Housing prices
- Thread starter nibake
- Start date
drunkenbeagle
Gang Member
Depends upon where the house is. Home prices are probably tied more to interest rates than recessions.
There aren't a ton of inflation adjusted home price indexes, the Case Schiller would say they aren't cheap though: Case Shiller Home Price Index
killbilly
Vocals, Lyrics, Triangle, Washboard, Kittens
I am in the process of trying to buy a house. Don't know where you are, but a quarter-million will not buy you something you really want in a lot of markets. In some markets, 250,000 won't buy you a 1 bedroom condo.
To @drunkenbeagle's point - it depends entirely on where you are.
Are we due for a recession? Maybe. But the fact is that real estate is an excellent place to park money, and there is a LOT of money out there looking for places to park.
To @drunkenbeagle's point - it depends entirely on where you are.
Are we due for a recession? Maybe. But the fact is that real estate is an excellent place to park money, and there is a LOT of money out there looking for places to park.
Cessnaflyer
Wooooooooooooooooooooooooooooooo
That sounds miserable.
Says the real estate agent....
GypsyPilot
Mohawk Town
We sold our house in the Denver area last fall when we moved to Asia. I did consider renting it, but I really think that particular area is very due for a correction. The median house price in Denver is now over $400k, and this is for absolute crap that needs a lot of work. I don’t regret selling it at all, and we’re staying out of the market for a few years until some sanity returns.
drunkenbeagle
Gang Member
I will disagree the real estate is an excellent place to park money. It has a negative carrying cost (you pay taxes and insurance) to own it. If it has great cash flow, for instance if it is rented for considerably more than those costs - it can be good. Or if you live in it for a cost less than renting. But owning for the sake of owning? Lots of other assets can outperform real estate.
Roger Roger
Bottom of the list
Yep, own because you want to own, or because you can make good cash flow on rent. Not because “it’s a good investment!”
drunkenbeagle
Gang Member
Using myself as an example - my house sounds great in the last 7 years. Definitely worth more than I paid for it, but I've forked over $80,000 in interest, and $75,000 in taxes and insurance for the "investment." That's about the premium it would sell for over what I bought it for. Had I just bought it and not lived in it, it would be a substantial loss in real dollars. It's been a nice place to live though.
When punjab isn't over drinking all your beer.
Cessnaflyer
Wooooooooooooooooooooooooooooooo
It's nice having control over my housing costs. With renting those go up without getting any of the benefit of appreciation.
Sure if things always appreciate or if you plan on staying in the same house for the duration. I just don't want to get caught in a house i don't want to live in forever and have the market tank. Been there done that.
drunkenbeagle
Gang Member
And, you know, the transaction costs of selling. Which are quite a bit more than zero. Renting a house in my neighborhood is currently cheaper than owning.
Same. If i was smart, and not ruling this out, my wife and i should sell our place here in seattle and goto the cologne base for a few years and come back when the market corrects.
Cessnaflyer
Wooooooooooooooooooooooooooooooo
You first have to make a purchase before the market has hyperinflated. My total holding costs with utilities and repair reserve is $1,000. No way I would find similar to rent for under $1,500.
Ok but what if you want to move in the current environment.
Cessnaflyer
Wooooooooooooooooooooooooooooooo
I would rent the current place and look for another wholesale deal.
Buy, rehab, rent, refinance.
