The Economy

How bad does it have to get to slow this down?






$400,000 and up.

It's slowing down fast

It’s pretty bad if that is only $400K.

According to the folks putting them together, they can’t slap them together fast enough. Who’s buying them houses?

There’s probably one house in the there that is $400k and it’s right next to the recycling center. lol

People from DC, NY and NJ who are escaping high taxes. So they can come here and demand higher taxes.

lol

There's been a little over 500,000 legal immigrants, 2,760,000 known illegal aliens and many more unknown illegal aliens that moved here this year. The US pays for the housing of most of those people. That's a huge boom for the housing market.

Keith

There building for the market that isn't going to happen if you want a new cheap house next year the banks will have lots

It is slowing now.

Even if they come down. 30% they still won't be "cheap". Houses here that sold for 175k 3 years ago are now 380k,

Old money.
We just waited 3 months for concrete, 3 months for floor trusses, and who knows how long for roof trussses. .
People have retired from good jobs with big 401k accounts. Landowners have big assets now if they bought land 20+ yrs ago. It's a big country and there's big money out there.

The bubble will burst and I think within the next year.

400k is cheap where Hobbie is talking about.

Economy is in general slowing down. Steel prices are going lower and some commodities are more available. However it is really something to see the economy as strong as it is or has been with all the head winds that it is facing. The economy really wants to grow even with all the inpediments. The younger generation needs two good jobs and put together a savings plan and create wealth while they are working so they can do all the activities they like doing which require a lot of funds compard to baby boomers like myself.

Bryce

Be like all them big cities in China that the commies built to create work,but no one lives there.
Same difference in the west-only its all hired purchase-same thing-other peoples money-then the bottom falls out and down comes the whole shebang like a house of cards.

You’re right Rob, I visited the website and they start at $700k., again I ask, who is buying these places?

Baby boomer's kids

Plus the young among us don't raise kids now, they raise dogs. You know how much freed up cash you have without kids?
Zillions.
So they by a house with internet and an HOA fee and bingo was his name o....

I bet it's college graduates buying those fancy houses. With blue collar workers set to be paying off their student loans, they can now afford a higher mortgage payment.lol

lol

I guess it’s all priority driven. You can buy a 1/2 acre lot and house looking at a golf course with fountains for $700K or a 200 acre farm looking at another farm for 540K.

You can buy farmland on eastern shore for $2,700 an acre?!? I find that hard to believe. The last few farms that sold in this area brought nearly 50,000 an acre. A 60 acre gentleman farm just sold for 3 million. The higher interest rates have done nothing to even hold the line let alone decrease prices on ag land

I watch farmland closely as I want to buy some, it's not come down at all yet.

Most of the houses I see being built are bought before the foundation is poured.

We have a whole new class of rich people these days, YouTubers are a biggy.

My apologies, my numbers were off. It was only 197 acres for $487K

Location, location, location, supply and demand. They don't make land anymore unless it's wasted fill.

Delivering to a new site. I’ll take a snap shot of where the poorer folks will be living. lol

HT, you delivering stone? If so, what's #57 per 20 / 22 T $ ?

That’s about an $800 load.

Yeah, almost doubled since my last loads last year. :-(

things are crazy....do not see how this can last for much longer without the bubble bursting. It happened so fast also...

There is not enough personal or single family residential housing and or affordable housing for our growing population so larger rental units will be more expensive and more common as we move forward. There will be a real housing shortage for many years if not longer. In some ways renting and leasing versus home ownership fits the life style of the much more mobile and willing to move younger families. With huge labor shortages for some time to come moving to find the work you like and the revenues you want will be common place. Are they saving monies for the future? Maybe not but that does not seem to be their concerns at this point in their lives. After all the vast majority of baby boomers did not save enough to retire comfortably either so this spend now and worry later is not a new thing.

Bryce

Land here is untouchable for locals, it is going for unheard of prices that people from the more populated counties are willing to pay.

Low interest rates.

there was an analysis on tv the other day said he looked for a lot of homes to be turned back to the banks because they won't be worth whats owed against them and also many have variable interest rates and can no longer afford the payment

Banks have made a lot of money even during these decades of low interest. They have put a lot of their equity in the market and have done well even with low interest, plus they did not pay out much interest either.
With strong leverage and good liquidity banks may welcome owning homes in receivership again. They are much stronger today than 14 years ago.

Bryce

Back 14 years ago, 20% of all homes in Ohio were in foreclosure.
The Ohio Supreme Court sent letters to all attorneys asking us to try to reduce the catastrophe.

Building like crazy in KC . Has slowed down a little but that happens every year in the fall. Spending a lot of money to use marginal ground too. Blasting out rock in some spots and hauling in dirt in others. Still building warehouses too because of the rail intermodal though that has really slowed. Home prices have not fallen but the meteoric rise has slowed. I hope that bodes well for everything else inflation wise. Jobs are still easy to get with decent wages.

Ocean’s East?

Was just at an auction a few miles from my house, Rudy bought the land in his teens before he joined the military, 1952. North-Central Wi, farm fields sold for $4250.00 an acre. People were in shock but ti is the going prices. Average ag land was $3000.00, but not building any more of it. Recreational land is going for around $1500 - 3000. My brother and I bought our land mostly in the 80's for 86.00/acre,105/acre, then 500.00 per care. Only regret we didn't buy more.

That sounds handy to me, LOL!

Ouch.