The Housing Market (2021)

[J&JD]

Great tips and advice which is why I posted my internal dilemma for others to help me sort out. It is good to know on the Capital Gains. However, with the RV which is a second home, are people paying CG's on it if they profit on the sale? (I'm accounting/tax illiterate by choice).

I would likely move to a place that would benefit buying my next coach such as FL. I'm also eying the MT/ID/WY area as I'm in the process of buying a backcountry airplane which is why I went to Yakima and why I'm headed back there now. With that said, FL is probably one of the least desirable to me. to be doing that kind of flying. High humidity, no terrain, poor visibility, bugs! So that weighs into my equation.

Can people claim residency on owned sites? For example if I bought a site at Pelican Lake RV Resort, could I use that for FL residency? I think FL has a 6 month max you can stay at a place like that, not sure it's enforced, but I think it's for residency reasons.

After this discussion and realizing how much I love my house and my coach, I likely will do nothing. The timing for financial gain though may push me to do something and sometimes that vulnerability or risk can be a good thing that pays off in the end. I'm comfortable where I am now but something super amazing could be ahead with change. I could use some change but this is a back and forth dilemma.

Thinking out loud...

What kind of aircraft is @Neal the bush pilot looking to purchase?

 

[Neal]

What kind of aircraft is @Neal the bush pilot looking to purchase?

Rubber band! (Carbon Cub)

 

[BGMAC]

Meals up and coming plane...

 

[John&Andrea]

I read this morning on Facebook friends in my area at home are seeing home sales with people offering 100K over asking. It makes me wonder if I should sell mine!!! I love my house but the area not so much but I have no clue where I'd want to live given a choice. This is part of the reason I have a RV, I'm out looking wondering where I would want to live someday other than where I am now. I don't know why the housing market is doing this, my hunch is one of two things: 1) The stock market has peaked and people want to take profits before an expected decline/collapse? 2) Expected interest rate rises, inflation, etc. so now is the time to capture loans? I don't know, I haven't searched for answers, I haven't googled it.

We all know the RV market has been on fire but we've attributed that to the pandemic. I face the same situation with my house in that this fall is an ideal time for me to sell my coach probably at the highest I could ever profit on this coach. I'm going to Newmar in September for the warranty reupholstering of the furniture and I'm having some other things done such as getting the carpet replaced since the furniture will be removed, saving on labor costs. After Newmar's work is done this would be an ideal time to sell the coach, it's also at that point in which most coaches sell, 4.2 years of age. But I love my coach, I've spent 3 years making it my own, the list of mods and additions is large but highlights being Summit Stainless, HWH Active Air, 1800W Solar with front A/C wired for solar, Victron web enabled system, Drainmaster gates with Sanicon all controlled from inside, LED lighting including underglow, under slides, and top side lighting both passenger and driver sides. Office setup, the list goes on. But the coach is PERFECT, perfect size, perfect running, everything is great (knock on wood). Why sell a coach that is perfect to you or do you do so simply for the financial timing of max profit opportunity?

So I'm faced with whether to capitalize on the housing market and also the RV market. Not a bad dilemma, most likely I'll sell neither but what is your opinion, what are you facing and how are you rationalizing the hot sellers market we're in now?

You can live where ever you want to.

 

[AuntieDodo]

Neal, as you know; we Sold the house in Rockville Va, to move to Florida. Two reasons, the tax advantages which Florida offers, and downsizing, but to an RV port home.
We caught the market at a pretty good time, mortgage rates at about the lowest I've ever seen them; so we actually took out a small mortgage to save some cash for travel, etc.
Regards selling, the market was trending upward, and we had several offers at $10K over asking price.

I would suggest looking into selling your Va. home, to take advantage of the exceptional prices, and then look at downsizing, maybe here in Florida (tax advantages) or another similar state.
Cash can be a motivator!

As for the RV market; I actually had a Dealer from Texas call (no idea where he got my info); but offered right at what I paid for my coach new! Now that's great, but no way am I selling my coach for a while. I say that to point out how "Hot" the market is at this time.
Since you have done so much to your coach, and it fits your needs, not sure that I would suggest selling & buying another, unless it is a "want to update" process for you. You invested so much time and effort to make it just like you want it. My advice.....keep it & enjoy it!

Then take all the money you make from selling in Virginia, and find a place that will make you happy; or like a lot of folks, "Full Time" & invest the rest!

Hope whatever decisions you make, will add to your happiness! Good Luck!

PS: Florida living is saving about $900-$1,000 a month vs. Virginia

This is my thoughts. If you don’t mind leaving your roots now is the time to cash in if it was in your near to future plans anyway.

We are in a position to make a boat load on our home right now, average sales are going from 100-150+ asking prices. However, we can’t find a lot anywhere near where we want to be without costing way too much then to build in addition.

The only way for it to work for us is to go full time for a bit until land in our desired areas open up. Some days I’m willing but other days I think we should just stay where we are as it is a great spot and if we left we likely wouldn’t be able to ever come back this way. It doesn’t help that this is my husbands families farm land and he has never lived anywhere else. The farm has been sold.

 

[Neal]

This is my thoughts. If you don’t mind leaving your roots now is the time to cash in if it was in your near to future plans anyway.

We are in a position to make a boat load on our home right now, average sales are going from 100-150+ asking prices. However, we can’t find a lot anywhere near where we want to be without costing way too much then to build in addition.

The only way for it to work for us is to go full time for a bit until land in our desired areas open up. Some days I’m willing but other days I think we should just stay where we are as it is a great spot and if we left we likely wouldn’t be able to ever come back this way. It doesn’t help that this is my husbands families farm land and he has never lived anywhere else. The farm has been sold.

I once heard real-estate cycles were 7 year cycles. It's hot now, what will it be in 1, 2, 5 years from now? Will it keep on the rise and inventory depletes and with the price of lumber isn't probably going to build that fast. I'm not ready to sell my house now although now is a perfect time to do so as I just had painting and other things done while away. But it could be an even better time 3 years from now, we just don't know. For now I'm holding and enjoying the house I love and I still don't know where I'd go next.

 

[AuntieDodo]

I once heard real-estate cycles were 7 year cycles. It's hot now, what will it be in 1, 2, 5 years from now? Will it keep on the rise and inventory depletes and with the price of lumber isn't probably going to build that fast. I'm not ready to sell my house now although now is a perfect time to do so as I just had painting and other things done while away. But it could be an even better time 3 years from now, we just don't know. For now I'm holding and enjoying the house I love and I still don't know where I'd go next.

This is exactly my thoughts too. We are in an area that the City is slowly stretching out to, so expectations are that our values will either stay where they are now or increase. We have a large Country lot 3 neighbors in view but nowhere near to us.

I was after my husband to buy a lot just before the craze and he wasn’t interested. The lot was 59k where there were quite a few available, they had also been up for sale for 10 years.. In a matter of two weeks last summer every one of them sold. There was one listed last week due to a tragedy happening in the family, it sold for 180.00. I actually told him at the time we should have bought 5 lots. He should have listened to me ?

We Canadians do not pay capital gains on our principal residence only investment properties so we wouldn’t have that to consider if we sold current home.

 

[sheridany]

The housing market in California is insane especially in the SF Bay Area. A house in Berkeley went for over $1MM (yes million) over the ask price. There’s nothing extraordinary about Berkeley other than it’s a college town and some decent views. Another house in another town had 122 offers and sold in 3 hours. Sheer insanity.

Redirect Notice

 

[Kevin D Pem]

black rock is buying up housing. They are doing this by bidding much over asking. This is not a housing market thing as much as a pension stabilization thing. If you think you will buy another house, think "you will not own anything, and you will be happy", I would not sell if I had one.

 

[murphysranch]

I'm in Santa Clara, CA helping hubs remodel my sis' dear departed Mother in Law's home. Apple Computer's new campus is four walking blocks away. This 1957 home, half is still original, is going to go for slightly over 2 million, for a 3/2 on an 8100 sq ft lot, after we're done here in a few weeks.

We are only doing internal remodeling - like expanding the master shower from a 3'x3' to a 48x48", installing can lights, 6 panel doors with new trim, all new baseboard, and LVP laminate through out. New toilets, mirrors, vanities, backsplash, and more. It all has to be off the shelf whatever is in stock, cus custom orders are months out.

Crazy times in Silicon Valley for sure!