Liberal Forum

I don't know about the rest of the country, but here there have been a lot of landlords selling their rental properties. The tenants got the boot. It's not uncommon for this to happen, but it is happening more than usual within a short amount of time. 

Being a landlord is my hedge against inflation.
I'm not a "commercial landlord" who is forced to rent to filthy and destructive ****** though.

Around here, it's still solid. New developments are not popping up as much but existing developments are still opening new phases in communities. State wide, permits are down a little but that is driven by the Houston market...they are up in Austin and held steady in San Antonio and DFW. Existing homes average 56 days on the market before selling and that is holding steady. Over last year, existing home prices have risen slightly (0.7%) and the cost of new construction is holding steady. The MOI in this market increased very slightly to 3.3 months so we are still in a seller's market.

Vegas » 02 Oct 2023, 10:40 am » wrote: ↑

02 Oct 2023, 10:40 am

I don't know about the rest of the country, but here there have been a lot of landlords selling their rental properties. The tenants got the boot. It's not uncommon for this to happen, but it is happening more than usual within a short amount of time.

Now, for the "flip side".  I sold a commercial property about a year ago.  Time to get out, so I did.  My biggest tenant refused to sign a 5-year lease extension when I presented it to him a couple years ago.  It had 2% escalations each year - I was trying to be nice to them.   He thought of himself as some kind of shrewd negotiator. Same tenant also cried during Covid that I needed to reduce his rent - so, I gave him a little break on his rent.

When I sold the place, the owner comes to me bitching and crying now, demanding that I give him a lease extension.   I told him "no", I'm already under contract, you will need to take it up with the new owner.  He said I should have told him I was selling the place.  LOL - I reminded him that he's not my partner, that he didn't pay the bank when the tenants didn't want to pay me during Covid, and that he's just a tenant.  The new owner demanded twice the rent I was charging.  

The moral of the story - don't be a dick to your landlord when he's already handing you a good deal.

ConsRule » 02 Oct 2023, 11:10 am » wrote: ↑

02 Oct 2023, 11:10 am

Around here, it's still solid. New developments are not popping up as much but existing developments are still opening new phases in communities. State wide, permits are down a little but that is driven by the Houston market...they are up in Austin and held steady in San Antonio and DFW. Existing homes average 56 days on the market before selling and that is holding steady. Over last year, existing home prices have risen slightly (0.7%) and the cost of new construction is holding steady. The MOI in this market increased very slightly to 3.3 months so we are still in a seller's market.

It's stupid to buy a home now. We rent, but we are waiting to buy. I have a feeling there will be a crash. When that happens, then we will buy. 

Vegas » 02 Oct 2023, 11:14 am » wrote: ↑

02 Oct 2023, 11:14 am

It's stupid to buy a home now. We rent, but we are waiting to buy. I have a feeling there will be a crash. When that happens, then we will buy.

If I were in that position, I'd probably do the same thing.  Well, actually that depends.  There's really 2 scenarios:

Scenario 1 - it doesn't matter that much where I live.  I have several small towns that I'd be very happy living in or around.  Yes, I'd wait, because in some areas, house prices will crash, and you will likely get more for your money then.

Scenario 2 - I need to live in an area where a lot of other people would also love to live; need to live because of work. In that case, no freaking way I would be playing the waiting game.  There is a huge hoard of people scouring the new listings every day to jump on houses that become available in desirable areas.   They pay cash and don't mind paying over asking.
 

I always heard Jimmy Carter started that ****, but never looked into it.  Something about requiring banks and such to give houses and make loans to deadbeats.  

Skans » 02 Oct 2023, 11:21 am » wrote: ↑

02 Oct 2023, 11:21 am

If I were in that position, I'd probably do the same thing.  Well, actually that depends.  There's really 2 scenarios:

Scenario 1 - it doesn't matter that much where I live.  I have several small towns that I'd be very happy living in or around.  Yes, I'd wait, because in some areas, house prices will crash, and you will likely get more for your money then.

Scenario 2 - I need to live in an area where a lot of other people would also love to live; need to live because of work. In that case, no freaking way I would be playing the waiting game.  There is a huge hoard of people scouring the new listings every day to jump on houses that become available in desirable areas.   They pay cash and don't mind paying over asking.

It's pretty the same everywhere here. Every place is over asking. When it crashes, l every place will be begging for buyers. 

There won't be a big crash in housing prices like people hope. Inventories are still low and when the Fed backs off on interest rates, property values will continue to go up.

Vegas » 02 Oct 2023, 11:23 am » wrote: ↑

02 Oct 2023, 11:23 am

It's pretty the same everywhere here. Every place is over asking. When it crashes, l every place will be begging for buyers.

Maybe.  It happened before, around 2007.  But, other than 2007, can you remember a time when house prices actually went down?  That's a serious question, because I don't recall it happening, other than the 2007 crash. 

Interest rates aren't that high.  I paid 8% interest when I bought my first house, and I thought I thought that was a good rate.  Also, inflation is here to stay - I don't see us entering a new phase of deflation.   The more money the fed prints, the more this country goes into debt - - the more houses are going to cost.  Because when the government continues to whore out the dollar, "stuff" keeps its value, regardless of what Fiat Money is worth.
 

Fuelman » 02 Oct 2023, 11:27 am » wrote: ↑

02 Oct 2023, 11:27 am

There won't be a big crash in housing prices like people hope. Inventories are still low and when the Fed backs off on interest rates, property values will continue to go up.

Oh, there will be price reductions in certain areas of the country.  The question is, do you want to live in those places?  If you are retired and don't need to work in the area you choose to live, then I think there will be a window where you may be able to see some better house prices.
 
 

Skans » 02 Oct 2023, 11:29 am » wrote: ↑

02 Oct 2023, 11:29 am

Maybe.  It happened before, around 2007.  But, other than 2007, can you remember a time when house prices actually went down?  That's a serious question, because I don't recall it happening, other than the 2007 crash. 

I

That's why I am predicting a crash. The prices are out of control, they are over asking everywhere. I haven't seen the prices drop to a reasonable level. They over ask and won't drop it. That isn't sustainable. It will crash. I don't know when, but I am predicting either at the end of November or early December. 

Vegas » 02 Oct 2023, 11:14 am » wrote: ↑

02 Oct 2023, 11:14 am

It's stupid to buy a home now. We rent, but we are waiting to buy. I have a feeling there will be a crash. When that happens, then we will buy.

Is it stupid to build right now?  If so, we are stupid.  We will be closing on a new home either the end of October or first part of November.  Ideally, we wanted to wait.  However, the development we wanted was closing out and it's a perfect location.  The house will be mortgage free in a couple of years so we moved forward.  Sometimes, you gotta go what you gotta do to get exactly what you want.
 

ConsRule » 02 Oct 2023, 11:40 am » wrote: ↑

02 Oct 2023, 11:40 am

Is it stupid to build right now?  If so, we are stupid.  We will be closing on a new home either the end of October or first part of November.  Ideally, we wanted to wait.  However, the development we wanted was closing out and it's a perfect location.  The house will be mortgage free in a couple of years so we moved forward.  Sometimes, you gotta go what you gotta do to get exactly what you want.

Depends on what you are willing to sacrifice. We personally don't want to be screwed. If we buy a 450k home now, then the crash happens, and it is worth 200k, then we got screwed. We would prefer to put up with any inconveniences now, so we don't have to endure that kind of anal rape. 

Skans » 02 Oct 2023, 11:31 am » wrote: ↑

02 Oct 2023, 11:31 am

Oh, there will be price reductions in certain areas of the country.  The question is, do you want to live in those places?  If you are retired and don't need to work in the area you choose to live, then I think there will be a window where you may be able to see some better house prices.

I agree, just not the 2008  type of housing crash. Those less than desirable places also saw some significant increased values the last few years.

Vegas » 02 Oct 2023, 11:33 am » wrote: ↑

02 Oct 2023, 11:33 am

That's why I am predicting a crash. The prices are out of control, they are over asking everywhere. I haven't seen the prices drop to a reasonable level. They over ask and won't drop it. That isn't sustainable. It will crash. I don't know when, but I am predicting either at the end of November or early December.

Bidenflation will keep prices high.

Vegas » 02 Oct 2023, 11:33 am » wrote: ↑

02 Oct 2023, 11:33 am

That's why I am predicting a crash. The prices are out of control, they are over asking everywhere. I haven't seen the prices drop to a reasonable level. They over ask and won't drop it. That isn't sustainable. It will crash. I don't know when, but I am predicting either at the end of November or early December.

Honestly, I don't see it.  It's not like housing is the only thing affected by Biden's inflation, as we see gas, food, and almost everything else rising dramatically.  

The problem I see is that wages will be kept from rising too thanks to our idiot in the WH who is bringing in millions of illegals who will happily work for minimum wage.  And unless Trump wins and makes good on his promise to ship every illegal out of here, I don't see wages rising for years to come!

Housing prices (especially rentals) MUST rise since building materials costs have skyrocketed, and rentals have all seen the heating prices go up substantially as well as repairs and maintenance costs keep rising, so prices have to go up just to stay current.  And the more regulations this nitwit puts on homeowners forcing people to pay for new electric stoves, ceiling fans, etc., the higher it will go.
 

Zeets2 » 02 Oct 2023, 12:19 pm » wrote: ↑

02 Oct 2023, 12:19 pm

Honestly, I don't see it.  It's not like housing is the only thing affected by Biden's inflation, as we see gas, food, and almost everything else rising dramatically.  

The problem I see is that wages will be kept from rising too thanks to our idiot in the WH who is bringing in millions of illegals who will happily work for minimum wage.  And unless Trump wins and makes good on his promise to ship every illegal out of here, I don't see wages rising for years to come!

Housing prices (especially rentals) MUST rise since building materials costs have skyrocketed, and rentals have all seen the heating prices go up substantially as well as repairs and maintenance costs keep rising, so prices have to go up just to stay current.  And the more regulations this nitwit puts on homeowners forcing people to pay for new electric stoves, ceiling fans, etc., the higher it will go.

Then maybe there will be a crash across the board. Not just with housing. 

Skans » 02 Oct 2023, 11:31 am » wrote: ↑

02 Oct 2023, 11:31 am

Oh, there will be price reductions in certain areas of the country.  The question is, do you want to live in those places?  If you are retired and don't need to work in the area you choose to live, then I think there will be a window where you may be able to see some better house prices.

you can buy a mansion here- for a low price.
who the hell wants to live here- it's so cold.
 

Fuelman » 02 Oct 2023, 11:58 am » wrote: ↑

02 Oct 2023, 11:58 am

I agree, just not the 2008  type of housing crash. Those less than desirable places also saw some significant increased values the last few years.

Yeah, I don't see a 2008 crash on the horizon either.  I would actually like to see a housing crash - wishful thinking.  It would be good for people who don't have a house to be able to own one.  I have a couple of good friends who don't own a house - boy would I feel better about their future if they did!

I could care less if the value of my own house went to drop to zero, and might actually be quite happy with that since my taxes would go down too. I plan on living her a long time and I have no mortgage. 

Do you want to know where a possible housing crash is going to take place?  The Villages in Central Florida.  As the Baby Boomers die off and move to nursing homes, there will be less Gen X'ers clamoring for those homes.  Boomer kids will dump those houses when their folks die off, getting whatever they can get.  Also, due to the age restrictions, fees, dues, etc., not as many people will qualify, or be able to afford to live there.  Watch as those house prices drop!