Current Events > Damn, real estate in California is just next level right now

(+) Yeah! (+)

I'm looking to buy a house to move into exactly 1 year from now. I've been tracking the real estate prices for the last 6 years, knowing that I was going to buy a house there at some point. Its just been skyrocketing.

The higher end prices you go, the more value per dollar. Seems like the low to moderate end of prices are just way out of control.

Even rent prices are through the roof and totally not worth it.

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It's not just California. My best friend in Georgia bought a house for just over 400k last year and it's already appreciated to just under 550k

In a year. I made good money this year but I cannot compete with that.

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And like I said I've been tracking it over time, it seems like the last 1-2 years its really been shooting up.

I know lumber is expensive right now but I doubt thats having an immediate effect on real estate across the entire country. I dont know if its just that supply is not keeping up with demand? That this entire generation of people are now into their 30s, with families, with money saved up, looking to buy homes to settle in?

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Its bad all over. In Florida, where I am, houses are being sold the day they get put on the market and everything is going above ask because there isnt enough supply.

If you have been waiting this long and are able to, you may want to wait a bit longer. I dont think it can keep up.

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I was told by my realtor the reason is that no one is selling during covid -- there are only 1/10th as many houses on the market so it's just supply and demand driving prices

You should try buying here in Zurich Switzerland. I bought a 1300 sqm apartment in 2017 for just under a million. It's increased about 25% in 4 years. Crazy.

whitelytning posted...

Its bad all over. In Florida, where I am, houses are being sold the day they get put on the market and everything is going above ask because there isnt enough supply.

Hell I live in a town in rural Minnesota that's not even big enough to have a Walmart and houses are flying off the market. We only have two realtors in the area and they both are saying that every single house has sold in a month or less lol

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BignutzisBack posted...

Hell I live in a town in rural Minnesota that's not even big enough to have a Walmart and houses are flying off the market. We only have two realtors in the area and they both are saying that every single house has sold in a month or less lol

Yeah it is absolutely everywhere, my old town in rural Utah is a run down abandoned place with tons of long closed stores. My friends are getting ridiculous offers from people from new york to buy their houses that aren't even for sale

Real estate market isn't too bad here at the moment

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whitelytning posted...

Its bad all over. In Florida, where I am, houses are being sold the day they get put on the market and everything is going above ask because there isnt enough supply.

I have a buddy who got a job offer out in Vegas and took it. He basically had to move in under a month to make it happen. I was shocked at how quickly he sold his place with absolutely no issues. Like from the time he put it on the market, the entire process was done in under 3 weeks, before he moved out there.

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It's not so much supply and demand, it's more so hedge funds buying out all of the property.

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https://youtu.be/EBb9zf_zWvU

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Inventory is low with Covid and home owners dont really want to sell their homes if it means having to buy another in this market.

We could make a killing on our house but why sell it just to get in a bidding war on another

Cleo_II posted...

We could make a killing on our house but why sell it just to get in a bidding war on another

Such an amateur. Youre going about it with the wrong mindset. You sell your house, then save on the expenses by building your own luxurious palace, like I did.



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Overd0s posted...

It's not so much supply and demand, it's more so hedge funds buying out all of the property.

@Overd0s
1. Citation needed on hedge funds mass investing in direct ownership of residential real estate

2. That is still the demand side of supply and demand
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you're stuck in hell tc
enjoy the food

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g980 posted...

@Overd0s
1. Citation needed on hedge funds mass investing in direct ownership of residential real estate

2. That is still the demand side of supply and demand

@Overd0s
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That's what happens when you don't build new homes, yeah.

g980 posted...

@Overd0s
1. Citation needed on hedge funds mass investing in direct ownership of residential real estate

2. That is still the demand side of supply and demand

@Overd0s
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the hedge fund thing is absolutely real.

tbh if theres some plausible way for the rich to screw over the poor, its probably already happening.

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I wanna move to Granite Bay but shit, these are recently sold houses there:
https://www.realtor.com/soldhomeprices/Granite-Bay_CA

I've actually had my eye on some of em but they all get sold quick.

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Here's a thing on the hedge funds and the like buying houses.

https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801

This is why I don't think the housing market is going to "settle down" any time soon. This isn't like 2008 where a bunch of people with bad credit were buying. You have the rich buying them in cash for more than they are worth while waiving inspections. And the people in their current houses have little incentive to sell. Work from home is more common, so you don't need to move to find a new job. And with interest rates so low many are refinancing instead, giving them even less reason to move. Plus what's the point of selling your house right now if doing so just puts you in a bidding war for another one?

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Yup, my dad has 2 houses that I'll end up inheriting. I don't think I'm ever gonna sell them. They're in the bay area in expensive parts of town.

And I think I'm gonna just bite the bullet and buy the house I want.

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MaddenDude-- posted...

the hedge fund thing is absolutely real.

tbh if theres some plausible way for the rich to screw over the poor, its probably already happening.

Any evidence at all?

Son Of Spam posted...

Here's a thing on the hedge funds and the like buying houses.

https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801

This is why I don't think the housing market is going to "settle down" any time soon. This isn't like 2008 where a bunch of people with bad credit were buying. You have the rich buying them in cash for more than they are worth while waiving inspections. And the people in their current houses have little incentive to sell. Work from home is more common, so you don't need to move to find a new job. And with interest rates so low many are refinancing instead, giving them even less reason to move. Plus what's the point of selling your house right now if doing so just puts you in a bidding war for another one?

Thats not a hedge fund
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g980 posted...

Any evidence at all?

Thats not a hedge fund

Aren't you being a bit pedantic about this? The main takeaway is that a large number of home buyers on the market are people or corporations buying houses to rent out or flip. You aren't just competing with other people who want to buy a house to live in it. You're competing with rich private equity firms that can easily outbid you.

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Son Of Spam posted...

Aren't you being a bit pedantic about this? The main takeaway is that a large number of home buyers on the market are people or corporations buying houses to rent out or flip. You aren't just competing with other people who want to buy a house to live in it. You're competing with rich private equity firms that can easily outbid you.

My main objection was the claim that demand from institutional investors isnt "supply and demand"

Yes i am being a bit pedantic about hedge funds vs pension funds but given the internet's recent hate boner against hedge funds specifically, its a point worth making

Especially given this mindset:

MaddenDude-- posted...

tbh if theres some plausible way for the rich to screw over the poor, its probably already happening.

Pension funds fund pensions for teachers and shit. Thats not really "the rich screwing over the poor"
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