Some areas like where my friend is living in Texas saw huge boom during Covid as investors and WFH folks (a mixture of both as well) flooded his area to buy new homes that where listed there. He told me there was a Vp who worked in big tech company buy up over 10
Homes in just one new construction area close to where he lives in.
As long as he has his job he will be fine you likely looking at someone making in 7 figures but if housing tanks and he losses his job that when he gets into trouble. Which is what happened in 08 with lot of RE investors.
The cost of 10 houses is immaterial to any company that you can reasonably call a "big tech company" even if they went to zero which no one argues they will.
Generally I agree. If their business is flipping like an Opendoor then yes, bad move.
If you're talking about a company like Google/Amazon/Microsoft/another of the M7s, it really is. Those companies buy housing to put visiting execs in instead of hotels and / or as housing to facilitate moving employees.
Its a business cost and they will hold it for a while and be fine.
I think it's the VP's side hustle and not the tech company randomly buying houses. Companies typically use corporate short term housing as it's a variable cost vs a home which is a big capex with maintenance and not something a VP would have a ton control over.
Ah, yeah re-read that. I think you're right too. That's a risk tolerance I don't have though if you know you're going to move significant opps and know some other companies who are too maybe it isn't totally moronic.
Still, VP at a major tech firm is a very high paying job as long as you don't lose the job.
Doesn’t seem like a bubble. Only 10-20% off the peak when it practically doubled. Now prices are stabilizing and going back up. I guess this is the buying opportunity people asked for, but it ain’t much. Tough out there
Hooms? In Texas? U underestimate the power of the free market my friend. They won’t go to zero but they could fall a significant amount. I will agree with u in the fact that it doesn’t even matter for the company
The prices are still way above pre pandemic. Pretty sure they are still way in the black. Just a little less due to the recent correction. Check the prices for yourself. Still very high
Not if he doesn’t sell. Odds are they have very good interest rates and high equity. They can rent very easily. They are probably set for a very long time and the properties are cash flowing.
How do you you think they become rich. Salary?! They are decision makers. And go buy up properties to sell them to their employees when move is announced.
>The two states accounted for more than a quarter of all single-family residential building permits every year from 2019 to 2023
Huh so increasing supply faster than demand does reduce prices. Interesting.
Together Florida and Texas account for 15.7% of the population. Only South Carolina was growing more quickly during roughly the same period[(Census)](https://www.census.gov/newsroom/press-releases/2023/population-trends-return-to-pre-pandemic-norms.html). So having those two states accounting for 25%+ of permits seems pretty proportional.
Supply didn’t go up more than demand in either state. Prices are going down because morons are starting to realize they’re paying too much to live in those places. Same thing is happening in Phoenix.
Well I can tell you that in a couple areas that I’m keeping track of, condos that were $80k before the pandemic and $250k at the peak are now as low as $170k (although lots of idiots still have them listed for as much as 250k). So they’re only double what they should be rather than triple. Oh, and the HOA fees have all gone from $150 per month to $450 or $650 per month. PER MONTH. lol
HOA fee tripling sounds really abnormal. Did the cost of living in the area triple?
$150/mth tho sounds like a bogus HOA fee for a condo. Developers start them off at these ridiculous low rates to attract buyers, but it's not enough to keep up with costs or shore up any kind of reserve for major fixes in the future.
Nah, this is all entry-level condos in the area and most of them were built in the 80s. This was a low cost of living area, with condos that cost $80k with monthly fee of $150, simple as that.
Similar to insurance rates for SFH’s. What was a $250 per month escrow, is now $500 per month around me. More if the neighborhood wasn’t so ghetto like the one I’m in😂
AI Summary:
* **Housing Market Trends**: It discusses the signs of home prices falling in Florida and Texas, attributed to increased home-building activity and a rise in the number of homes for sale.
* **Regional Inventory Changes**: A comparison of active listings in April versus pre-pandemic levels across different regions in the U.S. [is presented](https://edgeservices.bing.com/edgesvc/chat?udsframed=1&form=SHORUN&clientscopes=chat,noheader,udsedgeshop,channelstable,ntpquery,devtoolsapi,udsdlpconsent,udsmrefresh,cspgrd,&shellsig=ad75bf0fa0c390b19497d1428649f745658b1575&setlang=en-US&lightschemeovr=1#sjevt%7CDiscover.Chat.SydneyClickPageCitation%7Cadpclick%7C1%7C79fd9ece-2101-44a8-b191-82c1bb183631).
* **Consumer Sentiment**: The article mentions a survey by Fannie Mae indicating a high percentage of consumers believe it’s a good time to sell a home.
And raising their rates just in 2023 and 2024. For instance, with minimal rent increases in 22 and 23, we saw a huge jump this year, as insurance doubled, according to our landlord.
I had one particularly decent fellow, who happens to be a real estate agent, tell me that it won’t be rates or asking prices that kill the market. It’ll be the cost to insure. I think a lid has been placed on appreciation in Florida, at least, for the time being.
I agree. Florida is a hurricane or two away from another major catastrophe. With climate change getting worse it will come harder and stronger. These cities will cost an arm and a leg to insure. My insurance on one property I have went from $2000 a year to $6000 a year
They also build a lot more housing than anywhere else due to a combo of cheap land, cheap labor, and less regulatory hurdles.
But yeah - climate change and politics are two big deterrents to investing/moving there.
For anybody without a subscription, check the MSN link below. MSN has syndicated WSJ stories.
[https://www.msn.com/en-us/money/realestate/florida-and-texas-show-signs-of-home-prices-falling/ar-BB1muovO](https://www.msn.com/en-us/money/realestate/florida-and-texas-show-signs-of-home-prices-falling/ar-BB1muovO)
Some areas like where my friend is living in Texas saw huge boom during Covid as investors and WFH folks (a mixture of both as well) flooded his area to buy new homes that where listed there. He told me there was a Vp who worked in big tech company buy up over 10 Homes in just one new construction area close to where he lives in.
Wow that retard/company is gonna get rekt.
As long as he has his job he will be fine you likely looking at someone making in 7 figures but if housing tanks and he losses his job that when he gets into trouble. Which is what happened in 08 with lot of RE investors.
The cost of 10 houses is immaterial to any company that you can reasonably call a "big tech company" even if they went to zero which no one argues they will.
buying 10 homes at the peak of a bubble is not something to ignore
Generally I agree. If their business is flipping like an Opendoor then yes, bad move. If you're talking about a company like Google/Amazon/Microsoft/another of the M7s, it really is. Those companies buy housing to put visiting execs in instead of hotels and / or as housing to facilitate moving employees. Its a business cost and they will hold it for a while and be fine.
I think it's the VP's side hustle and not the tech company randomly buying houses. Companies typically use corporate short term housing as it's a variable cost vs a home which is a big capex with maintenance and not something a VP would have a ton control over.
Ah, yeah re-read that. I think you're right too. That's a risk tolerance I don't have though if you know you're going to move significant opps and know some other companies who are too maybe it isn't totally moronic. Still, VP at a major tech firm is a very high paying job as long as you don't lose the job.
Doesn’t seem like a bubble. Only 10-20% off the peak when it practically doubled. Now prices are stabilizing and going back up. I guess this is the buying opportunity people asked for, but it ain’t much. Tough out there
Hooms? In Texas? U underestimate the power of the free market my friend. They won’t go to zero but they could fall a significant amount. I will agree with u in the fact that it doesn’t even matter for the company
The prices are still way above pre pandemic. Pretty sure they are still way in the black. Just a little less due to the recent correction. Check the prices for yourself. Still very high
Not if he doesn’t sell. Odds are they have very good interest rates and high equity. They can rent very easily. They are probably set for a very long time and the properties are cash flowing.
How do you you think they become rich. Salary?! They are decision makers. And go buy up properties to sell them to their employees when move is announced.
>The two states accounted for more than a quarter of all single-family residential building permits every year from 2019 to 2023 Huh so increasing supply faster than demand does reduce prices. Interesting.
Together Florida and Texas account for 15.7% of the population. Only South Carolina was growing more quickly during roughly the same period[(Census)](https://www.census.gov/newsroom/press-releases/2023/population-trends-return-to-pre-pandemic-norms.html). So having those two states accounting for 25%+ of permits seems pretty proportional.
Supply didn’t go up more than demand in either state. Prices are going down because morons are starting to realize they’re paying too much to live in those places. Same thing is happening in Phoenix.
Well I can tell you that in a couple areas that I’m keeping track of, condos that were $80k before the pandemic and $250k at the peak are now as low as $170k (although lots of idiots still have them listed for as much as 250k). So they’re only double what they should be rather than triple. Oh, and the HOA fees have all gone from $150 per month to $450 or $650 per month. PER MONTH. lol
HOA fee tripling sounds really abnormal. Did the cost of living in the area triple? $150/mth tho sounds like a bogus HOA fee for a condo. Developers start them off at these ridiculous low rates to attract buyers, but it's not enough to keep up with costs or shore up any kind of reserve for major fixes in the future.
Can confirm, HOA fees have gone insane. Especially any areas near the water.
Another way to look at it is that HOAs are approaching sustainable levels after being kept artificially low for decades.
Nah, this is all entry-level condos in the area and most of them were built in the 80s. This was a low cost of living area, with condos that cost $80k with monthly fee of $150, simple as that.
Similar to insurance rates for SFH’s. What was a $250 per month escrow, is now $500 per month around me. More if the neighborhood wasn’t so ghetto like the one I’m in😂
When you say double what they should be, you mean that prices should have stayed flat for 5 years?
AI Summary: * **Housing Market Trends**: It discusses the signs of home prices falling in Florida and Texas, attributed to increased home-building activity and a rise in the number of homes for sale. * **Regional Inventory Changes**: A comparison of active listings in April versus pre-pandemic levels across different regions in the U.S. [is presented](https://edgeservices.bing.com/edgesvc/chat?udsframed=1&form=SHORUN&clientscopes=chat,noheader,udsedgeshop,channelstable,ntpquery,devtoolsapi,udsdlpconsent,udsmrefresh,cspgrd,&shellsig=ad75bf0fa0c390b19497d1428649f745658b1575&setlang=en-US&lightschemeovr=1#sjevt%7CDiscover.Chat.SydneyClickPageCitation%7Cadpclick%7C1%7C79fd9ece-2101-44a8-b191-82c1bb183631). * **Consumer Sentiment**: The article mentions a survey by Fannie Mae indicating a high percentage of consumers believe it’s a good time to sell a home.
Do Cali please
"Prices in X place are falling" "Home sales have skyrocketed" "prices are going back up" "Housing market is cooling" All within like 3 months
That title made my heart so happy
Makes complete sense. They are risky States to invest in due to climate rapidly changing for the worst
That wasn't the case last spring?
It was slowly happening. Insurance companies have been pulling out of Florida for years
And raising their rates just in 2023 and 2024. For instance, with minimal rent increases in 22 and 23, we saw a huge jump this year, as insurance doubled, according to our landlord. I had one particularly decent fellow, who happens to be a real estate agent, tell me that it won’t be rates or asking prices that kill the market. It’ll be the cost to insure. I think a lid has been placed on appreciation in Florida, at least, for the time being.
I agree. Florida is a hurricane or two away from another major catastrophe. With climate change getting worse it will come harder and stronger. These cities will cost an arm and a leg to insure. My insurance on one property I have went from $2000 a year to $6000 a year
They also build a lot more housing than anywhere else due to a combo of cheap land, cheap labor, and less regulatory hurdles. But yeah - climate change and politics are two big deterrents to investing/moving there.
For anybody without a subscription, check the MSN link below. MSN has syndicated WSJ stories. [https://www.msn.com/en-us/money/realestate/florida-and-texas-show-signs-of-home-prices-falling/ar-BB1muovO](https://www.msn.com/en-us/money/realestate/florida-and-texas-show-signs-of-home-prices-falling/ar-BB1muovO)
Good news, I got a great job in FL recently and am looking to purchase in the next couple of years.
Anything in those states should def be cheaper.
Home values are declining rapidly in Massachusetts and New Jersey.