So that two little bedroom dumpy duplex we bought? It's gone up $65,000 in 6 months.

[Dottleshead ★]

Honest to Gawd, I have no idea when this insanity ends.  Unfortunately -- I mean fortunately -- I don't need to tap into the equity.  So I sit and watch the roller coaster ride from afar -- and it's been going up a steep hill now for some time... with no end in sight. Young people are fucked.  Owning a house now appears to be a luxury for the rich.  Crap.  I guess I'm rich. 

[maddmaxx ★]

Bubble.

[Dottleshead ★]

45 minutes ago, maddmaxx said:

Bubble.

We think but this time I am not so sure. There aren’t a lot of loop holes in the loaning process.

[BuffJim]

I think it’s a plateau. Most markets will settle down, but I doubt we’ll see a drop in prices. I feel bad for my daughter. Not quite ready to buy. On the sidelines for this price spike. 

[Further]

2 minutes ago, BuffJim said:

I think it’s a plateau. Most markets will settle down, but I doubt we’ll see a drop in prices. I feel bad for my daughter. Not quite ready to buy. On the sidelines for this price spike. 

Mine too

[Ralphie ★]

It’s snot over until the fat lady sings. 

[Dottleshead ★]

3 minutes ago, BuffJim said:

I think it’s a plateau. Most markets will settle down, but I doubt we’ll see a drop in prices. I feel bad for my daughter. Not quite ready to buy. On the sidelines for this price spike. 

 

1 minute ago, Further said:

Mine too

I feel bad for them too. It’s discouraging because the rents are as high or often quite higher than the mortgage payments 

[Further]

1 hour ago, Dottles said:

 

I feel bad for them too. It’s discouraging because the rents are as high or often quite higher than the mortgage payments 

She pays enough in rent to make a mortgage payment. The down payment and maintenance costs are her issue.

She is thinking townhome or condo, HOA fees scare me with those. 

[Dirtyhip]

2 hours ago, maddmaxx said:

Bubble.

Not necessarily.  Inventory is very low, so until that improves we won't see lower prices again.  I think it leveled out and is just cruising along now.

[Dirtyhip]

Building a custom home is always more expensive that buying an existing home.  That being said, we could likely sell this and get our money out.  I missed the big lumber increase, and barely missed some other increased costs from my builder.  We skated right through the door.  

It was still expenisve though.  

[Thaddeus Kosciuszko]

I think this will lead to a revival of neighborhoods like those in Detroit where you could, at one time, buy a house for a dollar.  Those houses aren't in great neighborhoods, but people will buy them because they can afford them and then work to make their neighborhood better.

Ideas of home ownership will change.  People will build homes on land that they have leased for 99 years, for example, avoiding the cost of the land as part of the house.  Mortgages will get extended to 50 years, which effectively means the owners never expect to pay it off until they sell.  Houses become more affordable, trading that off against the banks getting more interest.  This means, too, that ideas of traditional bank financing will have to change, so don't expect any rapid progress toward innovation.

I think, too, we will see the return of 'kit' homes like the Lustron all steel homes and the ones Sears used to sell.  I think the prices will be slightly higher though, and plastic will be used in place of steel.

[Dottleshead ★]

1 hour ago, Dirtyhip said:

Not necessarily.  Inventory is very low, so until that improves we won't see lower prices again.  I think it leveled out and is just cruising along now.

I agree DH. Tighter mortgage laws and lack of supply. There are those that believe the powers that be are making building more difficult to prevent urban sprawl and keeping folks in urban centers.

[Bikeguy]

4 hours ago, Dottles said:

Crap.  I guess I'm rich.

Until you move.... and pay $150,000 more than the list price of the next home.  

[Razors Edge ★]

15 hours ago, maddmaxx said:

Bubble.

...and taxes   Property taxes in Washington are about 1% of value, so there goes $650 extra per year for Dottles

[Longjohn ★]

All these work from home jobs you could live anywhere. Lots of homes that are affordable in other parts of the country. My nephew has a home in my area and one down south somewhere. My brother never knows where his son is going to be until he has him on the phone.