Housing market

cyfan92

Well-Known Member
Sep 20, 2011
5,106
7,481
113
Augusta National Golf Club
These companies are buying homes, all cash. Then underwriting 95%+ LTV loans to themselves so they can get debt capital treatment on their balance sheet.

Want to make SFR's slow down. Change capital requirements so it makes them so capital intensive that they are forced to pause new acquisitions.
 

mywayorcyway

Well-Known Member
Mar 1, 2012
1,855
1,684
113
Phoenix
These companies are buying homes, all cash. Then underwriting 95%+ LTV loans to themselves so they can get debt capital treatment on their balance sheet.

Want to make SFR's slow down. Change capital requirements so it makes them so capital intensive that they are forced to pause new acquisitions.
It's frustrating. I can't outbid a company with a billion dollars in assets and I can't write it off in my books like they can. Them buying a house is like me buying a new coat.
 
  • Like
Reactions: agentbear

cycloneworld

Facebook Knows All
SuperFanatic
SuperFanatic T2
Mar 20, 2006
24,614
8,601
113
Urbandale, IA
The OP said the govt won't let another bubble happen. I responded that the govt isn't in control. There is a bubble coming and the govt is not going to be able to stop it. All of your above is true, but I was talking about the bubble. That bubble isn't going to be stopped

People have been saying this for 5 years now and that “bubble” hasn’t popped.

What do you think drastically changes for a correction in home prices - supply or demand? Because supply is low and demand is high which is why prices are increasing. As others have said, this is very, very different than ‘08.
 
  • Like
Reactions: wxman1

Tailg8er

Well-Known Member
Feb 25, 2011
6,513
2,796
113
35
Johnston
There are lots of these kinds of analysis, but they fail to account for the fact that the "average" price of milk in, say, NYC includes things like raw kosher alligator milk for $27/gal. That drives up the average in NYC when it's not even available in Iowa. There was a study done on the UPC level (barcode for a specific item) and found that identical items were typically the same or slightly less expensive in bigger cities. All about economies of scale and efficiencies in logistics. It's easier to deliver 1,000,000 gallons of milk to NYC than it is 10 gallons of that same milk to a little town of 5000 people.

The majority of cost of living differences is in housing. There's also some difference in taxes but that's really it. IMHO.

I don't necessarily disagree with you, but I think it includes more than just home prices/taxes, too. Top of my head things like gas (for cars), electric, water are all higher in California/New York than they are in Iowa. Those are things you pay every month, so obviously would move the needle. (Unless you're including those in your housing comment)

Then just comparing things like prices to go to a movie are higher in those places, too, so I would assume most entertainment would be similar.
 

Gunnerclone

Well-Known Member
Jul 16, 2010
56,523
51,195
113
DSM
People have been saying this for 5 years now and that “bubble” hasn’t popped.

What do you think drastically changes for a correction in home prices - supply or demand? Because supply is low and demand is high which is why prices are increasing. As others have said, this is very, very different than ‘08.

Sir, everything is a bubble that is ready to burst at any second.
 

KnappShack

Well-Known Member
SuperFanatic
SuperFanatic T2
May 26, 2008
13,872
15,382
113
Parts Unknown
I don't necessarily disagree with you, but I think it includes more than just home prices/taxes, too. Top of my head things like gas (for cars), electric, water are all higher in California/New York than they are in Iowa. Those are things you pay every month, so obviously would move the needle. (Unless you're including those in your housing comment)

Then just comparing things like prices to go to a movie are higher in those places, too, so I would assume most entertainment would be similar.

Actually my electric bills were much cheaper in California since I rarely ran the AC (maybe 2 weeks of the year) and never clicked on the heat.

Things are more expensive and some costs like parking, or better yet, valet parking was never in my budget during the Iowa days.

My California salary was also much much higher than Iowa too, but the housing costs eats that up quickly. And if you want to hit games or concerts there's a ton every day of the week. That's a budget hit if you want to partake
 

Gunnerclone

Well-Known Member
Jul 16, 2010
56,523
51,195
113
DSM
Actually my electric bills were much cheaper in California since I rarely ran the AC (maybe 2 weeks of the year) and never clicked on the heat.

Things are more expensive and some costs like parking, or better yet, valet parking was never in my budget during the Iowa days.

My California salary was also much much higher than Iowa too, but the housing costs eats that up quickly. And if you want to hit games or concerts there's a ton every day of the week. That's a budget hit if you want to partake

It seems people would be amazed that pretty much every state, city, municipality, whatever finds a way to get their money one way or another. If one revenue stream is low, then another is high.
 

SDCyclonesFamily

Active Member
SuperFanatic
SuperFanatic T2
Oct 21, 2016
97
117
33
Don’t know your criteria, a few examples. Nevada if you want to be by Ames

Clear lake

northeast

Lot of places well under $200k all over.

You might look at Sioux Falls too for no income tax.

Sioux Falls has barely anything under $200k and if it is under $200k it is in terrible shape or in a bad area of town. The nicer houses are being sold before they even hit the market. If you want no income tax of South Dakota, search the surrounding smaller towns as they still have some decent inventory that isn't completely overpriced. Unfortunately with the big Amazon warehouse being built, the housing market here is completely insane. So many people moving here from all over the country.

Another town in NE Iowa I would keep an eye on if I were interested in that part of the state would be Decorah. Lots of amenities there - especially if you like being outdoors.
 

2forISU

Well-Known Member
Oct 8, 2008
5,681
1,687
113
Blackrock - it’s kind of disgusting really. They want to make “housing affordable”. What they really want to be is the largest landlord in the US
They have been buying since 2010 and I think they are the largest holder of real estate. There is many firms out there buying up real estate in the US. Also, foreign countries are doing the same in the US.
 

simply1

Rec Center HOF
SuperFanatic
SuperFanatic T2
Jun 10, 2009
26,357
15,410
113
Pdx
They have been buying since 2010 and I think they are the largest holder of real estate. There is many firms out there buying up real estate in the US. Also, foreign countries are doing the same in the US.
Pottersville!!
 

mywayorcyway

Well-Known Member
Mar 1, 2012
1,855
1,684
113
Phoenix
My home insurance is cheaper in western WA than in Iowa, even on more expensive houses, because earthquakes and wildfires are so much rarer here than damaging midwest thunderstorms/tornados.
Our homeowners insurance in PHX was 1/3 of what it was in KC and the PHX house cost more than twice what the KC house did.

In PHX, pretty much the worst thing that can happen to your house besides fire is that it might get dusty.
 

TXCyclones

Well-Known Member
SuperFanatic
SuperFanatic T2
Sep 13, 2011
9,883
9,702
113
TX
Girlfriend is trying to buy a house in Plano, TX. She's continued to be outbid on each. Each weekend it seems that the price per square foot climbs another $5 - $10. Today she put in a bid on a 2189 sq' home with an asking price of $469,000. She was going to offer $491,500 because she really likes it. The HIGHEST comp in the area on recent sales is $220/sq' with any other recent on being only $217. She was reluctant to offer the $491,500 afraid that it might not appraise. We found out tonight that the house sold in an all-cash offer near $525,000 ($240/sq'). Crazier yet, there were TEN other offers between $515,000 and $525,000. The market is nuts.
 

simply1

Rec Center HOF
SuperFanatic
SuperFanatic T2
Jun 10, 2009
26,357
15,410
113
Pdx
Girlfriend is trying to buy a house in Plano, TX. She's continued to be outbid on each. Each weekend it seems that the price per square foot climbs another $5 - $10. Today she put in a bid on a 2189 sq' home with an asking price of $469,000. She was going to offer $491,500 because she really likes it. The HIGHEST comp in the area on recent sales is $220/sq' with any other recent on being only $217. She was reluctant to offer the $491,500 afraid that it might not appraise. We found out tonight that the house sold in an all-cash offer near $525,000 ($240/sq'). Crazier yet, there were TEN other offers between $515,000 and $525,000. The market is nuts.
Lot of corporate buildings going up there too, will only get worse I imagine.
 

83cy

Well-Known Member
May 14, 2006
838
580
93
[QUOTE="cycl

What do you think drastically changes for a correction in home prices - supply or demand? Because supply is low and demand is high which is why prices are increasing. As others have said, this is very, very different than ‘08.
[/QUOTE]

Increase in mortgage rates will slow it down, and we are headed there.
 
  • Like
Reactions: agentbear

Latest posts

Help Support Us

Become a patron