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Wtf is going on with house prices?


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2021 Apr 25, 8:13am   3,431 views  82 comments

by FortwayeAsFuckJoeBiden   ➕follow (3)   💰tip   ignore  

As an of patnet member I remember this housing thing before. Right now houses in reseda are going for 600+ and west hills for 800+. I’m talking small entry level homes. This seems insane, bubble prices again, but somehow people are buying... are we in a bubble or just some people got a ton of cash?

Thinking of selling now and moving honestly...

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1   RWSGFY   2021 Apr 25, 9:01am  

I'm not selling my shack until I'm offered $3M I deserve and already have plans for spending.
2   WookieMan   2021 Apr 25, 9:13am  

Fortwaynemobile says
Thinking of selling now and moving honestly...

Don't know your age and no need to tell me, but I'd move. FHA and VA loans are astonishingly easy to get. A family of 4 just got $5,600ish, can't remember the exact number. 3.5% down or 0% down basically for VA. If you put that stimulus towards a house, that's $160k minimum of purchasing power that was just handed to you.

There's already short term inflation that I've seen on almost everything. It will be short lived without more stimulus. We won't crash as hard as '06-'08, but there will be stall and a drop in home prices. Hard to make predictions though with the printing presses going full force. Also depends on the gains of your primary residence. If you get above $500K (married) you're going to start paying some cap gains on it. If you can get out tax free, own your new place outright, that's what I'd do. Likely would require a move out of CA though.
3   FortwayeAsFuckJoeBiden   2021 Apr 25, 10:27am  

WookieMan says
Fortwaynemobile says
Thinking of selling now and moving honestly...

Don't know your age and no need to tell me, but I'd move. FHA and VA loans are astonishingly easy to get. A family of 4 just got $5,600ish, can't remember the exact number. 3.5% down or 0% down basically for VA. If you put that stimulus towards a house, that's $160k minimum of purchasing power that was just handed to you.

There's already short term inflation that I've seen on almost everything. It will be short lived without more stimulus. We won't crash as hard as '06-'08, but there will be stall and a drop in home prices. Hard to make predictions though with the printing presses going full force. Also depends on the gains of your primary residence. If you get above $500K (married) you're going to start paying some cap gains on it. If you can get out tax free, own your new place outright, that's what I'd do. Likely would require a move out of CA though.


Yeah I’m in that boat right now. If we sell we will have about 500+ in cash from sale. House is paid off. It’s not all profit though.
4   SunnyvaleCA   2021 Apr 25, 12:56pm  

Out here in silicon valley it seems that people are leaving the hell-hole cities (San Francisco in particular) and moving to the surrounding suburbs. Facebook, Google, and Apple are actually in the suburbs, so it's not like you need to move to the city so you can walk to the office. Accordingly, city prices are stagnating or falling, whereas suburb prices are skyrocketing.
5   mell   2021 Apr 25, 12:59pm  

SunnyvaleCA says
Out here in silicon valley it seems that people are leaving the hell-hole cities (San Francisco in particular) and moving to the surrounding suburbs. Facebook, Google, and Apple are actually in the suburbs, so it's not like you need to move to the city so you can walk to the office. Accordingly, city prices are stagnating or falling, whereas suburb prices are skyrocketing.


Correct, also builders won't build with these high costs of materials and permits unless they can get high sales prices. The massive stagflation from the xiden admin is already starting to unfold. But to be fair Trump also kept interest rates low by any means (normal for a former RE developer) and there has already been some inflation under Trump, but far less than now as Trump used all of the US resources such as oil and gas and manufacturing to counteract inflation. Any localized goods and services will keep becoming more and more expensive.
6   Blue   2021 Apr 25, 2:26pm  

My excoworker just sold his san Jose home for 1.5m and bought one for 320k in Dallas and waiting to be ready before moving. He put the surplus cash in funds. He says now that working is optional though he already got a job in Dallas. He thought that was a good price to sell.
7   noobster   2021 Apr 25, 2:37pm  

Blue says
My excoworker just sold his san Jose home for 1.5m and bought one for 320k in Dallas and waiting to be ready before moving. He put the surplus cash in funds. He says now that working is optional though he already got a job in Dallas. He thought that was a good price to sell.


Was the Dallas house comparable size? Man that's a lot of money for a standard house. Who's buying???
8   noobster   2021 Apr 25, 2:38pm  

Panic buying, is the only thing that makes sense to me.
9   Karloff   2021 Apr 25, 4:09pm  

$1.9T for covid stimulus (well, only a fraction of that actually goes to people, the rest to cronies and special interests). Another $3T for "infrastructure" spending (bail out failed D-cities). How much more money can they print before the dollar is completely destroyed?

Inflation is being seen heavily in lumber and energy, and it's starting to noticeably creep up in other sectors. People are afraid of inflation and looking to dump their money into some other store of value. Stawks are rigged, many other traditional investments are risky or paying nothing. Bitcoin spiked, and real estate has always been viewed as safe in this regard.
10   Rin   2021 Apr 25, 4:52pm  

Karloff says
How much more money can they print before the dollar is completely destroyed?


Expansion of credit usually results in the last buyer holding the bag.

In other words, when stock X goes from $300 to $3000, then all of the general public jumps in and finally, it crashes to $500, and then the smart money returns, to pick 'em up at a huge discount.

We've seen it before when the average investor put their entire IRA into tech stocks back in 2000.
11   Tenpoundbass   2021 Apr 25, 4:57pm  

Guess who all of the morons with 100K jobs on the tax payer's dime are?
That's right the same people dumb enough to be talked into buying the McMansion glut at a premium .

One thing the Cop shooting of that Little Miss McStabbie showed, that the new hood is those new big development cul-de-sacs.


I predict it will all be the white people's fault when their mortgages balloon, and their $125K school Janitor and lunch lady jobs wont cover the $5K mortgage payment.
12   Patrick   2021 Apr 25, 5:07pm  

SunnyvaleCA says
Out here in silicon valley it seems that people are leaving the hell-hole cities (San Francisco in particular) and moving to the surrounding suburbs. Facebook, Google, and Apple are actually in the suburbs, so it's not like you need to move to the city so you can walk to the office.


It has come full circle. When I moved out here in 1997, tech workers complained that the suburbs were boring, so over the years the companies opened offices in SF to cater to them. But now that SF is becoming an open air toilet, the workers see that the suburbs are not so bad after all.
13   Tenpoundbass   2021 Apr 25, 5:32pm  

Middle Class hoodrats are still hoodrats. The Democrat endocrine demands it.


14   Tenpoundbass   2021 Apr 25, 5:37pm  

Democrats just say "Guys! Guys! Stop it! You're going to git in trouble...."

Republicans kick them in the Balls and say "What in the Fuck is wrong with you God Damned porch monkeys! Go chimp out somewhere else, but not in front of my family in a public place you Assholes!" Open carry was made for defusing situations like this, without those Yard Apes turning on you.
15   Blue   2021 Apr 25, 8:20pm  

noobster says
Was the Dallas house comparable size? Man that's a lot of money for a standard house. Who's buying???

San Jose 4B, Dallas 3B large enough just for two. I remember its about 40 min. from downtown!
16   FortwayeAsFuckJoeBiden   2021 Apr 25, 8:30pm  

Rin says
Karloff says
How much more money can they print before the dollar is completely destroyed?


Expansion of credit usually results in the last buyer holding the bag.

In other words, when stock X goes from $300 to $3000, then all of the general public jumps in and finally, it crashes to $500, and then the smart money returns, to pick 'em up at a huge discount.

We've seen it before when the average investor put their entire IRA into tech stocks back in 2000.


Would be nice to know those timings. But no one has a crystal ball.
17   Blue   2021 Apr 25, 8:37pm  

noobster says
Panic buying, is the only thing that makes sense to me.

Not sure what is happening, pretty much all the houses at east of Livermore like Mountain house, Tracy got more than doubled in less than 5 years. I know one who bought in early 2019 for ~ 500k now at 1.1m and has to be in booking queue for new units. Heard on radio RE talk that some are even going down all the way to Patterson on I5 and paying 20% higher than asking with cash. I suspect tons of stock options, zero interest rates (a gift from taxpayers) and lack of building influenced by Prop 13, work from home, inflation etc. are the factors pushing price and the distance.
18   Bitcoin   2021 Apr 25, 8:41pm  

My house in Socal appreciated by 100k within the last 6 month. Fuckin lol.
19   FarmersWon   2021 Apr 25, 9:09pm  

Bitcoin says
My house in Socal appreciated by 100k within the last 6 month. Fuckin lol.


Apr 4, 2020 Sold for 1.66M
Apr 20,2021 Sold for 2.3M

640k appreciation in one year. Best business idea ever.
US is fucked up.
20   FarmersWon   2021 Apr 25, 9:15pm  

Patrick says
SunnyvaleCA says
Out here in silicon valley it seems that people are leaving the hell-hole cities (San Francisco in particular) and moving to the surrounding suburbs. Facebook, Google, and Apple are actually in the suburbs, so it's not like you need to move to the city so you can walk to the office.


It has come full circle. When I moved out here in 1997, tech workers complained that the suburbs were boring, so over the years the companies opened offices in SF to cater to them. But now that SF is becoming an open air toilet, the workers see that the suburbs are not so bad after all.


I think SF is opportunity to buy. This built up city is just waiting for conservative mayor to show up as the things are going to get worse.
https://www.nber.org/digest/jan03/what-reduced-crime-new-york-city
Many attribute New York's crime reduction to specific "get-tough" policies carried out by former Mayor Rudolph Giuliani's administration. The most prominent of his policy changes was the aggressive policing of lower-level crimes, a policy which has been dubbed the "broken windows" approach to law enforcement. In this view, small disorders lead to larger ones and perhaps even to crime. As Mr. Guiliani told the press in 1998, "Obviously murder and graffiti are two vastly different crimes. But they are part of the same continuum, and a climate that tolerates one is more likely to tolerate the other."

In Carrots, Sticks and Broken Windows (NBER Working Paper No. 9061), co-authors Hope Corman and Naci Mocan find that the "broken windows" approach does not deter as much crime as some advocates argue, but it does have an effect, particularly on robbery and motor vehicle theft. They use misdemeanor arrests as a measure of broken windows policing.
21   just_passing_through   2021 Apr 25, 9:28pm  

Yay!

I HOUSE thread!

Me likey!
22   just_passing_through   2021 Apr 25, 9:29pm  

I ain't buying shit in CA. Ever.

Just for the record.
23   AmericanKulak   2021 Apr 25, 9:53pm  

Tenpoundbass says
One thing the Cop shooting of that Little Miss McStabbie showed, that the new hood is those new big development cul-de-sacs.


That was Obama's plan, and I believe Biden just reversed Trump's orders to stop it.

Expect 4-story Mini-Hood Projects in every suburb. Except the ex-urb Greenbelt, nobody will be building HUD Homes in Williston or Chevy Chase or Greenwich
24   NuttBoxer   2021 Apr 26, 4:15pm  

Looking at that smoke again without understanding what causes these fires eh? They're called central banks + fiat paper = endless inflation.

We all know those houses aren't worth a quarter of asking, but no one wants to examine how much money we're losing through the largest hidden tax in existence, inflation.

And yes, please tell me your stories of how your fixed payments will be easy to make, forgetting that you still have to buy FOOD, and pay UTILITIES with salaries that are falling further behind by the second. Oh yeah, and PROPERTY TAX.

You don't own shit if you still have to pay someone for it. You're not rich if you make a million a year, but milk costs $50k. There is no free MONEY, government NEVER makes anything better. Regulations DO NOT guarantee safety, and laws NEVER EVER = morality.

Wait, more coming... Jewish and Black rights groups are the MOST racist people on the planet. Women will never be as strong as men genetically. A white man who supports BLM is a slave, and particularly stupid. A man who turns his dick into a hotdog bun, cross-dresses, and act effeminate is still a man, just a fucking whipped, pathetic, mutilated one. If you need a shot, pill, or surgery you are sick, not healthy, and need to examine what the fuck you did to your immune system, instead of being a whining asshole complaining about genetics. Or go to euthanize yourself, since you obviously have no desire to maintain a life worth living.

If you take on debt(excepting business plans and buying when it makes sense), you are greedy, lazy, and deserve the government dependency your get-rich-quick fuckery has doomed you to.

If you protest, but make no personal changes, you're a hypocrite. If you like following rules so you can say what a good person you are, and how bad everyone else is, you're an even bigger hypocrite, and likely a Covidite. Wear 10 masks, take ALL the jabs, fucking die already, and rid us of our self-serving, holier-than-thou bullshit.
25   EBGuy   2021 Apr 26, 8:44pm  

Dozens camp overnight for chance to buy $1.2 million Bay Area townhouses
Is this what they were buying?
2 bed/ 3 bath, 1268 sq.ft.
Yikes, anyone want to do the Price to Rent ratio?
26   SunnyvaleCA   2021 Apr 27, 6:50am  

EBGuy says
Dozens camp overnight for chance to buy $1.2 million Bay Area townhouses
Is this what they were buying?
2 bed/ 3 bath, 1268 sq.ft.
Yikes, anyone want to do the Price to Rent ratio?
I think you are correct — your zillow link matches the sfgate story. I visited that complex a few months ago just for fun.

They also have a bunch of single family homes for $2MM+ that overlook the "scenic" Lawrence Expressway (50 to 60 MPH and 4 lanes of traffic in each direction). The townhouses were better with respect to noise. The interiors are modern and quite nice, which they darn well should for that kind of cash.

I imagine that if the cower-in-place ever ends, the traffic there will be hilariously bad. In addition to the huge complex emptying out onto a modest size side street, there's a super-busy Costco which, alone, can back traffic up onto the exit lane of Lawrence as cars can't fit into the enormous parking lot until someone leaves. At least the Costco gas station isn't a 30 minute wait any more: it's been expanded to 6 islands with 6 pumps each.
27   Shaman   2021 Apr 27, 7:30am  

@nuttboxer
Epic rant dude!
28   B.A.C.A.H.   2021 Apr 27, 8:14am  

NuttBoxer says
you still have to buy FOOD, and pay UTILITIES with salaries that are falling further behind by the second. Oh yeah, and PROPERTY TAX.


This may change, but I don't see the inflation in my grocery basket.

I have a huge spread sheet I maintain every price paid, for every item, at every store, from my grocery and various sundry stuff (like cleaning supplies, batteries, etc.) going back to Q4 of 2017.

I updated it two days ago. Prices on 537 item-pairs from 13 different retailers, always comparing same-store / same-item prices. Careful attention to sizes to account for any hedonic games to disguise Stealth Inflation with sh*t like the Incredibly Shrinking Candy Bar.

As of April the inflation rate annualized is 0.65%, ie 1.0065 mulitplier. You can Snark on me about my calculation method (arithmetic, not geometric) (I abhor the freaking Yuppie-Talk misused word methology). I have played around with the calculation method and it doesn't materially impact the overall number. The arithmetic number is easier for my simpleton method to maintain.

Maybe this will change but it hasn't yet.

Similarly, I've maintained a log of every gallon of 87 octane fuel I've bought going back to May 15, 2006. I shared this on a different comment in a different thread. On May 15, 2006 price paid: $3.31 per gallon. This month, $3.35 per gallon,
29   zzyzzx   2021 Apr 27, 8:17am  

EBGuy says
hat they were buying?
2 bed/ 3 bath, 1268 sq.ft.
Yikes, anyone want to do the Price to Rent ratio?


Probably people looking to flip.
31   Bitcoin   2021 Apr 27, 11:35am  

farmer2021 says
Bitcoin says
My house in Socal appreciated by 100k within the last 6 month. Fuckin lol.


Apr 4, 2020 Sold for 1.66M
Apr 20,2021 Sold for 2.3M

640k appreciation in one year. Best business idea ever.
US is fucked up.


@farmer2021
640k profit in the 1-2M range is nuts. Where is this? Was that your house?
32   Bitcoin   2021 Apr 27, 11:38am  

HunterTits says
Tenpoundbass says
I wonder how these folks will handle getting foreclosed?

https://www.thegatewaypundit.com/2021/04/massive-brawl-breaks-mississippi-seafood-restaurant-chairs-glasses-fists-go-flying-video/





I dont mind when people of color hit each other. have at it. At the end the scapegoat is the bad, white man of course.
33   FarmersWon   2021 Apr 27, 12:06pm  

Bitcoin says
farmer2021 says
Bitcoin says
My house in Socal appreciated by 100k within the last 6 month. Fuckin lol.


Apr 4, 2020 Sold for 1.66M
Apr 20,2021 Sold for 2.3M

640k appreciation in one year. Best business idea ever.
US is fucked up.


@farmer2021
640k profit in the 1-2M range is nuts. Where is this? Was that your house?


No but I have similar property in general area and it is even more over inflated.
US housing prices sucks.
It is becoming like Asian cities where only rich can afford houses.
34   RC2006   2021 Apr 27, 12:10pm  

Whatever it is its not local to CA. Bought here at 440k and now a half a year later I could get 550k maybe with no contingency and over asking. My house in CA is already up about 100k.
35   Bitcoin   2021 Apr 27, 12:16pm  

farmer2021 says
It is becoming like Asian cities where only rich can afford houses.


yes...and europe....
36   FarmersWon   2021 Apr 27, 12:18pm  

Bitcoin says
farmer2021 says
It is becoming like Asian cities where only rich can afford houses.


yes...and europe....


And they say "socialism" is equalizer, Such a misnomer.
Communist is even bigger equalizer.. Everyone is equally poor and worry more about staying alive by keeping mouth shut.
37   NuttBoxer   2021 Apr 27, 2:32pm  

B.A.C.A.H. says
This may change, but I don't see the inflation in my grocery basket.


I don't think inflation shows up across the board until the final tailspin. Personally, it seems like a hundred bucks doesn't get me what it used to, but that's just my opinion. And I'm sure we can both agree that printing trillions of dollars does not a sound medium exchange, create.
38   RWSGFY   2021 Apr 27, 2:48pm  

Tenpoundbass says
I wonder how these folks will handle getting foreclosed?


Foreclosed? Joe&Hoe will put a forever emergency moratorium on foreclosures. Just wait for Indian strain of covid to land on our shores, giving them a perfect pretext.
39   EBGuy   2021 Apr 27, 3:05pm  

Earlier this year, Governor Gavin Newsom today signed legislation to extend the state's landmark eviction moratorium through June 30, 2021. There's got to be some follow on effect at some point. Wonder if some landlords will be driven to foreclosure?
40   joshuatrio   2021 Apr 28, 7:45am  

Is housing slowing back down? Here's what I'm seeing...

1) In my area - ATL suburbs, prices have almost double in the last 5 years. If the home is priced in the realm of reality, it will sell in a weekend. What I am seeing though, are sellers asking beyond the realm of reality, and those are definitely sitting.

2) I've had my eyes on homes in a few zip codes in Florida, for months, everything was pending or contingent for months. Now I'm starting to see properties sit significantly longer - and much more seems to becoming available.

Wondering if this is the top? And all the panic covid buying has dried up, especially with the prices going to high.

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