Housing crazy market…

Housing crazy market…

 

We in Idaho have always have had a fluxion of new people coming into our state and to our particular area. To the point that for years to mention you came from California was not a good idea..  You didn’t need to lie, you just didn’t volunteer the information.  For that seem the state that has brought the most imports.

Then in about 2006, the market really changed. See we bought our house in 1998 for $72,000.  It is a small 1200 square foot, two bedroom, one bathroom, living room and dining room and kitchen that was medium to small. And we had an old one car garage With nice yard.  The house was built in 1958 and moved on this street in 1985.  During the raise of housing, my husband said we could probably doubt our money… we should sell.   My answer to him was.. and where do we go? As we could not afford the payments of a newer place. Our payments were $753 a month.. including insurance and taxes.  All of the ones I had heard of were $1,200 and up. A house that was really nice that you could get for $95,000 with 3 bedrooms and two car garage with ½ acre of land, was selling for $350,000.   So needless to say, we stayed put. Then the market fell in 2008. And people relaxed and sigh of relief. 

Now a fixer up is $300,000 and up… they consider low income house is $242,000.  And the regular home sells for a low of $400,000 and up to a million. And along with all of this.. rent is now going for about $2,000 for a 3 bedroom apt.  With having to have first and last and deposit that usually is the same as rent is now $6,000 before you step inside. Also there is a running lottery of sorts for an apt. Meaning there can be up to 4 people or more who are also wanting that same apt. and there is a bidding war. And apt houses are growing like mushrooms in every field.  Along with houses  and housing areas. 

At first, a little over a year ago, people who decided to move, and put their houses up for sale.. were thrilled. Some even being offered more for their home than they were asking.  But as time went by, it was getting worse.

One woman who lost her husband, decided to down size and even thought of going else where, getting out of the snow area… She had a buyer with in a week, offering what she thought was a fair price. Not wanting to get into the bidding war… Both parties were happy, and they told her she could take her time, as they didn’t want to move until after they sold their house and their son finish up the school  year in their town. LUCKILY, she also put in a clause, if she could not sell her house..  the deal would be off.  Just happen to put it in, as she didn’t think she needed.  She went to Colorado, houses way out of her price range. So found a place in another state near by. Only to find out there was a problem with the well.. and the owner would not make it good.  So then she tried the East Coast. Did not turn out well either, as the GI loan would not ok the house she found.  It went downhill from there. She is back home, once again… wondering what to do. She did tell the buyers she was having trouble buying a house, so not to sell theirs yet either. She is beside herself.  She just wanted a small place to have her dog, cat and 8 chickens..  wasn’t looking for a mansion, just a small place. But the market is outrageous.

Another friend tried for a year.. being out bid 3 times on 3 different homes.  People coming up from California and Texas, with cash money was overruling her loan guarantee. 

Then there are those who decided to keep their home and make improvements  Lumber has multiplied by 2 and 3 per cent. My daughter bought presto board last year for $11 a sheet… we saw the very same kind for $51.!!!!!!! now. $2.45 2x4 are not selling for $7.95!!!! 

So the next part in my thoughts is… with housing going out of this world,  and rent right behind it… I got to ask.. what happens to the working market workers?  And for those who do have homes…. WHO is going to pour your coffee at your favorite coffee stop? Who will work on your car? Who will cook your meals when you go out to eat? Who will take care of your children when you go to work at your above minimum wage job?  Who is going to take care of the elderly in the nursing home, or work in their kitchens, housekeepers and etc.  After all if the minimum wage person is priced out of home to live in.. they won’t be staying in your town..   Will companies be building apt. for their workers, so you owe the company store as the saying use to go? 

Will adult children be coming back to Mom and Dads with family in tow or never be able to leave home… have 3 generations in every household?

And how much will it cost you until you too, falter?