The price of this "house" is insane!

[Musia]

Sold today for $1,000,000.00. The asking price was $850K. There were multiple bids and very soon the "house"'s status changed from For Sale to Pending. Today it was finally sold. https://www.zillow.com/homes/254-Tamarisk-Dr,-Walnut-Creek,-CA-94598_rb/18377162_zpid/

Here is an article my son shared with me, I started to follow the story right away. https://www.nbcbayarea.com/news/loc...gF7Rju16bCxp_JWtLRQFq3crMpZgy6UQh2BjHZGqhNlcM

 

[maryjane04]

Was the house burnt down? Wow 1M can't get you much these days!

 

[Lookinagain]

so they pay $1 million for a burned out home; have to build a home for whatever that costs. What will they do when there is a downturn in the real estate market? There always is. It may take 5 years, or 10 years, but it's cyclical. After the boom in 1988 ish and again in early 2000's so many homes were under water because of the drop in value. As long as you don't have to move, you're generally okay in the long run, but you may have to wait a long time for the value to come back up after the market drops.

 

[OboeGal]

According to the article, the sale was "cash only" so I'm guessing this was another one bought up by wealthy folks, either US citizens or foreign, who already own multiple properties all over and who will do the minimum to fix it up, then charge outrageous rent for someone to live in it. Because bonds aren't doing all that well and interest rates are so low, money market accounts make nothing for people and mortgages are cheap, leaving people with money who want to diversify and not have everything in the stock market with real estate investment. They're buying up these properties everywhere with cash or with cheap mortgages and then making money hand-over-fist charging renters outrageous amounts. They essentially force renters to put up with it because they're buying up all the homes with cash-only sales and driving up prices for anyone who isn't a real estate investor - normal people can't compete on buying a home and they have to live somewhere. It's disgusting - yet another way the super-wealthy are driving the country into a caste system.

 

[Musia]

Was the house burnt down? Wow 1M can't get you much these days!

I don't know what caused the fire but when I checked the street view that is still available on Google I noticed that there is a power line nearby. I certainly wouldn't buy any property near a power line.

 

[kenny]

... just needs a touch of paint.

 

[Sprinkles&Stones]

Umm…..

It’s a shack!!! Of COURSE it’s in California *eye roll* (yes I am from CA which is why I’m shaking my head). I hope that the investor that bought it builds something pretty here instead

 

[Musia]

According to the article, the sale was "cash only" so I'm guessing this was another one bought up by wealthy folks, either US citizens or foreign, who already own multiple properties all over and who will do the minimum to fix it up, then charge outrageous rent for someone to live in it. Because bonds aren't doing all that well and interest rates are so low, money market accounts make nothing for people and mortgages are cheap, leaving people with money who want to diversify and not have everything in the stock market with real estate investment. They're buying up these properties everywhere with cash or with cheap mortgages and then making money hand-over-fist charging renters outrageous amounts. They essentially force renters to put up with it because they're buying up all the homes with cash-only sales and driving up prices for anyone who isn't a real estate investor - normal people can't compete on buying a home and they have to live somewhere. It's disgusting - yet another way the super-wealthy are driving the country into a caste system.

Sad but true. We are renting now. 2 little families renting 2 apartments that are sharing walls and backyards. Similar properties but ours hadn't been remodelled in decades (we moved in in 2002 and everything was relatively "old" (used)). My son moved in next door in Feb. 2019. We pay $2800 per month and they pay $3100. 2 levels, 2 bedrooms, 1.5 bathrooms, 1 car garage, 1 uncovered parking space and 10X10 (or just a little bigger) backyards each. No central heating or AC. Insane! When we moved in 2002 the rent was $1650 "only". The owner is not even living in the US.

 

[maryjane04]

Sad but true. We are renting now. 2 little families renting 2 apartments that are sharing walls and backyards. Similar properties but ours hadn't been remodelled in decades (we moved in in 2002 and everything was relatively "old" (used)). My son moved in next door in Feb. 2019. We pay $2800 per month and they pay $3100. 2 levels, 2 bedrooms, 1.5 bathrooms, 1 car garage, 1 uncovered parking space and 10X10 (or just a little bigger) backyards each. No central heating or AC. Insane! When we moved in 2002 the rent was $1650 "only". The owner is not even living in the US.

Wow if rents were that much ~$700-800 per week I wonder how much mortgages are.. Well obviously on that 1M+ house! Crazy times. No wonder why CA is getting more and more unaffordable

 

[Austina]

It’s not just California, we were looking to buy around Austin earlier this year, and every single house we looked at went for a minimum of $100,000 over asking, usually nearer $150,000. The house 2 doors up from DS sold for over $200,000 more than asking. Lots of Californians moving to Austin, pushing the prices up to unprecedented levels.

 

[dk168]

I suspect the price of the plot of land it stands on is expensive, and the purchaser is going to knock it down to build a new house on the plot.

I have seen similar sales in UK - people paying good money and buying rundown sheds/garages/pubs/house etc. for the land in order to build new buildings on them.

DK

 

[ForteKitty]

.32 acres is a lot of land for Walnut Creek, isn't it? I didn't look to see if it's usable land or hillside though.

 

[chemgirl]

Sitting here in Toronto thinking this looks about right.

Hopefully the market is hitting a plateau, but who knows when my neighbours just listed their 3 bed 2 bath unrenovated house for 2.1 million.

 

[Austina]

Good grief, I’ve just looked on the builder’s website, and the style of house we’re buying has increased in price by $300,000 since we signed our (fixed price) contract in February

 

[Lookinagain]

I guess the price of lumber over the past year went up very high, but apparently it has come down now. But maybe builders had to contract for it at the higher prices causing new construction to jump too?

 

[Musia]

Good grief, I’ve just looked on the builder’s website, and the style of house we’re buying has increased in price by $300,000 since we signed our (fixed price) contract in February

Will you pay the old price?

 

[Musia]

I guess the price of lumber over the past year went up very high, but apparently it has come down now. But maybe builders had to contract for it at the higher prices causing new construction to jump too?

We are in the process of buying a house in Utah, my husband is going to bring his own few wooden planks he stores in the back yard now

. We were told that lumber is still expensive.

 

[Austina]

Yes @Musia, our contract is fixed price, we’ll pay what the price was back in February. At the time we signed, the sales agent did say she didn’t think the prices would remain the same for much longer, although I doubt even she thought they’d rise by this much. I also checked the other house builder on the site, and their prices have also gone up by the same amount.

I think the price of timber and concrete has increased substantially, a lot was blamed on the big freeze earlier in the year, whether that’s true or not.

 

[NonieMarie]

The prices will decrease and new owners will be upside down. If you can stay put, wait for prices to go down.

 

[Dancing Fire]

The prices will decrease and new owners will be upside down. If you can stay put, wait for prices to go down.

As soon as interest rate go up.