Valley Real Estate
- Thread starter Dback Jon
- Start date
Luciano
ASFN Lifer
Opendoor , Cerberus Capital Management LP and others big corporate landlords lost 58,000 apiece and local flippers sold homes for 20% above their purchase price for once.
Definitely not a surprise inside one of the biggest speculative asset bubbles ever created...
OP
OP
Tottie's Asian Bistro, in the Shopping Center at Thomas and Hayden, just closed their doors - landlord doubled their rent from 10K to 20K a month, making the margin not worth it. Tottie decided to mostly retire, but helping out some at the other Tottie's (which she doesn't own anymore)
Yuma
Suns are my Kryptonite!
That's outrageous rent. Let us know if anyone else moves in that rate.
AZ Native
Living is Easy with Eyes Closed
It's a sign of the times, unfortunately.
Yuma
Suns are my Kryptonite!
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AZ Native
Living is Easy with Eyes Closed
And...
And......it means soon enough there will only be a lower class and upper class in this country. The middle class is being wiped out. IMO
MaoTosiFanClub
The problem
No clue how long her previous lease was in place for but likely was signed 10+ years ago. Not surprised rent has doubled as landlord’s operating costs probably doubled as well over that time.
Yuma
Suns are my Kryptonite!
It's so funny, half the office space in town is vacant, even some store fronts. But even still, lots of retail space IS doubling rent!
MaoTosiFanClub
The problem
Yeah I don’t want to speculate where this whole office thing goes but it won’t be pretty. Retail for the most part is doing fine especially restaurants. The funny thing is the consensus bet five years ago was that retail was finished (Amazon) yet here we are.
In south Chandler is crazy how many industrial parks are being built.
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I can see it go either way. We had the asset inflation compounded by higher rates, but the housing supply shortage could create a situation where prices don't really fall much if at all.
If you're ready to buy a home and you can do so without stretching yourself too thin financially, I can see the argument to buy now and not wait for a correction which could be years from now or never.
Something has to give in the housing market. This isn't sustainable. I really don't know how the average Joe does it in this market. I'm looking to move about a year from now and it has me concerned with having a senior software dev salary never mind if I was making the overall average. The poor or even lower middle class have no chance.
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OP
OP
Mortgage for a 15-year is 6 1/2 and dropping.
30-year 7.25%, which is below the historical average.
30-year 7.25%, which is below the historical average.
Yuma
Suns are my Kryptonite!
I remember my parents buying a house when mortgage rates were in the double digits. To me and my wife. 7.25% still seems cheap to us. The real problem is home valuations are so damned high! A shack in Maricopa County is worth $250K if you can find one that cheap! LOL!
OP
OP
And that is a different story versus interest rates. After the housing collapse and 2008 a lot of building stopped and never has really caught up since. Combine with the number of people pouring into the valley. It equates to high prices.
There are still plenty of affordable houses in the country just not in Arizona
Yuma
Suns are my Kryptonite!
We were looking at housing prices across the USA at my old job, and if you can take midwestern winters, you can see they are practically giving away homes. We also saw in other threads some countries are paying people to move into vacant housing they have in their countries. Places like Ireland, Japan, etc.
Yuma
Suns are my Kryptonite!
They are talking the Fed to start lowering rates if all goes well between now and then.
