Housing prices

[Cherokee_Cruiser]

What is the house?

Nah, the "home report" is automatic, never requested it

This house. Don’t get me wrong, it looks great. But those prices from 2014 to 2021 to 2023. Granted, full remodel in 2017. But even then this is insane.

22903 Juniper Ave, Torrance, CA 90505 | realtor.com®

22903 Juniper Ave, Torrance, CA 90505 is for sale. View 20 photos of this 4 bed, 2 bath, 3088 sqft. single family home with a list price of $1980000.

www.realtor.com

 

[Richman]

0.13 of an acre? HAHAHHAHAHAHAH!

Uh, no.

Whole numbers only, please.

 

[Cherokee_Cruiser]

0.13 of an acre? HAHAHHAHAHAHAH!

Uh, no.

Whole numbers only, please.

It’s SoCal. 5500-6500 is pretty common for lot size.

 

[Cherokee_Cruiser]

My offer price was over list price by $49,400. Which is still well below in terms of price per square feet for Torrance. I still feel like it’s a steal at this price.

The bank lender sends an appraiser out. The appraiser in the top part of the report writes down the contract price (which is my offer accepted price, the price I bid).


And then after a 30 page document, finds that my house is appraised EXACTLY at my offer price. Um, what? That’s either BS or just the most “weird random coincidence.” Why does the appraiser see my contract/offer price? And what a coincidence she made it the end appraised value?


For you home buyers of recent, how did appraisal come out versus your offer price?

 

[ClearedForOption]

My offer price was over list price by $49,400. Which is still well below in terms of price per square feet for Torrance. I still feel like it’s a steal at this price.

The bank lender sends an appraiser out. The appraiser in the top part of the report writes down the contract price (which is my offer accepted price, the price I bid).


And then after a 30 page document, finds that my house is appraised EXACTLY at my offer price. Um, what? That’s either BS or just the most “weird random coincidence.” Why does the appraiser see my contract/offer price? And what a coincidence she made it the end appraised value?


For you home buyers of recent, how did appraisal come out versus your offer price?

It's always right at at your offer price. Welcome to the lovely world of SoCal real estate. Bought 2 places, 2 refinance to lower the rates, amazingly enough it hit that bulls eye exactly 4/4. Fake cousins just sold their place by us last year... appraised right at offer price.

Find your own inspector. See if you can make a few thousand back on a 'request for repairs.'

All the neighbors will be pissed when you close and the 'comps' for the neighborhood drop a little bit and everyone watches their home value drop a tiny bit in their monthly Zillow report.

 

[Cherokee_Cruiser]

It's always right at at your offer price. Welcome to the lovely world of SoCal real estate. Bought 2 places, 2 refinance to lower the rates, amazingly enough it hit that bulls eye exactly 4/4. Fake cousins just sold their place by us last year... appraised right at offer price.

Find your own inspector. See if you can make a few thousand back on a 'request for repairs.'

Yup, found my own inspector.

My agent (duel) recommended a company who’d do it for $595. I googled for inspectors and went for one that had the highest and best reviews and scheduled him. $750.


As a dual agent, he said he’d contribute towards my closing costs. I’m shooting for the moon, I said 1% of purchase price? Honestly, I’ll take anything. Had I used my wife’s agent, we would have gotten 0. Using this seller agent as dual, he stands to make a lot by double dipping. He said he’d let me know tomorrow. It might be a couple thousand right here. Plus whatever stuff comes up in inspection.

 

[Richman]

I sympathize with you CC. The market is beyond insane right now, and gone to plaid. In the past, I'd make case that you're beyond the realm of reasonableness and suggest you find something not necessarily more affordable, but more in line with at least a reasonable cost vs value ratio, even if it means commuting

But the whole country is nuts right now. There's no where to go that isn't affected.

I've had 2 unsolicited offers on my unfinished house we're building that are well north of the construction/lot costs. I could walk away with an easy six figures for doing absolutely nothing. The offer yesterday was "all cash and walk away". You literally have high-net-worth individuals driving around back roads in rural areas and walking up to strangers looking for houses to buy.

It is absolutely insane.

 

[Cherokee_Cruiser]

I sympathize with you CC. The market is beyond insane right now, and gone to plaid. In the past, I'd make case that you're beyond the realm of reasonableness and suggest you find something not necessarily more affordable, but more in line with at least a reasonable cost vs value ratio, even if it means commuting

But the whole country is nuts right now. There's no where to go that isn't affected.

I've had 2 unsolicited offers on my unfinished house we're building that are well north of the construction/lot costs. I could walk away with an easy six figures for doing absolutely nothing. The offer yesterday was "all cash and walk away". You literally have high-net-worth individuals driving around back roads in rural areas and walking up to strangers looking for houses to buy.

It is absolutely insane.

I don’t see it getting any better, especially in SoCal. This is house #4 that we finally succeeded on. First 3 were unsuccessful.

I’m not a Barbara fan, but I agree with her:

Barbara Corcoran Says Housing Prices ‘Are Going To Go Through The Roof’: Here’s When

If you're a prospective homebuyer, you're likely in a tough spot. While you may be tempted to wait for interest rates to drop, if you wait too long, you could be dealing with a surge in home prices....

finance.yahoo.com

Maybe not go through the roof, but continue to remain elevated and steadily increase. The ‘why’ is simple, like she says there are tons of people sidelined who are waiting for interest rates to drop. Even in this high(er) interest rate environment, there are still multiple offers. With inflation still high (increasing in some ways), the Fed will hold off on any drops. And once they do drop, get ready for a flock of people getting in on the action. Sure, sellers are sidelined too. Those that want to sell can’t because they don’t want to give up <3% rates and get a 7.5% now. We’ll see more supply once rated drop but still don’t think it’s enough.

I lucked out, PNC had 6.75% and since I’m qualified and joined their private bank program, get another 1/8 off so my 30 yr rate will be 6.625%.



Can I ask you, is this new construction in Florida, or are you moving to another state?

That’s another reason we are buying here, there is hardly any new construction. Torrance has some new condo buildings being built, but new SFH? Non existent.

Second home now we were disclosed owner died in hospice care at home, peacefully. Agent had to disclose that. I told him I am ok, and seems there’s only 3 Ds why people are selling their CA home: dead, divorce, or departing (CA). He laughed and said yup.

Once you buy a home out here, you hang onto that sumbeech

 

[Richman]

Can I ask you, is this new construction in Florida, or are you moving to another state?

Not Florida. Florida is full. Even places that were nowhere are swamped. Places like Ocala, which is no where near water, is going nuts.

There are very, very few places to escape it. Even LaBelle is in a housing boom (previously only “famous” because of its VOR: “LaBelle VEE OHHH ARRR”, in a deep, but pleasing baritone.) Places like Okeechobee, Lake Wales (highest point in peninsular Florida!) and Clewiston (sweetest town in America!) These are, or were, quiet farming towns. And they’re getting overrun.

We picked a place out of state where you could get out of town and wasn’t on anyone’s “top 40 states to live in”.

There had been some pretty significant spill over from the adjacent state which has a large metro area, so we finally broke down and built because we couldn’t really find what we wanted, and the very few places we liked sold in days.

Not 2 weeks after we bought our lot, the WSJ ran an article about how it was the new hotness, and about the same time, the market simply went crazy.

Not saying the WSJ calls the trends, but I’m sure they picked up on it.

I don’t see a 2008 deal, where sub-prime mortgages blew up the world. Everything now is cash, cash, cash. We don’t have a construction loan, so we figured we were special. Builder says he hasn’t had a home built with a loan in 2 years.

If anyone has an answer, or even a really bad guess, I’m all ears.

 

[Roger Roger]

I mean, you’re a capitalist who believes in the iron law of shop and demand right? The answer is very simple. Build a • ton of housing.

The U.S. Needs More Housing Than Almost Anyone Can Imagine

For Americans to live a productive, prosperous, happy life, homes need to be truly abundant.

www.theatlantic.com

 

[Cherokee_Cruiser]

I mean, you’re a capitalist who believes in the iron law of shop and demand right? The answer is very simple. Build a • ton of housing.

The U.S. Needs More Housing Than Almost Anyone Can Imagine

For Americans to live a productive, prosperous, happy life, homes need to be truly abundant.

www.theatlantic.com

You're right. That's the solution.


But more housing being built will eventually reduce other home values because the supply issue would be "fixed" or at least getting there.

What homeowners would like that?


Plus, who wants even more congestion where they live? Perfect example is where I was in Michigan. Canton was great in 2009-2012 when I was there. Since then, the whole area got much more developed, TONS of new home construction, lots of families moving in. My inlaws home was 299k in 2008 when they bought it as things were bottoming. Today, easily 650-700k.

Problem in Canton? Waaaaaaaaaaaaaaay too many people. Too much traffic, too much congestion. It's gridlock at times.



Who wants that in their nice quiet city?

 

[Cherokee_Cruiser]

@///AMG @Richman

This one has to take the record. Eff this investor with a pinecone.



Sold $2,550,000 on Oct 11

118 N Ardmore Ave, Manhattan Beach, CA 90266 | Zillow

118 N Ardmore Ave, Manhattan Beach CA, is a Single Family home that contains 1689 sq ft and was built in 1952.It contains 2 bedrooms and 2 bathrooms.This home last sold for $2,550,000 in October 2023. The Zestimate for this Single Family is $2,666,500, which has increased by $20,700 in the...

www.zillow.com

Listed immediately for rent at $5,995

118 N Ardmore Ave, Manhattan Beach, CA 90266 - Home for Rent | realtor.com®

View 34 photos for 118 N Ardmore Ave, Manhattan Beach, CA 90266, a 3 beds, 2 baths, 1689 Sq. Ft. rental home with a rental price of $6000 per month. Browse property photos, details, and floor plans on realtor.com®.

www.realtor.com

 

[Richman]

@///AMG @Richman

This one has to take the record. Eff this investor with a pinecone.



Sold $2,550,000 on Oct 11

118 N Ardmore Ave, Manhattan Beach, CA 90266 | Zillow

118 N Ardmore Ave, Manhattan Beach CA, is a Single Family home that contains 1689 sq ft and was built in 1952.It contains 2 bedrooms and 2 bathrooms.This home last sold for $2,550,000 in October 2023. The Zestimate for this Single Family is $2,666,500, which has increased by $20,700 in the...

www.zillow.com

Listed immediately for rent at $5,995

118 N Ardmore Ave, Manhattan Beach, CA 90266 - Home for Rent | realtor.com®

View 34 photos for 118 N Ardmore Ave, Manhattan Beach, CA 90266, a 3 beds, 2 baths, 1689 Sq. Ft. rental home with a rental price of $6000 per month. Browse property photos, details, and floor plans on realtor.com®.

www.realtor.com

Man, I get it. But if we're being philosophically consistent, this is the same argument that says you should allow speculators trade critical infrastructure, like oil, gas, etc, when all they really do is eff up the market for personal enrichment.

 

[Cherokee_Cruiser]

Man, I get it. But if we're being philosophically consistent, this is the same argument that says you should allow speculators trade critical infrastructure, like oil, gas, etc, when all they really do is eff up the market for personal enrichment.

I'm not for that. No one should be able to speculate and gamble with life necessity items. But I get what you are saying.

 

[Cherokee_Cruiser]

In what world does this make sense?



I know why the gobermint wants it, more tax revenue. But this is a horrible idea.

View: https://m.youtube.com/watch?v=2WIDg6cKvVk

 

[Box hauler]

I can’t believe what people are willing to pay here in Phoenix. Almost anything you see has doubled in price since 2020 if it’s in a good area. Sorry but I’m not paying $2M for a decent house that sold 3 years ago for $795.

 

[Roger Roger]

I can’t believe what people are willing to pay here in Phoenix. Almost anything you see has doubled in price since 2020 if it’s in a good area. Sorry but I’m not paying $2M for a decent house that sold 3 years ago for $795.

And by the time your mortgage is paid off you won’t have water any more!

 

[BEEF SUPREME]

And by the time your mortgage is paid off you won’t have water any more!

It's amazing how few people understand this.

Very important read IMO:

Cadillac Desert - Wikipedia

en.wikipedia.org

 

[Cherokee_Cruiser]

So the entire west coast will be waterless? Thanks liberals!



On a serious note, what’s the solution? What does it look like 30-40 yrs from now?

 

[Richman]

So the entire west coast will be waterless? Thanks liberals!



On a serious note, what’s the solution? What does it look like 30-40 yrs from now?

View: https://youtu.be/meDpNwem0Vo?si=Qj0bjdrN1jEB6Cp9


Written in 1972.

Seriously, dude. That's got nothing to do with it. SoCal is a desert, always has been. It's a LITTLE wetter than Arizona, and it happens to have more access to water from the hills. Water has always, always been the limiting factor in that part of the country, even when it was first settled in the 1800s.

That being said, if you're going to have more people there than is the extant supply because, hey, unrestricted growth = good, then you need to do something else about it. Distillation or osmosis plants. Takes a LOT of power. But, hey, no nukes, and carbon bad, so, good luck with that while trying to figure out how to charge your Tesla at night or when the wind don't blow.

Fusion is the answer, but it's a horserace to see what happens first.