Tagged: housing market
Log
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Soemtimes the studies come out a bit after I’ve recognized something. Yesterday I saw this study about real wage cost. Echoing everything I’ve seen in person and written. The same goes for the housing market. I looked at a home today, just for fun. There is nothing that will convince me that a quickly flipped, century-old farmhouse in a rural area is worth $350,000.
That’s $2,178 a month, or $785,440 over the course of 30 years of payments. For a small amount of land, an old foundation, and $20-$40,000 worth of Menards or Home Depot products. Always LVT flooring (“Luxury” Vinyl), Pex water supply, and some cheap single room AC/heaters so you have an extra high energy bill. The fascination with plastic building materials is shocking. I heard they’re trying to replace drywall with a plastic alternative now.
I personally don’t know who is buying these homes. I was told this was a “cheaper” area, and those buying are young and likely commuting an hour each way to work every day. I wish there was some way to explain to them that it’s been predatorily priced. I value a home like that at no more than $200,000 maximum, and I won’t be buying until prices equalize. I looked after I estimated it, and it sold last 4 years ago for $204,000. Which to me is right around what it’s worth.
I don’t need a study in 2 years to tell me that the housing market was completely illogical at this time.