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House building and buying prices are nuts right now

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posted on Jun, 23 2019 @ 05:20 PM
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I know someone selling a house near me, it is a 3 bd, 2.5 bath house for 700K....
There is nothing standout or special about this house. Building is no better, most builders are charging
between 180-250 sq ft for new houses. Concrete is at an all time high, don't even look into the price for a small concrete driveway, it is jaw dropping.
Even landscaping is at the insanity level.
People will drop 100k for grass and some flowers.

The only thing I can think right now is that this is going to end very badly...

Also, are houses the biggest rip off there is? They build your house in 5-8 months, but most people take 30 yrs to pay for it.
Something seems really wrong with that. Back in my grandpa's day, everyone built their own houses, without mortgage. Many of those houses are
still standing and of better quality compared to what is being built today.

edit on 23-6-2019 by JAGStorm because: (no reason given)




posted on Jun, 23 2019 @ 05:34 PM
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a reply to: JAGStorm

Yep, I purchased a 1930s house and have been living it in for close to 20 years now. The only maintenance it has really needed was new shingles and some polyurethane injection on some cracks in the basement walls for sealant.

I recently changed home insurance and they are requiring 5x what I paid for the house and 3x the current value. Everyone has lost their mind. There is no way the current prices are sustainable. I wonder if we will ever get back to the sanity of no more than 3x annual income for a house purchase?



posted on Jun, 23 2019 @ 05:50 PM
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Yup. The house next door to mine--same builder, appx same size, sold for just under $1 Million in less than ten days. All this does is raise my property taxes. Sure, I could sell and have nearly a million bucks, but where would I live? Unless my wife and I are willing to move to a cheaper state (She isn't) I get to stay here.



posted on Jun, 23 2019 @ 05:55 PM
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People cannot fathom the real value of things these days. The price soaring up in houses is nothing but a sales campaign. The homes are going for way more than they are worth these days in most places, people are buying them thinking they are an investment, that is crazy when the price is so high. The values of homes can tumble down, that has happened many times in history yet people keep making the same mistake over and over in our societies.

I think people have been totally brainwashed.

I owe nothing on my house, and no matter how high it's value goes it is not for sale. We will never take out a reverse mortgage, I have seen how bad those turn out for people I have known.



posted on Jun, 23 2019 @ 05:59 PM
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a reply to: JAGStorm

I remember the housing bubble that burst back in 06 or 07 was it? All those houses that had been bought because of the balloon interest rates and people just walking away from their mortgages. All those bad loans and the whole economy went sour? And Obama came in and things slowly seemed to pull themselves out of the sewer with all the losses getting payed back to the banks and then the automakers... Rather than fixing anything, Obama just let the banks and wall street go back to their fast money schemes but slowly things got better I guess.

But anyone with any sense could see that nothing had changed and that sooner or later that bubble would get bigger and bigger again until POP. Are we approaching that again?



posted on Jun, 23 2019 @ 06:00 PM
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a reply to: schuyler

I heard a really interesting strategy from local municipalities for property taxes. Maybe it was from here but it goes something like this: They quietly lower the mileage rates and then increase people's home values across the board. Most taxpayers don't fight the municipality because their overall tax bill is pretty much the same, so they never fight the increase in their assessment. Then once the city has all of the assessed property values increased into the statosphere, they slowly increase the mil rate and the home owners have no recourse.

clever bast*rds



posted on Jun, 23 2019 @ 06:03 PM
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originally posted by: ClovenSky
a reply to: schuyler

I heard a really interesting strategy from local municipalities for property taxes. Maybe it was from here but it goes something like this: They quietly lower the mileage rates and then increase people's home values across the board. Most taxpayers don't fight the municipality because their overall tax bill is pretty much the same, so they never fight the increase in their assessment. Then once the city has all of the assessed property values increased into the statosphere, they slowly increase the mil rate and the home owners have no recourse.

clever bast*rds


I think they are doing that where I live. The other weird thing, people are so foolish to believe the assessed values because they want to believe their 3bd is really at mansion prices. They really do. I'm the only one that fought my assessment in my old neighborhood. It took me 5 min was easily approved, and save me thousands. Most assessments are wildly inaccurate.

What most people don't calculate is the cost long term for that property tax!



posted on Jun, 23 2019 @ 06:05 PM
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originally posted by: schuyler
Yup. The house next door to mine--same builder, appx same size, sold for just under $1 Million in less than ten days. All this does is raise my property taxes. Sure, I could sell and have nearly a million bucks, but where would I live? Unless my wife and I are willing to move to a cheaper state (She isn't) I get to stay here.


That really stinks. I know a lot of people that are getting taxed out of their neighborhoods right now.
The other thing that is always interesting, is that the taxes never lower at the same rate they increase when things do go south!



posted on Jun, 23 2019 @ 06:33 PM
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And Hershey bars used to be a nickel. Materials are more expensive and cheaper in quality. Im in the the field of new construction and it's not our fault. You want a cheap house or an addition built? Hire illegals and fail the inspections. Get what you over pay for.buy materials from China that won't last, hire the guys at home depot and get no warranty, and then complain about the sewage leak and the calls you make that never get answered. Low budgets plus big dreams equals shoddy work and unhappy white collared folks who wonder why the basement smells like sh@t.



posted on Jun, 23 2019 @ 06:37 PM
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yeah rental and home prices in the flathead valley of montana have gotten nuts since i moved here roughly 10 years ago. got my place for 230k near a lake but not on it and its just been constantly going up in value(most say mid 400s for it now,but one says 1.4 million which is no way accurate) to the point where the locals cant afford to buy anything and its close to none of them being able to afford rental prices here (i was a former landlord here got out of it because of all the terrible tenants here) on the lake near me there are a couple of two million dollar homes and the lake isn't even that big

flatheadbeacon.com...

flatheadbeacon.com...

the real estate market was hot in 2018, the kind of activity that keeps Realtors and homebuyers hopping well past the busy spring and summer seasons and into the historically slower times of fall and winter. “What I’m hearing from my agents is that they’re as busy now as they were in July,” Erica Wirtala of the Northwest Montana Association of Realtors said. “I’m sure there are some out there that are slowed up, but the ones really hustling are still busy and doing well.” Homes in the $200,000 to $300,000 price range sold the most in 2018, a demand that lines up with a growing population in Flathead County. Richard Dews, CEO of Glacier Flathead Real Estate, charted real estate activity in 2018, and the data showed a decline in less-expensive home sales, while higher-end purchases are picking up speed. According to Dews, 240 homes between $200,000 and $249,000 sold in 2017, whereas in 2018, that number dropped to 200. Properties listed for more than $450,000 saw an increase in sales of anywhere between 15 to 50 percent over 2017 depending on the price range. The less-expensive homes also sold much faster than the other units on the market. Dews’ research showed that anything priced for less than $200,000 in Kalispell is typically under contract within 10 days, and anything priced for less than $300,000 is gone within 20 days. In Whitefish, homes priced between $200,000 and $350,000 tend to sell within three weeks. At the low end, these homes cost about $240 per square foot. Columbia Falls is also experiencing quick sales for the less-expensive homes, according to Dews, typically running about $160 to $170 per square foot for this price range. Bigfork can have homes on the market for $125 to $150 per square foot, but those priced near $500,000 range from $170 to $185. With plenty of activity happening in most price ranges, Wirtala said NMAR is paying attention to the national slowdown in home sales and builds. “Here in the Flathead we haven’t seen quite a dip like the rest of the nation has,” Wirtala said. “We’re usually about six to eight months behind national trends.” One aspect that will change for homebuyers in 2019 is mortgage rates, which were at historic lows during the recession and below average in the following years despite economic growth. In 2012, the interest rate on a 30-year fixed-rate mortgage hit 3.31 percent. In 2019, the same rate is expected to hit 5.8 percent.
glad my house was paid off when we bought it



posted on Jun, 23 2019 @ 07:13 PM
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a reply to: JAGStorm

Here is an interesting link Ijust came across.

www.nytimes.com...


This house in Atlanta was sold three times in one year, a
sign of exploding investor interest in starter homes that is
reshaping the nation’s housing market and driving up prices.


Could it be that in this 'booming economy'' there are those who are booming and those who are bust? Could it be that those who are benifiting from our ''strong'' economy are trying to find ways to invest their money in one of oldest ''get rich quick'' games there is , the housing market?

I sold a family home a year ago and half the bidders were investors wanting to buy it to rent it out. Could we be on that path to a society where there is no home ownership class because the landlord class has bought up all the available homes and condos and such?



posted on Jun, 23 2019 @ 07:24 PM
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originally posted by: Starhooker
And Hershey bars used to be a nickel. Materials are more expensive and cheaper in quality. Im in the the field of new construction and it's not our fault. You want a cheap house or an addition built? Hire illegals and fail the inspections. Get what you over pay for.buy materials from China that won't last, hire the guys at home depot and get no warranty, and then complain about the sewage leak and the calls you make that never get answered. Low budgets plus big dreams equals shoddy work and unhappy white collared folks who wonder why the basement smells like sh@t.


Try again, if we want to use the Hershey's analogy.
1950's Hershey's bar nickle, today's cost around .50 cents.
1950's you could easily get a house for 5K, with inflation that would around 50K today.
Reality says depending on where you live that same house today will cost 300K to 700K..

I agree it's not your/construction workers fault and never said it was. It is also not a discussion about illegals. I actually mentioned my grandpa building his own house. The whole discussion is about the actual worth of housing. Yes I know, something is only worth what someone is willing to pay, but what if that value has been so altered, so skewed and too many people are being fooled. Maybe some know they are, and maybe some are just ignorant.

Also, I don't know how old you are, but if I remember the last two crashes correctly, construction workers were some of the hardest hit when the floor fell. If I were you i'd be learning something else on the side just to be safe.



posted on Jun, 23 2019 @ 07:25 PM
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All the contractors, builders and real estate people, know the bubble is about to pop again and are maximizing profits while they can. In my small village there are Asian investors buying up everything including unimproved acreage and trailer houses. And every day I get multiple calls asking if I want to sell my acreage in Texas; when I get the offer I want, I'm selling even though this farm has been in my family for over 100 years. I just don't care anymore.
edit on 23-6-2019 by olaru12 because: (no reason given)



posted on Jun, 23 2019 @ 07:38 PM
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originally posted by: olaru12
All the contractors, builders and real estate people, know the bubble is about to pop again and are maximizing profits while they can. In my small village there are Asian investors buying up everything including unimproved acreage and trailer houses. And every day I get multiple calls asking if I want to sell my acreage in Texas; when I get the offer I want, I'm selling.


You know what would be super interesting, to see how many realtors are selling their own houses right now and downsizing, or even renting. I bet that would be eye opening.

I know some investors/flippers, they know this market is insane!



posted on Jun, 23 2019 @ 07:54 PM
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Next thing I buy is land in an area with no jobs and low income to retire on in the country.

Going to park an rv on it and build something, be it a container or what ever.

The American dream of house with white picket houses is over.

Going off the grid.



posted on Jun, 23 2019 @ 08:49 PM
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Totally off topic, but kind of cool. phys.org...



posted on Jun, 23 2019 @ 09:09 PM
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a reply to: JAGStorm

Mid 30s. Im fortunate enough to live in the SF bay area so I've always been as busy as I want. And I realize how lucky I am daily to be here before it blew up cost wise. I have my own Plumbing company with one employee and I still dig the trenches and crawl under houses. In my opinion, tradesman have the hardest jobs and are underpaid and under appreciated to the soft skinned, skinny techsters whos idea of a hard day is a meeting that went ten minutes too long.

Most younger Americans feel that physical work is beneath them and thus, would rather get loans for a degree that a lot of others have as well. Supply and demand. Less guys and girls willing to build your house, the more it costs. And most of the materials are low quality Chinese items from home depot. Thus, expensive, crap homes built by inexperienced temp workers bought by cubicle dwellers who don't know the difference because they'd rather Instagram instead of getting their hands dirty.



posted on Jun, 23 2019 @ 09:17 PM
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originally posted by: ClovenSky
a reply to: schuyler

I heard a really interesting strategy from local municipalities for property taxes. Maybe it was from here but it goes something like this: They quietly lower the mileage rates and then increase people's home values across the board. Most taxpayers don't fight the municipality because their overall tax bill is pretty much the same, so they never fight the increase in their assessment. Then once the city has all of the assessed property values increased into the statosphere, they slowly increase the mil rate and the home owners have no recourse.

clever bast*rds


Quoted for excellence.

Because that's exactly what is happening.

My property was purchased in the late 1990's for 175k.

Currently worth over a million (whAaA?) in a sleepy place in Montana and I've not done any upgrades that technically count.

Not even electricity to the property...

Now the country commissioners are talking about raising property taxes to pay for solid waste disposal (which I do not use or pay for), a big hike to pay for a transformer station for a better electrical grid (I'm off-grid) and improvements to sewage (I have a septic system.)

I'm going to the meeting and have written a rebuttal but I'm basically screwed.

Such BS.




posted on Jun, 23 2019 @ 09:17 PM
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There are a number of factors as to why housing is so expensive in many areas.

First, it is simple supply and demand. Areas with good jobs, good schools, commuting times, amenities, etc will be more expensive and desirable.

Second, mortgage financing has inflated prices. People are able to finance larger purchases and this has driven up prices.

Third, builders are only building luxury homes. The cost of land, regulations, permitting, etc make it nearly impossible to build cheap houses so it is easier to build more expensive homes.

By in large, real estate is a good long term investment. Once you lock in a rate and price, you are protected from inflation. I bought my house about 15 years ago. A house is a forced savings account. You pay the mortgage off and you are left with an asset that is usually worth more than you paid. In addition, you are protected from inflation. Your mortgage payment will stay the same even as costs increase around you.



posted on Jun, 23 2019 @ 09:23 PM
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originally posted by: Edumakated
There are a number of factors as to why housing is so expensive in many areas.

First, it is simple supply and demand. Areas with good jobs, good schools, commuting times, amenities, etc will be more expensive and desirable.

Second, mortgage financing has inflated prices. People are able to finance larger purchases and this has driven up prices.

Third, builders are only building luxury homes. The cost of land, regulations, permitting, etc make it nearly impossible to build cheap houses so it is easier to build more expensive homes.

By in large, real estate is a good long term investment. Once you lock in a rate and price, you are protected from inflation. I bought my house about 15 years ago. A house is a forced savings account. You pay the mortgage off and you are left with an asset that is usually worth more than you paid. In addition, you are protected from inflation. Your mortgage payment will stay the same even as costs increase around you.


Um... yea.

Unless you are buying your property for the purpose of dying there, you are going to get hosed on the next housing bubble, which is basically here already.

123,000 homes selling for 700k in a market that has 6 buyers doesn't bode well for the long-term.

Ask Chicago.



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