Property prices around the world right now!

[Crocodile]

Just a bit of “Around the grounds”, question of how property values are going in your town or city right now in respect of the times we are living in right now. Here in Australia one of the major banks predicted that one potential scenario was a 30 percent drop in values in particular the 2 major cities, Melbourne and Sydney.
What’s actually transpired however is the opposite with low stock levels, and low credit rates, and people desperate to buy in fear that they may miss out. There is also a trend going on where people are buying in regional areas either tree or sea change places.
Added to this is the price of used cars and classic cars have gone trough the roof.
So crazy times here and it all seems a bit weird as the price rises seem to be driven by sentiment rather than sound economic fundamentals.
What’s it like where you forum members are?

 

[Bagumbawalla]

We were hoping to take advantage of the predicted economic slump, but instead the opposite is happening.
Recently we vacationed on the California coast and checked out some homes.
Prices were already high (1.3 million for a small "vacation" home), but suddenly spiked by 3 to 5
hundred thousand (or more) from one month to the next. It seems that people are abandoning the plague-infested
cities (like San Francisco) and, since they can work from home, are trending toward the upscale beach towns.
Also, more people are having remodeling/improvements done to their homes- for various reasons- including destruction by
the many recent fires- and the cost of contracted work has soared, as well. So, well, it seems to be the same situation over here.

 

[Sentinel]

Property is down in India if you try to sell, but still high if you try to buy. Sellers are not reducing prices.

 

[Soul]

I guess home sales are hot here in SW Florida. Was told by a neighbor that he put a modest home, he doesn't live in it, he owns up for sale and 6 offers came in the same day. Homes in the neighborhood are also selling quick. A neighbors houses sold within weeks of going on the market.

This is in contrast to a year earlier in which it could take a year or more to sell a house. In particular last year one guy from Canada I know was desperate to sell his house and had to keep dropping the price to find a buyer. It still took him a year to sell.

Yesterday I received in the mail two homes listed in my area. One house I am familiar with was listed 25% higher in value from just a year earlier. So from what I understand a lot of east coast and mid westerners are looking to leave their COVID lock down, high tax states and move to Florida.

 

[Mongolmike]

Middle America houses are selling within days of being on the market and probably 20% higher than pre covid.
New window replacement, new driveways, new roofs...more of major home improvement/investment stuff is crazy busy.

I have a friend who sells higher end residential replacement windows and he has been buried in work since April.
Another friend has wanted to tear up and replace his driveway and what he felt was a 20-25k job, he's gotten estimates for 50k and 3-5 month lead time.

 

[Larry Duff]

Mira Mesa has too many attractions to drop

 

[Mongolmike]

Mira Mesa has too many attractions to drop

Does it seem like people are leaving SD area like they are LA and SF?
I know the culture around SD is different, but would you say there is a general outflow or inflow of pooulation?

 

[Moose Malloy]

Prices in Southern California are still high.

 

[movdqa]

Our prices are up about 28% since the pandemic. Homebuilding is going crazy and I see people moving in and out. People in the Boston area selling expensive properties and bidding up property prices in my area.

 

[Crocodile]

So far it seems that a similar situation is playing out in many places. Anybody here from other places cities and countries experiencing similar or different circumstances.
It’s quite strange because these price rises I don’t believe are underpinned by sound economic fundamentals but more driven by sentiment and yes, supply snd demand ratios.
I am concerned that once stock levels rise or another economic shock hits there could be pain to come. Thoughts ?

 

[Mongolmike]

The housing market in June July almost seemed like a panic. I certainly am not a market/housing/financial expert, and it seems very odd to me. If anything because of covid, l am being more cautious of big ticket spending.

I wonder, and hope not, but l wonder if the credit debt per capita is rising (in the US). Many people are still not back to work , or working from home with reduced hours. Who are buying all these houses?? And why now?

And if you are selling your house because you are getting 20% more post covid, don't you then have to buy an equally or higher priced home in the same over priced market?

I think in a few years there will another large number of people way under water home value vs loan amount.

 

[movdqa]

So far it seems that a similar situation is playing out in many places. Anybody here from other places cities and countries experiencing similar or different circumstances.
It’s quite strange because these price rises I don’t believe are underpinned by sound economic fundamentals but more driven by sentiment and yes, supply snd demand ratios.
I am concerned that once stock levels rise or another economic shock hits there could be pain to come. Thoughts ?

I saw a big drop in rental rates in the largest cities. Boston was -20%. So you have normal supply/demand market functioning going on. The people moving into our area are generally wealthier than this area so I don't think that there will be any kind of decline going forward. There is also an increasing amount of economic activity in the area. Amazon has bought up a golf course and will be turning it into a warehouse distribution center.

 

[Larry Duff]

Does it seem like people are leaving SD area like they are LA and SF?
I know the culture around SD is different, but would you say there is a general outflow or inflow of pooulation?

I left years ago, still have a bunch of friends there and all seem pretty set.

 

[dahcovixx]

Way way up in my zipcode. We have A school districts and very low crime. Crime is a little bit inflated because part of downtown is there. But there is very little in my neighborhood, havent seen a car broken into in a few years.

32806 Home Prices & Home Values | Zillow

32806 Home Prices and Home Values

www.zillow.com

I saw a big drop in rental rates in the largest cities.

Super high taxes and no police protection are making people flee big "D" cities. Places are sh**holes now.

 

[Dedans Penthouse]

NYC and SF have seen an exodus that has driven up prices in Westchester Co. (e.g. Scarsdale) and Monterey Co. (e.g. Carmel) respectively

 

[Crocodile]

What about owning investment properties. Will there be changes in capital and property regulations and taxes?

 

[Kevin T]

NYC and SF have seen an exodus that has driven up prices in Westchester Co. (e.g. Scarsdale) and Monterey Co. (e.g. Carmel) respectively

SF exodus even extending 2+ hours away, DP. To Sacramento, Tahoe, even Stockton and Modesto (both famous for being top 10 "Most Miserable Cities in the US" every year ). Prices in Truckee and the Tahoe area jumped 20% just over the summer. It's almost out of reach to buy for well-to-do couples and families. We bought our current NorCal home in early 2015 for 424k, just as the market was going up. For what it's worth, Zillow has our 4 bed, 2300 sq foot home at 600k. A neighbor down the street just sold their home, same model as ours, for 695k. They had 7-8 offers, most cash offers, the first weekend it showed. Bay area folks are cashing in their 1500 sq ft 2-3 bedroom homes for a million plus and paying cash in the burbs and surrounding cities. My common rant when hiking the crowded state and national park trails or the skiing the saturated resorts in Tahoe is the same..."The Bay Area ruins everything!!"

 

[mikeler]

SF exodus even extending 2+ hours away, DP. To Sacramento, Tahoe, even Stockton and Modesto (both famous for being top 10 "Most Miserable Cities in the US" every year ). Prices in Truckee and the Tahoe area jumped 20% just over the summer. It's almost out of reach to buy for well-to-do couples and families. We bought our current NorCal home in early 2015 for 424k, just as the market was going up. For what it's worth, Zillow has our 4 bed, 2300 sq foot home at 600k. A neighbor down the street just sold their home, same model as ours, for 695k. They had 7-8 offers, most cash offers, the first weekend it showed. Bay area folks are cashing in their 1500 sq ft 2-3 bedroom homes for a million plus and paying cash in the burbs and surrounding cities. My common rant when hiking the crowded state and national park trails or the skiing the saturated resorts in Tahoe is the same..."The Bay Area ruins everything!!"

It's nice to know you have plenty of room for me when I drop by your place to watch VT-Clemson!

 

[onehandbh]

SF exodus even extending 2+ hours away, DP. To Sacramento, Tahoe, even Stockton and Modesto (both famous for being top 10 "Most Miserable Cities in the US" every year ).

Besides being kind of isolated, what makes Modesto miserable?

 

[Kevin T]

It's nice to know you have plenty of room for me when I drop by your place to watch VT-Clemson!

You're welcome anytime, Mikeler!

But give me a few weeks. As I finished typing that post yesterday, my upstairs shower starting leaking through to my downstairs bathroom. So I have some $$ and repairs to finish.

 

[Kevin T]

Besides being kind of isolated, what makes Modesto miserable?

Have you been there? Just kidding, as I know plenty of nice people from Modesto and Stockton. Visually, it's a blighted and very unattractive area. Very hot in the summers with poor air quality. Crime is high and schools are not the greatest.

This is a quote from the Forbes article a few years ago:

Modesto and Stockton residents might be feeling a bit down today.
Forbes magazine says Modesto residents live in the nation's eighth-most miserable city.
Stockton is Forbes' second-most miserable city. Detroit is No. 1 on the sucky civic list.
The national business magazine this week published a misery index based on a city's commute times, income tax rates, spending on Environmental Protection Agency Superfund sites, unemployment, violent crimes and weather.
Modesto scored especially poorly because of its unemployment rate, which hit 10 percent in December.

 

[onehandbh]

I've driven through Modesto but never stayed there.

 

[Dan Lobb]

I have been to Visalia several times... looked okay, despite hot weather in summer.

That was about ten years ago.

 

[nyta2]

NYC and SF have seen an exodus that has driven up prices in Westchester Co. (e.g. Scarsdale) and Monterey Co. (e.g. Carmel) respectively

yeah, that's what i'm seeing.
alot of my friedns moving out of nyc, looking for a home. willing to take haircut as well to get out of the city.
there's like 50% occupancy in apartment rentals in nyc
in general folks looking for space after being cooped up in a dense area during this pandemic.

side note, at least 70% of the folks i taught this summer were in the, "just moved from the city" camp.

 

[Dedans Penthouse]

SF exodus even extending 2+ hours away, DP. To Sacramento, Tahoe, even Stockton and Modesto (both famous for being top 10 "Most Miserable Cities in the US" every year ). Prices in Truckee and the Tahoe area jumped 20% just over the summer. It's almost out of reach to buy for well-to-do couples and families. We bought our current NorCal home in early 2015 for 424k, just as the market was going up. For what it's worth, Zillow has our 4 bed, 2300 sq foot home at 600k. A neighbor down the street just sold their home, same model as ours, for 695k. They had 7-8 offers, most cash offers, the first weekend it showed. Bay area folks are cashing in their 1500 sq ft 2-3 bedroom homes for a million plus and paying cash in the burbs and surrounding cities. My common rant when hiking the crowded state and national park trails or the skiing the saturated resorts in Tahoe is the same..."The Bay Area ruins everything!!"

KT, aware of the 'SFB runoff' (ha) extending into the Central Valley as well. Down south in Monterey Co.; to paraphrase Lennon/McCartney, an oft-heard Carmel whine: "they were Bay day trippers." As for Modesto (no thx): another Ca. city with one of those dorky downtown arches, e.g. Baskersfield, Fresno, etc...Stockton: good point guard...dunno what their Moody's credit rating is nowadays. : )

 

[Kevin T]

KT, aware of the 'SFB runoff' (ha) extending into the Central Valley as well. Down south in Monterey Co.; to paraphrase Lennon/McCartney, an oft-heard Carmel whine: "they were Bay day trippers." As for Modesto (no thx): another Ca. city with one of those dorky downtown arches, e.g. Baskersfield, Fresno, etc...Stockton: good point guard...dunno what their Moody's credit rating is nowadays. : )

So true! What is it with the arch?

Nothing like a nice 4-5 hour road trip to go 90 miles to a Niners game back in the old Candlestick days. Hour and change to get to Berkeley on a Sunday morning...90 minutes to 2 hours to get across the Bay Bridge...another 90 to get into the parking lot and into the park. All for the honor of freezing your arse off in September at The Stick. Unreal. I miss the heady days driving from OB to Mission Valley for a San Diego Chargers game...45 minutes tops, easy parking, half-full stadium so I can stretch out, sunny and 72 degrees, 30 minute drive back to the beach to watch the sunset. What in God's name has become of my life?

 

[Dedans Penthouse]

So true! What is it with the arch?

Nothing like a nice 4-5 hour road trip to go 90 miles to a Niners game back in the old Candlestick days. Hour and change to get to Berkeley on a Sunday morning...90 minutes to 2 hours to get across the Bay Bridge...another 90 to get into the parking lot and into the park. All for the honor of freezing your arse off in September at The Stick. Unreal. I miss the heady days driving from OB to Mission Valley for a San Diego Chargers game...45 minutes tops, easy parking, half-full stadium so I can stretch out, sunny and 72 degrees, 30 minute drive back to the beach to watch the sunset. What in God's name has become of my life?

OB to Mission Valley in 45 minutes?. Any movies on that flight? . : -)

 

[Sabratha]

Yeah. They're going to drop -- good news is for property owners that they'll eventually rise again in the future.

 

[mmk]

Yesterday I watched an episode of Love It Or List It set in North Carolina, near Raleigh, where the couple had a large house and 5 acres along with stables for their horses and it was valued at $1.1M. Today I'm going to help my youngest daughter check out a small 2 bedroom, 2 bath house in Arlington, VA for the same price. I'm about 30 miles away in Maryland, if I took my property, which would go for about $600K, and plopped it down next to the house we're going to look at, it would be around $2.5M.