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  #21  
Old Posted May 12, 2021, 4:20 AM
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Originally Posted by AviationGuy View Post
The market value of my little 1400 sq ft 1960s home in Austin has increased now from $525K to $747K in only 1.5 years. A home in my neighborhood was sold for $125K over asking price yesterday, and it will have to be completely renovated. It sold for $806K. I saw the photos and they were frightening. Many homes in the neighborhood, even 1950s and 1960s homes, are selling for well over $1M. Those are usually larger than mine. I get daily updates from my realtor neighbor. He says there's almost no inventory, so people will pay whatever it takes to get this close-in location. They're coming not only from the east and west coasts, but also from within the state.

The bidding wars are so hot in the city that homes get contracts (usually cash) before a sign is put out in the yard. I have received letters almost demanding that I sell. To me it's nuts but I also understand why it's happening.

I really don't know what's happening in the Austin suburbs. I'm pretty sure things are pretty hot there as well, although not to the extent as here in the city.
See this is insane to me... these people would be better off renting until things cool down.
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  #22  
Old Posted May 12, 2021, 4:24 AM
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Either way, I cared more about finding a nice place to live for a price I could afford than real estate speculation, and so far I am happy .
Well yeah, because you're a regular person.

And you'll do alright in the long run.
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  #23  
Old Posted May 12, 2021, 4:33 AM
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Originally Posted by SIGSEGV View Post
See this is insane to me... these people would be better off renting until things cool down.
I think they're afraid prices will continue to escalate, which they probably will. So it makes sense to buy now. Some of the homes coming on the market have already been renovated, or are brand new (where the older homes were torn down). So there are some good catches when they happen. To me, the home I mentioned that sold for $806 was not a good catch. It will take a couple of hundred thousand to make it even livable. If they're going to tear it down, they shouldn't have paid that much. Still, one down the street from me was torn down because it was pretty much destroyed by a water leak, and the buyers still paid $535K, just for the privilege of razing it.
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  #24  
Old Posted May 12, 2021, 4:50 AM
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I think they're afraid prices will continue to escalate, which they probably will. So it makes sense to buy now.
Yeah but it's hard to predict how high they might go (they won't go up without limit, obviously), so the downside risk seems much higher than the upside to me. Not that I have that kind of money anyway
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  #25  
Old Posted May 12, 2021, 5:58 AM
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London's average house price is currently $960,000 (and over a million for what's being sold), pandemic be damned. And that's for the smallest average housing in the West (25% smaller than the Japanese even).

https://www.zoopla.co.uk/house-prices/london/

It'll take a nuclear strike to maybe dent the fecking market. When I lived 25 miles from the centre my workmate could still put down a deposit for a flat, with a shop assistant job. 12 miles further in and a doctor's wage still can't afford the same.
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  #26  
Old Posted May 12, 2021, 7:47 AM
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Piedmont is a small, suburb of about 10,000 people, and is surrounded by the city of Oakland on all sides.

Redfin says the median home price in Piedmont is currently $3.1 million and that might seem high, but honestly compared to what you get on the Peninsula for $3.1 million, Piedmont is rather a bargain to be honest. I split my work between the city and Palo Alto and when I see what 3 million gets you down there, I lmao.


anyhow, here's the most expensive listing in town right now. It's about half a mile from my house and it looks haunted and is so dated inside, I dont see how the nearly $12M pricetag is justified but whatever.
https://www.redfin.com/CA/Piedmont/5...11/home/775048
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  #27  
Old Posted May 12, 2021, 10:18 AM
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In Asheville this darling bungalow, at just over 1000 square feet, can be yours for a mere $524,900. Feast your eyes on 64 Mildred Avenue.

Ol' Millie there, coming on the market at that price, has galvanized Asheville. That's a city where the average wage still hovers around $10 an hour. The city may finally have reached its tipping point when it comes to high prices and shit wages. If you pay any attention to the local media, Facebook groups, and all the rest, you can definitely feel some seismic rumbling going on.
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  #28  
Old Posted May 12, 2021, 12:19 PM
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Originally Posted by SIGSEGV View Post
Yeah but it's hard to predict how high they might go (they won't go up without limit, obviously), so the downside risk seems much higher than the upside to me. Not that I have that kind of money anyway
Unfortunately, that rationale is a classic bubble and herd mentality...
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  #29  
Old Posted May 12, 2021, 8:43 PM
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In Vancouver metro the average price for a SFH is a whopping $1.6 million and in the City it's $2.4. Prices across Canada are skyrocketing.

There are many reasons most of which has to do with zero interest rates except for places like Vancouver where it's all based on money laundering. Zero interest rates are a double whammy. Not only does it make buying a house often cheaper than renting encouraging debt but also conversely makes saving money and putting it into the bank or RRSP a useless endeavour. For all the interest you get you might as well stick it under your mattress.

Real estate has become the 21st century rendition of a pension plan. The problem is that often only the well off can take advantage of it.
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  #30  
Old Posted May 12, 2021, 8:50 PM
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Originally Posted by SIGSEGV View Post
See this is insane to me... these people would be better off renting until things cool down.
Austin probably won't anytime soon. Real estate there is out of control. Huge influx of people from expensive areas who think nothing of spending a half million+ on a modest house will keep prices high coupled with influx high paying jobs. The taxes there have to be insane.

Pretty much everywhere is plagued by investor beat the average buyer to the punch by putting in offers on a home before they hit the market...cash sight unseen.
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  #31  
Old Posted May 12, 2021, 10:41 PM
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Originally Posted by bossabreezes View Post
Im actually shocked at how affordable that is. Thats a good thing actually. Do you see any exchange of people from Seattle moving to Portland for cheaper cost of living?

I don't even need to ask about Californians, Im sure if you swing your arms you'd hit one.
In my 24 years of living here I've only met two people from Seattle who moved here on purpose. Its always the opposite, people who outgrow Portland and go up to the "big city".
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Last edited by pdxtex; May 13, 2021 at 8:41 PM.
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  #32  
Old Posted May 13, 2021, 12:48 AM
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Not sure why you edited my quote, but okay.
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  #33  
Old Posted May 13, 2021, 3:17 AM
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Originally Posted by SIGSEGV View Post

Fortunately I bought near that dip .
Wait, why did it drop after 2018? Did a lot of new units get built in the loop?
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  #34  
Old Posted May 13, 2021, 4:03 AM
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Originally Posted by DCReid View Post
Unfortunately, that rationale is a classic bubble and herd mentality...
The "experts" are saying no classic bubble in Austin, because prices are still way below other parts of the country (especially the west coast), so there's plenty of space for increases. Also, companies are moving in like crazy and bringing employees who have very high wages. Some of them are selling their current homes and have more than enough cash to buy in Austin, with plenty left over. Supposedly, it would take a major recession or more to cause things to plateau anytime soon here. We didn't even take much of a hit at all during the Great Recession of 2007-2009. When things start really approaching west coast prices, that's when I would advise a lot of caution. For now, I'm probably going to just sit on this property, which I bought 30 years ago for about $100K.

I do see a lot of herd mentality going on. For now, I think it's safe because, like I said, there's a lot of space for increases. But part of me is still concerned.
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  #35  
Old Posted May 13, 2021, 4:12 AM
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Wait, why did it drop after 2018? Did a lot of new units get built in the loop?
no clue, it's possible that there are too few discrete condo buildings in this zipcode to infer too much. Maybe one of the large buildings raised their assessments in 2018 or something?
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  #36  
Old Posted May 13, 2021, 4:18 AM
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Originally Posted by JManc View Post
Austin probably won't anytime soon. Real estate there is out of control. Huge influx of people from expensive areas who think nothing of spending a half million+ on a modest house will keep prices high coupled with influx high paying jobs. The taxes there have to be insane.

Pretty much everywhere is plagued by investor beat the average buyer to the punch by putting in offers on a home before they hit the market...cash sight unseen.
Yeah, property taxes are insane. There are many thousands of people here and in other places who have become wealthy on paper, but don't have the income or savings to pay the taxes.

Around here, I haven't personally seen properties being bought up by investors who don't live at the properties, although I would imagine it's happening to some extent. In my area of the city, the newcomers I'm meeting (like on my street, at HOA meetings, and online) are the highly paid executives and employees who want to live close in and who can afford just about anything. I'm betting you're correct that investors are a big part of the picture in many areas, and probably some parts of Austin (e.g., flipping activity). I just haven't seen them right around my area. The homes in my area are almost all owner occupied and people tend to stay put.
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  #37  
Old Posted May 13, 2021, 4:27 AM
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Quote:
Originally Posted by AviationGuy View Post
The "experts" are saying no classic bubble in Austin, because prices are still way below other parts of the country (especially the west coast), so there's plenty of space for increases. Also, companies are moving in like crazy and bringing employees who have very high wages. Some of them are selling their current homes and have more than enough cash to buy in Austin, with plenty left over. Supposedly, it would take a major recession or more to cause things to plateau anytime soon here. We didn't even take much of a hit at all during the Great Recession of 2007-2009. When things start really approaching west coast prices, that's when I would advise a lot of caution. For now, I'm probably going to just sit on this property, which I bought 30 years ago for about $100K.

I do see a lot of herd mentality going on. For now, I think it's safe because, like I said, there's a lot of space for increases. But part of me is still concerned.
I would naively guess that Austin "should" never reach west coast prices as it doesn't really have the same geographic constraints, though of course in-towns aren't growing on trees.
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  #38  
Old Posted May 13, 2021, 8:37 PM
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Originally Posted by bossabreezes View Post
Not sure why you edited my quote, but okay.
Thats totally weird. I was trying to edit my own response. This phone sucks. I think I fixed it. But my point was multifamily housing might actually be cheaper in Seattle. They have a much better supply.
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  #39  
Old Posted May 13, 2021, 8:51 PM
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Concerning bubbles, I think these prices are here to stay. Demand is high, rates are still low but the banks are way more stingy than 10 years ago. The ppl getting mortgages now have better finances and credit than the zero percent down folks.
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  #40  
Old Posted May 13, 2021, 11:28 PM
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Looking at the market from the low end:

Quote:
There Are Only 7 Homes in New York City Under $100,000
...

What can you get in New York City for under $100,000? There are currently just seven units on StreetEasy that fit the bill, six in the Bronx and one in Queens. (In Brooklyn, $100,000 will just barely buy you a parking spot.) And while, say, a bright, pleasant-looking studio apartment in a co-op building in the Highbridge for just five figures certainly sounds like a steal, most of New York City’s cheapest homes for sale have lingered on the market. Because at this lowest end of the price range, apartments tend to have specific limitations on who can actually buy.

https://www.curbed.com/2021/05/ray-m...es-prices.html
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