A friend in the Boston suburbs put house on market last week - gone in 1 hour - cash buyer, no contingencies, sight unseen other than the internet photos, $100,000 over asking price. Granted, it is a $2M house, but still...absolutely nuts!

I'm trying to imagine how bad off I'd have to be to want to move to a place like SoCal. Take care. Tom Worthington

They said on TV last night that the average price of a home in Durham, NC was $365,000 and they are building them as fast as they can. Tom no way your imagination can be that wild, no way.

There are times in life where I am amazed at how rough some people have it. Make no mistake, I don't drive new vehicles nor is any of my racing program brand new either. But the poverty in places in our country is hard to explain at times.

There are other times when I am simply floored with how much more other people must make than we do. The toters and stackers that go for over half a mil. The homes that are over $1 mil. The vacation homes on the ocean. Envy? Well it's hard not to think about how nice some of this would be to own. And I admire their wherewithall to aqire these luxuries. But it blows me away the amount of people in some areas who are killing it.

That said, it also blows me away that someone making $139k would qualify or would want to leverage themselves with an $825k home. Take out income taxes, pay property taxes, put something away for retirement, own a car and all the expenses that come with it. Man you better not have anything go wrong in life with that income level and those liabilities. Maybe I'm just more fiscally conservative than a lot of people.

Vegas housing market is just as crazy. We get phone calls, texts and emails daily about selling our place there. Its value is over 7 figures now, we purchased it in 2011 at the very bottom of that market and paid $364K, basically got tired of looking after three months and just decided to buy the biggest house on the most dirt we could find. While we have made a number of changes to it to the tune of $100K I would NEVER pay what we have been offered for it, NEVER. It is nice 5000 sq ft house and but not a million dollar plus home for sure. I did finally relent to the agent who sold us the house and told her if she can get $1.5M for it the by all means sell it

If I am moving back to Cali and especially San Diego its gotta be Coronado or bust for me Can only imagine the average price on the island.

Al property in Coronado is sold by the square inch, a shack (defined as anything smaller than a phone booth) would cost you more than a million. My wife and I stopped at the Hotel Del Coronado for a cup of coffee a few weeks ago. It would have required us to take out a second mortgage on our home, we passed.

Bob

Having spent most of my Navy time in San Diego, I will say it is the closest to a perfect climate I have seen, and I have been pretty much all over this country, and a good part of the planet. Never really hot, nor really cold. Like Bob said, SoCal was a great place to grow up from the late 50's to late 70's. There is so much natural beauty there, geography like every other place on earth, you can ski in the morning, and swim the beach that afternoon. But it got overrun by illegal aliens and foreigners, then taken over by the liberal shythead politicians, and they have done their best to completely ruin it.

This message has been edited. Last edited by: FootbrakeJim,

My big question on the obvious housing bubble that is going on 'almost' nationwide, is when will it burst? Because it has to. I don't know how it can be that there is a shortage of homes, available inventory less than number of buyers. So where are all the buyers coming from? Can't be just renters turning into buyers, because they are building hundreds of massive new apartment complexes all over this area, and even those are filled up as quick as they are completed. No rental homes available either.

I sold my house in November and it is worth about 15% more now than it was then. So I am building the new house...........

New homes are up about 60% since then. Luckily much of my new house cost was already locked much of the other stuff that goes in it are out of sight. Crazy. My new house I am paying cash for and it is hurting that budget. Lol.

quote:

That said, it also blows me away that someone making $139k would qualify or would want to leverage themselves with an $825k home.

Ah the good old days. Use to if there was a doubt you couldn't make the payments the bank wouldn't make the loan. But with lending laws being what they are, government backed loans (let me repeat government) and the Fed buying all the toxic mortgages plus. The bubble will continue for now, but as previously stated the piper will have to be paid. For now, the people I talk to are pleased with the value of their house, even if it is an unrealized gain.

quote:

Originally posted by RPROGAS:
Al property in Coronado is sold by the square inch, a shack (defined as anything smaller than a phone booth) would cost you more than a million. My wife and I stopped at the Hotel Del Coronado for a cup of coffee a few weeks ago. It would have required us to take out a second mortgage on our home, we passed.

Bob

Oh I know, but if I were to EVER come back to Cali thats where I want to be. The wife and I visit there often, but we stay on the Naval Air Station. Its way less money and we have our own private beach Been there many times while on active duty as well. Wife used to have to make bi yearly visits to the hospitals in the area when she was the Anesthesia Director for the military. Its on my favorite places list, but EVERYTHING off the base is definetly on the expensive side. She would move back to Cali in a heartbeat if not for the politics and expense of course we would have to fight as she loves the Napa area too.

I think the only thing that will slow it down in looming on the horizon. This bubble is not being pushed by investors looking to take a profit as much as people upgrading, relocating and just wanting a home. When money is damn near free its easy to have high prices. The only thing that will slow it is raising interest rates. And that's coming as its the only way to "slow" inflation which is just starting to rear its ugly head. Those not old enough to remember the last time are in for a rude awakening. Its been 30 years since it was running rampant and looks like we are heading that way quickly. Happens when there is too much money being printed and out there, also add in shortages of critical base materials, and people being paid not to work, causing employers to raise wages to attract anyone they can and the table is set. Not sure how many know this but in the last year the US Govt has printed 20% of the TOTAL number of dollars ever printing in this countries 245 years! That is a recipe for disaster.

My wife and I lost our house last year in a flood. I am 74 and I don't think I will ever own a home again. Although we don't owe anyone we don't don't have the income to support these recent home prices.I wish My wife would move but with all the family here thats not to happen. So I will just pay rent and be damn glad I can do that.I miss my garage and the garden though.

Wait till the ball drops.Matter of time. BOOM.

2.7 million mortgages in active forbearance.

The PGA is moving it's HQ here from West Palm Beach next year. They bought 600+ acres of cattle ranch 2 miles from our home, and are currently building their new facility, a pair of Championship caliber courses, and have a huge amount of space for big $$ country club homes to surround it. We were kind of holding out until that opens up, because it should drive prices higher in the area. But I am thinking maybe cash it out now, comps are already up about 100K over what we paid 13 years ago. And they opened our subdivision up to Section 8 rentals, which is causing things to decline in a hurry.
Plan was to sell, then rent while we build on acreage in a rural area. Rentals nearly impossible to find with elbow room and shop space. At least the Covid-created shortage in building materials, (which spiked prices 4x), is just now beginning to turn the corner, so we might just park the 42' RV on the acreage and start the build a bit earlier than planned... Not gonna jump into the crazy bidding wars on existing homes...

It all depends on where you are. Our house in Ohio has changed very little in value since it was built in 2003. It has increased in value about 11% since the day it was first built. A custom built home on 3 acres with a pond, income in the area is not very high median home price in our county is about 1/4 of this homes value. Just depends on where you are this is not a place East and West coast "elites" are flocking to.

quote:

Originally posted by Al Alguire:
It all depends on where you are. Our house in Ohio has changed very little in value since it was built in 2003. It has increased in value about 11% since the day it was first built. A custom built home on 3 acres with a pond, income in the area is not very high median home price in our county is about 1/4 of this homes value. Just depends on where you are this is not a place East and West coast "elites" are flocking to.

Will be nice to have y’all back!

quote:

Originally posted by Al Alguire:
It all depends on where you are. Our house in Ohio has changed very little in value since it was built in 2003. It has increased in value about 11% since the day it was first built. A custom built home on 3 acres with a pond, income in the area is not very high median home price in our county is about 1/4 of this homes value. Just depends on where you are this is not a place East and West coast "elites" are flocking to.

Same here where I live.Built a house in 2003.18 years later and it still isn't worth what we paid for it.
High property taxes have caused most people to leave the area.

quote:

Originally posted by 442OLDS:

High property taxes have caused most people to leave the area.

And that's why Leftugees are flooding red states like mines.

And the crazy thing is they probably bring their voting habits with them.

I bought my house in 1985 when inflation was higher than h3ll and mortgage rates were through the roof. I was loaning money at 18%. My second wife didn't want to live in the same house as my first wife. So she found this one in a prime area for next to nothing accept a 16% interest rate. I did it and suffered through 3 refinances cause the sex was fantastic. LOL. Today I own the house and am offered 7 times what I paid for it on a weekly basis. They will take me out feet first and then my kids can sell.