real estate prices

A post in another forum reminded me that I wanted to post this.

I love to frequent the real estate sections of local papers. All of the sudden, homes are priced in the millions. How did that happen? I recall just a couple years ago there was hardly a house with a million dollar price tag. Now there are plenty. Some in the 2's and 3's. I don't understand how that can happen within a three year period. Anyone else notice this?

People are making a bundle on real estate. I think it's great for boomers who are downsizing because they can make money. I feel sorry for the younger families who bought somehting a couple years ago, can now sell it and make a bundle, but where do they go to find soemthing comparable?

Where we lived in TN, Nissan moved their entire corporate headquarters there and that created a large demand for homes and the prices went up. For people with Nissan in CA our prices didn't bother them that much because RE is so expensive in CA.

My youngest son and wife bought a small house way out in the country because they couldn't afford the prices in town.

The same thing happened in Spring Hill when the Saturn plant came. The locals were not happy. Over night, their property values skyrocketed, the schools were bursting at the seams. I wittnessed several 'heated' debates which got a little ugly. Yes, GM brought jobs, but only a small number of Tennnesseans were hired (most went to high seniority northern employees.)

I'm right in the middle of things right now getting my place ready to sell, and having a dtr. whose a Real Estate agent.
People don't realize the money that an agent spends to get business. They all think that agents are rolling in money.
That's not all true...in my dtrs. case anyway.
A lot of agents spend money on expensive cars and clothes to try to make and "image."
But when you really want to make a living at it you have to spend money on advertising for youself, for the person you are representing, and so many more expenses that I never would have thought about.
Then there's me getting my place ready to sell and having to spend some bucks getting it up to par.
It's on one acre of land, just like a park setting.
Trees all around, off the main county road, huge garden space, three out buildings, two small orchards, and many other nice things to offer.
BUT........the home is 35 years old.
I have to admit the soon to be ex did a wonderful job on maintaing the place. Plus we have remodeled it three times. He did all the work.
We paid $27,500 for it back in 1972, and I'm going to ask $325,000 or more for it.
I've been in homes with my dtr. when she wants to take a look at them that are much younger than my place, and want $500,000 for the places and I just can't believe it! My home is built so much better, they use such cheap products on the homes now, and they just aren't worth the price they are asking.
That's my two cents worth!
Lynne

Browser57, you are so right with your info! I only live about 30-45 minutes away from Spring Hill and the housing boom was incredible.

The area around me has built over 30 new subdivisions and not one house is below 100,000.00 The square footage is terrible in ratio. For instance, a new house with 1200 sq. ft (and this is tiny) sells for around 119K and up.

Most of the houses are around 300K and up. Has the world gone mad?

What's going to happen to all of these big homes when the bottom falls out. And it will. I sound like the voice of doom and gloom but I believe it's coming. Then it will be a buyer's market.

JJ

Real Estate reminds me of a Will Rogers quote--or two.

Here's a few things he said, not all about real estate, I'm just throwing in a few extra from the goodness of my heart. He was a wise fellow.

"Funny thing about Real Estate, I ain't met a man yet that could make more of it; & even if he could, where do Ya su'pose he'd PUT it?" Will Rogers

"Econmists have predicted 23 of the last 2 recessions & 5 of a the last 1 depression?" Will Rogers.

"Under all is the land." The Land Man, "Buy land, cause they ain't makin' no more of the stuff" Will Rogers

“I never tell jokes -- I just watch the government and report what I see."
- Will Rogers

“You gotta admit that when you're talking politics, each party is worse than the other."
- Will Rogers

"I really feel so sorry for the Senator. But, you know, 90% of Congress gives the other 10% a really bad name."
- Lilly Tomlin

“A billion here, a billion there -- pretty soon, you're talking about some serious money!"
- Senator Everett Dirkson

"Even if you're on the right track, you'll get run over if you just sit there." Will Rogers ...

"It isn't what we don't know that gives us trouble--it's what we know that ain't so." Will Rogers

"Broad-minded is just another way of saying a fellow's too lazy to form an opinion." -- WILL ROGERS ...

"It is easy to make money in real estate. Just find out where people are going, get there ahead of them, buy the real estate and sell it to them when they arrive."
-- Will Rogers

"The income tax has made liars out of more Americans than golf." -- Will Rogers

smile

He, he, he, very funny and probably very true too...

Sad...that's my take on the entire situation.

Dots, you speak of the boom being maybe great for us Boomers, yet, as one woman mentioned to me lately, although she and her husband would love to move from their too-large, empty-nest home, she dreads paying the inflated cost of another residence. She recently priced two bedroom townhomes, and could not believe she would need pay $200,000.00. As she asked me, 'Seriously, can you imagine paying that much for a what amounts to a four room home!'

I mourn for young people today, trying to make what really amounts to the best investment the average person can make, the purchase of their own home. I know one young couple with one small child, both employed, whose apartment rent is well over a thousand dollars a month. A necessity...if they wish to live in a relatively safe area, with a do-able commute to their individual places of employment, that won't bankrupt them, as to gas cost. The ability to put aside funds, for a down payment on a home, has become an almost impossible task.

www.intouchwithjeannine.com

Jeannine, I have several young nieces and nephews and I wonder how they will get their first homes for the same reason. My kids will be right there with them in a few years. It's pathetic the money they have to spend on rent and I don't know what the answer is.

I'll have to ask my son but there was some plan that required no down payment or little down payment. I'll call him and ask because my son and new wife sure don't make a lot of money but they can afford their mortgage payment.

My eldest grandson and his wife are renting a beautiful large home with the option to buy. In two years a portion of the rent they've paid will serve as their down payment on the home there in and then will be the owners. This is a good way for a young couple to get into a home of there own easily....We bought a home back in 1970 right on the water for $85,000. dollars and sold it for $108,000. in 6 years. Today the same home is priced t $385,000. The same exact home..sheesh....!!