Real Estate pricing in your area?
 

Have you guys seen a drop in housing prices, or have you seen some recovery in your area? I tell you what, my wife and I have been looking and there aren't many low priced houses in our area. We are looking to go rural, about 30 minutes from a major city, looking for 5-10 acres. Most everything is selling for $199,000 up to 250,000 all day. Even bank properties are selling for $180,000. I was suprised to see properties with mediocre houses selling for that high of prices in the area I am.

Asking price and selling price are different, especially if it's bank-owned. My nephew found a foreclosure and offered them 20% below their asking price (which had been lowered twice before). They said no at first, but called back a week later and said they'd take the offer.

I've been here a year.

We're in a small town and the realtors when we were looking paid tickets to ride Mr. Rodger's trolly and tried to sell us like there was a prince living next door and housing values were in imagination-land.

Once the loan was approved we asked them to drop 40k and they gave up 30k.

Immediately.

It's a pretty simple negotiation: if they know you need it they bend you over. If you don't and qualify for much higher than the list price they bend over and tickle your balls to sell...

True, but properties are selling for crazy money. We went to a bank auction, log cabin style house, 1900 square feet, 5 acres, interior was pretty rough. Sold for 220k.

See that is where I am sitting. I am perfectly content in our condo that I am renting, my land lord is great. I can move whenever I want, we put a couple offers in with houses we were comfortable with and they were denied, on to the next one. We have time and money on our side, I was just a little shocked at what things have been selling for in my area.

I'm not sure about actual value, but the county-appraised value of my house has been uncharacteristically volatile over the past couple of years. From 2007-2011, it decreased modestly pretty much every year (1%-3%).

Then last year (when I thought the market was actually IMPROVING) it dropped like 6%. Slightly disconcerting, but I wasn't going to argue. This year, when I feel like the market has been pretty flat, it has gone right back up 6%+. Doesn't make any sense.

local govt needs more income? increase appraised value.

Don't know about acreages or rural areas, but in Omaha if you don't want to live in a ghetto you're looking at $140k+ for a decent house.

The real estate agent I am using said the same thing as a possibility.

Tax valuations aren't an accurate gauge of property value.

See I would feel like that is good value, but even the dumpy houses that are far out are going for $180k and up.

Well with acreages you have to factor in land values just as much as the house value. I doubt land values have seen the hit that housing values have.

8832 N Farm Road 117 Wonderful opportunity to own 21.7 ACRES, FULLY FENCED WITH GATES, WITH A POND AND A SPRING, WILLARD SCHOOLS and a 1908 SQ.FT. HOME. Property needs TLC but would make a wonderful home on a property with incredible acreage. This is not a foreclosure or short sale. Property has been priced to reflect it's current condition. Property sold as is where is with buyer's right of inspections. **NOTE PRICE REDUCED TO REFLECT 2ND PARCEL REMOVED FROM LISTING. ACREAGE REDUCED FROM 38.15 TO 21.7**

Information last updated on 03/13/2013 11:51 PM:
•Price: $129,900
•4 Bedroom(s)
•2.5 Bathroom(s)
•Single-Family Home
•Fireplace
.•Status: For Sale
•Lot Size: 21.7 acres
•Built in 1969
.

Are you thinking about moving? Just a hunch. :p

There's the reason. TLC is a euphemism for tens of thousands of dollars to keep shit from falling down.

definite recovery here (sf bay area)

still down from the highs of around 2006, but prices are moving up steadily over last couple of years....

Average maybe 350-400k

We bought our house late last year because I had heard and seen indications that the prices would be rising next year. Plus in general prices are higher in spring with many more people looking to buy.

do you have to buy the land w/a house on it, or would you be willing to buy the land and build, while you stay where you're currently at?
sec

True enough, but the pictures looked like its in reasonable shape. If the fences, well and septic are in good shape its a much better bet.

I'm seeing housing prices rise in Denver. I attribute the rise in price to the slow collapse of the dollar rather than to anything that is intrinsic to the worth of real property.

Huh? The dollar is rising, and has been for a while.

Rising against what? It's certainly not rising against the price of energy or food or housing, at least not in Denver.

Rising against the Euro or something? I don't care. I don't need Euros. I need energy, food and housing.

You don't understand the game. Haven't you seen that everyone has a job and are joyous in paying taxes?

That's the official story.

Prices are crazy up here. I live in a 1040 sq ft bungalow on a 40x110 ft lot and the place cost me $140,000 eight years ago. Today my house would sell for around $260,000.

If I wanted to upgrade to a 1400 sq ft house I'd be looking at over $350,000.

No thanks.

You're the beneficiary of solid economic policy.

Prices here are way up. Tornado does that.

I would be willing to buy and build, I just can't seem to find reasonable land. 10-15k an acre for crappy land.

I've been told that real estate is hot in the CoMo area. Agent told me that dozens have houses have sold recently in less than a week.

Buying a 3br 2 bath 1500sf house in a nice neighborhood in Florida for 84k in a couple of weeks. This area was completely oversold a few years ago and houses are now about 30-40% of what they were then although the prices have been going up in the last few months. Can't wait to have a house payment of 140 dollars a month.

Was a report in the L.A. Times this morning that median home prices rose 20 percent over a year ago. Median being in Southern California, it's the price that 50 percent of homes sold are below that price, and 50 percent of homes sold are above that price (includes condos and townhomes)

The median prie was 300,000 average. this includes L.A. proper, inland empire (prices dropped) Sn Diego, Orange County (rose significantly) etc.

This 300,000 price seems like a bargain to me, as in West Los Angeles/santa monica a 3-bedroom home about 1600 square feet goes for 850K - 1.1MM.

:cuss:

But you get to ride your bike year-round.

I wish I could buy a house for under $200k. I'm in San Diego, you can't get anything decent for under $400k. Even at that price, you're sacrificing something (neighborhood, size, lot, etc).

But you get to ride your bike year-round.

Talk about californication, my house is bargain basement price in comparison to the 3 bedroom home/ 1600 feet.

http://www.trulia.com/property/31099...-65781#photo-2

The condition of the house looks okay, but there are so many variables in that sight unseen. It could use a few thousand dollars touch up here and there or find out it has mold and you have to gut it out and spend some serious jack on the place. Regardless for 21 acres it seems like a great deal.
Hopefully there isn't a pig farm close to it.

my case for example:

I bought 30 acres of land. already had water and electricity. mostly all timber. had a metal shed on a slab w/power ran to it and a very shitty trailer house. all kinds of junk and brush grown up.

spent every weekend and day off for 4 months, over there clearing brush, loading up junk and hauling it off. hired a guy w/a trackhoe to destroy the trailer, burn what would burn, then bury it. while he was there, I had him dig a pond.

next step was to partition the shed in half and build a small apartment(1bedroom, bathroom, washroom, kitchen/living room). I believe at the time, I did this for about $8k. also, during this time we sold our old house/property, put a shitload of stuff in storage and lived 2 weeks with my sister in law(which was tolerable, since I was spending all my time at the new place).

moved into the apartment and lived there for 9 months while we had a new house built. this was great, because we were there every day to oversee the construction and keep involved.

this might not work for everyone, but it certainly worked out for us, and it actually saved us a bunch of money. most people considered it "crappy land" when we bought it, but after the work we put into it, the increase in value has been pretty amazing. people tell us all the time that they can't believe it's the same place.

sec

That is pretty freaking awesome!

I still want come live with sec and be his groundskeeper.

(no homo)

hell, come on down and try it for a weekend. your competition is my 85 year old great uncle, though. fyi, today he's bagging up 3 dead coons that were getting in the trash cans. I value that.
(no homo back)
sec

This. If bank owned, squeeze the crap out of them. They want it off their books...

That sucks. The house we just bought in OP for about $210,000 built in 1996 is 2300 square feet plus another 1,000 or so in the basement should we get it finished. I am sure most of KC is the same way.

I couldn't stand to live somewhere were the price per square foot is $400. We aren't even over a hundred.

Boston is right up there with the most expensive real estate in the country. In the really nice towns around here, a 25,000 sq. ft. lot (no house, or a house you PLAN to knock down) is still over half a mill.

I don't know if this is relevant, but I'm an evangelist against commuting, so I'll present it here.

Assume that you have a 30-minute commute for 15 miles each way. What does that cost you?

Assume minimum wage for your time at around $7.50 an hour. So that's $7.50 a day for the round trip. Now assume 30 miles at an average vehicle cost of 50 cents per mile for maintenance, fuel, and replacement. That's $15 a day.

So you're paying $22.50 a day. If you work 21 days per month on average, that's $472 per month.

How much extra house can you get for $472 per month? Keep in mind that interest is tax deductible and that a house will generally appreciate slightly.

If you take what you would spend on a house, you can add $210,000 to the purchase price and still break even if the house is walking distance to work. The math goes like this, with a few assumptions.

Price increment: $210,000
Monthly payment (30 year loan at 3.75%): $972
Interest writeoff (assume half of payment is interest, and you write off 30% of that: $145 a month subtracted from your cost.
Appreciation (assume 2% over a given year on the price difference: $350 per month subtracted from your cost.

Total: $477 a month total cost.

Now, this is from a total wealth perspective. The house will cost you more cash flow because you're not getting paid minimum wage for your commute and you don't get immediate cash from appreciation, but if you don't like my analysis you can adjust downward and not pay the whole $210,000 to adjust that out. There's an increment on taxes and insurance and maintenance and stuff, too, that I'm ignoring for convenience, but you get the point.

Commuting is a terrible financial investment. It's essentially wasted money unless there's some absolutely compelling reason you have to do it. I recognize that there are some compelling reasons sometimes, but when you run the numbers it's far better to invest your wealth in real estate rather than gasoline and antifreeze. Assuming that you aren't also using the antifreeze to kill annoying people.

That does seem really cheap. I wonder if it's like Denver, though, where there are lots of sales in cheap neighborhoods that we don't see. I think Denver's median is around $200,000 or a little higher, and that's around the price of a 1-bedroom condo in my part of the city. However, you go out near the airport and there are 3-bedroom homes galore that were foreclosed on in the low $100s.

well, what if you drive a company provided vehicle?

plus, it's worth something to me just to be able to spend 20 minutes of time, by myself, and kind of unwind before I get home. it's a quiet, peaceful ride(all country roads, usually don't meet any more than half a dozen other vehicles). I think it keeps me from being too much of an a-hole w/my family when I get home. hell, the wife wishes I worked farther away.
sec

If you're driving a company provided vehicle you can knock off the vehicle costs, which would make the difference about $70,000 instead of $210,000, assuming you value your time at minimum wage.

I agree with you about the "me time", though. I could easily drive or take the bus to work, but I walk. It's primarily for the exercise, but at the same time I've found that a 25-minute walk is good for getting me out of work mode and into home mode or vice versa. I'm not sure I could do that with a 10-minute drive.

The market here is up 20% in 6 months. If its a desirable location its gone in a day or two.