Western Land Prices

[ODB]

Here comes 2008 2.0

I’m not so sure. The workforce conditions are nothing like 2008. A lot of people could not make a living here in 2008 when it got ridiculous but with over a year of companies adjusting to remote working people can live here and work from a major city. I’ve been a remote worker since long before covid and have lived in WA, VA, and ID. My company has workers all around the states and in the UK. We just closed our physical Ohio office because the staff there liked working remote. There is nothing stopping them from relocating if they choose. I think this is the new model now and will be a bulwark against too much of a hit in any desirable market.

 

[Salmonchaser]

Yep

 

[bozeman]

This is why I 'visit' out west, but live in rural western Alabama.........

 

[MallardSX2]

Housing prices in GA are out of control right now. Selling for 50% more than asking prices right now.

 

[ODB]

Housing prices in GA are out of control right now. Selling for 50% more than asking prices right now.

A friend in Seattle just overbid a house by 60k. They offered 600,000 on a 1970s, 1100 sq foot house. Insane.

 

[go_deep]

June 30th 2021 if I'm correct is the last day for foreclosure and eviction protection on the federal level. My friend is the VP at a smaller bank, but the projects they have today are nationwide there is about 11 million households that will be evicted or foreclosed on once the city, state, and federal mandates run out.

 

[ODB]

June 30th 2021 if I'm correct is the last day for foreclosure and eviction protection on the federal level. My friend is the VP at a smaller bank, but the projects they have today are nationwide there is about 11 million households that will be evicted or foreclosed on once the city, state, and federal mandates run out.

this will disproportionately affect marginalized communities and relief will be forthcoming from Uncle Biden. Guarantee it. When you propose 10 trillion in spending, a couple more billion will follow as surely as the sun rises in the East

 

[trazerr]

June 30th 2021 if I'm correct is the last day for foreclosure and eviction protection on the federal level. My friend is the VP at a smaller bank, but the projects they have today are nationwide there is about 11 million households that will be evicted or foreclosed on once the city, state, and federal mandates run out.

My realtor wrote an article last month about the mortgage forbearance ending in June. He said if they don't renew it you will see a ton of houses come on the market in the way of foreclosures. If they do renew it then we will see some homes come on later this year when people gain enough equity to finally be able to sell without foreclosing. He sounded pretty stoke either way which kind of sounded bad to me at first. However, we have around 0.5 months worth of inventory on the market right now so he needs it to make a living. When we purchased our home in Dec 2019 there was 3.8 months of inventory on the market.

 

[Team4LongGun]

Question for you fellas smarter than me-if this current craze bursts/changes etc, will the mortgage rates go up?
I ask because wouldn’t it be better to overpay now with a rate of 3% than pay “normal” price down the road with a crap interest rate?
Basically, If you had to buy In the next year or 2, better to wait or no?

I do agree things can’t possibly stay this way for long

 

[Timeless61]

Question for you fellas smarter than me-if this current craze bursts/changes etc, will the mortgage rates go up?
I ask because wouldn’t it be better to overpay now with a rate of 3% than pay “normal” price down the road with a crap interest rate?
Basically, If you had to buy In the next year or 2, better to wait or no?

I do agree things can’t possibly stay this way for long

Rates are starting to go up now. That should continue over time.

It depends how much you are spending but a 1% change in interest rate makes a pretty big difference in monthly payment. This is true if the down payment percentage is the same.

 

[FLAK]

This is why I 'visit' out west, but live in rural western Alabama.........

10-4

 

[CoHiCntry]

Here in California in my area homes have about doubled in value in the last 6 years. Many people have taken to having a family member live with them and help make their payments. That's with both spouses working full time jobs too.

Not sure why anyone would choose to live like that? Living with family members & both spouses working to afford a house payment? No thanks...

 

[4rcgoat]

Nationally, maybe......young families in tract housing in anytown, USA who have taken out equity as a result of the rising market values are the ones who will get burned again. But in hot areas like coastal areas, ski resort areas out West (which I think is more relevant to this forum), I don't see it happening. There was already an invasion of CO, MT, and WY going on, even before CV-19 started. This last year has only exacerbated it, but at this point supply is at a low that is unprecedented, so past situations don't necessarily apply here. JMHO

Yeah,i hear ya. I just don't trust what i see sometimes.

 

[805Bowhunter]

To reiterate what everyone else has said, where I live, property values are beyond nuts. I live in Cayucos (1/2 way between LA and SF on the coast) and with many big firms in the big cities going "remote" for the next 5 years minimum (Silicon Valley, big engineering firms etc), the crazy silicone valley prices have come to our rural community. We bought our house in 2012 for $460k (which was honestly way more than we could honestly afford at the time). We just had our home appraised to refinance to a lower rate (2.3%!! fixed no cash out and moved the mortgage to a 10yr). Anyhow the house appraised for $1.25 million. I almost crapped my pants literally.

The point being, unfortunately for a lot of you in Wyoming, Montana, Idaho etc...a lot of people who have lived in CA for more than a decade are having the same thing happen but instead of staying, are taking this crazy $$$, moving to your state (look at census), and pricing a lot of born and raised locals out of the market completely.

This is spilling over into western tag applications (specifically elk) too.

 

[go_deep]

Here we go, Federal Judge just overturned the eviction ban.

Federal judge overturns national eviction ban

A federal judge struck down on Wednesday the national eviction moratorium, potentially leaving millions of Americans at risk of losing their homes.

www.cnbc.com

 

[cjdewese]

To reiterate what everyone else has said, where I live, property values are beyond nuts. I live in Cayucos (1/2 way between LA and SF on the coast) and with many big firms in the big cities going "remote" for the next 5 years minimum (Silicon Valley, big engineering firms etc), the crazy silicone valley prices have come to our rural community. We bought our house in 2012 for $460k (which was honestly way more than we could honestly afford at the time). We just had our home appraised to refinance to a lower rate (2.3%!! fixed no cash out and moved the mortgage to a 10yr). Anyhow the house appraised for $1.25 million. I almost crapped my pants literally.

The point being, unfortunately for a lot of you in Wyoming, Montana, Idaho etc...a lot of people who have lived in CA for more than a decade are having the same thing happen but instead of staying, are taking this crazy $$$, moving to your state (look at census), and pricing a lot of born and raised locals out of the market completely.

This is spilling over into western tag applications (specifically elk) too.

Just curious about your situation, if you wouldn't mind. When you appraised for $1.25M did your property taxes get locked in at that price? I have been afraid to re-fi for that reason and I am planning on paying off my house in the next 2 years anyway when our company goes public. Since this is my forever home I didn't want to get locked into a higher appraisal if it means higher property taxes each year.

 

[MattB]

Appraisals shouldn't impact assessed value. Different states have different rules on how property taxes are set, but CA's taxes are generally about 1.25% of the purchase price. We also have prop 13 which limits the annual increase to 2%/year. This has created a structural issue as real estate taxes do not keep up with inflation. Our school systems are heavily reliant on real estate taxes, so the kids lose out.

As a result, we used to pay 10x the taxes as our next door neighbor as they bought 40+ years before us.

 

[Ranger 692]

I’ve sold two properties in the last year. Both way over list and both cash. Many more cash purchases will be why this won’t be like the last time around. That and working remotely.

 

[Kimber7man]

if you can buy a house and live in it for at least 2 years, you can make cash profit of up to $250,000 and not have to pay capital gains on it.... beat the tax man....

 

[xOttox]

Wife and I toyed with the idea of selling. Had a realtor come by to give us an idea of what we could list for.

We have been in our place for 4 years and done nothing but paint. Paid 200k in 2017, she recommended we list for 4 days only and start at 325k. We said we would think about. The following day she contacted us with an offer at 325k and they were willing to escalate to 5k over the highest bid with no inspection and only seeing a few photos she took.

It's nuts!!!! We live in Nebraska, flyover country. We can't find a place to meet our desires (1+ acre) so we are staying put, saving and waiting for this to settle down so we can possibly look at reasonable priced places or parcels.

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