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Totally out of control... I think people are making up outrageous numbers when they put their houses on the market now from what I've seen and unfortunately they are getting those crazy prices and more. Last one I looked at they only owned for 1.5 years and are now asking 165k more than they bought it for....they'll probably get it. crazy.....
It might be the new norm for a while. People are figuring out, hey I can work from home why pay crazy city prices. I can live anywhere...maybe I should move to where I vacation etc...
I think some of the buying frenzy is due to the lengthy time it takes to build a new house...about a year in my town, due to shortages of materials and labor.
Bought for 460k 12/2019 now asking 625k and they'll get that or probably more....crazy times.
I looked at one (advertised) in northern MI that 5-6 years ago would have carried a asking price under $200,000. Today they’re asking $375,000. That’s an older 3 BR ranch w walkout basement on an average lot.
Many year-round locals can’t afford housing. Problem - wealthy individuals from distant locations are buying up everything to serve as a 2nd or 3rd part-time residence or for speculation. Community leaders are looking at incentives to make housing more affordable - but seemingly intractable problem.
A relatively small local airport (TVC) now has daily non-stop service to / from NYC LGA. (Late afternoon / early evening flights which gives you an idea who the prime users are.) Much as I love NYC, I suspect that if those high heeled individuals are buying northern Michigan homes for second or third residences, the year-round locals won’t be able to compete on price with the NYC real estate market.
Yes, someone from CA bought the house across the street from me (on the east coast) at well over asking price sight unseen as an investment and are now renting it out for probably more than their mortgage payment. There's probably a lot speculation and investors taking advantage of these crazy times. The greater fool theory in housing prices is once again in effect.
hank's keen observation about non-stop flights into TVC tells a story about money and locations. The Traverse City area and other shoreline communities to the north along Lake Michigan have a long past with wealth. From about 100 years ago, the vast amount of monies spent in these areas for property and houses arrived from an industrial based wealth class from Chicago and Detroit. A summer play land for the wealthy. In the mid through late 1980's we vacationed in this area for a variety of reasons....besides being a magnificent area that is easy on the eyes and the cranium. One of our observations when driving the "old" wealth communities (Harbor Springs, NNE of Traverse City and others) and the houses, is that one could view several auto license plates in the driveways.......Illinois, Florida and Michigan plates. The cars, generally speaking; were not baseline Chevy's or Ford's. Likely 3 generations of an old money family on vacation for the entire summer, in particular the Florida plates, and folks escaping the Florida summer heat. This observation revealed its own story, of course, IMHO. Northport, N of Traverse City; has a current listing for 2.31 acres of vacant land, which has 814 feet of shoreline. At $2.6 million, the result is $3,300 per foot of shoreline. This may be one of the most expensive for the Michigan side of Lake Michigan; but it is not uncommon the expect to pay $2,000 per foot of shoreline for undeveloped property. However, leaving the wealth side of things; a wonderful family vacation may be had in all of these areas, including great state parks alone the shoreline. We've driven many of the county and state roads along these shorelines. Traverse City and other larger locations are "busy" in the summer, but one may travel the shoreline a bit farther north and enjoy relative "quiet" and much beauty.
If you have experienced double digit annual increases in your home value, and observed how building costs have skyrocketed, I would suggest checking your insurance limits. I did, and discovered I was now under insured and worked with my agent to adjust. Modest premium increase in comparison to the probable wide-eyed anticipation of taxing bodies as assessments escalate significantly.
@AZRph : A very good point you've made ! @royal4 : Thanks for reporting back. Gal PAL had a hard time selling condo about 1 1/2 years ago for in the $165 K range. About 6 weeks ago it sold for $215 K. !!
Putting my home of 26 years in the burbs of CHI on the market next week...spent the past several weeks, cleaning, fixing, prepping...every few weeks I wait the prices in the neighborhood go up by $10k....we'll see what happens. Going with fixed fee listing, not gonna pay a realtor high 4, low 5 digits to do a few days work as the homes sell so fast. No inventory is right unless you want to buy a home for $1.5MM+, then plenty to choose from as many north shore burbs types flee the tax man of Illinois and no reason to go into downtown CHI town, crime out of control, way out of control, no thank you to the cook county state's attorney who does not do her job...you could spin whatever narrative you want, just go into the city and drive around. Drug abuse rampant. Criminal justice reform legitamcy has a point but after that point the narrative is one thing, reality is another.
Never beeen to Traverse City, been to Pentwater, South Haven...all real nice places, nice folks, looking forward to getting up to TC later this year!
Seems you get that...meaning the exporting of inflation...wealthy new yorkers sell their condo, buy somewhere else with half the money and have the other half to spend, invest etc. Meanwhile locals like the home appreciation but then can't afford the increase in tax assessments. Lot of trouble with affordable housing all across this country. Thank you to the Fed and CB...keeping interest rates too low, debasing our currency...increasing inequality across the board...
Comments
Wondering how this will impact our homes’ assessments and, hence, property taxes and insurance costs?
Not a buyer or seller, Derf
Many year-round locals can’t afford housing. Problem - wealthy individuals from distant locations are buying up everything to serve as a 2nd or 3rd part-time residence or for speculation. Community leaders are looking at incentives to make housing more affordable - but seemingly intractable problem.
A relatively small local airport (TVC) now has daily non-stop service to / from NYC LGA. (Late afternoon / early evening flights which gives you an idea who the prime users are.) Much as I love NYC, I suspect that if those high heeled individuals are buying northern Michigan homes for second or third residences, the year-round locals won’t be able to compete on price with the NYC real estate market.
The Traverse City area and other shoreline communities to the north along Lake Michigan have a long past with wealth. From about 100 years ago, the vast amount of monies spent in these areas for property and houses arrived from an industrial based wealth class from Chicago and Detroit. A summer play land for the wealthy.
In the mid through late 1980's we vacationed in this area for a variety of reasons....besides being a magnificent area that is easy on the eyes and the cranium.
One of our observations when driving the "old" wealth communities (Harbor Springs, NNE of Traverse City and others) and the houses, is that one could view several auto license plates in the driveways.......Illinois, Florida and Michigan plates. The cars, generally speaking; were not baseline Chevy's or Ford's.
Likely 3 generations of an old money family on vacation for the entire summer, in particular the Florida plates, and folks escaping the Florida summer heat.
This observation revealed its own story, of course, IMHO.
Northport, N of Traverse City; has a current listing for 2.31 acres of vacant land, which has 814 feet of shoreline. At $2.6 million, the result is $3,300 per foot of shoreline. This may be one of the most expensive for the Michigan side of Lake Michigan; but it is not uncommon the expect to pay $2,000 per foot of shoreline for undeveloped property.
However, leaving the wealth side of things; a wonderful family vacation may be had in all of these areas, including great state parks alone the shoreline.
We've driven many of the county and state roads along these shorelines.
Traverse City and other larger locations are "busy" in the summer, but one may travel the shoreline a bit farther north and enjoy relative "quiet" and much beauty.
Good Hart and Cross Village sat. map
Traverse City and surrounds map
Thanks, @hank; for pulling the memories.
If there were a MFO class reunion, this area would be my pick. 'Course, the real draw would be my paying for the lodging for participants.
@royal4 : Thanks for reporting back. Gal PAL had a hard time selling condo about 1 1/2
years ago for in the $165 K range. About 6 weeks ago it sold for $215 K. !!
Enjoy the summer, Derf
Never beeen to Traverse City, been to Pentwater, South Haven...all real nice places, nice folks, looking forward to getting up to TC later this year!
Seems you get that...meaning the exporting of inflation...wealthy new yorkers sell their condo, buy somewhere else with half the money and have the other half to spend, invest etc. Meanwhile locals like the home appreciation but then can't afford the increase in tax assessments. Lot of trouble with affordable housing all across this country. Thank you to the Fed and CB...keeping interest rates too low, debasing our currency...increasing inequality across the board...
Good Luck to All,
Baseball Fan