Crazy real estate prices

This "shy half acre" lot just came up for sale about 300 feet down the street from my house, which is about 30 miles south of Seattle. I thought maybe I would buy it and build a spec house on it. I called and checked on the price, I thought I was hearing things; $265,000.

I checked on comps in the area, $220,000 seems to be the going rate for 1/3 acre lots with approved septic designs. It's going to cost another $25,000 for septic install, school impact fees, water and electricity hookups.

It makes me wonder what I could get for my 900 square foot 2 bedroom home that sits on 2 acres of fenced horse pasture.

These real estate prices can't last forever. It makes me tempted to sell my place, sit on the cash, and camp out or couch-surf for a few months until things fall apart, and then buy it back for pennies on the dollar. However, what if we are in a period of hyperinflation?
PM

if hyper inflation is yorue only worry... sell and invest in physical gold...
all these markets have me scratchin my head..... who makes that kind of money to pay the morgage

We have all the New Yorker's moving out of the city coming down here buying anything that comes available. Our area is going to be totally different after this year. As far as you go. You said the magic word (horse) But same thing going on here.I'd like to build a wall to the North,LOL

Careful, the down trodden in Seattle might come burn it down!

We have all the New Yorker's moving out of the city coming down here buying anything that comes available. Our area is going to be totally different after this year. As far as you go. You said the magic word (horse) But same thing going on here.I'd like to build a wall to the North,LOL

Real estate prices will continue to climb as long as there are fools with money, or able to borrow money and pay those insane prices.

Our real estate prices have been crazy for a long time.

I see a horse trailer on the next door driveway. Is that small land parcel in a zoned rural or suburb area ? Sure is a small place if it is in the country zoning.

And yes that price drops my jaw.

seems like this has happened before......

Prices go up so much because of the government programs to support the real estate industry. Normalize interest rates and get rid of all the loan guarantee programs and real estate would become more affordable.

And that's just the listed price.
Houses are flying off the market and often wel over asking. I've been at it for months trying to buy a house. Now here the realtor is asking for a Time Off Market fee which is a non earnest money so if it should fall through the seller keeps money.
As long as rates stay this low it will be a seller's market. If Biden gets ejected the market will tank (my prediction)

We have a boom market here with people moving from Milwaukee and Chicago to work from home and get away from high taxes and crime. The major problem is that they then try to turn our little towns into the crapholes they came from. I'm hoping that a good winter will slow down the influx as people have second thoughts. I'm naturally resistant to change even though I recognize that it is inevitable.

It should be a lot higher to keep them out.

Funny you should mention the horse trailer at the double-wide, the lady who lives there keeps her horses at my place, her horses are good brush eaters.
Zoning is not rural, but you can have animals.

Medium income in US $34,000. Medium home price in US $300,000plus. Makes ya wonder. Houses in my area selling fast as they can list them. Brother-in-law purchased a home in KC, MO area early this year. Already been offered 20% more than he paid, and he’s not trying to sell. They just knocked and said, “we’ll pay 20% more than you paid”. Loans are cheap, and lots of big city folks going rural or small town.

My wife and I bought a house last August at list price of $210k, and it was on the market for a while and actually had a price drop right before we bought it. Fast forward a year and we're getting divorced and accepted an offer of $230k for that same house just over a year later.

Thanks Waggler, that is what it is like in many areas here in MT too. Most folks have a relaxed appreciative view of rural life, even in town city limits.

Same here in France. People are leaving the big cities and looking for rural or small town life.

The work from home thing is a big trend worldwide.

Pete

They are leaving Illinois and moving here to Indiana by the droves to get away from crime and taxes - yet they will continue to vote the same types in that turned their state to crap. You think they'd learn.

Yep we got the infux of California and Washington here. It is driving up prices to the point that young people can not afford to stay here.

I bought a house last July. We were looking for about 2 months. Our realtor was amazing she sent us stuff as soon as they where listed. 3 of the 7 she sent us we didn't even get to look at because they sold within hours. The house we ended up buying was listed for 8 hours. We looked at it at 3:00 pm and put in a bid $5,000 over asking price with a stipulation that I wanted an answer by 8 pm because 1 house we put a bid on for asking price we got out bid. Payed $175,000 for the house that was completely redone. Got an offer from a gentleman a few months ago willing to pay $225,000 cash. It was tempting for a minute but I know how much a pain it would be to find another one in the area we want to live. It's crazy in the market right now.

Your making 24,000 a year before expenses on $649,000. That’s only 3.7% return on your money after expenses probably only 3%. I realize that you probably bought it for way less and the return on the money you actually spent is much higher. If you sell the $650,000 in a broad market index fund should on average return at least double. With very little expenses (like 0.05%). I would sell, unless you see the value going much higher. Another way to look at it, would you spend $650,000 to buy it? If no, then sell.

Here real estate prices are tied to jobs.
When they discovered the huge Gold deposit at Detour Lake,North West of Cochrane and announced the opening of the mine,real estate went up 40% overnight.

Was that around 2008?

same thing here ,we are getting lots of people from the city's ,coming up to the u p of michigan , not good , jmo ,

The UP is a joke. My parents live in De Tour and everything’s being bought up. Houses that have been on the market for years have sold. Everyone’s hoping it goes back to normal in a year or two.

If you don't mind the capital gains tax..........

This is my Aunts home in Seattle near Puget Sound. They bought it in the 1950s. I think its all about the property taxes

With the Feds keeping interest rates artificially low everyone who works part time think they can buy a $300k house. I own 13 rentals that I fully rehabbed and have thought about selling a couple of them but I can't think of a better asset to put the money in. The Feds are printing $1.3B a day, so high rates of inflation is inevitable. Scary times!

My dads , saying in a case like this , was If you don't know what to do , do nothing. The meaning being, take some more thinking time, until it is clear, what is best for your situation. Has always worked for me. You might occasionaly , miss an opportunity. But not often. old243

We just had a house about 500 feet down the street sell for $400.000 and they tore it down and built a new house..

That’s happened around here, in a couple cases. Insane!

I'd sell just to get out of the Seattle area. Look at the market around Boise if you're looking for another investment. Getting crowded there already.

I guess there is a clause that you can sell and then buy back "in kind" to avoid the capital gains tax.