Some November 2021 Real Estate Stats (Taylor, Utopia: amusement park, neighborhood, buying)

[cheeva]

Originally Posted by TX Rover

“Far flung places”

It’s laughable. My condo near campus is pretty damn far from “ghetto”, but after reading a bunch of your other drivel, I’m not sure we have the same sense of reality.

Campus is about as central as you get. It's not far-flung. It's probably ghetto anyways, but expensive ghetto because of the location.

My point is that if you are trying to make something as cheap as possible, like far-flung density, the end result will attract low-income demographics.

[TX Rover]

Originally Posted by cheeva

Campus is about as central as you get. It's not far-flung. It's probably ghetto anyways, but expensive ghetto because of the location.

Like I said. Laughable.

[cheeva]

Originally Posted by TX Rover

Like I said. Laughable.

Your ghetto condo? I don't think it's a laughing matter, because a human being has to live there.

[Scientific]

Originally Posted by cheeva

Point is that something in that equation would have to give, and that would be a local economic downturn for the price of dirt to drop, or a national/global recession that dropped the price of commodities and labor in order for homes to be built for less than 200/sf

You can't have both. You cant have extra supply, which unless there's a huge surge would be a drop in the bucket in this current market anyway, and have existing price growth unphased. The demand side of this has flung so far ahead of supply, I dont think it will ever again be within reach for the average buyer. Increasing housing supply in low income areas? That will be subject to the market anyway. It's a fairy dust dream to think you can build "affordable housing".

There's winners and losers in any market. If rates go up, and the economy weathers it? It may move the needle in housing. Who knows. I know some folks dread thinking they bought at peak market cycle.

[Need4Camaro]

Originally Posted by cheeva

Your ghetto condo? I don't think it's a laughing matter, because a human being has to live there.

Well, to be fair I personally wouldn't consider a condo near campus to be considered ghetto.. people will still move there because they 'want' to be there not because they 'have' to be there.. ..and the area itself doesn't give me an unsafe vibe at all.. ..densely populated, yeah - but I have to lock my doors and hold my pistol? No.

..While I get the whole idea of high density areas with lower income have tendency to become crime ridden does have truth in it (see areas such as College Park in South Atlanta for example, its a very real problem that street riff raff from NYC, Chicago, NJ, ect move there to obtain urbanity for cheap and the area is much more unsafe than the general feel of it would allude you to believe.) ... Austin metro generally has only very small pockets of these areas and while we do have alot of condo's / apartments - many of them by comparison to a true rough area in an urban area are still childsplay in terms of safety. Just don't leave valuables in the car and keep the doors locked and generally you're still okay.

Originally Posted by Scientific

You can't have both. You cant have extra supply, which unless there's a huge surge would be a drop in the bucket in this current market anyway, and have existing price growth unphased. The demand side of this has flung so far ahead of supply, I dont think it will ever again be within reach for the average buyer. Increasing housing supply in low income areas? That will be subject to the market anyway. It's a fairy dust dream to think you can build "affordable housing".

There's winners and losers in any market. If rates go up, and the economy weathers it? It may move the needle in housing. Who knows. I know some folks dread thinking they bought at peak market cycle.

Probably true. Honestly its kinda hard to gauge, demand is definitely up there but supply is stiffled for so many reasons that its hard to tell how far we're really behind in it, but I will agree that it would definitely take a flood of supply at this point to put a dent in housing demand.

[TexasHorseLady]

Originally Posted by TX Rover

“Far flung places”

It’s laughable. My condo near campus is pretty damn far from “ghetto”, but after reading a bunch of your other drivel, I’m not sure we have the same sense of reality.

I have to spread some reputation around before I can give you more. So here it is anyway.

[Roadking2003]

Originally Posted by anjalisarinna

I've noticed a bit of a decline as well, and the greedy sellers are seeing their homes sit. It's going to be cyclical for sure.

Why is it greedy to try to sell your house for the maximum amount you can get?

Definitely don't expect prices to return to 2020 levels anytime soon.

I agree. Prices have continued to go up.

[Need4Camaro]

Originally Posted by Roadking2003

Why is it greedy to try to sell your house for the maximum amount you can get?

It isn’t. I believe he was referring to those pricing their home way above market value in hope of luring in a gullible / desperate buyer that hadn’t researched the market values in the area he were choosing to live, thus paying well over the current escalated values.

If you’re attempting to sell the home for far more than it is worth in the current market values, it is greed.

[Austin97]

Originally Posted by Need4Camaro

It isn’t. I believe he was referring to those pricing their home way above market value in hope of luring in a gullible / desperate buyer that hadn’t researched the market values in the area he were choosing to live, thus paying well over the current escalated values.

If you’re attempting to sell the home for far more than it is worth in the current market values, it is greed.

The only way for prices to go up is to raise them beyond what people think the market is. If everyone only priced "at market" then prices would never go up..

It is greedy, but humans by nature are greedy. Any system that works against that self interest fails.

There are two willing participants in the transaction, so it is no one else's business but theirs.

[Need4Camaro]

Originally Posted by Austin97

The only way for prices to go up is to raise them beyond what people think the market is. If everyone only priced "at market" then prices would never go up..

It is greedy, but humans by nature are greedy. Any system that works against that self interest fails.

There are two willing participants in the transaction, so it is no one else's business but theirs.

The market is determined by the demand of the area vs supply of housing. Areas with more demand than supply increase the market value thus prices follow with the increase of the market. If people priced at market, in a market with increasing demand, prices can still increase.. as they typically get an estimate / appraisal or a realtor to judge how much they can fairly sell it for… that is what will determine fair market value.. which of course changes over circumstances.. ..there will be those who overshoot the market though, and they are overshooting it by strong margins compared to what comparable homes are selling for. Those are the people being exploited right now.

I will agree that there will be those that make incremental increases to see if they can sell it for that (greedy or not) but some of those folks out there are trying to win the lottery or something.