Meanwhile in Austin TEXAS - 2700 sqft almost $9M

https://www.redfin.com/TX/Austin/396...9udW1iZXI9MA==

I really hope so. I'd like to add a couple 0s to my net worth.

Just lol, I mean the boat house is pretty sweet

3% commission?! On an almost $9m property? Who the fuk is setting these rates, that's ridiculous

Isn't that where Joe Rogan lives?

Yes and where i have multiple properties that i rent out. Bought them back in 1999, 2005, 2007, 2008

EDIT - None of my properities are on the lake...I wish, but austin in general has seen a significant spike.

True story - I was going to buy a house on that lake back in 2008. It was $599k. My dad drove in and told me not to do it because it sat on a rocky cliff (bad foundation in his mind)
I passed and bought a place in town instead. That house is now worth $3.5M. Win some lose some I guess

If you look at the add, there are architectural renderings for what the house COULD look like. Which means whoever is buying this is pretty much knocking down the existing house and rebuilding. So basically a $9M lot!

So from $0 to $0.00

It's slowing and leveling out, not crashing

Even if it does 'crash', folks with plenty of disposable income will snap up properties from those who "have to sell" before rentcels do.

So be careful what you wish for, rentcels.

Bingo.

You must be new here. Lol, I was like lol.This

Please explain. I was thinking same thing. You're either using funds you already have or loans so your net worth goes nowhere instantly unless you're paying less than market value.

did you yell at your dad

Looks like they have been trying to sell it since 2008. Multiple listings and then withdrawn listings.

Everyone who has a multimillion dollar property that they have been sitting on for decades is using the current market to try to get out of hard to sell properties. From what I've seen in my area the tear downs are not moving though.

It's not worth 9m unless someone is willing to pay...

Cool property though.

Yup, but like you say - 9m up front for a tear down, and then getting all the zoning permissions, designs (those mock-ups are awful), and so on. Anyone who has done truly custom builds even with a great build manager knows it can be a headache.

So 9m for the lot, at least a few million more depending on spec, and there is a lot of potential there. But if someone is budgeting 15m for something like this, why there? I think that's the issue - it's super niche, for someone to want to create a dynasty home there.

Much like Lake Geneva, the properties there. *shrug*

lmao

what an ask for that useless property

You forgot the 76 acres

Wait, seriously?

Gotta love that it says it's been listed for 12 weeks and just lowered by $250K price. I wonder how many times it's been listed before.
Anyway of course real estate is crashing from early 2022 levels. If you want to see how low they go in a lot of metro areas, don't hold your breath. Prices in most markets will still be going down 2 years from now. We have a general economic recession that's going to last awhile, so that bigger picture will be what most people are concerned about.

Didn't even look at the property. Didn't need to.

3.5% 2 year T-bills will shred every asset class in the world with dat elevated risk-free return rate. The only thing that can keep the last 5 years of asset prices going is a Fed pivot.

People banking on a pivot are living in a fantasy world, we're looking at more rate increases from here and interest rates will very likely stay elevated for quite some time particularly as the globalization experiment unwinds and persisting supply chain issues require more controlled demand through restrictive monetary policy

Correction 0.76 acres. Just a kunthair over 3/4 of an acre.

The sky is falling says ChickenLittleRentCell.. It's just not as insane. Still high, and will remain so.

Agree. When people start saying that RE is "crashing" they post stuff about:

- less mortgage activity
- more homes on the market
- longer time on the market
- more homes seeing price reductions

True, but:

- less mortgage activity as a result of higher interest rates and overall poorer credit worthiness [consumers carrying more debt] is a bit tangential as it isn't an issue for qualified buyers who may pay cash or may pass along their higher carrying costs to renters

- more homes may be people who are looking to time the market to take profits/move up the property ladder/downsize

- longer time on the market and price reductions BOTH may stem mainly from higher available inventory in markets where that is a factor
Correct.
high material costs/supply chain problems + tight labor market = not a great time for a tear down/rebuild
- IMO they can't continue to raise rates without tanking everything [consumers, corporation, governments] because everyone is too highly leveraged to cover higher priced debt.

- Even if they can prevent interest rates tearing upwards [yes, I know they say they want higher interest rates to kill excess demand and they are lying their butts off because we don't have an excessive demand problem, we have a lack of supply problem] I expect a economic conditions to worsen due to ongoing demand destruction as various players get wiped out by rising costs.

Things tanking is probably necessary, the world's supply chains are fracturing and it will likely get worse as China creates more issues, particularly with Taiwan, and this alliance between China + Russia + Iran + North Korea (and others) moves forward and further away from democratic nations.

Higher interest rates are what will help subdue demand and control price inflation that will otherwise take off as these forces ^^ throttle output and as we push more for domestic manufacturing, more emphasis on national security, etc


Probably everyone here has spent our entire adult lives existing in a globalization experiment that led to decades of insane growth and low interest rates with super low inflation, and that has very possibly come to an end.

for just 52k a month this could be your forever home!

In certain cities it looks like people are making prices up and hoping for the best. If you look at price history on some of these houses it's unreal:

2019 price sold: $190k
2022 listed price: $600k

Things tanking is looking unavoidable. To me intentionally tanking consumer and businesses might in the end be a necessary painful adjustment. Tanking your own government though looks like a play with no upside.

We could see a "last man standing" sort of situation with sovereign debt and that wouldn't be the worst option; meaning that countries attempt to be the "cleanest dirty shirt" themselves while competing countries implode with or without outside interference.

The Federal Reserve may have one last pump in them if they get rates high enough [but not too high] and then pivot back to public QE. Maybe.

Or if they lose control of the bond market it could all go to hell right quick.

Some speculate that this scenario [bond market crash, stock market crash, rush into commodities, new central bank digital currency] is unavoidable, but they believe that it won't happen quite yet. They think that the Fed will give it one last rip, or at the very very least the Fed will do anything they can possibly do to keep the lid on until after the US midterms to assure that they have a legitimately elected team in place that is friendly to their CBDC scheme.

I'm not so sure. Maybe.

However "first mover" advantage is a big deal. It could be that the US Fed would prefer to act first and leave other players flat footed and struggling to change any plans previously made in reaction.

And that could go a couple of different ways.

- Fed holds on until at least after the mid-term elections

OR

- Fed can't prevent the Crash or decide to stop trying to do so and the mid-terms could be canceled due to a "federal emergency"

I'm not an insider or an expert.

I can tell you that the White House published an official document this spring re:moving to a digital dollar with specific assignments for different agencies and individuals.

I can tel you that those assignments are "due" mainly this October.

I can tell you that Starbucks has announce they will no longer be accepting cash as of October.



I can tell you that the Vatican had instructed that their churches around the world transfer all of their funds to the Vatican bank with a deadline of September 30.



^^^
Seem like some pretty strong clues to me.

Why? They weren't prior to covid when things were way cheaper.

People seem to do everything as a mob, mostly. During covid people were laughing at those not getting the shots losing their jobs and being unable to travel. Now look at our landscape. I think it's the same thing here, it just doesn't happen overnight. Things will probably go back to what they were in 2019. Houses simply won't be what everyone's rushing into, particularly investors.

Alternatively the dollar crashes and who knows what. Ultimately people need to be able to afford homes, whether to buy or rent. I just don't see houses 2 hours from a major city continuing to be so out of whack in price relative to local incomes.

A few more clues for anyone who isn't moving their ****ing butt to put themselves in the most secure possible situation they can create as quickly as possible.

I mean quick. Like 30 to 90 days quick before we may see the world change in a painful and disruptive way.

Huge purchases of silver and gold around the world:




Fed Reserve running out of steam and boxed in:






^^^
This is not the time to be frozen in a state of denial.

Also, real estate hasn't gone up everywhere. Take a look around Peoria and central Illinois. If you think the area sucks, how is it any worse than La Vernia, TX or Nogales, AZ?

Not every place has ballooned in value, it's mainly the south and west.