Price Of Real Estate Skyrocketing

[JimRaynor]

How long you figure this frenzy will last? Those that say there will be a crash like 2008 are imo severely mistaken. This price hike of real estate currently isnt from bad financial decisions like it was in the early 2000's, today those hikes are directly correlated with supply and demand, as well as low interest rates. Apparently there are over 4 million people in search of homes that there aren't homes for currently. Covid has caused the boomers to pause their home selling plans, a lot more new homes are being built, but they're significantly more expensive.

Inflation is starting to creep up as well, aside from gas it seems like prices have gone up on almost everything.

[ShoulderRoll]

If you have invested in REITs you are pretty happy right about now.

[siablo14]

How long you figure this frenzy will last? Those that say there will be a crash like 2008 are imo severely mistaken. This price hike of real estate currently isnt from bad financial decisions like it was in the early 2000's, today those hikes are directly correlated with supply and demand, as well as low interest rates. Apparently there are over 4 million people in search of homes that there aren't homes for currently. Covid has caused the boomers to pause their home selling plans, a lot more new homes are being built, but they're significantly more expensive.

Inflation is starting to creep up as well, aside from gas it seems like prices have gone up on almost everything.

Same in Jamaica. People are using it as an investment(just like Bitcoin) rather than dwellings.

[2shameless]

Family homes moreso than vacant land, but yeah so long as interest rates stay low probably the most stable investment out there.

[billeau2]

How long you figure this frenzy will last? Those that say there will be a crash like 2008 are imo severely mistaken. This price hike of real estate currently isnt from bad financial decisions like it was in the early 2000's, today those hikes are directly correlated with supply and demand, as well as low interest rates. Apparently there are over 4 million people in search of homes that there aren't homes for currently. Covid has caused the boomers to pause their home selling plans, a lot more new homes are being built, but they're significantly more expensive.

Inflation is starting to creep up as well, aside from gas it seems like prices have gone up on almost everything.

Just keep something in mind, and take this from someone in the field. There is no such thing as a national real estate market. Every region is a different market that responds to different antecedents. The real driving national pressure that people are experiencing is related to land. Land is a finite resource and Covid broadcast that message causing people to buy land. The difference is important. In some places, most places, the greater expense is the buildings the "real estate" on the land... so, in East Texas, when you buy a home on 5 acres, your home will on a cost basis (the sum it takes to reproduce the home exact as possible) be worth most of the purchase price. On the other hand in places like New York and San Francisco, both the urban areas and outlining suburban areas, the land is worth much more than the home.

The present real estate market varies considerably but whenever we get new real estate cycles, the cost of pure land should theoretically increase in value because, as we populate land gets more scarce. One also has to keep perspective here: This country has a tremendous amount of land resources... They did a study and found that you could fit the worlds population and sustain it in Texas. That means that the real scarcity of land in most places in this country has a long way to go before it becomes truly scarce. BUT this scarcity is affected by water, government, zoning, micro climate, etc. I buy land in Nevada because the government owns around 80% of the land, this creates a nice head start to scarcity.

My point is that to understand supply and demand in real estate one must always look at each market individually and also understand why people like Satanic Bill Gates is buying up farmland hand over fist. Land scarcity, farm lands and lands where water is drillable are a long term commodity of tremendous value, and a different market.

[digdis]

How long you figure this frenzy will last? Those that say there will be a crash like 2008 are imo severely mistaken. This price hike of real estate currently isnt from bad financial decisions like it was in the early 2000's, today those hikes are directly correlated with supply and demand, as well as low interest rates. Apparently there are over 4 million people in search of homes that there aren't homes for currently. Covid has caused the boomers to pause their home selling plans, a lot more new homes are being built, but they're significantly more expensive.

Inflation is starting to creep up as well, aside from gas it seems like prices have gone up on almost everything.

the supply is being extremely limited due to the
moratorium on foreclosures and the mortgage forbearance. That gravy train is going to end pretty soon for a whole lot of people. I think we’re going to see a huge spike in the supply within the next year

[Larry the boss]

Impossible Mandown and others like him swore the prices would drop and they would be buying up properties..

[GhostofDempsey]

Interest rates are low, once they go up, prices of homes come down. Commercial property may take an even bigger hit with such low occupancy now.

[Larry the boss]

From what I was being told homes are suppose to be dirt cheap now and people are suppose to be buying them up and getting rich

[markusmod]

I was looking to buy a condo a month back, but the price was bananas and people were offering above list - which made it impossible to compete without overpaying.