That's true. And you could still find amazing deals, even in the worst market in the worst areas for many reasons. Just like in the worst bear market, you can find stocks on a straight climb up. We're not talking about 1 item, but a trend. If you know that in a given zip code, there are 20,000 homes on the market for example, where 'normally' there's 500, buying in that market and hoping to resell within 5 years is tough. You already know you can't rent it for enough to cover costs, because prices have gone up that much over that same time making even 20% down mortgage payments too high (not to mention that the other 20,000 for sales are thinking the same thing and compete on rental prices). Our area has held it's values pretty well over the last year too... even tho the inventory in our zipcode went from 77 homes 2 years ago, to 18,900 today (no kidding). But people aren't desperate enough to drop prices.... yet. I just went to Miami over Thanksgiving, and I'm told it's slaughter. Entire unfinished condo buildings on the waterfront are selling as blocks. They look like bargains... til you realize the glut on the market and your carrying costs for holding unsold units for possibly years. Again, that's a different market, and yours may be doing well. Real estate is a far more regional investment than the stock market. If you didn't have investors driving up prices for the last 5-10 years, it probably didn't change much for you at all. I looked at some land prices in Montana the other day... omg cheap. On the other hand, from an investment standpoint... how much appreciation can you expect (dunno about Utah, but Montana has that law that doesn't allow much of the land to be broken up to smaller parcels for sale), while you pay your annual property taxes, which can go up every year? Utah is close to Phoenix, Az... go check out what happened to their market. I don't live there, and it's not my opinion what happened to the prices.
Good info, Hels. Thanks for sharing it. No doubt that some housing markets reached ridiculous levels. And the real estate market, contrary to public opinion, is still a market with supply and demand rules. It is going to be interesting, to say the least, to see how all of this unfolds.
And I tend to agree with you on another thread, that a shift of investment money from Real Estate to the stock market is driving this rally.
HAHAHA flip that house...forgot the name of the other one... The one where they actually have the end results is the better of the 2. Wish they could show this show more often going into the real estate slowdown to see how well they are doing flipping houses.
U.S. Population Growth 1967-2006 200mil to 300mil About 40year to add 100mil people. Current projections; By 2026, U.S. Population to 400mil Yes, in just 20 years, another 100mil people. Ya think shanty towns will house these people? Its a buying opportunity all the way down, that is if you have stones, some coin, and expect to be here in 20.
not sure. Inventories are very high because people cant sell. I think if people have cashed out of real estate...it is in cash or bonds...maybe a little in stocks. I think the rally is due to other factors...mainly people were expacting a massive disaster to already have happened...and it hasnt. the economy MAY be under control...and inflation has not kicked us in the pants.
I've noticed on the most recent "Flip that House" episodes, they don't have the final P&L. Hmmmmm. I may be wrong, but, saw two episodes teh other day with no fimal results of the exercise.
there are 2 different shows, one doesnt show the P&L the other one with the lady hosting shows the P&L