Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://dc.urbanturf.com/articles/blog/six-figures-dc-area-home-sellers-saw-the-highest-profits-on-record-last-qua/18548

And yet, some say we don't need more market-rate housing.

The study is kind of junky because it doesn't incorporate cost of maintenance or renovations that affect value at market.

Of course we need more market-rate housing, SFH to be specific. But as they are not making anymore land, supply will be driven by turnover, not new construction. It simply doesn't make financial sense for a lot of people to downsize even though they're over-housed, because their current monthly housing expenses are less than they'd be if they downsized. If I were planning to downsize three years from now, I'd definitely accelerate and downsize now because my house has appreciated faster than the types of units I'm looking to buy, and I don't think that disparity will persist.

That makes no sense. Unless they spent the sale proceeds on other stuff instead of putting it into the new home, why on earth would their costs go up?
The current market is good for people who want to downsize. I just did that. Sold bigger house in fairly competitive market and got 10% over asking and then turned around and bought a smaller house in lower COL area and paid 1% over asking. My new mortgage is half what it was and now I also have 100k to invest.

It’s easy and common. If you bought your house 30 years ago for $350 and refinanced several times, odds are that your mortgage payment alone is less than your condo fee would be. In addition, the condo may well be more expensive than the SFH the empty nesters are selling. Until very recently, chances are that your interest rate on the new loan would have been higher, too. You also need to cover transaction taxes, depending on the jurisdiction.

Anonymous wrote:

Anonymous wrote:https://dc.urbanturf.com/articles/blog/six-figures-dc-area-home-sellers-saw-the-highest-profits-on-record-last-qua/18548

And yet, some say we don't need more market-rate housing.

The study is kind of junky because it doesn't incorporate cost of maintenance or renovations that affect value at market.

Of course we need more market-rate housing, SFH to be specific. But as they are not making anymore land, supply will be driven by turnover, not new construction. It simply doesn't make financial sense for a lot of people to downsize even though they're over-housed, because their current monthly housing expenses are less than they'd be if they downsized. If I were planning to downsize three years from now, I'd definitely accelerate and downsize now because my house has appreciated faster than the types of units I'm looking to buy, and I don't think that disparity will persist.

That makes no sense. Unless they spent the sale proceeds on other stuff instead of putting it into the new home, why on earth would their costs go up?
The current market is good for people who want to downsize. I just did that. Sold bigger house in fairly competitive market and got 10% over asking and then turned around and bought a smaller house in lower COL area and paid 1% over asking. My new mortgage is half what it was and now I also have 100k to invest.

Anonymous wrote:https://dc.urbanturf.com/articles/blog/six-figures-dc-area-home-sellers-saw-the-highest-profits-on-record-last-qua/18548

And yet, some say we don't need more market-rate housing.

The study is kind of junky because it doesn't incorporate cost of maintenance or renovations that affect value at market.

Of course we need more market-rate housing, SFH to be specific. But as they are not making anymore land, supply will be driven by turnover, not new construction. It simply doesn't make financial sense for a lot of people to downsize even though they're over-housed, because their current monthly housing expenses are less than they'd be if they downsized. If I were planning to downsize three years from now, I'd definitely accelerate and downsize now because my house has appreciated faster than the types of units I'm looking to buy, and I don't think that disparity will persist.

Anonymous wrote:I have lived here 35 years and never seen prices go anywhere but up. Bethesda used to be middle class …

No, in 2008 prices most definitely did not go up. However, if you rode out that storm, they eventually went back up. Unless the earth has a serious population decline, on we start colonizing other planets, in the long run real estate prices will always rise. Simply supply and demand economics.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Most Americans don't live in this area.

What's your point?

That I don't know anyone in this area underwater or close to it, let alone for a decade. Even the ones who were troubled in 2008.

Well, nice to meet you. We bought in 2006 for 325. The house was worth 225 or around that for a decade. In the district. Lots of forclosures in our area.

A house appraised at $225K in the district from 2006-2016? Where did you buy -- in SE or on the MD line?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Most Americans don't live in this area.

What's your point?

That I don't know anyone in this area underwater or close to it, let alone for a decade. Even the ones who were troubled in 2008.

Well, nice to meet you. We bought in 2006 for 325. The house was worth 225 or around that for a decade. In the district. Lots of forclosures in our area.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Most Americans don't live in this area.

What's your point?

That I don't know anyone in this area underwater or close to it, let alone for a decade. Even the ones who were troubled in 2008.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Most Americans don't live in this area.

What's your point?

Anonymous wrote:

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Most Americans don't live in this area.

Anonymous wrote:Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

Exactly. Most Americans who accumulate a decent net worth do it through housing. It's a consistently good investment. It's not risk free (our home was underwater 100K for a decade.)

Real estate goes up just like stocks. Why is this surprising?


Yes, last year was insane, but it'll revert back to normal rates of appreciation. Own a home. It's one of the best things to do for growing your wealth.

These profits are effectively combat pay for having to survive under a government that has a casual interest in educating our kids or protecting our safety. We’ve earned every cent of that profit.