Home prices

[artradley]

I get the rationale, but I could technically afford to put 40% down, but that doesn’t mean my financing won’t go through any less than if I put 20% down.

That's the part I don't understand. Consider:

• Appraised value is $400k. Buyer offers $400k and is going to put down $80k, leaving them with $80k equity and $320k loan balance. Bank say, "fine"
  
  
• Appraised value is $400k. Buyer offers $410 and is going to put down $210k, leaving them with $200k equity and $200k loan balance. Banks says, "No, you are overpaying."

WTF? How does that make sense?

 

[noStemsnoSTICKS]

I'm in Northern California. Median sale price is around $450k in my area. Median sale price for the state is around $700k.

 

[TJ8869]

Tripped out trucks is a WOB?

Do you know what a tripped out truck is?

2021 Ford F-150 Production Date Delayed

The Ford F-150, though it has its good and bad reviews across the board, is a trusted vehicle. It's America's favorite truck for decades and it is a

www.motorbiscuit.com

The Ford F-150, though it has its good and bad reviews across the board, is a trusted vehicle. It’s America’s favorite truck for decades and it is a favorite across the globe as well. It’s a fantastic family car and a workhorse towing machine. Will we see a 2021 Ford F-150?​

​

As of today, it comes bare in the base model and tripped out with new tech and plush leather when you opt for the top. It’s both affordable and expensive depending what you choose, which is why it’s the most sold truck in America.​

Lol

 

[Joes Place]

Congrats on finding someone else who does not know the difference between "tripped out" and "tricked out." I shall settle this with a poll.

tripped out

Definition of tripped out in the Idioms Dictionary by The Free Dictionary

idioms.thefreedictionary.com

tripped out
mod. great; excellent. We had a tripped out time in class today. The teacher brought his pet rabbit.

 

[Joes Place]

Yes, "tripped out" means acting crazy

It also means "great".

 

[Joes Place]

Not sure how it is overall in the Twin Cities, but it seems to have gone up quite a bit due to the regulations they’ve passed up here that have inflated many of these build prices. What you could build for $400K 5 years ago is now $550K.

"Regulations" to you are "open space" and "greenery" to others.

 

[Tenacious E]

It also means "great".

Love the pluckiness and resilience, but as the poll stands, you are thus far outvoted 25-0.

 

[Joes Place]

Love the pluckiness

If it's in the dictionary, it's a "thing".

You can think whatever you want.

 

[Tenacious E]

If it's in the dictionary, it's a "thing".

You can think whatever you want.

I think being outed on HROT with a WOB is actually doing someone a favor. Would you rather be razzed by anonymous HROTers or make the usage error with people you actually know? Stick to your guns though and use "tripped out" with your friends and colleagues.

 

[LuciousBDragon]

Lumber shot up 50% overnight around 6-8 months ago. Not a supply issue either. And it stuck too.

 

[TJ8869]

tripped out

Definition of tripped out in the Idioms Dictionary by The Free Dictionary

idioms.thefreedictionary.com

tripped out
mod. great; excellent. We had a tripped out time in class today. The teacher brought his pet rabbit.

Which still doesn't support your use of the term. Getting excited about a pet rabbit has nothing to do with modifying a truck.

From your same link:
trick out
To adorn (someone or something) or equip with fancy, attractive, or ostentatious clothing or ornaments. A noun or pronoun can be used between "trick" and "out."I like getting tricked out before going out for a fancy meal.He spent all that money tricking his car out, but the thing still runs like a piece of junk.

 

[B1GDeal]

One of our neighbors sold there house for a shit ton. We were laughing thinking there was no way they'd sell it. They dropped the price a little, but still sold it for a ton. So, I was happy to be wrong as it increased our value.

 

[OutbackBowl2017]

One of our neighbors sold there house for a shit ton. We were laughing thinking there was no way they'd sell it. They dropped the price a little, but still sold it for a ton. So, I was happy to be wrong as it increased our value.

Their. LoL. Sorry couldn’t resist.

 

[Joes Place]

Which still doesn't support your use of the term.

Sure it does.

"Grand" or "Crazy"

Both fit.

 

[TJ8869]

Sure it does.

"Grand" or "Crazy"

Both fit.

This is fantastic. JP doubled down on hard 12 and drew a King. And he still wants another card.

Don't ever change, dude.

 

[seminole97]

Lumber shot up 50% overnight around 6-8 months ago. Not a supply issue either. And it stuck too.

Interesting. They were actually falling as the housing bubble took off '04-'07.

 

[Panic1769]

I live in Colorado and it is effin nuts. A buddy of mine listed his house on a Wednesday morning at 9 am. By 6pm they had 45 people lined up to view it. They are finalizing a deal where the buyer is giving a cash offer for 90k over listing. I will never be able to afford to buy in this state.

I’m quickly realizing this with Colorado. Getting transferred there this Spring/Summer and have been looking at homes. It’s an eye-opener. I live in downtown Chicago and am shocked at housing costs in Denver. While we will have to buy a more expensive house than we’d like ($900k or more) the payments will even out as our property taxes ($1300/month)are much higher here than in Denver at $500/month. If it wasn’t for that, we’d be completely screwed.

 

[cfbfan23]

I’m quickly realizing this with Colorado. Getting transferred there this Spring/Summer and have been looking at homes. It’s an eye-opener. I live in downtown Chicago and am shocked at housing costs in Denver. While we will have to buy a more expensive house than we’d like ($900k or more) the payments will even out as our property taxes ($1300/month)are much higher here than in Denver at $500/month. If it wasn’t for that, we’d be completely screwed.

$6K annual property taxes on a $900K home is a pretty sweet deal. At least it would be here in Atlanta.

 

[Joes Place]

Interesting. They were actually falling as the housing bubble took off '04-'07.

~6 months ago was the combo of unprecedented forest fires and hurricanes, hitting both supply and demand at the same time.

The fires didn't "destroy supply"; but they interrupted supply in a Bigly way.

 

[seminole97]

~6 months ago was the combo of unprecedented forest fires and hurricanes, hitting both supply and demand at the same time.

The fires didn't "destroy supply"; but they interrupted supply in a Bigly way.

Interesting, the builders mention COVID shutdowns at mills, and I can't recall any hurricanes in August that would have affected timber harvest.

Spitballin'? Or have a link?

 

[Joes Place]

Interesting, the builders mention COVID shutdowns at mills, and I can't recall any hurricanes in August that would have affected timber harvest.

Spitballin'? Or have a link?

Forgot about Covid factors; but Western fires were occurring:

Google-
In 2020, the Western United States experienced a series of major wildfires. Severe August thunderstorms ignited numerous wildfires across California, Oregon, and Washington, followed in early September by additional ignitions across the West Coast.

 

[seminole97]

Forgot about Covid factors; but Western fires were occurring:

Google-
In 2020, the Western United States experienced a series of major wildfires. Severe August thunderstorms ignited numerous wildfires across California, Oregon, and Washington, followed in early September by additional ignitions across the West Coast.

That timing does fit, it comes after the price surge:

"According to the National Association of Home Builders (NAHB), since mid-April of this year, the composite price of lumber “has soared more than 170%. "

 

[thewop]

The housing market is nuts in many places around the country. Wages certainly haven’t kept pace with the rise in home prices.

Makes me sad for young couples and families who are trying to find something remotely affordable. I know I wouldn’t have wanted to commit to a $500k+ starter home on top of expenses, student loan debt, etc.

What’s it like in your area?

Up like crazy. Combination of low interest rates, strong economy, more people spending more time at home and realizing they want something else.

We may be in a bad spot soon though. There's a belief in this country that europe has everything figured out. One side effect of moving toward higher taxes and more regulation is higher cost of living, less discretionary income, and less affordable housing. For most in europe, renting is an accepted fact of life. The "American dream" is unique in many ways, reserved for the upper class in europe. Most haven't lived in europe and don't understand it. Honestly I never understood the idea of the American dream until I was surrounded by those who had no thought of home ownership, which is a fantastic way to build wealth, even when you start tiny.

 

[srams21]

Up like crazy. Combination of low interest rates, strong economy, more people spending more time at home and realizing they want something else.

We may be in a bad spot soon though. There's a belief in this country that europe has everything figured out. One side effect of moving toward higher taxes and more regulation is higher cost of living, less discretionary income, and less affordable housing. For most in europe, renting is an accepted fact of life. The "American dream" is unique in many ways, reserved for the upper class in europe. Most haven't lived in europe and don't understand it. Honestly I never understood the idea of the American dream until I was surrounded by those who had no thought of home ownership, which is a fantastic way to build wealth, even when you start tiny.

I think outside of major metro areas, home ownership is still very much affordable and will continue to be. The US is huge and there are lots of places out there. If anything, I think remote work will help spread the population out a bit more.

Another thing that would help is if true "starter homes" were actually built again. 3 BR/2 bath/ 2 car garage on a small lot.

 

[seminole97]

The "American dream" is unique in many ways, reserved for the upper class in europe. Most haven't lived in europe and don't understand it. Honestly I never understood the idea of the American dream until I was surrounded by those who had no thought of home ownership, which is a fantastic way to build wealth, even when you start tiny.

Eurostat is calling BS:

A majority of the population in each EU-27 Member State lived in owner-occupied dwellings in 2018, this share ranging from 51.4 % in Germany to 96.4 % in Romania; the EU-27 average was 70.0 %.

In 2018, one quarter (24.9 %) of the EU-27 population lived in an owner-occupied home with a mortgage or loan, while more than two fifths (45.1 %) of the population lived in an owner-occupied home without a loan or mortgage

 

[SoDakHawk]

I think outside of major metro areas, home ownership is still very much affordable and will continue to be. The US is huge and there are lots of places out there. If anything, I think remote work will help spread the population out a bit more.

Another thing that would help is if true "starter homes" were actually built again. 3 BR/2 bath/ 2 car garage on a small lot.

Homebuilders don't make as much building those types of homes. If you're going through the investment of buying a lot, breaking ground, and stick building then you might as well build a bigger house with more square footage as that will yield the highest profit margin.

 

[cfbfan23]

Eurostat is calling BS:

A majority of the population in each EU-27 Member State lived in owner-occupied dwellings in 2018, this share ranging from 51.4 % in Germany to 96.4 % in Romania; the EU-27 average was 70.0 %.

In 2018, one quarter (24.9 %) of the EU-27 population lived in an owner-occupied home with a mortgage or loan, while more than two fifths (45.1 %) of the population lived in an owner-occupied home without a loan or mortgage

I'm curious what the stats were for France, Spain and Italy. Would you have those handy?

 

[Formerly Rockymtnole]

Eurostat is calling BS:

A majority of the population in each EU-27 Member State lived in owner-occupied dwellings in 2018, this share ranging from 51.4 % in Germany to 96.4 % in Romania; the EU-27 average was 70.0 %.

In 2018, one quarter (24.9 %) of the EU-27 population lived in an owner-occupied home with a mortgage or loan, while more than two fifths (45.1 %) of the population lived in an owner-occupied home without a loan or mortgage

I think it’s the major cities where people rent.

 

[seminole97]

I'm curious what the stats were for France, Spain and Italy. Would you have those handy?

https://www.statista.com/statistics/246355/home-ownership-rate-in-europe/

 

[IAHawk2011]

Interesting, the builders mention COVID shutdowns at mills, and I can't recall any hurricanes in August that would have affected timber harvest.

Spitballin'? Or have a link?

Really? Timber is a major industry in Far East Texas, Louisiana, and Arkansas, and that area got wrecked by two Cat-4 hurricanes in 2020. I don’t know shit about the timber industry, but a quick Google search shows Hurricane Laura and Hurricane Deta had pretty severe impacts on the timber industry in that region.

Hurricane Laura likely to drive lumber prices even higher - The Working Forest

FOREST ECONOMIC ADVISORS -- Lumber and panel prices have rocketed higher in the third quarter of 2020, driven

www.workingforest.com

 

[srams21]

Homebuilders don't make as much building those types of homes. If you're going through the investment of buying a lot, breaking ground, and stick building then you might as well build a bigger house with more square footage as that will yield the highest profit margin.

I completely understand that.

However, it is really becoming a problem for young first time homebuyers. There are very few starter homes built in the last 40 years or so. Buying a Mcmansion to start is not doable for many folks. There HAS to be a push towards smaller homes.

Heck, in the areas I'm familiar with, the lack of supply of starter homes has pushed that segment up so much in price that people may as well buy in the next "tier" of homes.

 

[Joes Place]

That timing does fit, it comes after the price surge

And, remember: prices will almost always jump on "the news", not necessarily on "the actual metrics"

Prices almost NEVER drop on "the news" and wait for "the metrics"

 

[Finance85]

Eurostat is calling BS:

A majority of the population in each EU-27 Member State lived in owner-occupied dwellings in 2018, this share ranging from 51.4 % in Germany to 96.4 % in Romania; the EU-27 average was 70.0 %.

In 2018, one quarter (24.9 %) of the EU-27 population lived in an owner-occupied home with a mortgage or loan, while more than two fifths (45.1 %) of the population lived in an owner-occupied home without a loan or mortgage

I'm guessing there are more multiple generations living in a single home in Europe. Homes and other living spaces in Europe are smaller, too.

 

[seminole97]

Really? Timber is a major industry in Far East Texas, Louisiana, and Arkansas, and that area got wrecked by two Cat-4 hurricanes in 2020. I don’t know shit about the timber industry, but a quick Google search shows Hurricane Laura and Hurricane Deta had pretty severe impacts on the timber industry in that region.

Hurricane Laura likely to drive lumber prices even higher - The Working Forest

FOREST ECONOMIC ADVISORS -- Lumber and panel prices have rocketed higher in the third quarter of 2020, driven

www.workingforest.com

Note the timing, the price didn't surge to the high levels of August in anticipation of a future hurricane or fire.

The article you linked starts off with the cause for the surge to that August peak:

"Mills made dramatic reductions to production schedules in the second quarter in anticipation of sharply lower demand as states instituted shelterin-place orders and unemployment surged. The anticipated decline in demand never materialized. On the contrary, housing starts surged 60% between April and July to nearly 1.5 million units (SAAR). Meanwhile, with little else to spend their time and money on, homeowners turned to fixing up their houses, causing residential improvement demand for wood products to surge. Insufficient supply in the face of surging demand has caused inflation-adjusted lumber prices to surge to their highest levels in decades."

 

[hawkfan0319]

I’m quickly realizing this with Colorado. Getting transferred there this Spring/Summer and have been looking at homes. It’s an eye-opener. I live in downtown Chicago and am shocked at housing costs in Denver. While we will have to buy a more expensive house than we’d like ($900k or more) the payments will even out as our property taxes ($1300/month)are much higher here than in Denver at $500/month. If it wasn’t for that, we’d be completely screwed.

Welcome to Colorado!

 

[IAHawk2011]

Note the timing, the price didn't surge to the high levels of August in anticipation of a future hurricane or fire.

The article you linked starts off with the cause for the surge to that August peak:

"Mills made dramatic reductions to production schedules in the second quarter in anticipation of sharply lower demand as states instituted shelterin-place orders and unemployment surged. The anticipated decline in demand never materialized. On the contrary, housing starts surged 60% between April and July to nearly 1.5 million units (SAAR). Meanwhile, with little else to spend their time and money on, homeowners turned to fixing up their houses, causing residential improvement demand for wood products to surge. Insufficient supply in the face of surging demand has caused inflation-adjusted lumber prices to surge to their highest levels in decades."

I skipped page two of this thread, so maybe I am missing some context. I am not claiming that hurricanes caused the price of lumber to spike (though I am sure that they played a role in costs remaining high). Was just responding to your post that you couldn’t think of any hurricanes in August that would have affected timber harvesting.

 

[funksouljon]

I completely understand that.

However, it is really becoming a problem for young first time homebuyers. There are very few starter homes built in the last 40 years or so. Buying a Mcmansion to start is not doable for many folks. There HAS to be a push towards smaller homes.

Heck, in the areas I'm familiar with, the lack of supply of starter homes has pushed that segment up so much in price that people may as well buy in the next "tier" of homes.

Don't confuse what is "right" for the consumer vs what is "more profitable" for the producer of goods. Your altruistic view points don't line the pockets of the home building industry.

I don't disagree with you, but I know it isn't going to happen without a shift in the ability to provide that niche at a profitable margin. I would love to have 3500 sq ft on 2 acres. But again, large plots reduce units to be built and impact bottom line. And I think many people would prefer to have 1 or 2 acres with a 3200 sq ft house, vs a starter (too small) or a McMansion with 5000 sq/ft. Been trying to determine how I can build "custom" on a property not part of a development. First world problems. How many people WANT to be able to touch their neighbor's house from their bathroom window?

 

[Joes Place]

I’m quickly realizing this with Colorado. Getting transferred there this Spring/Summer and have been looking at homes.

Be sure to get settled in, in time for the 20"-30" April/May snowstorms...

 

[Finance85]

Be sure to get settled in, in time for the 20"-30" April/May snowstorms...

Not to mention all those tripped out trucks.

 

[seminole97]

Don't confuse what is "right" for the consumer vs what is "more profitable" for the producer of goods. Your altruistic view points don't line the pockets of the home building industry.

I don't disagree with you, but I know it isn't going to happen without a shift in the ability to provide that niche at a profitable margin. I would love to have 3500 sq ft on 2 acres. But again, large plots reduce units to be built and impact bottom line. And I think many people would prefer to have 1 or 2 acres with a 3200 sq ft house, vs a starter (too small) or a McMansion with 5000 sq/ft. Been trying to determine how I can build "custom" on a property not part of a development. First world problems. How many people WANT to be able to touch their neighbor's house from their bathroom window?

When we were picking a house as newlyweds just over 10 years ago the primary consideration was the schools system.
My wife, as a children’s therapist, had direct interaction with the school administrations in the seven county area.
She knew where we wanted to be, and most importantly where to avoid. I would have been clueless.
Of course I didn’t want to be a huge commute from work, but I wanted to be nearer the woods.
Our timing was fortuitous, as we snagged our house in 2011 for roughly the 2004 going price in the neighborhood.
Purchased for 177k when the seller had picked it up in 2008 for 222k (and then they pulled permits to install gas fireplace, gas range, and inline gas water heater!). Zillow says it’s added 100k in value, but I’m not going anywhere.