I bought a house in Emporia, Kansas.

101 years old which will require a fair bit of updating.

There was a damn bidding war for the house and it sold it sold in 48 hours.

I never bid up and I did. but there were other bidders above list.

the house shares a garage and drive way with my friends house.

this real estate nuttiness better stop or we will be living in a country of renters with everything owned by blackstone.

Mike

There apparently is a car shortage also. A friend just traded in his Dodge Challenger for a new Dodge Challenger and he essentially sold it back to the dealer for more than he paid for it originally.

None of this really makes sense.

Mike:

I am an agent in Utah. I sell properties in this area:

https://en.wikipedia.org/wiki/..._(Idaho%E2%80%93Utah)

Most properties that I am seeing are going for above asking price and have multiple offers. Many are cash offers. I am seeing homes that are selling for 50%+ more than a similar home would have sold for a year ago. People say the market will crash. I do not believe this. I do believe that it may eventually correct but not a crash. Time will tell.

My kids are going to be very creative in the coming years, if they want to buy a home.

Glad you were able to purchase the Kansas property.

quote:

Originally posted by Jason P:
Mike:

I am an agent in Utah. I sell properties in this area:

https://en.wikipedia.org/wiki/..._(Idaho%E2%80%93Utah)

Most properties that I am seeing are going for above asking price and have multiple offers. Many are cash offers. I am seeing homes that are selling for 50%+ more than a similar home would have sold for a year ago. People say the market will crash. I do not believe this. I do believe that it may eventually correct but not a crash. Time will tell.

My kids are going to be very creative in the coming years, if they want to buy a home.

Glad you were able to purchase the Kansas property.

Occasionally the inflation ratchet slips for a few years, but over the course of a couple of decades real estate prices recover.
The hard part is keeping up your payments during the upside-down years, especially if you lose your job during a recession.

I bought this property in the early 70s + built the house myself. So everything I have I own free + clear. I see these new sub-divisions going up now with signs saying, "Homes from the $500s" How in the world can anyone afford the house payments? Not to mention their vehicle payments besides?

quote:

Occasionally the inflation ratchet slips for a few years, but over the course of a couple of decades real estate prices recover.

Tom:

I agree with you. Many people up here say there will be a "crash" in the market. I do not believe this. I believe there will be a correction or a "slip" as you put it. There are just too many people here and the market always seems to recover.

The next time you are in a vacation area, look at the license plates. I cannot believe the variety. You look at 10 cars and 8 of the plates are from different states! People are discovering the West!

In the Dallas area, if delays in building your new house or erosion of the builder's profit takes place, your contract for a new house allows the builder to just bail-out (termination for convenience) or come back and ask for more money. You won't know what the ultimate price for your new home is until you take possession. Glad I'm not looking to move. https://www.dallasnews.com/bus...-fw-new-home-buyers/

Let's hope there's a correction, because many people will not be able to ever afford a house, especially many in Utah, including my youngest son and his family. Same thing in Idaho, Nevada, etc. California people are escaping from that insanity and coming in with cash money from the sale of their modest little homes and buying big houses and properties for well over the asking price. We see it here in Vegas as well. I had a neighbor who was from California and who had purchased a 6215 square foot house across the street from me for his eventual retirement and relocation to Vegas, that turned around and sold it to another California couple for cash and then moved back to Los Gatos, California to live in a 1500 square foot condo, because the condo was worth so much more than his large Vegas house. A total idiot. He has since deeply regretted his stupid decision, especially with the state of affairs in California getting more insane every day. I could never figure out his decision and told him so. He has said that I was right, but it is too late.

UEG:

I had a client call me yesterday about a Condo. It was listed at $495k. It's a new development.

She told me that a similar one was listed, I believe back in August. She said that she wished it was still
available as it was on $395k. I did a search for it and it was from the exact same development. I told her
that and I believe she was in shock. In less than a year, this property increased in value $100k!

My kids are in the same boat. They are stressed as they know it will be very difficult to buy. There is just too much competition in Utah and there are so many out of state cash buyers to compete with (along with the surge of locals wanting to buy).

My suggestion is to buy land, if you can and sit on it for a while. Hopefully, building material and demand will subside a bit and make it a bit easier. Just my opinion but who can know for sure?

Jason: Even raw land prices have become ridiculously expensive, unless it's out in the middle of nowhere, unfortunately. Someone was telling me about a fairly small building lot in a desirable part of Central Utah and it was 250K. Damn, I wished I had been the son of one of my fruit farmer neighbors in Orem, from back in my youth! Most of them made a killing in selling their land for development, relocating their orchards to Santaquin and are living the good life now. From simple fruit farmers to multi millionares and passing it on to their posterity.

quote:

Originally posted by Kensco:
There apparently is a car shortage also. A friend just traded in his Dodge Challenger for a new Dodge Challenger and he essentially sold it back to the dealer for more than he paid for it originally.

None of this really makes sense.

We very rarely buy a new vehicle. I usually look for a 2-3 year old from an original owner and thus let them take the depreciation hit driving it off the lot. In March 2020 we took delivery of a brand new Diesel Wrangler. I bought new to get exactly what we wanted since we will likely keep it till we die.

Just looked on NADA Guides for kicks and giggles and the rig is worth $8K more than we paid new.

quote:

Originally posted by Use Enough Gun:
Jason: Even raw land prices have become ridiculously expensive, unless it's out in the middle of nowhere, unfortunately. Someone was telling me about a fairly small building lot in a desirable part of Central Utah and it was 250K. Damn, I wished I had been the son of one of my fruit farmer neighbors in Orem, from back in my youth! Most of them made a killing in selling their land for development, relocating their orchards to Santaquin and are living the good life now. From simple fruit farmers to multi millionares and passing it on to their posterity.

Santaquin peaches, oh yes. Dribble-chin delicious, a perfect September snack.

quote:

Santaquin peaches, oh yes. Dribble-chin delicious, a perfect September snack.

Yep. I grew up in Orem, back in the day when most of the city was fruit orchards and vegetable fields. I worked many summers for the farmers doing multi-day water turns, or supervising the Mexicans who had come up from Mexico to pick apricots, peaches, strawberries, tomatoes, apples, pears, cherries, etc. etc., etc. And, to top it off, we also had cherry trees, peach trees and apple trees in our own yard as well, along with a half acre garden. The only downside was the yearly spring spraying of DDT throughout Orem and every orchard and field. It's a miracle I'm not dead from the annual DDT sprays by now. And, then there was exposure to other chemicals at Geneva Steel where I worked full time for 5 1/2 years while going to school full time at BYU. . . . . .

quote:

Originally posted by Use Enough Gun:

quote:

Santaquin peaches, oh yes. Dribble-chin delicious, a perfect September snack.

Yep. I grew up in Orem, back in the day when most of the city was fruit orchards and vegetable fields. I worked many summers for the farmers doing multi-day water turns, or supervising the Mexicans who had come up from Mexico to pick apricots, peaches, strawberries, tomatoes, apples, pears, cherries, etc. etc., etc. And, to top it off, we also had cherry trees, peach trees and apple trees in our own yard as well, along with a half acre garden. The only downside was the yearly spring spraying of DDT throughout Orem and every orchard and field. It's a miracle I'm not dead from the annual DDT sprays by now. And, then there was exposure to other chemicals at Geneva Steel where I worked full time for 5 1/2 years while going to school full time at BYU. . . . . .

Are you going to move back? Besides work, do you like it better in Vegas?

I'm just curious, as I do not think I could make it there. My brother in law lived in Henderson for a few years and left.

We've lived here for 39 years. Raised 5 children-all BYU graduates and beyond (post graduate work/ professional degrees). Cheaper living here than Utah-no state income tax, cheaper food, better home prices, great year round weather with 6% humidity and 300+ days of sunshine, and close enough to Utah to visit and enjoy it when we want to. It has grown since we moved here-from about a half million in the Las Vegas Valley to around 2.5 million today. Fine world class dining, world class entertainment, close to Utah, California, Arizona, etc. LDS Temple, nearly 50 stakes and over 320+ wards, two LDS missions, etc. I've seen what the development of Park City, UVU, Californians and their influx, etc. has done to Utah and I don't like it one bit. So many transplants now. Hard to go anywhere now in Utah that I used to enjoy going to for fly fishing, etc. without private property signs, fly fishing guides and clients and other negative issues for me. Too much commercialization and outside influence in and on Utah now, in my opinion. I lived there when it really was the very best time to be a Utahn. I have nothing but fond memories from growing up-it was literally the best. I will likely be back one day-but it will likely be a permanent move to the Orem City Cemetery!

I'm experiencing the same thing here in central Texas + it's getting worse on a daily basis. I love the place that's out in the country that I own (me + the tax man.) The surrounding areas are going berserk with development though.

quote:

Originally posted by Use Enough Gun:
We've lived here for 39 years. Raised 5 children-all BYU graduates and beyond (post graduate work/ professional degrees). Cheaper living here than Utah-no state income tax, cheaper food, better home prices, great year round weather with 6% humidity and 300+ days of sunshine, and close enough to Utah to visit and enjoy it when we want to. It has grown since we moved here-from about a half million in the Las Vegas Valley to around 2.5 million today. Fine world class dining, world class entertainment, close to Utah, California, Arizona, etc. LDS Temple, nearly 50 stakes and over 320+ wards, two LDS missions, etc. I've seen what the development of Park City, UVU, Californians and their influx, etc. has done to Utah and I don't like it one bit. So many transplants now. Hard to go anywhere now in Utah that I used to enjoy going to for fly fishing, etc. without private property signs, fly fishing guides and clients and other negative issues for me. Too much commercialization and outside influence in and on Utah now, in my opinion. I lived there when it really was the very best time to be a Utahn. I have nothing but fond memories from growing up-it was literally the best. I will likely be back one day-but it will likely be a permanent move to the Orem City Cemetery!

You make an interesting point of view. Can’t disagree with anything you have said other than sending your kids to BYU ha ha J/K.

my son the fireman in austin was looking to move to buda, a suburb outside of austin and found a house in a horse shoe circle with a french name (cul de sac) and could only afford it cause i fronted him the down pmt. there was a bidding war, the house was unlisted, he found out by word of mouth. we think he got it only cause the HOA liked him better. that was THIS YEAR! his house $275k house has appreciated over $150k, no improvements.
other son has friends, 100% true hillbillys in the little crap hole town of junction tx, a little hole in the wall on the north llano river. friend inherited an unliveable worthless shack overlooking the river a few years ago on 5 acres of scrub brush. real estate agent told him she would get in the neighborhood of 1.5 mil if he wanted to sell. don't know if she full of it or not.

quote:

You make an interesting point of view. Can’t disagree with anything you have said other than sending your kids to BYU ha ha J/K.

Hey, I can't help it if that was where they wanted to go. I just had to pay for it, that's all.

quote:

Originally posted by Use Enough Gun:

quote:

You make an interesting point of view. Can’t disagree with anything you have said other than sending your kids to BYU ha ha J/K.

Hey, I can't help it if that was where they wanted to go. I just had to pay for it, that's all.

That’s good of you to do that. Mine are close to completion. It’ll be a big relief.

We own an unimproved, primitive, 5 acre lot in the middle of nowhere. We're just letting the trees grow. We've never offered it for sale. Still, several times a year for a dozen years we've received unsolicited written offers ranging from $19,000 to $35,000. Then last month we got a bonafide, written offer for $92,000. Nothing in the area has changed. Things are absolutely crazy! Something's gotta give and soon.

quote:

Originally posted by Grenadier:
We own an unimproved, primitive, 5 acre lot in the middle of nowhere. We're just letting the trees grow. We've never offered it for sale. Still, several times a year for a dozen years we've received unsolicited written offers ranging from $19,000 to $35,000. Then last month we got a bonafide, written offer for $92,000. Nothing in the area has changed. Things are absolutely crazy! Something's gotta give and soon.

I disagree on both highlighted comments.

1) Something has most definitely changed.

2) Things have already given.

As a custom home builder, I'm witnessing this on a daily basis and we are seeing absolutely no slow down in the current demand, other than when lumber prices were peaking back in May. Lumber is dropping rapidly now so the demand has accelerated even more. I just checked our sales inquiry tracking account and as of this morning, we have 157 inquiries for new homes waiting to be responded to.

What's changed is the world has experienced Covid-19. And here's what has given, setting off this pent up demand.

We are seeing 2 scenarios, and there is some overlap.

First, many of what we could term "Blue" states, have experienced governmental overreach in terms of Covid motivated shutdowns, ranging from business shutdowns to the even more onerous personal activity restrictions. This has resulted in many people from these states moving to less restrictive states like here in Texas. I would say 30% of our new build inquiries are folks moving from California, New York, or Washington State, all stating they felt oppressed and wanting to experience more freedom. Most of these folks have sold their properties and are coming to the table with cash. Most of the folks in this category aren't moving here and looking to build. Most are buying existing properties, with cash, sight unseen, and for over asking price. That trend, I do expect to subside eventually. But who's properties are they buying, these already existing homes that is?

This leads us to the second scenario, and the one I don't see abating any time soon. This is also the one driving the prices of undeveloped rural real estate. Real Estate investment guru Kevin Oleary has spoken to this quite often and we are seeing it daily. In the post Covid workplace, many have demonstrated the ability to effectively work from home. Many employees are refusing to return to the office in preference to working at home. By the same token, many businesses are realizing they can shed traditional office expenses by allowing their people to work from home.

What we are seeing is folks who traditionally lived in the city or close in suburban neighborhoods, necessary locations for reasonable commutes to their office spaces, are now realizing they can live anywhere they want due to being able to work from home, as long as high speed internet is available.

As a result, rural properties are at a premium. And again, most buyers are coming to the table with cash. Contingency offers are being rejected outright. Those moving from the cities and suburban areas are putting their homes on the market and typically selling within a matter of days to cash offers over asking prices. To whom? Typically those folks mentioned first who are moving from traditional Blue states who want to move and move now.

My wife and I live in a rural area. We are seeing our rural area quickly turn suburban and we want out. Every nice track of land of 50 acres or more, within 20 miles of us, are suddenly being transformed into new subdivisions. The amount of money that can currently be made by transforming an undeveloped tract of land into a subdivision is pricing larger properties out of reach of most traditional rural property buyers.

We are looking to place our home and 11 acre tract on the market for more than 3 times what it costs us to build 15 years ago. However, we are having to look at properties 1 hour further west in order to find land to build on as we refuse to consider a tract within a subdivision. But the game is, come with cash, and do so quickly. We found a property last week that was perfect. 40 acres, mostly flat, 1/3 improved field with the remaining 2/3 heavily treed with hard woods. Our offer was rejected without consideration. The property sold the second day on the market, to a cash buyer who offered twice the asking price!!!

Back to Oleary's commentary on the current real estate market. He foresees commercial real estate crashing as workers and employers realize working from home is the new normal. He also sees the residential market, for the same reason, accelerating unabated for the foreseeable future as people flee the confines of having to live near their traditional office spaces. And if folks can work from home, they can do so anywhere.

And the Consumer Price Index still measures housing costs according to urban rents...

Yes its Crazy out here.

Our local Masonic Temple has gone around for the past 6 - 8 years do we sell or ??
They went to the City and local County. each year for the past 4 years about buying the 2 lots, one has the building and the other is a parking lot, they are less than 2 blocks from the Court House. No go. The Temple building was built in 1932, and late 60's the wiring was updated, but the wiring is not up to current code, but IF anything is done inside, then you have to update the wiring

OK they finally made the choice to put it up for sale and got a buyer early this spring, for $ 350,000

The new buyer had reached out to the nearby Mental Health to sub lease space for meetings etc.
Buyer got a quote of $ 180,000 to totally redo the wiring in the old building, wow, he put it back up for sale.

Buyer had it less than 2 months and the County just bought it for $ 453,000, seems it fit nicely into their long range plan ??

Wow it seems spending tax payers money is easy, but us talking to them to buy it for the past 4 years, they could of saved a bunch of money

J Wisner