Comments
hardsoft t1_j997h2c wrote
The materials were probably so expensive when they built it they'll need a high price just to break even.
Lumpyyyyy t1_j9ae09l wrote
Oh well. That’s what they get for speculative home building.
itsMalarky t1_j998me9 wrote
Yeah.....kind of what I was thinking.
It was RIGHT during that insane period where material pricing was through the roof (mostly wood). Then we had 2 or 3 rate hikes.
Excellent_Affect4658 t1_j9ahcpt wrote
Ehhhh. We built an ADU for my parents during that time, and while we definitely paid a bunch extra for framing, and everyone fixated on that, framing is a very small portion of the cost of an actual house, so it doesn’t move the needle that much at the end of the day.
itsMalarky t1_j9aqb94 wrote
Yeah true. Not just wood. Everything. Family owns a construction company. Sure, framing is just a part of the equation. But that's not even all the wood you need (floor joists...etc). That also ignores the fact that Steel, copper and the labor to install it all went up as well. Conservative estimates would put the price increase of materials at least around 25-30% post-pandemic. Service prices are even higher.
I probably singled out wood above because of the FAST and FURIOUS memes people were posting about lumber trucks. But it's only part of the equation.
Assuming an ADU is an acronym for an in law apartment.
(Edit: a few words)
Dartmeth t1_j9a1qz9 wrote
The pool of people able to afford a 650k home is small. Smaller if they need to avoid high interest rates by purchasing with cash. For a long time developers have been building larger luxury homes because they are more profitable. Seems to me like the developers are not thinking of the market.
itsMalarky t1_j9adbzs wrote
these are not really "luxury homes" (both around 2500SQ Ft) but I totally agree.
One of the lots was subdivided for 2 homes (so it almost seems like the builder/developer might have been trying to maximize profits on the crappy 4Acre lot he overpaid for by cramming two houses onto it), and it definitely seems like they moved into one of them to cut their losses after 2 open houses and no "sale pending" sign.
I just haven't been curious enough to check the records.
IntelJoe t1_j9azlmf wrote
This is very subjective to a specific area, this statement may be 100% true in your area. But not all.
I wouldn't say luxury homes are more profitable, from what I saw working in real estate in Texas was that at 3% people that could afford a $400k+ home could not afford that same home above 4-5%.
What made homes more profitable in the Austin area was by building them very close in these tight knit neighborhoods that popped out of nowhere. Regardless if they were plain Jane or luxury type homes, they were built as cheaply as possible.
But most people are priced out by the now higher interest rates.
itsMalarky t1_j9c1rj5 wrote
Makes sense --- Texas seems to love it's "McMansion" neighborhoods
New_Restaurant_6093 t1_j9b0fir wrote
Gotta know when to hold ‘em, it’s a gamble. I don’t feel bad most of the builders I’ve seen are from out of state.
itsMalarky t1_j9b5b3c wrote
Haha yeah, I don't feelbad for them AT ALL either.
tsb392 t1_j9abx51 wrote
Honestly not sure if I’ll be able to afford a house here. Lived here my entire life and have a decent job. May have to look elsewhere…
slimyprincelimey t1_j9aehjh wrote
I've never seen as many condo/apartment projects before in my life here. Portsmouth has dozens of active projects or projects that just finished up. Good medium density stuff, too.
FatherOfTheVoid t1_j9afl9l wrote
At this point I'd take some of that Soviet block housing to easy prices.
slimyprincelimey t1_j9anjea wrote
Honestly I think it's what people want at this point, minus the lack of AC and shared toilets. Seems like the attempt to dress places up like quasi luxury is just causing higher prices.
Neighborhood_Lesbian t1_j9bapfk wrote
It's a good way to keep younger people in the state.
MethBearBestBear t1_j9do4b5 wrote
Almost all for rent or way too high priced for locals.
Source: Me, a born and raise New Hampshirite, portsmithian for the past 6 years, struggling to find housing while making decent money looking up to 45 minutes from town as i work on the coast
slimyprincelimey t1_j9fobhb wrote
Demand has far outstripped supply. Building more is increasing supply. There's no magic wand you can wave to decrease costs without making more housing.
MethBearBestBear t1_j9fq8pc wrote
There is no magic wand but discouraging people buying a third rental property out bidding the first time home owner and offering support to first time home owners would assist with the issue. Supply and demand has 2 factors. More houses fixes the low supply high demand but lowering the demand is easier than increasing supply.
Yes multifamilies being built faster than single family has cause a conflict between high demand of downsizes and first time home buyers but this is usually maintained by the group of small house owners leaving smaller houses opening up properties. The issue now is people holding onto additional homes for rent or "as investments" causing an artificial restriction in supply
slimyprincelimey t1_j9gc1en wrote
Offering support to first time home owners would increase demand significantly because it would increase the pool of people that can buy houses. And, I'd be curious how you suggest we "discourage" people from buying properties.
The only way out is to increase supply, or decrease demand.
skunkbollocks t1_j991u7k wrote
There will be a crash sooner or later, but it will be interesting to see how NH specifically is affected given there is not the same focus on new builds here.
Dekkars t1_j99zr1d wrote
I disagree with this video. Crashes we've seen have been due largely to excess debt.
We don't really have that in the current climate. Inventory shortages and people unwilling to give up their low interest rate mortgage will keep prices high-ish.
Prices may float down somewhat, but we won't be seeing a huge drop anytime soon.
mafiafish t1_j9airjf wrote
While I'm skeptical of an imminent crash, US consumer debt it ratcheting up very quickly, so some of the conditions are there if folks' mortgages are up for renewal and new rates +general inflation pressures make some houses suddenly unaffordable.
Still, doesn't seem like that would be a huge swath of NH housing stock.
FatherOfTheVoid t1_j9d4kr7 wrote
>US consumer debt it ratcheting up very quickly
Maybe this will push prices down over time. I suspect its impact will be limited due to landlords, especially corporate ones. I don't think they have many incentives to sell their property.
I'm taking out of my ass a bit, because I don't know how much of the US, or NH housing marking its controlled by mom-and-pop landlords, or corporate landlords.
My biggest hope is that high prices incentivize builders to produce more housing, assuming NIMBYs can get out of the way.
Detritus_AMCW t1_j9aczjg wrote
I was going to say the same, indicators point to a gradual deflation that will take time. There is not going to be a sudden bottoming out of the market like in 2008-2009.
NckMcC t1_j9ao30l wrote
People been checking their watches for 3 years now talking about a crash that’s impending.
Acanthaceae_Square t1_j9cai1o wrote
Regardless, 3 years isn’t that long when it comes to the economy
Cash_Visible t1_j9a7tgh wrote
Sorry to say but there’s no ‘crash’ happening here or for the majority of the US
iate3pepperoncini t1_j9am6bc wrote
There will be no “crash” without a catastrophic event. We won’t see anything like 2008-9 again.
Dull_Broccoli1637 t1_j9chdmx wrote
Will really depend on unemployment. With stagflation, crappy business earnings, rising rates (which the fed will def. raise), and record consumer debt... Something's going to break. We're just in the beginning phases of layoffs.
Will it plummet as much as it rose? Probably not, but a 15-20% decrease wouldn't be off the table depending on area. Housing is typically 15 year cycle and we're entering a new cycle.
ZimofZord t1_j9a5sqj wrote
Can’t wait
icedcornholio t1_j9batuq wrote
I’d love to sell - but it’s not like Maine is cheaper. Or Mass. or Vermont. Or Montana. Dumb article because everything is going up.
ShortUSA t1_j9bh6zk wrote
WMUR, you don't say, MA people are moving to NH and driving up the real estate prices?Was this article written in 1970? Or 1980, or 1990,.... I seem to remember reading it back then.
By the way, housing crashes follow unemployment. When unemployment starts raising, start to be concerned. Until then people can afford to pay their mortgages.
NyxOrTreat t1_j9as49b wrote
My partner and I are considering relocating to my home state for myriad reasons, and a big component is housing. I like NH, but it’s becoming increasingly less likely we’ll be able to reach our life goals here. Such is life.
ILikeCrabbyRobots t1_j9d3fc6 wrote
Shit, my house has gained $100k in value since we overpaid by $100k in late 2021. I keep expecting the market to tank, but it's like we're in a weird island market but without a water constraint.
TheMobyDicks t1_j9gllfi wrote
Totally insane now. Bought my house in Exeter on 2.5 acres for under $350K in 2014 and I could get $600K walking away. Maybe even $700K with the property (not house) improvements I've done myself. Of course, if I did that, to keep any profit and stay in the seacoast, I'd probably have to live in a treehouse...
ILikeCrabbyRobots t1_j9h6slf wrote
That's the trap, right?
comefromawayfan2022 t1_j9afdzd wrote
At one point I wanted to relocate to Kentucky (I'm a huge horse person and always wanted a career in the horse industry and there's obviously far more opportunities for that in Kentucky than there is here. I've even taken equine classes at UNH) but my health issues got in the way and now I'm too fucking broke to relocate anywhere. I did move closer to north Conway (I'm only 30 minutes away now) and I absolutely love it up here and now can't see myself living anywhere else, it's so peaceful and quiet
piscatator t1_j9eqr2k wrote
Although 20,000 people (sounds small), it has a big impact in NH. Most of these people are concentrated in the 1 hour drive to Boston portion of the state. I know in the Seacoast region prices remain high because inventory is very low.
truthswillsetyoufree t1_j9cruu5 wrote
Gonna sell my house soon and move out of state. Feeling super lucky—as long as this market holds for the next couple months.
[deleted] t1_j9ad4lc wrote
[deleted]
overdoing_it t1_j9a4igf wrote
Putting in a commuter train to Boston will fix this. Nobody will want to move up here from Mass after that.
vexingsilence t1_j9boppt wrote
You're getting downvoted, but it's a good point. The train would only help people that are already commuting. It's not like the service is going to magically create a ton of vacant housing units. Demand is already there, supply isn't.
Acanthaceae_Square t1_j9calkh wrote
Yup
itsMalarky t1_j994416 wrote
3 new builds on my street (fairly rural) JUST finished and I feel like they were too late. Cheapest is 650K and they've sat on the market for months now. It seems like some developers are getting screwed for trying to cash in on the market.