Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 05-08-2021, 09:32 AM   #301
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 13,935
Quote:
Originally Posted by Gearhead Jim View Post
I don't know about the city of Chicago itself, but out here in the distant suburbs, prices are zooming. We've lived in this neighborhood for 40 years and houses here have appreciated more in the last year than in the previous couple of decades.
Our neighbor just sold his house.
They had 25 viewings in 2 days, and got 6 offers.
They accepted an offer on the 2nd day.

It closes in 1 month.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-10-2021, 08:40 PM   #302
Thinks s/he gets paid by the post
 
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
Quote:
Originally Posted by Fermion View Post
Karloff, it is a bubble but it is not just real estate. Everyone is getting slow boiled by inflation and doesn't even realize it because the official word is that there is no inflation.
+1
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
RetireeRobert is offline   Reply With Quote
Old 05-10-2021, 08:44 PM   #303
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 3,495
Quote:
Originally Posted by RetireeRobert View Post
+1
Yepp. Prices are increasing across the board. And quickly. Had to change a steel order, went from 86c a sq ft to $1.38 sq ft in about a months time
__________________
AA (Stock/Bond/Cash ): 97.5/0/2.5% MIX (Small/Mid/Large): 25/25/50% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): ~50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Old 05-11-2021, 06:00 PM   #304
Dryer sheet aficionado
 
Join Date: Sep 2018
Posts: 42
Just noticed that a house I was looking at, listed in April for $399,000 was re-listed last week for $459,000. LOL. Guess they weren’t getting enough offers over the list price.
jrcunniff is offline   Reply With Quote
Old 05-11-2021, 08:51 PM   #305
gone traveling
 
Join Date: Mar 2019
Posts: 38
Quote:
Originally Posted by jrcunniff View Post
Just noticed that a house I was looking at, listed in April for $399,000 was re-listed last week for $459,000. LOL. Guess they weren’t getting enough offers over the list price.

There's a house built in 1999 in my area (blue collar) that has dropped $20K in price in the last month. It's not a shack or in disrepair. So maybe we are turning the corner soon.
snowboarder is offline   Reply With Quote
Old 05-11-2021, 09:37 PM   #306
gone traveling
 
Join Date: Aug 2020
Posts: 682
Quote:
Originally Posted by snowboarder View Post
There's a house built in 1999 in my area (blue collar) that has dropped $20K in price in the last month. It's not a shack or in disrepair. So maybe we are turning the corner soon.
@snowboarder What are the particulars? How many bedrooms? Is it the most desirable school district in the area? How far from a busy street/freeway is it located? How far is the nearest new construction? What is the population of the city/county?
chassis is offline   Reply With Quote
Old 06-09-2021, 08:18 PM   #307
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 33,420
I recently read an article on the Web about a man wanting to buy a home in Montana. He remembered home prices being quite affordable as he visited the state in his travel, but now found they being out of reach.

I have visited a few towns in Montana myself, so was curious and went on Zillow to take a look. What I saw knocked my socks off.

How about this deal? A home with 2,084 sq.ft. listed for $899K. The lot is tiny at 4,356 sq.ft. Hey, you are supposed to have a lot of land in Montana. The home does not have much curb appeal. The home was built in 1955, and the interior is outdated. There's no garage nor a carport, and just a couple of parking slots by the side of the house, which abuts a driveway to a couple of houses in the lot behind. This means the entire side of the house is exposed to a public right of way, and has no privacy.

My goodness! Montana is getting as expensive as California. Who would have thunk?

Records show the house was $125K in 2012, becoming $280K in 2015, and listed for $900K now. Aye, aye, aye...
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 06-09-2021, 08:33 PM   #308
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 6,778
^ It seems some sellers are putting junk on the market at astronomical prices, hoping for an, ahem, uneducated or desperate consumer to come along.

Prices are generally elevated, but I've also seen dumpy older homes being listed in the same price as newer, updated, nicer homes.

I have in my notes to tell my son that sellers are a varied bunch and some will price too high and some will price too low. I'm going to encourage him to read the market for a while so he can see this firsthand. And hopefully snap up a "priced too low" home, although he'll have to wait for things too cool off.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Old 06-09-2021, 10:19 PM   #309
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: No fixed abode
Posts: 8,426
This doesn't explain home prices, but I saw an article claiming Soaring lumber prices add $36,000 to the cost of a new home. That could partially explain the increase in prices of existing homes, if new homes are being priced beyond the market.

DD is wanting a new deck, but I've been telling her to wait. IMO lumber prices will normalize at some point, after the politicians stop playing shutdown and tariff games. Plus, wait until the improvement market isn't so frothy, and the builders don't have more work than they can handle, and labor costs will come down a bit too. It's hard to wait when everything is happening, but I consider what's going on now to be buying high. That's what most people do, contrary to common sense and Warren Buffett's advice.

Hope I'm right. Otherwise I might have to build her deck myself.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 06-10-2021, 01:30 AM   #310
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 6,056
Homes in northern Nevada are skyrocketing. We had a 1400 sq ft 1950’s ranch that was move in ready. We listed on a Friday and by Sunday night had 33 showings and 4 offers. 2 were 30k over asking and we took the one for 400k. I bought a 855 sq ft condo that was asking 191 and had other bidders. I got it for 211. It is 47 years old and wasn’t move in ready. However, the kitchen was fairly new and the floors were engineered hardwood except for the bedrooms. The reason things are expensive is because of Californians moving in.
Teacher Terry is offline   Reply With Quote
Old 06-10-2021, 05:52 AM   #311
Thinks s/he gets paid by the post
RAE's Avatar
 
Join Date: Jan 2005
Location: northern Michigan
Posts: 2,190
Quote:
Originally Posted by SecondCor521 View Post
^ It seems some sellers are putting junk on the market at astronomical prices, hoping for an, ahem, uneducated or desperate consumer to come along.
.

Yep, same thing happening in our part of Central Florida. Just looked at a listing for a very small cottage/house (620 sq. ft) on a small lot that sold for $56K in 2016. Current owner did no improvements to the house, and is now asking $175K. The listing describes it as being "sold as is - fixer upper", and that definitely describes it. There's no way I would pay close to $175 for a place like this! Buyers beware..........
RAE is offline   Reply With Quote
Old 06-10-2021, 06:39 AM   #312
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 10,700
Insanity. Our house has almost doubled in value in 5 years but when I look at zillow it's getting ready to go much higher. The only homes listed are totally out of reach, fixer uppers at 300-400+ a foot.
MRG is online now   Reply With Quote
Old 06-10-2021, 07:17 AM   #313
Full time employment: Posting here.
 
Join Date: Mar 2014
Location: Dallas
Posts: 966
Yes, time to unload fixer uppers! Our house was probably one of the few which wasn't "upgraded". We were able to sell it for an insane price. The new buyer is putting in new flooring, upgrading bathrooms and god knows what on top of it! We are going to have a lot of under water homeowners if things went south.
pjigar is offline   Reply With Quote
Old 06-10-2021, 08:51 AM   #314
Full time employment: Posting here.
 
Join Date: Dec 2016
Posts: 565
Evidently, the hot real estate market is impacting rents too. One of my rentals in N.C. just went for $2195, up from $1895 for the precious tenant, and the renter even offered a double deposit to sweeten the deal! I don't think it even hit the market.

Inflation is here in a big way, and it's interesting to watch the Fed twist and squirm to avoid having to raise the CPI...
Starsky is offline   Reply With Quote
Old 06-10-2021, 09:11 AM   #315
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,355
Quote:
Originally Posted by SecondCor521 View Post
^ It seems some sellers are putting junk on the market at astronomical prices, hoping for an, ahem, uneducated or desperate consumer to come along.

Prices are generally elevated, but I've also seen dumpy older homes being listed in the same price as newer, updated, nicer homes.

I have in my notes to tell my son that sellers are a varied bunch and some will price too high and some will price too low. I'm going to encourage him to read the market for a while so he can see this firsthand. And hopefully snap up a "priced too low" home, although he'll have to wait for things too cool off.
While not a home, I know of a 20 acre plot of farmland that annually goes up for sale for ~120K give or take with no buyers. That is way overpriced for land that nets ~$150 per acre rent. This year it is up for sale again. The price? $460k! Yes, astronomical prices.
CRLLS is offline   Reply With Quote
Old 06-10-2021, 10:05 AM   #316
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 33,420
It's another FOMO mania running rampant. How can one profit against that, other than selling whatever real estate he has?

However, I do not have homes or land I want to sell. Where would I live? In an RV?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 06-10-2021, 10:27 AM   #317
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 13,935
Neighbor's house was listed $300K , sold for $321K no conditions.
He had fixed it up for the past 2 yrs in preparation to sell, it looked great !
New owners are spending 15 hrs per day , renovating it.

Other than tossing out the carpeting, I have no idea why they are renovating for over a week so far... Can't be to flip the house
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 06-10-2021, 10:34 AM   #318
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Flyover country
Posts: 21,778
Quote:
Originally Posted by Sunset View Post
Neighbor's house was listed $300K , sold for $321K no conditions.
He had fixed it up for the past 2 yrs in preparation to sell, it looked great !
New owners are spending 15 hrs per day , renovating it.

Other than tossing out the carpeting, I have no idea why they are renovating for over a week so far... Can't be to flip the house
Not uncommon. When one of my neighbors died two years ago, his condo sold for a fairly high price. He was in his 90s and had lived in it since it was built nearly 16 years before, but it was in excellent condition. The new buyers then spent nearly the same amount again (and over six months with multiple contractors) remodeling the interior to meet their tastes. Purely a matter of getting everything to look perfect in their eyes, and nothing at all to do with condition or functionality.
__________________
I thought growing old would take longer.
braumeister is offline   Reply With Quote
Old 06-10-2021, 10:36 AM   #319
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ExFlyBoy5's Avatar
 
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,444
Quote:
Originally Posted by Starsky View Post
Evidently, the hot real estate market is impacting rents too. One of my rentals in N.C. just went for $2195, up from $1895 for the precious tenant, and the renter even offered a double deposit to sweeten the deal! I don't think it even hit the market.

Inflation is here in a big way, and it's interesting to watch the Fed twist and squirm to avoid having to raise the CPI...
Yep. My DW is in the residential leasing biz and oversees portfolios that involves thousands of houses over 5 (or 6) states. Almost universally, as soon as they hit the market, they have multiple applications within a few hours. They are also starting to see people offering higher rents than are listed. It's absolute madness.
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
ExFlyBoy5 is offline   Reply With Quote
Old 06-10-2021, 01:04 PM   #320
Thinks s/he gets paid by the post
 
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
Quote:
Originally Posted by ExFlyBoy5 View Post
Yep. My DW is in the residential leasing biz and oversees portfolios that involves thousands of houses over 5 (or 6) states. Almost universally, as soon as they hit the market, they have multiple applications within a few hours. They are also starting to see people offering higher rents than are listed. It's absolute madness.
Real estate sales, and real estate rentals, both markets are just a couple of the symptoms of the federal government serial trillion dollar printing press spending programs. $1 today will be worth only 75 cents next year (or next month). Shades of Weimar Germany.
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
RetireeRobert is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Real Estate Agent in Down Real Estate Market TromboneAl Other topics 4 06-09-2007 10:20 AM
What Real Estate Bubble? Art FIRE and Money 76 11-09-2006 03:33 PM
The real estate bubble is over cute fuzzy bunny FIRE and Money 43 05-16-2006 03:55 PM
Real Estate Bubble in D.C. - CBS News tonite.... Cut-Throat FIRE and Money 23 05-19-2005 01:44 PM
Shiller - "We now have a Real Estate Bubble"...... Cut-Throat FIRE and Money 29 04-11-2005 05:20 PM

» Quick Links

 
All times are GMT -6. The time now is 06:29 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.