot of work, but that's ok, we're not paying ridiculous prices, we can wait. And No, no love letter. Lol

Thing is, it seems you understand what the market price is and you DON'T have to have it. Thing is, you wanted it at 75% of the asking price, and you knew it.

Thing is, I'm a horrible negotiator on pricing. Give me a price, I'll say yes or know, and if the person asks me what price I was thinking, I'll tell them what I'm willing to pay for it.

To some extent, the housing market has been kind of like the gun market of late LOL

 

[Jstpssng]

To some extent, the housing market has been kind of like the gun market of late LOL

Which is why I'm not buying guns or real estate right now.