These out-of-towners are coming in with really big budgets,” Daryl Fairweather, Chief Economist at Redfin said.
In addition, Jeff Checko, a realtor and broker with The Ashton Group of RE/MAX Advantage, says people moving from expensive cities are used to taking on bigger mortgages, even if they don’t have the money.
In fact, these out-of-town buyers have housing budgets nearly 50 percent higher than locals, the highest gap of any city, according to a new Redfin report.
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I saw the same thing happen in the San Joaquin Valley back in the 1980s and 90s. Fucking Bay Area people were selling their homes for outrageous prices and moving into the valley for 'a better way of life' and drove our home prices and cost of living through the roof.
Unfortunately, the pay scale in the valley was much lower than it was in the Fucking Bay Area, so what used to be the middle class suddenly became lower class.
Happened to a lot of us in Miami during the 60’s and during the early 2000’s. Not only do they drive up the price of homes, they also destroy local economies by demanding higher wages for locals and voting higher taxes. Fucking locusts then move on to where it’s “cheap to live”.
ReplyDeleteSame here in the mountains all around Asheville (Ass-HoleVille). Heck a town about 60 miles west of Asheville, Cashier, which until 20 years ago was mostly boondocks and log cabins now with the Yankee influx it's not uncommon to see a place at $500,000.
ReplyDeleteThe Chinese have been doing this in Melbourne now for years, since the corona virus panic. The Chinese have stopped buying, but not for long, imagine our stupid government is inviting them back. Fuck I hate this place, I can't wait to go bush and leave society behind. Just pray the Chinese don't come to where you are.
ReplyDeleteVancouver since 1999
DeleteThey are doing here in Dallas, in my neighborhood. What they do is buy a house, knock it down, and put up a $1M+ monstrosity. These houses architecture don't fit. They say "Compound" not neighborhood. What it's done, is make it damn near impossible to sell your house if it's a certain size/price. They are now too expensive for the little guy, but too high priced for the developers.
ReplyDeleteI tell my friends here that I've seen this movie before (when I lived in Northern VA). It doesn't have a happy ending.
My ony consolation is that we are well overdue for a miserable hot summer, and many of these fools bought black-on-black cars. Maybe that'll run them off.
Saw that in the North Atlanta suburbs in the 80's. My company was closing datacenters all over the place and people would come in from high priced real estate areas and buy up the expensive (to us) homes. The low taxes and real estate prices were about all they liked about the area - and weren't quiet about it.
ReplyDeleteIts the same here in southern Oregon. A decent place for sale will be off the market in a day. A combination of Californians buying at any price, and a lack of available homes. A "correction" is coming, and in a big way.
ReplyDeleteSame in Knoxville. Houses sell a few hours after listing, bidding wars common, and tract builders (Horton etc) are putting up crap with a 10 year life expectancy everywhere- and they're sold before they dig the hole. Great if you already own and want to cash out, though.
ReplyDeleteI’m in Winston co Al., what once was a quite Lake Town is now sprawling with multi million dollar lake homes. Thankfully these homes are mostly their 2nd home. My wife and I live in a 1000 sq ft home. That has the best scenery around. Arley of my youth is gone forever. Is the summer time here that six, thousands of boats, jet skis, pontoons. Nothing but noise..
ReplyDeleteSame here in western Montana, Californicators drove up home prices especially around the Flathead lake areas. people whose ancestors homesteaded the area can no longer afford the property taxes on tland that has been passed down for generations.
ReplyDeleteMy bride of 47 years is from the valley, Hilmar. We never told her mother that I could have done my last tour in the Bay Area and instead went to my home state, Texas. We never could have afforded the house we bought in the DFW area had we been in Cali. Now, 40 years later the Cali refugees are coming here. Ugh...
ReplyDeleteI know Hilmar fairly well. I did of ranch work out there when I first got out of the army.
DeletePeople are fleeing NY and Cali before they both collapse! It should be obvious why. Move to a 'good' area while you can is the order of the day.
ReplyDeleteRealistically they won't be at socio-economic/political 'ground zeros' in 2022 but certainly won't be immune either.
I was looking at buying a few hundred acres in TN (as a holiday place) if Trump won but that plan is now dead. Being down here in my state in Australia is about the best place on Earth right now given everything happening in crazy world.
We bought a 10 acre beachfront property decades ago on a nice quiet undeveloped island popular with tourists. The owner couldn't give it away back then (might have been the 10,000 frogs in the swamp!). Picked it up for about $15k as I recall. NOW...if advertised we'd be inundated with enquiries worldwide and could sell it for maybe $2M.
The problem is that getaways like this are all gone now and people are almost panic buying anything they can that offers some security from the insanity.
So buckle up for 2022 onwards or emigrate ☺