Current Events > It's absolutely ridiculous how much house prices have increased in last 10 years

(+) Yeah! (+)

Just looking at homes on Zillow and seeing their price history is astounding. Some have increased almost 100% in just a few years.

I bought my house for 420k in March. Its already 475

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Right now people are buying up property to protect against inflation. Anybody that's sitting on cash should have it basically anything else right now.

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Bought my townhouse in 2016 for 310k

Sold it in 2018 for 475k

It's now worth 600k.

Who the eff is dropping 600k on a 3 bedroom townhouse?

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Zillow's saying my house is worth twice what I paid for it.

I don't think that's accurate. When I get my property tax statement every year it doesn't say it's worth that much.

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People are in a mad rush to muscle their way into the owner class as we transition from a late stage capitalism into feudalism.

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when's the sequel to The Big Short happening?

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LeoRavus posted...

Zillow's saying my house is worth twice what I paid for it.

I don't think that's accurate. When I get my property tax statement every year it doesn't say it's worth that much.

Assessed value is not the same as fair market value. The property tax statement is always going to be lower.

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Bought my condo for 118k in 2015. It's now worth a good 225k. I'm definitely appreciative of my luck, but that same condo was probably worth 75k when the market bottomed out in 2011-12.

Shit's definitely crazy, and I've come to realize that home ownership is the best financial decision I've ever made.

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I think it's a result of the housing bubble, but if I were to sell my condo right now I'd have a net gain of 50k after living here for only two years not including the money I saved from having a mortgage a lot cheaper than my rent used to be even with PMI and condo fees

I see why people flip houses because this is crazy. The only downside for this condo is that I have to drive 5 minutes to a metro station instead of walking 10 minutes like I used to be able to

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I live in Colorado, housing is crazy here.

The previous owners of my house bought it for $179,000 in July 2008

We bought it in August 2019 for $257,000

Zillow says its now worth $307,000

A nearly identical house down the street sold for $335,000 in May

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Supply and demand baby. Supply and demand.

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LeoRavus posted...

Zillow's saying my house is worth twice what I paid for it.

I don't think that's accurate. When I get my property tax statement every year it doesn't say it's worth that much.

Neither of those are accurate value of the home

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Recession.

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wesastro911 posted...

Just looking at homes on Zillow and seeing their price history is astounding. Some have increased almost 100% in just a few years.

If only we had an example of the end result of these giant bubbles. We truly have no precedent to extrapolate info from to determine how this will turn out.

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I'm in the Greater Toronto Area and it's pretty crazy here.

My buddy sold his small bungalow house earlier this year. It was listed at $850,000 and sold within a few days for $975,000.

Rent is a getting ridiculous too. A 2 bedroom apartment that I rented 10 years ago for $850 is almost $1600 now.
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Dat_Cracka_Jax posted...

Neither of those are accurate value of the home

Well yeah it would need to be appraised, but the difference between the two is around $50k.

I'm just glad my shit will be paid off soon and I won't have to worry about house payments or rent when I retire.


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ScazarMeltex posted...

If only we had an example of the end result of these giant bubbles. We truly have no precedent to extrapolate info from to determine how this will turn out.

I'm no economist, so take this with a pound of salt:

These price increases have more to do with the general availability of money due to COVID quantitative easing. It's why the price of every asset, including stocks and even depreciating assets like cars, are skyrocketing. Where in pre 2008 the problem was that any idiot could get a mortgage, the problem here is that rich people have so much cash available to them that they'll pay any price because interest rates are crazy low. And with that availability of cash is the fear of inflation, or at least asset inflation, which then continues to drive asset prices up as everybody dumps their cash to protect their real wealth.

Until the Fed raises interest rates, prices will not go down for housing, or for the majority of other assets. And even then, there's no guarantee houses will flood the market because we aren't expecting tons of foreclosures. These buildings aren't bought by people who can't afford them. Much of the price increases may be permanent (as they were across different asset classes the previous time we used quantitative easing), with some value loss simply due to interest rate increases. But who knows, many more people may just become landlords with what they're sitting on.

The net effect at the end of the day is probably going to be further wealth inequality. The rich get richer here, but a big economic crisis is (hopefully) avoided.

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Jabodie posted...

I'm no economist, so take this with a pound of salt:

These price increases have more to do with the general availability of money due to COVID quantitative easing. It's why the price of every asset, including stocks and even depreciating assets like cars, are skyrocketing. Where in pre 2008 the problem was that any idiot could get a mortgage, the problem here is that rich people have so much cash available to them that they'll pay any price because interest rates are crazy low. And with that availability of cash is the fear of inflation, or at least asset inflation, which then continues to drive asset prices up as everybody dumps their cash to protect their real wealth.

Until the Fed raises interest rates, prices will not go down for housing, or for the majority of other assets. And even then, there's no guarantee houses will flood the market because we aren't expecting tons of foreclosures. These buildings aren't bought by people who can't afford them. Much of the price increases may be permanent (as they were across different asset classes the previous time we used quantitative easing), with some value loss simply due to interest rate increases. But who knows, many more people may just become landlords with what they're sitting on.

The net effect at the end of the day is probably going to be further wealth inequality. The rich get richer here, but a big economic crisis is (hopefully) avoided.

Some of that is the case, but housing prices were already on the climb prior to the pandemic. The current spike without flattening began in late 2018 early 2019.
https://dqydj.com/historical-home-prices/

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20 years ago a decent two bedroom starter home here could be found for under 100k. Now there's nothing on the market under 500k aside from houses that need an insane amount of work and those are still 400k plus.

The benchmark price for homes in the Central Okanagan last year was 630k and now its just shy of a million.

One bedroom apartments in older buildings are listed for close to 300k.

It's absolutey fucked.

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Bought hour house in 2015 for 343. I thought it was expensive at the time lmao, currently valued at 650 lol

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Damn. I wish I had money to throw around on getting a house (and also knew for sure it would be good staying in one place for an extended period of time).

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ScazarMeltex posted...

Some of that is the case, but housing prices were already on the climb prior to the pandemic. The current spike without flattening began in late 2018 early 2019.
https://dqydj.com/historical-home-prices/

I was under the impression this was due in part because of increasingly sense cities and the rise of airbnb.

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Jabodie posted...

I was under the impression this was due in part because of increasingly sense cities and the rise of airbnb.

To some degree that is correct. After the collapse in 08/09 huge amounts of foreclosed properties were bought up property management firms and became rental properties, which is essentially permanently removing them from the purchase market, which in and of itself generated scarcity as people returned to the housing market during the recovery years. Las Vegas is a huge example of this. Then came the Airbnb boom which has further exacerbated the issue. This is driven less by huge fims and instead by smaller scale investors, but does still generate scarcity.

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Yeah. We still have 27 years left on our mortgage for our 3bd 2bth home, we bought for 131k in 2018. We just got an offer in the mail from someone wanting to buy it from us cash, cover closing costs, and they didn't care if anything was broke. I have no idea what our house is worth now. But a 3bd 1bth house down the street with no garage, and it's 50 years older than our house, sold for 200k.

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That makes sense. While I agree there is a bubble, it's kind of a bubble that exists across all assets. Although when I say it like that it sounds worse lol.

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Yeah, nearly doubled for all mine too. >_>

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bought my house for 270k in early 2017
valued at 300k at the beginning of the year
valued at 400k now

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Looked up my last house

Bought in November 2016 for $139,000
Sold in December 2018 for $161,750
Zillow says its now worth $213,000

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Moved to Denver in 2018, houses in the burbs were pretty reasonable. 500k would get you a 3 car garage nice house. Now the same ones are 650-700k (probably more). It's fucked up, but gonna move to New Mexico and get a nice house on the cheap

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NES4EVER posted...

Bought my townhouse in 2016 for 310k

Sold it in 2018 for 475k

It's now worth 600k.

Who the eff is dropping 600k on a 3 bedroom townhouse?

That's normal for some cities. My mom's 3 bedroom, 1300 square feet house is estimated at 700k right now. I don't know how much she paid for it in 2004, but it was definitely a lot cheaper.

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