Real estate values are going absolutely crazy!

[orezok]

Double post

 

[orezok]

My house on 26 acres. The crash will be coming soon.

 

[Steppenwolfe]

I wouldn't go to the bank on a Zillow estimate... Notoriously unreliable and wrong.

 

[orezok]

Yeah both ways. A 1000SF homestead shack on 5 acres about a quarter mile down from me which was bought about 8 years ago for $53K just sold for $370K, investor cash sale. Zillow estimate was $250K so it does go both ways. I’m now surrounded on all 4 sides with AirB&B’s. Desert real estate has gone crazy in the last year. People want out of the city. Glad I got 26 acres.

 

[lman]

Must be some good farm ground.

 

[orezok]

Nope. With 5” of rain per average year, water district irrigation water is very expensive, private wells are 500’ deep and only get a couple of gallons per minute. The soil is so poor it’s even hard to grow weeds On top of that, this year winter rains were probably less than an inch. The good news is that I didn’t have to spray or hog. First time in 16 years.

My fruit trees yield, all irrigated will be about 20% of normal. Blossoms were normal but I haven’t seen a single bee. Think the drought, killed them. We also haven’t had our usual “fly season”

BUT I love the desert!

 

[dmccarty]

The house we used to own in the city has more than doubled in value in 15 years! It is in an area that has great demand for housing but this is a 45 year old house, that was put up fast when built, is not energy efficient, and is pretty small.

I have been looking at our local market and I have no real idea what our property is worth. What is very obvious, is that there is very little to NO inventory of homes and five acre lots. The time on market for homes is 30 days, compared to last year it was 60 day. We have a family member that will be selling a house in a fairly rural area, hours away from us, and the broker says that things are selling in 30 days or so.

Tis crazy.

In our area it is not a bubble, people are moving here, and have been for decades, but the pandemic, and I suppose changes in tax policy, has accelerated the movement of people.

Later,
Dan

 

[5030]

Just be patient, the bottom will fall out and those that overpaid will wind up in foreclosure. The housing bubble regularly breaks nd when it does, lots of people wind up holding an empty bag.

 

[Steppenwolfe]

Just be patient, the bottom will fall out and those that overpaid will wind up in foreclosure. The housing bubble regularly breaks nd when it does, lots of people wind up holding an empty bag.

Your optimism is noteworthy.

 

[5030]

Your optimism is noteworthy.

Only a matter of time as it's not sustainable as it is today. The issue will be the people that bought inflated and are now on the hook and I wonder how many of them have ARM's instead of fixed rate mortgages.

I own a number of properties that I could sell, but won't I get bugged constantly to refinance. I ignore them all.

 

[Steppenwolfe]

Only a matter of time as it's not sustainable as it is today. The issue will be the people that bought inflated and are now on the hook and I wonder how many of them have ARM's instead of fixed rate mortgages.

I own a number of properties that I could sell, but won't I get bugged constantly to refinance. I ignore them all.

From what I have seen / read, this buying frenzy is fueled from an available money supply, not necessarily by no money down mortgages. I do agree that these prices may not last and some will not have a chair when the music stops.

 

[Big Barn]

Here is a clipping from this mornings local paper. I posted it over in my retirement shop thread so my apologies for cross posting

and this is a typical example. NOT out of the norm

 

[JethroB]

From what I have seen / read, this buying frenzy is fueled from an available money supply, not necessarily by no money down mortgages. I do agree that these prices may not last and some will not have a chair when the music stops.

I can see it that way. A realtor friend said she has issues with home appraisals that will not support some selling prices thus the mortgages some want to take out. Sizable down payments are required. Hopefully the mortgage industry is showing some restraint this time around.

 

[Sigarms]

Our timing is bad. Boys still have 2 more years in high school and my 89 year old father is still living with us.

The only problem is when you sell, you generally have to buy.

That said, if it were just my wife and I right now at this moment in time, we'd probably sell and look for an adventure.

Way we figure it, with the square footage and land we own not so to far away from a decent size city with good hospitals, restaurants and shoping, we will get back at least what we put into the place, and when we bought the place with land, that was what I was hoping for to start with.

 

[ponytug]

Article in this morning's paper said that the local market was averaging eight days (!) between listing and escrow. There is not much inventory and mortgages are relatively inexpensive, which is true nationally.

All the best,

Peter

 

[buck12]

Our timing is bad. Boys still have 2 more years in high school and my 89 year old father is still living with us.

The only problem is when you sell, you generally have to buy.

That said, if it were just my wife and I right now at this moment in time, we'd probably sell and look for an adventure.

Way we figure it, with the square footage and land we own not so to far away from a decent size city with good hospitals, restaurants and shoping, we will get back at least what we put into the place, and when we bought the place with land, that was what I was hoping for to start with.

I am in a similar situation. We could sell our house and live in our cabin on our rural property until the bottom falls out. We could come out really good and likely buy in our neighborhood for half within a couple of years but we are both five minutes from work and my wife does not want to live in the middle of nowhere.

 

[coobie]

Repeat of 2007-2009 housing crash.Keep $$ on hand for good deals ..

 

[Sigarms]

Repeat of 2007-2009 housing crash.Keep $$ on hand for good deals ..

I'm guessing your point is not to buy now as there are no good deals to be found at this moment in time...

Right now, it's a sellers market...

 

[coobie]

I'm guessing your point is not to buy now as there are no good deals to be found at this moment in time...

Right now, it's a sellers market...

Yes sir, sellers market..Being a electric lineman (now retired after 39 years) I have seen many housing bubbles up & down.Been too many new construction sites in my career.Seen the good the bad and ugly of housing BOOMS.

 

[Steppenwolfe]

Here is a clipping from this mornings local paper. I posted it over in my retirement shop thread so my apologies for cross posting


View attachment 697005


and this is a typical example. NOT out of the norm

OK, I did the math using your examples vs my property; my house - 3 times bigger, my land - 450 times more. Therefore, I have concluded... my property is worth north of 400 gadzillion dollars.