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Home prices skyrocketed last year. Two regions saw the biggest increases

KevinKohler said:
Very simple. People working high paying tech jobs are working remotely.

If you're working remotely, you no longer need to commute to the office. If that's true, why live in the locality, where houses and rents are sky high? Move someplace where home values are way lower, but are still nice areas to live.

It's gonna suck for those folks once their employers realize folks in India will do the same job for 25k per year.
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For most people with kids and a decent income, school districts drive the location much more than just cost per square foot.
 
Chomsky said:
www.cnn.com

Home prices skyrocketed last year. Two regions saw the biggest increases

Home prices rose 18.8% in 2021, according to the S&P CoreLogic Case-Shiller US National Home Price Index, the biggest increase in 34 years of data.
www.cnn.com www.cnn.com



--

Wow, oh wow, oh wow, oh wow!

The Case-Shiller report came out this morning, and I'm a bit speechless - here.

25% price increase in two major regions? Phoenix, Tampa, Miami, & 28 other major cities, have 30% gains? 30%? In one year? On top of huge increases, the year before?

--

Alright. That's a lot of exclamation & question marks above. But, they may be deserved.

Please tell me,

"Were not looking at a bubble"

I think I need to hear that . . .
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Red states are HOT.
I know someone who just bought a condo in SW Florida and had to escalate 15% to win it.
It's new construction and won't be delivered for 2 years.

People are fleeing, FLEEING blue states.
 
Chomsky said:
www.cnn.com

Home prices skyrocketed last year. Two regions saw the biggest increases

Home prices rose 18.8% in 2021, according to the S&P CoreLogic Case-Shiller US National Home Price Index, the biggest increase in 34 years of data.
www.cnn.com www.cnn.com



--

Wow, oh wow, oh wow, oh wow!

The Case-Shiller report came out this morning, and I'm a bit speechless - here.

25% price increase in two major regions? Phoenix, Tampa, Miami, & 28 other major cities, have 30% gains? 30%? In one year? On top of huge increases, the year before?

--

Alright. That's a lot of exclamation & question marks above. But, they may be deserved.

Please tell me,

"Were not looking at a bubble"

I think I need to hear that . . .
Click to expand...
Oh, we're definitely in a bubble. I get 3-5 pieces of mail a week volunteering to buy my house - no strings attached. Local TV is saturated with commercials on the same subject. With the Fed talking two our three rate hikes in the next year I'm a little queasy about the result. All these sham buyers are relying on cheap money which may be about to dry up, both for the house flippers AND buyers.
 
Conditions are very different than in 2008. I don't think it will be the same in terms of values dropping.
Buyers are very different now.
 
Cardinal said:
Hey, we talk about what we know. But sure, if a small town in the middle of nowhere has a 1200 going for 500k+, yeah, that's not sustainable. Not that I'm seeing anything remotely like that around me.
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Well it's not that bad yet but I just looked and saw a 1494 Sq ft for $399k
 
Chomsky said:
www.cnn.com

Home prices skyrocketed last year. Two regions saw the biggest increases

Home prices rose 18.8% in 2021, according to the S&P CoreLogic Case-Shiller US National Home Price Index, the biggest increase in 34 years of data.
www.cnn.com www.cnn.com



--

Wow, oh wow, oh wow, oh wow!

The Case-Shiller report came out this morning, and I'm a bit speechless - here.

25% price increase in two major regions? Phoenix, Tampa, Miami, & 28 other major cities, have 30% gains? 30%? In one year? On top of huge increases, the year before?

--

Alright. That's a lot of exclamation & question marks above. But, they may be deserved.

Please tell me,

"Were not looking at a bubble"

I think I need to hear that . . .
Click to expand...

The currency has been inflated to deal with debt. Real property is not subject to the same arbitrary devaluation as the dollar. So, houses, cars, jewelry, etc., will cost more of our less powerful dollars. It's not a mystery.

If you hate this inflation, you should blame 40 years of reaganomics and the "fiscal conservatives" who sold it to us. My solution is a balanced budget and taxing the rich to pay for it. If they have money to bribe fascist politicians, they have money to support the costs of democracy.
 
Crovax said:
Well it's not that bad yet but I just looked and saw a 1494 Sq ft for $399k
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That's just too little info for me to work with. I have no context for that.
 
Gimmesometruth said:
Um, the 2 growth regions of AZ, Maricopa and Pima counties.....are blue.
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Typical pattern for progressives who voted to turn their own states into shitholes.
 
Chomsky said:
However the Fed has no choice but to aggressively raise rates to combat inflation,
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You forget the /s at the end.

Interest rates are set by politics, not the market. Inflation benefits the government, that's why it exists.

No one today would even think of doing what Paul Volcker did.

Chomsky said:
they've already increased substantively.
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substantively.jpg

That is definitely not the word you were looking for.
 
Gimmesometruth said:
Increased rental prices will cause new construction in areas where it can happen.....and Phx has a lot of space for that. Further, it is going to be interesting to see what happens with the office and retail space downtown, if it will get re-occupied or get converted to housing.
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www.nytimes.com

Warehouse Space Is the Latest Thing Being Hoarded (Published 2022)

Logistics firms are finding new options to deal with a scarcity of storage, including building multistory facilities and choosing locations farther from coastal ports.
www.nytimes.com www.nytimes.com
 
Chomsky said:
So you're telling me 1200 sqft houses in rural America require 95% income level to purchase or get a mortgage?

You must be cherry-picking areas, because I simply do not believe this is the general rule. I live in one of the higher priced markets in the country, but can go several dozen miles out and find reasonable value-oriented housing. So, I have no idea what you're talking about?
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I'm not cherry picking anything, I was simply talking about my experience trying to buy a home in the area I live.
 
Gimmesometruth said:
Increased rental prices will cause new construction in areas where it can happen.....and Phx has a lot of space for that. Further, it is going to be interesting to see what happens with the office and retail space downtown, if it will get re-occupied or get converted to housing.
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In theory, but even if it were the case, it would take 20-30 years for those high end apartments to lose their value. That's not a short term solution.
 
Acadia said:
Red states are HOT.
I know someone who just bought a condo in SW Florida and had to escalate 15% to win it.
It's new construction and won't be delivered for 2 years.

People are fleeing, FLEEING blue states.
Click to expand...
Most of the increases are actually blue areas in red states.
 
Ginger Ale said:
That's what's happening in my city, one of the mentioned. Fire fighters, teachers are all being priced out for tech. Phoenix is bringing in a lot of big tech companies now, and the service industry is really going to suffer in coming years. I doubt we will bust, what they say is we may slow down the growth, but it's here to stay. That's almost it's own big problem, we have a ton of people who won't be able to afford living here.

We might have to up the service wage to 20 to 25 an hour so that people can afford to live where they work, like L.A. did.

My house gained a value of 150,000 in two years. It's a lot and supply is low, and the new permits for track housing hasn't gone up to meet need like other states with high demand.
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I live in a city with strong public employee unions & high public employee wages, much higher than the national averages, and with excellent benefits including very good pensions.

It's easy to fault their wages & benefits, but I firmly believe we need to support those that provide our infrastructure & services. If you want to attract talent, if you want stability, you need to pay the price.

We also have residency requirements for our civil servants, which keeps them and their money in the city. They live among us, and have a stake in our neighborhoods and lives; their children hang with our children, and go to the same schools. But to do this, those public employees have got to be able to afford to live here; so, we pay them!

--

I realize there's pros & cons with the above, but thought I'd respond to your posting your civil servants cannot afford to purchase homes in your city. I'm saddened by that.
 
KevinKohler said:
Very simple. People working high paying tech jobs are working remotely.

If you're working remotely, you no longer need to commute to the office. If that's true, why live in the locality, where houses and rents are sky high? Move someplace where home values are way lower, but are still nice areas to live.

It's gonna suck for those folks once their employers realize folks in India will do the same job for 25k per year.
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Here I was feeling all good & happy reading your post, until I hit the bolded! Then, 'BAM'!
 
Cardinal said:
That's just too little info for me to work with. I have no context for that.
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If you a really interested I can PM you some details but the market is crazy around here, there's a 2000 Sq ft for 435k and the tax evaluation for 2021 is less than $250k
 
Acadia said:
Typical pattern for progressives who voted to turn their own states into shitholes.
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???
I have lived in Phx and Tucson for the majority of my life, neither is a shithole, downtown Phx used to be a treeless concrete lot ('70's-90's) but now Central is becoming VERY cosmo......central rail, modern retail/offices, a great baseball/basketball arenas.complex.
Now, if we could rid of the ignorant asshole Prescott Valley reps in the State Houses, we might be able to start to be proud of all aspects.....
 
aociswundumho said:
You forget the /s at the end.

Interest rates are set by politics, not the market. Inflation benefits the government, that's why it exists.

No one today would even think of doing what Paul Volcker did.



View attachment 67376214

That is definitely not the word you were looking for.
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The fed only controls the discount rate. The market dictates the rest of the yield curve.
 
Gimmesometruth said:
Increased rental prices will cause new construction in areas where it can happen.....and Phx has a lot of space for that. Further, it is going to be interesting to see what happens with the office and retail space downtown, if it will get re-occupied or get converted to housing.
Click to expand...
I've wondered about this as well.
 
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