re: These real estate markets may be on the cusp of a San Francisco-style affordability crisis

I'm in FL (gulf side) and I could easily sell my house for over $1M. But where would I go? It's stupid here, cash sales, no appraisals or inspections. People fleeing the North and foreign investors.

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Port Angeles? Lol.

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Neah Bay rez finna eat…





Whales

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when it's so vastly different in culture

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Ha! Not for long

May never see interest rates back to 7-8% again. This country has too much debt. If interest rates were to return to these levels - that would be end game for this country, unfortunately.
Nice article explaining our predicament
U.S. Debt Clock

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We will be back at 7% in two years. I’m betting on it. Literally.


Im Betting on the Cowboys to win a super bowl in the next two years.

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I don’t get what you are trying to do here. Are you saying 7% is an unreasonable expectation? And you ask, what’s the point? These markets are behaving less and less efficiently and some sort of correction is inevitable. It’s interesting and worth talking about.

And to the OP, I predict we see 100 year mortgages in the US in the next 10 years. People will eventually not buy property to ever own it out right, this is happening in Europe already. These types of asymmetries will still have corrections though, particularly with the increased ability to work remotely. I know this board shots on LA and MS, and I’m not saying we will see many snowbirds from Washington state, but when you can get something of similar utility for 5-10% of the cost from a place like Bellevue, WA than let’s say Gulfport, MS, eventually that will be an enticing type of move. I’m speaking generally of course. Austin is another example, there are plenty of substitutes in a 300-500 mile radius that have more to offer relative to home value. These places will continue to tax the shite out of their base and the trend is away from reinvesting in infrastructure. I believe we are finally seeing something similar beginning between the north shore and New Orleans.

We aren’t quite there yet, and I’m not saying housing markets will crash. Most of the hottest markets have industry to provide at least some support for the growth. But with the disproportionate growth rates between wages and certain local markets, there will eventually be obvious arbitrage opportunities in markets that are relatively less hot. Will be very interesting to see where this goes.

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Paul, what’s your logic as to why they will continue to rise at the rates we’ve seen over the last few years

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It was announced by the fed I believe. They're trying to combat inflation.

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I'm in FL (gulf side) and I could easily sell my house for over $1M. But where would I go? It's stupid here, cash sales, no appraisals or inspections

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Pretty much every major city in US...

A lot of the crazy prices for dumps you see in CA and WA, etc is the land value not the run down house sitting on it.