patrick.net

WookieMan says

I guess I don't hang with losers??

In Dumfuq, IL?

And is that what you tell yourself to rationalize for being so wrong?

WookieMan says

31% live on the coast so 69% live inland

Wrong. Majority of US population live in coastal states, as you have stated yourself

MolotovCocktail says

WookieMan says
31% live on the coast so 69% live inland

Wrong. Majority of US population live in coastal states, as you have stated yourself

I'm talking price declines when I say coastal. Jesus christ it's like talking to a wall. National metrics go down because of coastal areas that are higher priced. Someone in Iowa gives no shits if Phoenix or Denver prices drop 10-20%. You haven't gotten the point because you're renting in a high priced area and are jealous of owners because you're not one.

When prices go down in LA, Seattle, NYC, SF, San Diego, Tampa, etc it makes everything look worse than it actually is.

How many years did you work 40-60 hours per week in real estate? How many properties have you owned or invested in? How many have you bought and sold? How many of those areas have you visited, especially dumb fuck IL or say WI? I'd bet you haven't been to IL, not even for a layover at the airport. I've been up and down all the coasts in this country and all lower 48 states. I know nothing though.

When did 31% become a majority as well? https://www.middlebury.edu/institute/academics/centers-initiatives/center-blue-economy/about-center-blue-economy/cbe-news/coastal#:~:text=In%202022%20over%20131%20million,34%25%20of%20total%20U.S.%20GDP

WookieMan says

I'm talking price declines when I say coastal. Jesus christ it's like talking to a wall.

Prices don't live on the coasts. Living things do. People, pets...Housing Experts with Cognitive Dissonance issues they try to resolve by posting comments like this ^^^^.

You are talking to a wall. The Wall of Reality That Won't Take Wookie's Bullshit.

WookieMan says

How many years did you work 40-60 hours per week in real estate?..I know nothing though

Yep. You might want to talk to a shrink about that.

WookieMan says

you're renting in a high priced area and are jealous of owners because you're not one.

Who said I rent? That IS ALL made up bullshit in YOUR HEAD that you needed to construct to maintain the psychological projection you need to engage in.

MolotovCocktail says

Who said I rent? That IS ALL made up bullshit in YOUR HEAD that you needed to construct to maintain the psychological projection you need to engage in.

Complaining about housing prices is a tell. You rent. Doesn't take a detective.

WookieMan says

Complaining about housing prices is a tell. You rent. Doesn't take a detective.

So again: 1) You make shit up in your head. 2) You claim that is proof you are right.

So EVERYTHING you claim to be truth is now suspect. Everything. Because you imagine shit up in absense of facts...and then expect the rest of us to play along in Imagination Land.

Also, did it ever occur in your imaginary world that one can own AND fucking rent, eh?

Noooo? Gee! Didn't take a detective to figure that one out.

MolotovCocktail says

I have seen that trick before. Very soon they will drop the price to $1.225 million and claim a "$225,000 price drop" in the listing.

HeadSet says

I have seen that trick before. Very soon they will drop the price to $1.225 million and claim a "$225,000 price drop" in the listing.

Not you specifically, but people don't know the realtor racket. We would do $1 prices cuts to get the listing bumped in buyers MLS feeds from their agent. We put it in the listing agreement and would do it once a week. So that buyer with a search would keep seeing the property weekly. $225k price drop is a bad look for a realtor. $20 over two months is a nothing burger. You just keep seeing the property with tiny cuts. Eventually you catch someone new. No different than fishing.

Other brokers hated us for it, but it got us a showing 1 out of 10 times. Get someone in the door and sell it. Seller signed off on it and we'd have to back it up and always had documentation. Hated my boss/owner, but it was a damn good strategy. Just annoying because I had to do it every week with 80 listings.

WookieMan says

Complaining about housing prices is a tell. You rent. Doesn't take a detective.

Not a detective. Just someone who (arrogantly) thinks they know what is inside the mind of all others.

I am not a renter, but me and many other non-renters like me complain all the time about the high house prices. Because it's making life miserable here for almost everyone.

B.A.C.A.H. says

I am not a renter, but me and many other non-renters like me complain all the time about the high house prices. Because it's making life miserable here for almost everyone.

That too. But his imaginary world is the real one.

Even in that world, his logic is flawed. As an owner, wouldn't one want as large a buying pool as possible when you want to sell in the future? And that isn't happening in the real world and is only going to get worse as things stand.

B.A.C.A.H. says

WookieMan says
Complaining about housing prices is a tell. You rent. Doesn't take a detective.

Not a detective. Just someone who (arrogantly) thinks they know what is inside the mind of all others.

I am not a renter, but me and many other non-renters like me complain all the time about the high house prices. Because it's making life miserable here for almost everyone.

Hey WookieMan, my remark got three "likes" within a couple hours of posting. How many did yours accusing MolotovCocktail of being a (jealous) renter get?

WookieMan says

We would do $1 prices cuts to get the listing bumped in buyers MLS feeds

How about a phony price reduction so a listing can claim a new $39,000 cut?



Notice that on Aug 20, they raised and lowered the price by $39k and now the listing flags and advertises a "$39,000 price reduction."

B.A.C.A.H. says

Hey WookieMan, my remark got three "likes" within a couple hours of posting. How many did yours accusing MolotovCocktail of being a (jealous) renter get?

It's good to get back up! Thanks.

Notice how he shut the fuck up now?

Also see: https://patrick.net/comment?comment_id=2200738

https://www.redfin.com/news/home-price-index-july-2025/

Home Prices Tick Down 0.1% in July, Fall in 39 of the Top 50 U.S. Metros

MolotovCocktail says

It's good to get back up! Thanks.

Notice how he shut the fuck up now?

Have a life. Sorry you guys don't.

Back when this site first started (2002 ?) there was a bubble forming. It started on the coast but became a national phenomna. Most if not all of us lived it.

Now there is another more massive bubble (see Case Shiller Index chart below) but as I stated earlier those expecting a crash a la 2008 will, in most metro areas, be disappointed.

I'm not going to say "this time it's different" more like "history doesn't repeat itself... But it rhymes".

Now if the economy tanks and distressed listings start to tick up, that's a game changer. But even then, in most liberal costal states, eviction takes years, not months, so it would be some time before we see the impact... Which is why I'm expecting a slow deflation in prices and not a sharp decline.

I don't have a feel for the middle of America or the south, so your millage may varry, but it seems prices everywhere are "elevated" to out it politely.

And should the fed start to ease rates, that will help keep prices inflated a bit longer. (Extend and pretend). The one thing the index doesn't track is the volume of sales. That should continue to decline until the market softens to the point that wages catch up and first time buyers can get back into the game.

It was hard enough buying a house in 2008. I can't imagine having to do it in this market.

Case Shiller Index

GreaterNYCDude says

(see Case Shiller Index chart below)

Great chart. Curious to see this in real terms vs. nominal.

Most areas barely built anything the last 20 years. While it's not the desired 2.1 birthrate, Millennials are forming families late and can no longer stay in mom and dads house, yet have had 15 years to save up with no rent, kids, probably any bills. Your 30-35 year old just starting a family has money saved. Boomer parents died so some might have inheritance.

Fact is there's going to be a transfer of wealth to younger people. There's loads of cash that has been sitting on the sidelines from what was once the largest generation. It will level out, but in most places off the coasts it will go up and is going up. I live in a small town, people don't want to be in cities or even large suburbs and most can WFH. There are 25 $400k homes being built as I type this in a small town that only has 800 homes total. Literally 100 trade guys here daily. I mean someone has the money to pay the workers and someone has the money to buy the homes.

Fact is most media sites reporting on real estate are creating click bait fear porn and people are eating it. Also time of the year. A lot of people in most the country get seasonal wages so people start freaking out as winter comes. It's why October is usually the worst stock market month historically. People start getting laid off of seasonal work and those that invest stop. So jobs might look bad at some point, but it's all normal and happens every year. UI numbers will go up as they always do.

If Trump can get 2-3% of companies to shift at least some overseas jobs back here it will all be fine. Housing will be fine. We'll see more building. I go by what I actually see. Not news stories that by default have to be negative for them to generate revenue and stay afloat. Reality is they don't have to be right at all, no one holds them accountable. Get interviewed by Chicago's top real estate reporter.... he didn't know shit about real estate, he just gathered information, some of it from others that also didn't know shit.

Data is king, but even that lies. My house never hit the MLS. Rarely if ever does a person reporting on real estate go and do the work to get the county sales records. They get the MLS data. And back to the Boomers, there's going to be transfers that won't be the easy public info you can get. Is it public records yes, but you won't be notified if a home sells if you don't live around it. NAR or whoever probably doesn't know about 10% of sales that didn't hit the MLS is the point.

Loan applications are another thing. They will go down over the next 5-10 years, but the houses will miraculously still sell. It's called cash. This is the first time in modern history this has happened. 2008 was 100% piss poor lending to people that couldn't afford homes and the prices went up. Literally could just raise your hand and get a loan. That's not remotely the way it is now. And builders have always offered rate buy downs, they just raise the price so as houses sell they can raise prices higher for the next sale. Could cost them $10k on one house but they get $10k more on the next sale.

We're on the path for a sideways trajectory. So to the OP from a while ago, we are at a peak. No one has presented one indicator that there will be a crash though. Case Shiller is a national data gatherer. Cities will lose, but suburban and rural will thrive. So that specific graph in comment 6919 will go down from NYC dude. If I sell my $500k 2/2 condo in Chicago and move to a suburb or rural and get a place for $400k, as a whole it will look like prices went down. BUT the price outside the city are rising. This is why national data is trash or even statewide. I wouldn't want to be owning in a city at this time is the overall point. Rents I don't track or really care about. Someone else can comment on that.

WookieMan says

Have a life. Sorry you guys don't.

More imaginary thinking ^^^

What’s a stay at home drunk?

Why Buy when you can Rent at a massive discount?


With less worries about sudden double digit jumps in tax and homeowners insurance?

DemoralizerOfPanicans says

Why Buy when you can Rent at a massive discount?

That's the crux of the matter. Would nice to see this graph with the x and y axis so we can see what time frame it covers, but your point is taken.

It will be interesting to see what happens to rents on the go forward. If they continue to go up 3% to 5% per year, while the housing market stalls, at some point, probably 5 years out, you reach equilibrium again.

DemoralizerOfPanicans says

Why Buy when you can Rent at a massive discount?


With less worries about sudden double digit jumps in tax and homeowners insurance?

You can't be kicked out as long as you pay the mortgage. Total uncertainty which is especially F'd up if you have kids in school. Likely constant moving. Your landlord has health issues and stops paying the mortgage. They stop paying taxes if owned outright. Can't do anything to the place, you're stuck with what was there 9 out of 10 times.

The beauty of ownership is answering to no one besides taxes (all the time) and insurance when you have a loan. Your landlord has the full PITI baggage and can pull the rug out under you if they hit hard times. Or you do and they evict you.

You're in FL I believe so I don't know that insurance market. But doubling seems extreme. Taxes doubling are capped, I don't think that can happen in most states legally. There'd have to be a referendum for whatever the reason is on property taxes. Doubling on property taxes though, mind you I live in IL number 1 or 2 on the highest property tax states, I don't think I've ever seen that.

At the end of the day you can make extra payments owning. Eventually the principle and interest go away. Renting you're paying it all for someone else. Sure it might be less up front. But at some point that $2,500 rent vs $3,000 owning will change to $3,500 renting and $1,000 owning. And tax free gains up to the limit. And no one said you still can't invest owning so that argument is kind of weak.

Fact is I'm at the age where owning a home outright at retirement age is mega beneficial. Start getting retirement money penalty free and some of it tax free for roths taxed on the 401. Our cost of housing could be covered by SS alone. Groceries as empty nesters would a big nothing burger with about $5-7M in retirement funds. $150k per year at 3% safe rate and not drawing down the principle/amount in the retirement account. Then layer on the SS money. Lower gas prices and wear and tear on cars. I have a soccer game that is an hour away Monday one way. That shit stops in 6-7 years. Then the extra payments start.

The rent vs own question really only makes sense in high COLA's. Most the country it's pretty trivial the difference in the monthly nut. I'll pay a little more to own either way. The big factor is income to price. If you're going 5X or higher, you're an idiot. That's what most do. Then there's the fact very few renters save the difference. Buy a house you can afford or move to an area you can afford. Then people don't even have to get into this debate.

WookieMan says

3% safe rate and not drawing down the principle/amount in the retirement account.

If inflation exceeds 3%, no bueno. But the reality is, if you are 65 and have $5-$7 million in retirement funds, you’d be hard-pressed to spend it all before you pass on to the great assisted living community in the sky.

What % of 65 and older people have 5-7 million in retirement funds?

Glock-n-Load says

What % of 65 and older people have 5-7 million in retirement funds?

Not most. I will. Get to working. Should be 10-20% between retirement funds and inheritances. I could be way off, but if you started early it's pretty easy if you lived frugally. If you waited, you're likely screwed.

WookieMan says

Just annoying because I had to do it every week with 80 listings.

Interesting, I hadn't heard the $1 cut strategy to manipulate the MLS.

Did you do it manually? A good tech guy could automate that so you wouldn't need to do anything.

B.A.C.A.H. says

I am not a renter, but me and many other non-renters like me complain all the time about the high house prices. Because it's making life miserable here for almost everyone.

I am also a homeowner that does not like the rapid rise in house prices. I am concerned about how the younger folks will afford to buy. Another issue is the rising assessments and thus increased taxes.

Patrick says

BigSky says

The acid test would be to find any period in the last century where if anyone who held a home for 10 years actually lost money.

Detroit, MI (pop. ~630,000): From 2006 to 2016, median home prices fell from $73,479 to $45,000, a ~38% decline, driven by the housing crash and industrial decline.

Cleveland, OH (pop. ~370,000): From 2005 to 2015, prices dropped from $112,800 to $66,000, a ~41% decrease, impacted by foreclosure waves post-2008.

Flint, MI (pop. ~95,000, borderline midsize): From 2000 to 2010, prices declined from $67,900 to $50,200, a ~26% drop, due to economic stagnation.

Las Vegas, NV (pop. ~650,000): From 2006 to 2016, prices fell from $317,000 to $200,000, a ~37% decline, hit by the subprime crisis.

Good point. I can see Detroit, but I am surprised by Cleveland. How about just California? Has anyone who bought and held a house for 10 years in the Bay Area or even the rest of the state lost money?

Patrick says

A good tech guy could automate that so you wouldn't need to do anything.

You can automate input into a portal you do not control? I am not a programmer, but I thought something like an MLS would have a dedicated entry form and you would not have direct access to the database to run a private update routine.

BigSky says

Patrick says

A good tech guy could automate that so you wouldn't need to do anything.

You can automate input into a portal you do not control? I am not a programmer, but I thought something like an MLS would have a dedicated entry form and you would not have direct access to the database to run a private update routine.

They tracked our MLS by ISP and IP address. A 3rd party logging in even via program would at least need to be close or both use a VPN with the same location.

Knew multiple agents/brokers that got their access cut fooling around with MLS logins or sharing logins with clients/friends. As much as I hate Realtors they do take the data pretty seriously.

The $1 thing was my bosses idea. Agreements were signed on every listing, but getting a listing refreshed with nothing burger price cut got it in front of new people or existing people desperate to buy. Shady, but legal.

BigSky says

Has anyone who bought and held a house for 10 years in the Bay Area or even the rest of the state lost money?

Mostly, not yet. But ppl are fools to think that will continue. Yet many do despite the obvious signs.

Know what one of the hottest markets in the US was in 1955? It was the 'silicon valley' of its era. Highest per capita incomes, too.

Detroit, MI.

Downtown San Jose was awesome in the 1990s and 2000s. Now it is an even bigger shitshow than it was in the 70s. Like Oakland is now. Almost indistinguishable.

WookieMan says

You can't be kicked out as long as you pay the mortgage. Total uncertainty which is especially F'd up if you have kids in school. Likely constant moving. Your landlord has health issues and stops paying the mortgage. They stop paying taxes if owned outright. Can't do anything to the place, you're stuck with what was there 9 out of 10 times.

Condos and assessments or buyouts.
Unpaid water bills - some guy in St. Pete got $2000 in water bills he never knew over a year and was 30 days from a lien, despite him turning off the water completely to the inherited house. In many places, the water and sewer are linked, so you can be charged for sewer even if you're not using water.
Double digit % increases in Property Taxes, Water Bills, etc.

A town around Salt Lake jacked up theirs 11% overnight. DeKalb (I think) in Georgia announced 10% annual increases in water/sewer for the next decade. There are some other shenanigans going on in San Diego.

Is it deferred maintenance or contractors in bed with county/city commissions striking while they can pad generously under cover of recent inflation?

Not only is the Rent vs. Buy spread too wide, but the cost of insurance, utilities, taxes have gone up higher than the official inflation rate for years now in much of the country. If somebody gets schlonged on a pension default or the costs simply explode beyond what they ever thought it would be in their lifetime.

I know people in their 70s who never thought, and rightfully so looking back 20 years from 2010 about when they retired, that they would ever live long enough to pay anything like the costs for homeownership they are paying now, on top of gas and food.

There's a lot of Boomers retiring on 2/3 last salary from the city, county, and state, and that pension money has to come from somewhere, and often the investments were underfunded despite the amazing stock market of the past 30 years. Indeed, the fine print in many government pension plans allowed them to under contribute if the stock market did well that year.

As always, the trend is your friend, until it ends

GreaterNYCDude says

That's the crux of the matter. Would nice to see this graph with the x and y axis so we can see what time frame it covers, but your point is taken.

If it helps, I tracked this chart down but it ends about mid-2023.

I still don’t think housing prices will go down in any significant way. The only thing that can change that is build baby build. But that won’t happen because house prices are leveraged and are very important to the economy.

We have a terrible spread between the haves and have nots. IMO, that is the biggest problem.

Glock-n-Load says

I still don’t think housing prices will go down in any significant way.

They will go down at least as realtive to the GFC. Worse, because in the GFC Boomers were still in their working years, now we are getting into the oldest boomers passing on or into assisted living.

Add to it the turn against mass extreme hyperimmigration, which will take a few years to perculate fully. Immigrants, legal or illegal, generally have a few years delay before their impact on housing (buy OR rent) is felt as they tend to live with family already here or bunk up densely.

The 2008 financial crisis, also known as the global financial crisis (GFC) or the Panic of 2008, was a major worldwide financial crisis centered in the United States.

DemoralizerOfPanicans says

A town around Salt Lake jacked up theirs 11% overnight. DeKalb (I think) in Georgia announced 10% annual increases in water/sewer for the next decade

Not saving for replacing sewer and water systems 50 years after they were first built and then jacking up taxes/fees now isn't a 'shenanigan'. It's typical dumbfuk government in action, that's all. And that is before the EPA gets involved, which they have.

Also, suburbs vs mixed use make for crappy revenues to fund any of that, too.