Quote:
Originally Posted by Gregrobin
It's definitely nice to see our home values increasing. However, unless we sell it's not realized. And if we sell we have to buy back at these insane prices. Unless you have a 2nd house to sell, it's really just virtual money IMHO.
It's the same for the used boat market. I have been trying to buy my next boat since just before COVID. The prices have doubled in some cases. The same year/make/model that I sold pre COVID for $80K is now listing for $140K. Boats I looked at pre COVID listed for $50K are now listed over $100k, and selling, quickly. I have also been trying to purchase a waterfront property since pre COVID. They sell in hours, above asking, no inspection, no appraisal, for cash. Last year brokers told me to wait until this year. Well, this year they are saying the same.
Buyers think they can buy more, pay more, because rates are so low. Illogical nonsense IMHO. You are not buying a loan/interest rate, you are buying a home, a boat, etc.
I do not know where, when or if this ends. History tells us it will, though we have never lived thru a pandemic like this, at least not in my 55 years on this earth :-)
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There's actually some fall out from all these crazy price run ups even if you're not in the market to sell your current home. That's property tax assessments. I don't plan to sell either of my homes any time soon. So I could care less if the paper value of the homes go up. But I'm sure my property taxes are going to go up in the near term when they're recalculated to adjust for this crazy run up.
People are just not thinking and are just getting wrapped up in this frenzy. It's the same going on with car sales.
On your other topic, I guess I timed the market with buying my boat back in November. It's nothing fancy and is pretty old. But my boat is in very good shape for its age and the key part is it is sail worthy and didn't require any immediate work. I was able to negotiate the price down a couple thousand. Can't imagine what my boat would go for now.