[ASAP]

I live in FL and it's insane right now... in literally every part of the state.

South FL may as well be the new bay area with rents and what junk sells for.
Other parts of NW FL and areas like Orlando / Tampa are being massively overtaken by out of town buyers (typically northerners with cash) and now even corporate buyers to raise rents.

Places in my area that went for $180K now go for over $340K 3 years later... this prices the locals completely out of the market... this is entirely unsustainable at this rate unless there are massive wage hikes which will further drive inflation or it all comes crashing down after the stock market cools... who knows

[M_Six]

I was surfing through Zillow and was looking at the area where I grew up in MA. Tiny 2 and 3 bedroom houses with 1 bath and 1/10th of an acre going for $500k+. That's totally insane. Two bedroom condos that used to be sub $100k places now going for $300+. How do middle class folks afford that? Out here, $500k is pretty much McMansion range except for a few really big, fancy houses.

[Alfisti]

The numbers you guys are talking are absurd, literally nothing below $1m here, even condos approaching that, like basic ones.

[vreihen16]

Originally Posted by Alfisti

The numbers you guys are talking are absurd, literally nothing below $1m here, even condos approaching that, like basic ones.

What's that translate to in US Dollars...$1.58?????

[Alfisti]

Originally Posted by vreihen16

What's that translate to in US Dollars...$1.58?????

I know you are joking but it is a common misconception that exchange rate counts. Pay rates and salaries are quite similar before exchange, so if we forget the dollar value and call them units, there's not much difference.

[vreihen16]

Originally Posted by Alfisti

I know you are joking but it is a common misconception that exchange rate counts. Pay rates and salaries are quite similar before exchange, so if we forget the dollar value and call them units, there's not much difference.

Yes, but if the exchange rate is really good, I could be tempted to bring my $2.00 USD life savings up north and buy a weekend getaway place.

FWIW, I have relatives who used to own a weekend house in Ontario on Lake Erie, and have many happy memories as a kid spending summer weekends there.....

[Alfisti]

Yeah if you move jurisdictions then it obviously counts. It also counts to foreign investors which is driving a good portion of the price rises here.

[RickFLM4]

Originally Posted by Alfisti

The numbers you guys are talking are absurd, literally nothing below $1m here, even condos approaching that, like basic ones.

There are many markets like that here too.

[Alfisti]

Yeah i figure the northeast and west coast is brutal yeah.

[dreamingat30fps]

Not just the real estate prices, but the amount of people is unbearable!! At least here in South Florida I have noticed a huge increase in traffic, people at stores etc. I try not to leave my house. I don’t know if it’s people moving from other areas or people who now work from home and can be out eating shit all day or both, but everywhere I go is insane. It’s like snowbird season with a long holiday weekend and every store is having a black Friday sale. Except it’s a Tuesday in the middle of the day.

Can’t wait to go back to NC even though it’s fucking freezing over there.

[ToddBlack88]

Originally Posted by Alfisti

The numbers you guys are talking are absurd, literally nothing below $1m here, even condos approaching that, like basic ones.

Here also.
My assessment for property taxes this year went up 430,000k

[Tommy-G]

Originally Posted by ASAP

I live in FL and it's insane right now... in literally every part of the state.

South FL may as well be the new bay area with rents and what junk sells for.
Other parts of NW FL and areas like Orlando / Tampa are being massively overtaken by out of town buyers (typically northerners with cash) and now even corporate buyers to raise rents.

Places in my area that went for $180K now go for over $340K 3 years later... this prices the locals completely out of the market... this is entirely unsustainable at this rate unless there are massive wage hikes which will further drive inflation or it all comes crashing down after the stock market cools... who knows

I literally just got off my realtors site. There are 8 houses in my range, not one of them has a pool and not one of them would I even remotely consider for under $400k.

Our lease is up in July and I can only hope our landlord doesnt get a case of the greedies....they have been very good to us so far but you never know when it could end.

Was thinking of buying last year but with COVID work was too uncertain, now the market is causing the uncertainty but work is booming because of all the influx of people

[RickFLM4]

Originally Posted by dreamingat30fps

Not just the real estate prices, but the amount of people is unbearable!! At least here in South Florida I have noticed a huge increase in traffic, people at stores etc. I try not to leave my house. I don’t know if it’s people moving from other areas or people who now work from home and can be out eating shit all day or both, but everywhere I go is insane. It’s like snowbird season with a long holiday weekend and every store is having a black Friday sale. Except it’s a Tuesday in the middle of the day.

Can’t wait to go back to NC even though it’s fucking freezing over there.

Yeah the equestrians have arrived here with their horses and arrogance.

Don't forget, when us "Floridiots" arrive in NC, we are thought of the same way.

[vreihen16]

Originally Posted by RickFLM4

Don't forget, when us "Floridiots" arrive in NC, we are thought of the same way.

I had to get a South Carolina Google Voice number for this very reason!

No way do I want anyone to see my NY State area code and think that we are NYC cityiots when we're dealing with stuff for our SC retirement property.....

[ASAP]

Remember this - in FL the problem is a little bit different than say other areas-

The major buyers here are outsiders as locals can't afford the current prices.

Most people in FL do not make a lot of money - median income is 50K per family... this is a low wage state with no real manufacturing and no real white collar presence... this will destroy the locals ability to spend... not sure how this will turn out in a few years.

[OkieSnuffBox]

Originally Posted by M_Six

How do middle class folks afford that? Out here, $500k is pretty much McMansion range except for a few really big, fancy houses.

The only thing I can come up with is most people seem to be comfortable being up to their eyeballs in debt and constantly on the edge of ruin.

My lady and I started looking at upgrading to a larger house last year since we both work from home, permanently. Even here in Oklahoma where housing has always been pretty reasonable compared to larger cities, it's getting crazy.

The mortgage on my completely renovated house with new roof, HVAC, water heater, appliances, etc, is $1100/month. Which is only about 1/8 of our take home after taxes. But I really don't want a $2700/month mortgage in OKC just to get a bigger house that has a pool.

Hell, I'm having a hard time justifying buying myself a fun car. I sold my NC last March after only putting 900 miles on it in a year, so we've been sharing a car since. So dropping $40-60k on a car that will rarely be driven seems silly as well.

[RickFLM4]

Originally Posted by ASAP

Remember this - in FL the problem is a little bit different than say other areas-

The major buyers here are outsiders as locals can't afford the current prices.

Most people in FL do not make a lot of money - median income is 50K per family... this is a low wage state with no real manufacturing and no real white collar presence... this will destroy the locals ability to spend... not sure how this will turn out in a few years.

Exactly the same complaint people have in Asheville. Lots of talk about affordable housing, living wage, etc. but people can't afford to live near where they work and there is no real solution for slowing demand other than higher prices.

So they have to do what everyone else has always done in that situation - rent (maybe with a roommate - I had one for 5 years after college in Miami), live further away and commute or relocate. In some respects, the newly accepted remote working arrangement makes it easier for some (but not all) people to move to a place more affordable when working from home.

[dreamingat30fps]

Originally Posted by RickFLM4

Yeah the equestrians have arrived here with their horses and arrogance.

Don't forget, when us "Floridiots" arrive in NC, we are thought of the same way.

Shhhhhhh!!! I’m hoping they wont notice! Then again the only neighbors I can see are originally from up north.

Originally Posted by vreihen16

I had to get a South Carolina Google Voice number for this very reason!

No way do I want anyone to see my NY State area code and think that we are NYC cityiots when we're dealing with stuff for our SC retirement property.....

Maybe I should do that. I have my FL number and all the cars have FL plates. I guess I just don’t care much. I hardly leave my house up there anyways. When we do go out it’s not like anything is busy unless we go to touristy towns like Boone or Blowing Rock which we rarely do because we don’t like crowds.

[M_Six]

Originally Posted by OkieSnuffBox

Hell, I'm having a hard time justifying buying myself a fun car. I sold my NC last March after only putting 900 miles on it in a year, so we've been sharing a car since. So dropping $40-60k on a car that will rarely be driven seems silly as well.

That's why I traded in the Z4. It was fine when I was commuting to Champaign and back (110 miles r/t) every work day. The car got plenty of use. But once I got my job only 3 miles from home, the Z just sat there. I wasn't going to risk the paint job by parking in the school lots. And since Wifey worked at the same school, we weren't even using her car. It was silly having 3 cars when 2 of them just sat idle. So when my dealer offered me a really sweet deal on the C300 in trade for my X5 and Z4, I took it. I do miss the Z4 sometimes, though.

[Joe T]

Originally Posted by M_Six

I was surfing through Zillow and was looking at the area where I grew up in MA. Tiny 2 and 3 bedroom houses with 1 bath and 1/10th of an acre going for $500k+. That's totally insane. Two bedroom condos that used to be sub $100k places now going for $300+. How do middle class folks afford that? Out here, $500k is pretty much McMansion range except for a few really big, fancy houses.

Where about in MA? I grew up in Waltham. My mom's house is a 950 sqft ranch on just under 3000 sq ft lots. 2 br 1 bath. 2 doors down from her just sold for $625K, it was under $10k when they bought new in 1964

[M_Six]

Originally Posted by Joe T

Where about in MA? I grew up in Waltham. My mom's house is a 950 sqft ranch on just under 3000 sq ft lots. 2 br 1 bath. 2 doors down from her just sold for $625K, it was under $10k when they bought new in 1964

Weymouth. I grew up in a cookie cutter house neighborhood. Same floor plan for almost all the houses. Some were just reversed and some didn't have carports, but most were exactly alike. You didn't have to ask where the bathroom was in your friend's house because it was in the same place as in your house. Eventually people added on or remodeled, so now the homes don't all look alike. But my folks bought our house for $12k in 1958. 3BD, 1BA, unfinished (and wet) basement. Maybe 900-1000SF before they added on. Quarter acre lot. They filled in the carport to make a family room and a half bath and dormered the back roof to add two bedrooms. Sold it in 1994 for just under $200k and retired off that. Same house would go for over $600k today.

Here's a recent sale in that neighborhood.

https://www.zillow.com/homedetails/2...56633882_zpid/

For comparison, here's a $500k house in the town where we currently live.

https://www.zillow.com/homedetails/3...80646951_zpid/

Weymouth, MA is close to the ocean. Charleston, IL is close to oceans of corn. There are pros and cons to both places, but we can breathe here and rarely see any traffic to speak of. I could go on, but it's the same everywhere. If you want to live near the cities or the beach or the mountains, you're going to pay for it.

[zx10guy]

Originally Posted by OkieSnuffBox

The only thing I can come up with is most people seem to be comfortable being up to their eyeballs in debt and constantly on the edge of ruin.

My lady and I started looking at upgrading to a larger house last year since we both work from home, permanently. Even here in Oklahoma where housing has always been pretty reasonable compared to larger cities, it's getting crazy.

The mortgage on my completely renovated house with new roof, HVAC, water heater, appliances, etc, is $1100/month. Which is only about 1/8 of our take home after taxes. But I really don't want a $2700/month mortgage in OKC just to get a bigger house that has a pool.

Hell, I'm having a hard time justifying buying myself a fun car. I sold my NC last March after only putting 900 miles on it in a year, so we've been sharing a car since. So dropping $40-60k on a car that will rarely be driven seems silly as well.

When you said up to their eyeballs in debt, it reminded me of this commercial:

I agree this buying frenzy is unsustainable and I thought mostly fueled by the same hysteria as those paying huge mark ups for cars. But then I started seeing discussions of how institutional investors are also driving housing prices up. There was discussion of some institutional investors buying up land and building housing units with the intent of renting out the units. Since they own a large number of units, they can dictate rental prices.

I opted to refinance my home last month. Paid $289k for my house in 2001. Neighbor right next to me sold their house for $589k. I conservatively estimated my home's worth as $550k based on my neighbor being able to sell theirs for $589k. Took out almost $100k in cash with the refi and lowered my interest rate from 3.75% fixed for 30 years to 2.874% fixed for 30 years with only $2200 in closing costs. Raised my monthly mortgage payments only $100 from what it was before. Will be keeping a chunk as emergency cash, a chunk to pay for some expenses such as some work I need done on the house, and the rest is going to be slowly invested into the stock market. All I have to say is thanks to all those that helped run up the prices on homes in my market and the cheap cash from the Fed.