While this is a local piece, it is pretty much happening everywhere.
With the Fed hiking interest rates I, and probably you, have been bracing for a decline in our property values. You know…..the explosion of value we have received lately.
I just checked and actually went up another few thousand last week.
What is behind this.
We here in our sleepy little Western Washington town lay a comfortable hour and so away from the cesspool called Seattle. Seattle is so crime ridden and unsafe, a recent survey of its residents found a whopping 67% wanted to beat feet and get the hell out of there. 67%.
Now you would think nobody would want to buy their homes and deal with the crime ridden neighborhoods. Think again. The people in San Francisco think its paradise. That’s how bad it is there. So a home that sells for say 2 million in San Francisco buys the same house for 1 million or so in Seattle. A slightly better chance of not being stabbed going to the corner store and Seattle is sort of like San Francisco. See where I’m going with this.
It isn’t going to stop.
Biden is flooding the country with illegals. Who are taking every low end apartment all over the West Coast. Which, rents going up and driving people with families out, which is driving up the property values all the way to our sleepy little towns.
Just think of the law of Thermodynamics. Areas of high concentration will always seek out areas of low concentration. Social Thermodynamics at work.
Washington State Gov Jay Inslee has made it nearly impossible to build new homes or apartments. Those that are built are unaffordable. Little 4 room falling down old mill houses next to railroad tracks here are going for around 300k. And going up.
Young families, I have no idea what they are going to do.
The counties around Olympia, both Pierce and Thurston, have now been declared unaffordable. All those state workers will be heading our way and into the little towns. They have nowhere else to go. Driving up our prices even further.
Articles are starting to come out warning of a housing bubble. Ok, lets say they are right. So where are those people going to live?
No, prices are still going to go up. It is pure supply and demand. Zillow is estimating a rise here in our county at 15-20% this year. Even after taking into account the FED raising interest rates through the roof. We are basically making 50k or more a year just sitting in our house. For several years now. We can be our own reverse mortgage company at retirement.
Biden and Inslee have driven the supply into the ground with their permitting, fees, and inflationary pricing of the material that actually builds new homes. The cake is baked. Its going to get ugly. Decades to build the housing needed. Although I doubt they will or can. Its that bad.
Those of us who own property are going to be fine. I do worry for young people. But then again, they voted for these morons, maybe living in their car or back with their parents will teach them a lesson in consequences.