The Current Real Estate Market

[Biggs]

Is insane. Just insane.

I’m selling a lower-middle class home an hour north of Austin, nothing real fancy. Out of state buyers offering $30k-Over asking price CASH offers is commonplace now.

1. Lower-middle class families are now priced out of the current market.
2. Lower-middle class families that already own a home will have their property taxes skyrocket, edging them more into lower class.
3. Skyrocketing property (“values”) taxes will get passed from Landlords through to Tenants and Renters, driving families to less disposable income or moving to cheaper areas that aren’t experiencing the insanity.

Is this the new norm? Or will it settle out?

[corps2010]

I hope it stays like for another 6 months lol. I'm doing some minor remodeling right now and fixing to try and sell our house while it's crazy like this. 10 year old houses in my area are being listed for $165/sq ft...if people are paying that kinda coin for a house, I'll sell mine tomorrow and figure out what to do afterwards..

[Johnny Dangerr]

No we have been marching in this direction a long time. My twin brothers best friends hung with the Clintons for the last 40 years. All of this was planned a long time ago..............

[MarkV]

No we have been marching in this direction a long time. My twin brothers best friends hung with the Clintons for the last 40 years. All of this was planned a long time ago..............

Would love to hear more on this

[DFWPI]

It's crazy

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[RiverRat1]

Everything goes in cycles. Good times and bad. It's just we've been in good times so long many younger people don't know the cycle.

Long ago it was common for people to actually consider what gas would cost to go on vacation..or food. And actually look at prices when at stores. Maybe even buy generic. Teachers back then really made squat compared to today. Most have to save pennies to make house payments each month and had no money left for iphones and cable.

I see more waste these days than I ever thought possible. That's about to change IMO

[BlackoutRam2500]

Everything goes in cycles. Good times and bad. It's just we've been in good times so long many younger people don't know the cycle.

Long ago it was common for people to actually consider what gas would cost to go on vacation..or food. And actually look at prices when at stores. Maybe even buy generic. Teachers back then really made squat compared to today. Most have to save pennies to make house payments each month and had no money left for iphones and cable.

I see more waste these days than I ever thought possible. That's about to change IMO

Sad but more than likely true.

Saw a report that said there were 5 million millionaires created in 2020 despite the pandemic, same as 2019.

My guess is people in the top 20% all over the world are gonna be just fine but those at the bottom 20% or 30% are going to get even further behind. It doesn't matter if they raise minimum wage from $9 an hour to $15 or even $20 per hour if a median house price goes from $200,000 to $425,000. Think about it... the $20 guy couldn't afford the $200,000 house.

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[Black-N-Red]

I sure need to get mine on the market!!!


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[whitetailtrail]

We are taking the gamble and selling.. temporary stay with the in laws. Hoping we don’t get priced out of our market. Hard to turn away from prices being paid - we had a move in our future within 5 years, this just accelerated it.

Not uncommon to see $200/sq ft sales price in our area for a regular old cookie cutter home.


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[IkemanTX]

Sad but more than likely true.

Saw a report that said there were 5 million millionaires created in 2020 despite the pandemic, same as 2019.

My guess is people in the top 20% all over the world are gonna be just fine but those at the bottom 20% or 30% are going to get even further behind. It doesn't matter if they raise minimum wage from $9 an hour to $15 or even $20 per hour if a median house price goes from $200,000 to $425,000. Think about it... the $20 guy couldn't afford the $200,000 house.

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The erosion of wages (adjusted for inflation) over the last 40-50 years is directly tied to the shift from single income homes to double income homes. When you almost double the percentage of citizens in the work force, you lose value as an individual to a company. Add that to increased house sizes and expected amenities from the second income over the last 25 years, and you price normal people out of the market.

The current market is the wave of densely populated liberal cities shedding citizens (who unfortunately bring their politics with them) for more favorable cost of living options.


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[toledo]

Is insane. Just insane.

I’m selling a lower-middle class home an hour north of Austin, nothing real fancy. Out of state buyers offering $30k-Over asking price CASH offers is commonplace now.

1. Lower-middle class families are now priced out of the current market.
2. Lower-middle class families that already own a home will have their property taxes skyrocket, edging them more into lower class.
3. Skyrocketing property (“values”) taxes will get passed from Landlords through to Tenants and Renters, driving families to less disposable income or moving to cheaper areas that aren’t experiencing the insanity.

Is this the new norm? Or will it settle out?

One and two are correct. #3. That's not how the market works. Supply and demand sets rental rates. Not land owner expenses. Rents are generally flat due to an increase in supply of new apartments. I own a number of rentals and every year my net worth goes up while my net income actually goes down.

[Rubi513]

I have seen houses with less acreage than mine sell for a couple hundred grand more than I paid for my place 3 years ago. I would bet I could easily sell my place for double what I paid for it.

[RJK70]

It’s one of two things. 1. It’s a short lived bump or bubble in the market 2. The cost of living in Texas will no longer be low and it will permanently progress towards areas like Chicago, LA, Denver , etc..


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[meangreen]

Yep. I’m afraid the secret is out on Texas and this is the new norm. As a builder I have been hearing about the cheap cost to build in Texas for at least 10 years. Those days are about to be gone my friends!

It’s one of two things. 1. It’s a short lived bump or bubble in the market 2. The cost of living in Texas will no longer be low and it will permanently progress towards areas like Chicago, LA, Denver , etc..


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[44mAG]

The Current Real Estate Market

It’s one of two things. 1. It’s a short lived bump or bubble in the market 2. The cost of living in Texas will no longer be low and it will permanently progress towards areas like Chicago, LA, Denver , etc..


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Yep I think it’s the latter. Even at these prices, land and homes are still a huge bargain for the people moving here.
We will be selling our home next April. I’m going to be selfish and hope home prices continue to rise as expected, but at the same time, hope building prices are a lot cheaper a year from now.


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