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Homebuyers Squeezed As Western States See Prices Double Or More In Last Decade


dinneR

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Interesting article.

Since the recovery, median income has gone up in the area by about 20%. But the median housing price has shot up by more than 250%, according to data from Boise Regional Realtors.

https://www.npr.org/2021/05/28/1000879058/homebuyers-squeezed-as-western-states-see-prices-double-or-more-in-last-decade

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21 minutes ago, denniS said:

Interesting article.

Since the recovery, median income has gone up in the area by about 20%. But the median housing price has shot up by more than 250%, according to data from Boise Regional Realtors.

https://www.npr.org/2021/05/28/1000879058/homebuyers-squeezed-as-western-states-see-prices-double-or-more-in-last-decade

An identical floorplan & nearby location to my FiL's sold a few days before his death in Dec.  Flash forward to our sale a few weeks ago and the increase was 30+%.

That's a big jump for five months time.

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4 minutes ago, Dirtyhip said:

Everything I have been reading does not indicate that this is a RE bubble.  This is lack of supply.  There is some FOMO going on, but I see prices continuing to rise.  Until more homes can be built, we have a demand over available supply.

You get a AAA+++ for timing!

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1 minute ago, denniS said:

We are seeing people go door to door and making offers. There currently only two home for sale under $1 mil. The classifieds in our paper have 12 pages of help wanted ads. There is no place for people to live. Our stock cannot increase by much.

As if killing a shitload of people wasn't a bad enough effect of covid.  Wait - there's more!

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37 minutes ago, UglyBob said:

Our prices here in AZ are being driven up by people moving out of California because the cost of living has skyrocketed over there. The problem is that they are causing the same thing to happen here.

I was just saying good bye to a payroll manager today.  She sold her place in OC and is moving to TN and working remote.  Said she made a killing on her place and will nearly pay off the place they bought in TN.  

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Just now, Philander Seabury said:

You get a AAA*** for timing!

I was talking to my husband about this last night.  Usually, we have terrible timing and it has hurt us in the past. This time it was stellar.  We even got our lumber package before the ginormous spike.  It was elevated, but nothing near as bad as what we are seeing right now.

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30 minutes ago, roadsue said:

Just saw a report that the west will experience crippling drought this summer. That might slow things down. Great house, beautiful vista, no water. No deal. 

I am hoping a harsh winter will send them scrambling home.

I've been on the waiting list tp buy an affordable. I was able to enter a lottery this week for a condo.

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8 minutes ago, Dirtyhip said:

We even got our lumber package before the ginormous spike. 

Yeah... I went to the lumbar yard that suppled the lumber for our home.  OMG lumbar was expensive.  The guy says, you should be glad you built your home a while ago.   Lumber prices have gone up a lot.  I'm glad I didn't need much lumbar.  

image.png.a0ec272fb2377bf46f2c8b3997375152.png

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This all seems very regional.   Here, all the buying has been in the surrounding areas as covid pushed people out of the depressing reality that covid city life had become awful.  Everyone who was on the fence decided that the time was right to bail and buy elsewhere, pushing up demand everywhere else.

They are starting to come back, but it will be a couple of years before things are all the way back here.  People will grow bored of the suburbs if they are young, because the burbs are boring if you are young, or even if you are older (they sure are convenient for some things, though).  The middle of nowhere is great if you have outdoors interests like cycling or somesuch, but if you are young and want a bit of excitement or nightlife, it isn't as good.

I have always liked the middle of everything or the middle of nowhere.  The middle of nowhere is calmer for sure.

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10 hours ago, Dirtyhip said:

Everything I have been reading does not indicate that this is a RE bubble.  This is lack of supply.  There is some FOMO going on, but I see prices continuing to rise.  Until more homes can be built, we have a demand over available supply.

I agree with this.  But sooner or later the prices are going to reach the max of two income families.  When folks can't make the mortgage payments, that'll be the ceiling.

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9 hours ago, Dirtyhip said:

I was talking to my husband about this last night.  Usually, we have terrible timing and it has hurt us in the past. This time it was stellar.  We even got our lumber package before the ginormous spike.  It was elevated, but nothing near as bad as what we are seeing right now.

If we had stayed, we might have done a little better. But I have no regrets.  I think it was very good timing.  Our lives are so less stressful now.

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On 5/28/2021 at 3:50 PM, ChrisL said:

I was just saying good bye to a payroll manager today.  She sold her place in OC and is moving to TN and working remote.  Said she made a killing on her place and will nearly pay off the place they bought in TN.  

Since we've been out here, and are now done with the house sale, we've been checking out the market here, going to open houses, and just generally familiarizing ourselves with what we would want when we move here.  It is quite a zoo, but that is okay for us because we are not buying now, but you can literally GUARANTEE a home will go on the market Thurs evening/Fri morning, be flooded with interest, have multiple offers in hand by Sun, and a contract - usually all cash and way above asking price - by Mon. Maybe Tuesday if the "final best highest offer" to all offers is solicited from earlier offers.  Wild.

We know our local area well now from hours of walking, and know the neighborhoods and homes (from the outside), so getting inside really helps narrow down what we will eventually tell our realtor to find for us.  What's scary, though, is that I make an effort to also look at surrounding areas that satisfy our "near the ocean", "nice outdoor space" & "nice neighborhood" requirements, so I am always stumbling across the ones like these below that are near our favorite Chinese place out here.  Also note, NONE are currently for sale - not because folks aren't always selling, but because even at 1+M, they last 3 days on the market and are gone, so there is never many options. 

Luckily, we have time, and now we have an idea of what and where we want to buy, so that gives us plenty of time to plan our next steps - but also gambles on a pause or even a decline in the market at some point. With low interest rates, it's hard to see when that will be.

IMG_0616.thumb.PNG.968a41f31d5fd69f274683aaada4eda9.PNG   IMG_0617.thumb.PNG.ce9debbdb8e566e82d25a1b30eb84470.PNG

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On 5/28/2021 at 6:28 PM, Dirtyhip said:

Everything I have been reading does not indicate that this is a RE bubble.  This is lack of supply.  There is some FOMO going on, but I see prices continuing to rise.  Until more homes can be built, we have a demand over available supply.

The lumber mills and the supply chain cutting wood in Indonesia etc. slowed way down at the height of the pandemic and didn't anticipate the strong rise in demand.

My BiL spent $95 on a 4'x8' sheet of plywood.  My brother, asst. manager of a State Roads warehouse and sign making center, said that 2x4's shot up to $12 from $4 this year.

I have to give my contractor a list of five each gas ranges, dish washers, and above-range microwaves and hope he can get one of them - the others not expected to be available until the fall or 2022.

Things are picking back up but who knows how long it will take to get back to normal.  The "LG Washtower" stacked, single-unit washer and dryer that's doing a lot of TV commercials right now is the one I got.  When I ordered it, Lowe's Baltimore-Washington warehouse had 91 that morning and had 20 left when I bought mine in the early afternoon.

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Our son had been looking for a home in Louisiana (got transferred there) for four months. They were looking for something around $300,000 or less. When he finally ran oot of time, they settled, signed and closed on a home with acreage for over $450,000. It will be interesting to see if and when the market corrects, if he'll lose his azz when he gets transferred again in three or four years. 

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On 5/29/2021 at 4:02 AM, Randomguy said:

This all seems very regional.   Here, all the buying has been in the surrounding areas as covid pushed people out of the depressing reality that covid city life had become awful.  Everyone who was on the fence decided that the time was right to bail and buy elsewhere, pushing up demand everywhere else.

They are starting to come back, but it will be a couple of years before things are all the way back here.  People will grow bored of the suburbs if they are young, because the burbs are boring if you are young, or even if you are older (they sure are convenient for some things, though).  The middle of nowhere is great if you have outdoors interests like cycling or somesuch, but if you are young and want a bit of excitement or nightlife, it isn't as good.

I have always liked the middle of everything or the middle of nowhere.  The middle of nowhere is calmer for sure.

The middle of nowhere is great.  We have a pub.  We have a library.  We have 3 drugstores!!!.  We even have one intersection with 3 different gas stations.   :lol:

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A buddy's kid just got married, he and the new bride have both been living at their parents, saving money. They delayed a bit to long on pulling the trigger on a house and now can't find one. Even apartments are hard to come by.  They are on their honeymoon now, and have no place to come home to.

 

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I drove by a house I used to live in and noticed a realtor sign in the yard. I looked it up online and the house is the same except for vinyl siding. They were asking more than three times what I sold it for. Now the realtor thinks I’m looking for a house in the area. I keep getting listings in my email. Right now they have two houses listed for under $30,000. Can the newlyweds work from home? Owl send you the link.

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2 minutes ago, Longjohn said:

I have a wheelchair ramp I built out of 2X8 treated lumber. I wonder how much I could sell it for?

More than you payed...You should put it on craigslist or facebook. Someone will pay you to get it out of your way. Unless you could use the lumber...

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4 minutes ago, Further said:

More than you payed...You should put it on craigslist or facebook. Someone will pay you to get it out of your way. Unless you could use the lumber...

I have a crapton of handicap equipment. Some of it never used (wheelie walker with hand brakes and a seat) physical therapist talked us into but my wife’s health was already too far gone for her to use it. We have a stair lift but I might need that myself some day.

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