Home Forums Hunting & Shooting Hunter's Campfire Finally some price drops in real estate

As long as the marxist planted DA's in the Northeast keep letting criminals out of jail in 24 hours with no bail, our area will continue to be flooded with squirters from those locations - NY, NJ, MA, MD. And prices will not come down. Starting to see a lot more CA plates here, too.

We are overrun with Californians and they keep coming. It used to be when I went to Costco I might see one group of no English speaking obvious foreigners there. Lately every trip there are a half dozen to a dozen family groups of foreigners there.

I was behind a group the other day that spoke no English and paid with some sort of government gift card. I think the government may be giving the illegals flooding into our country gift cards that get them into Costco too.

Within the last year things have really change as far as the number of foreigners shopping there goes. And they aren't buying only stuff you'd by on vacation. They're often buying furniture, kitchen ware, tvs etc. My years in marketing made me interested in people watching in stores.

Bb

What's going on in California is not what's going on in the rest of the country. If someone is investing in real estate with no money down, they will be getting over there head. I don't owe a dime on my properties. As a result I don't really care what happens. I absolutely do not see the prices of houses doing some big drop. The biggest reason is we are 4 million houses behind the demand. With skilled labor retiring and not having good labor out there it's even more difficult to play catch up. In the last 40 years of real estate, there has been one real estate crisis and is was created by government loaning money to people that can't afford it. The answer the market has come up with for the price of houses, is home loans going out to 40 years. PLEASE to not be conned into that. You will pay for that house multiple times with the interest. The longer the loan the higher the interest. Home sales did NOT slow down during the Carter administration. People still need a place to live whether they rent or buy.

What people need to do is focus on getting out of debt so they can purchase more home, and so they can deal with the inflation. If you add up all your monthly payments you will see how different your situation will be if you were totally out of debt.

There were a couple thousand homes burned in forest fires year before last. Combine that with the already low inventory and people fleeing California and prices are nuts here. I don't see it changing drastically any time soon.

Most homes are being sold sight unseen other than the listing pictures and are going for $25k - $50k (or more) above the asking price. Cash deals and buyers are waiving any inspections, buying as is.

Buddy of mine over on the coast in Seal Rock just sold his place for $40k over asking and had a back up offer come in of $60k over.

Interest rates don't mean anything to someone with cash.

It is pretty wild to watch Sandpoint property sales when I look back to 2005 and 2008 when we bought our places.

bad job market bozeman?.....some people like winter....bob

It is a good thing for those of us with inventory to move. I went early so lost out on some revenue, but a few locales are starting to cool off.

The really hot spots are going to keep going for a good while since rate hikes won't affect them much, cash buyers are the only ones getting anything anyway.

The only bad job market here is on the employer side of the equation. They haul in 'help wanted' signs by the train car load. Many restaurants are on a 3 to 4 day a week schedule simply because they can't staff for any more than that.

I'd like to watch someone buy a middling house in Bozeman by holding down a job waiting tables.

How many of your restaurant staff are buying $800k homes?

Wages in Bozeman can’t pay for homes in Bozeman. It’s transplant money.

true on some transplant......bozeman is becoming more and more high tech.....strong collage and medical......they want to be like Seattle and the like.....bob

It would take a lot of people defaulting on mortgages to cause a severe decline. People are locked into stupid low interest rates so their “odds” are decent they stay in their homes. Rentals are brutal if anyone has looked.

Inflation is the variable though. Combine a mortgage payment, high food, fuel, and utility costs plus property tax and we will see how it plays out.

I don't believe this is a bubble like 2007. Many buyers are highly qualified or paying cash. My best guess is the frenzy will fade, but no crash. Already in my locale everything has been bought up.
The people buying bare land are in for a surprise when they discover builders are 2-3 yrs out. So we may see bare land come back on the market for more reasonable prices.
But as Calvin says, inflation is the wild card.

I'm lined up with your thinking pretty much exactly. I don't think vacant land is going to drop by much if at all, but I don't think there will be any housing price crash any time soon beyond some local slowness.

People feel confident coming off 25-30% gains in the market. Trillions about to get shelled. We'll see how strong the real estate market is then.

I don’t think the bottom is gonna drop out anywhere either. I do think the pace of home values will slow down down considerably. Especially in markets that were already seeing double digit growth over the last decade+.

Some markets, like the SE, seem to still have room to grow.

Who knows. All I know for sure, it sucks for young folks trying to get into the market today.

Still sky high here. The house behind me just went up on the market for 700K. 3 bd/2Ba 2200 sqft finished with an unfinished basement.

Inflation and companies going under and people losing their jobs and cant make a 2.5 per cent mortgage payment

That will affect to bottom half of the market, but what about the top half?

The biggest threat in my opinion to companies right now is the lack of employees. Hiring is brutal right now.