What is up with property prices? Gentrification?

House prices in my area have more than doubled since 2016. My income has increased by 60%, which is great, but not doubled. A $110K fixer upper in 2016 is selling for 260K, and this is no resort town. Most of the market is 5 bedrooms, $500 K.

Plus, all that's on the market within 100 miles is the same. What, you have to make $150 K a year to own a house?

I looked at towns that were cheap 4 or 5 years ago. Lincoln City, OR. Missoula MT. Spokane WA. Same thing.

Is this a bubble, or do we have a new class: renting class. Slightly above working class.

originally posted by: Look2theSacredHeart
House prices in my area have more than doubled since 2016. My income has increased by 60%, which is great, but not doubled. A $110K fixer upper in 2016 is selling for 260K, and this is no resort town. Most of the market is 5 bedrooms, $500 K.

Plus, all that's on the market within 100 miles is the same. What, you have to make $150 K a year to own a house?

I looked at towns that were cheap 4 or 5 years ago. Lincoln City, OR. Missoula MT. Spokane WA. Same thing.

Is this a bubble, or do we have a new class: renting class. Slightly above working class.

A lot of high income jobs and relatively easy financing. Not so much a bubble but demand for homes in urban areas exceed supply.

I work in mortgage finance.

A rule of thumb is 3 to 5 times gross household income. So if you make 150k, you could swing a 450k mortgage conservatively... however, most people qualify for more than they can afford because banks dont consider things like daycare, eating out, and all the other misc expenses people have.

originally posted by: Look2theSacredHeart
House prices in my area have more than doubled since 2016. My income has increased by 60%, which is great, but not doubled. A $110K fixer upper in 2016 is selling for 260K, and this is no resort town. Most of the market is 5 bedrooms, $500 K.

Plus, all that's on the market within 100 miles is the same. What, you have to make $150 K a year to own a house?

I looked at towns that were cheap 4 or 5 years ago. Lincoln City, OR. Missoula MT. Spokane WA. Same thing.

Is this a bubble, or do we have a new class: renting class. Slightly above working class.

Do you live in a town that has a large amount of california tech escapees moving into the region?

60 percent income increase has to pretty unheard of in 99 percent of the country,

Because people are stupid and will pay ridiculous prices for something they want but dont need.

originally posted by: Bluntone22
Because people are stupid and will pay ridiculous prices for something they want but dont need.

Got to keep up with the Jones....

a reply to: Edumakated

Median income in my city is $50K. There are a lot of independently wealthy folks moving here for a church that Borders on a cult. Intellectual prosperity gospel.

The increase is TOTALLY not matched by wages.

originally posted by: Look2theSacredHeart
a reply to: Edumakated

Median income in my city is $50K. There are a lot of independently wealthy folks moving here for a church that Borders on a cult. Intellectual prosperity gospel.

The increase is TOTALLY not matched by wages.

A cult you say, filled with wealthy people.

Sounds like a good time to move out of the area.

originally posted by: MisterSpock

originally posted by: Look2theSacredHeart
House prices in my area have more than doubled since 2016. My income has increased by 60%, which is great, but not doubled. A $110K fixer upper in 2016 is selling for 260K, and this is no resort town. Most of the market is 5 bedrooms, $500 K.

Plus, all that's on the market within 100 miles is the same. What, you have to make $150 K a year to own a house?

I looked at towns that were cheap 4 or 5 years ago. Lincoln City, OR. Missoula MT. Spokane WA. Same thing.

Is this a bubble, or do we have a new class: renting class. Slightly above working class.

Do you live in a town that has a large amount of california tech escapees moving into the region?

60 percent income increase has to pretty unheard of in 99 percent of the country,

No, but we have a church that thinks it's recreating Tolkein and C. S. Lewis's Oxford. Lots of mega wealthy evangelicals moving in lately.

I'm only 10 years into my career. I don't expect big bumps in pay in the future.

a reply to: Look2theSacredHeart

Is this a big town?

Would you U2U me the name of it. If you aren't being hyperbolic with the term cult and mega wealthy I'd love to keep an eye on it in the near future. I'm fascinated by cults. Be interesting to keep an eye on the local news as they move in, bring massive amounts of wealth and with it political influence and their influence on the local police. Also interested in any possible uptick in missing children in the area once they..."settle in".

a reply to: Look2theSacredHeart

Here let me insert some tin foil:

This is all a by product of agenda 21/30. Soon, 95% of the world will be renters, their shackles?...ever rising cost of a roof....food and water coming soon!

I for one will not be purchasing a house until the over inflated housing market crashes like it should. I can entirely afford to buy a house without a mortgage as I have been saving (and investing) for that for my entire adult life. There is no way I am buying a home until there is a large correction, especially when there are so many homes that are completely empty. FYI there are about 17 million homes/condos that are unoccupied right now ( fred.stlouisfed.org... ). Frankly I am young and can wait out the people who think another housing boom will occur.

originally posted by: dubiousatworst
I for one will not be purchasing a house until the over inflated housing market crashes like it should. I can entirely afford to buy a house without a mortgage as I have been saving (and investing) for that for my entire adult life. There is no way I am buying a home until there is a large correction, especially when there are so many homes that are completely empty. FYI there are about 17 million homes/condos that are unoccupied right now ( fred.stlouisfed.org... ). Frankly I am young and can wait out the people who think another housing boom will occur.

The correction you're looking for will begin next month in stages through July. The rest of the year will be spent reeling over it for most.

Diversify in PHYSICAL gold or silver while you can.

Folks complain about their neighborhoods being "taken over".

That's so funny to me.

While you kept the code of the streets to never snitch, the criminal element that turned your neighborhood into a pile of rubble didn't do anything to keep it from being taken over LEGALLY.

Who's your daddy now dummies?

I like gentrification. It turned the neighborhood my old high school was in into a place to hang out, with a Ramen shop, vintage boutiques, a craft brewery and bar scene, and some other niche novelties those of us who went to school there can enjoy in peace now. Significant reduction in the junkies and riff raff. Less garbage just littered about too.

It's the "redistribution of wealth" or rather, "the redistribution of MAKING EVERYWHERE AND EVERYTHING AS EXPENSIVE as California/etc/etc.." ...... but seriously, it's probably not going to crash anytime soon. I've heard even third-world countries are becoming more and more expensive. I blame the Californians fleeing and scattering around the world to make everything and everywhere else as expensive as it was in their home state.

originally posted by: Robotswilltakeover
It's the "redistribution of wealth" or rather, "the redistribution of MAKING EVERYWHERE AND EVERYTHING AS EXPENSIVE as California/etc/etc.." ...... but seriously, it's probably not going to crash anytime soon. I've heard even third-world countries are becoming more and more expensive. I blame the Californians fleeing and scattering around the world to make everything and everywhere else as expensive as it was in their home state.

It's not us. It's the idiots that think like the city dwellers in this state.
To put it another way it's the socialists.

a reply to: Look2theSacredHeart

The mortgage industry is just a way big property owners make money then end up with property anyway,the industry is set up to increase bankers profits,in 1934 the US was sold out,you don't own your property you only rent it,read the fine print,this has been going on since recorded history,same ones as now ,ones who re wrote history

a reply to: worldstarcountry

There are signs in Oakland that say " keep Oakland hood". It seems the major decrease in crime and murders and safer streets that stem from gentrification are not welcome. Every generation complains about change after the changes they made. The run down neighborhoods are getting nicer, cleaner and safer. And it seems a lot of locals dont like it because it's mostly white and Asian people who are moving in.

Imo, foreign buyers, Airbnb & bankster financing schemes (mortgages & false housing shortages) have driven the price up of real estate. I have a friend who is unable to even rent an apartment right now because everytime he goes to look at them they are already taken. Prices will come down again during the next economic downturn but not down as far as the 2008 downturn because of inflation of the money supply (QE). In order for banks & corporations to be profitable everything they're invested in has to be worth more next quarter. This is in part why we have price inflation. Every market from gold/silver to stocks/bonds, oil/gas, Bitcoin/currencies is artifically manipulated by the Federal Reserve Bank. If mortgages or car loans become unaffordable the banksters will just offer longer term loans. One can already get a 20+ year loan on an RV or boat if they want to. We have not had true free markets since 1913.

In 1913 the Federal Reserve Bank was established, which is not federal & has no reserves. Congress handed over its constitutional responsibility to regulate/maintain the weights/measures of money (gold/silver) to the FRB, which has never performed its responsibility to regulate/maintain the weights/measures of money. Instead every dollar today is worth less tomorrow now, while wages remain the same, continuing the ongoing wealth gap between the rich & poor.

A Fed member named Prescott Bush helped fund Hitler & Nazi (National Socialist) Germany's rise to power. In 1933 FDR, another Nazi sympathizer who held stocks in Nazi companies suspended our constitution through Emergency War Powers, known as the Natonal Defense Authorization Act (NDAA) today. We've been in continuous war since 1933. Every economic downturn and war since 1933 was caused by the Federal Reserve Bank. If the wars are to end our constitution will be reinstated & all the unconstitutional alphabet agencies which presume an individual's guilt without due-process will be eliminated, along with any other unconstitutional governmemt agencies/programs. Imo, we've been under the control of the National Socialist's (Nazi's) since the Federal Reserve Bank was established in 1913.

So it's called capitalism, people trying to make a profit on their investments. What's wrong with that?