Are real estate prices getting insane, basically everywhere? \ stacker news ~econ

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Are real estate prices getting insane, basically everywhere?

1186 sats \ 17 comments \ @stack_harder 25 Oct econ

Recently, a house in my village (about 45 mins from 3rd biggest city) sold for 200k euros, and, for context, that's literally insane.

Sure, maybe if it was 40 mins from the capital, but here? Before covid, similar houses would top out at maybe 90k, maybe 120 if you were very lucky and patient, and zero renovation was needed.

Since Bulgaria is getting the euro foised on it soon, the real estate market here has been going crazy, partially because people think that when the euro hits, real estate will double, so everyone is in a rush to get something locked in before it happens. Of course, it's becomes a self-fulfilling prophecy - the real estate agents are orgasming themselvs to death over it.

Anecdotally, you hear it all the time, 'oh the market will go crazy once the euro is official', the fomo is almost palpable. I'm not exactly sure why,, since people have been quoting prices here in euros for like a decade and buying property for euros too, not only that, the Leva and euro are pegged as well, but a lot of people think 100k leva will become 100k euro.

But then i thought, really the same thing is happening in most countries, right? Like accross the globe, who isnt seeing food and real estate prices go up and up and up.

Are you stackers seeing something simialr? is it just M2 inflation and classic fiat?

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32 sats \ 1 reply \ @OT 25 Oct

In Australia people are obsessed with real estate. It's a common topic like talking about the weather.

In my area house prices have gone up by between 70-100% since COVID. I think it will eventually crash but without the supply it's hard to see that happening any time soon.

21 sats \ 0 replies \ @stack_harder OP 26 Oct

i think that's the case in most places, whenever auz comes up, the topic of how expensive real estate is, is never far behind. a friend of mine in auz was showing off his new pad on the Gold Coast, crazy good view, but pretty small and god knows how much it cost.

im much happier with a lot of space and a big gadren for the kids personally

32 sats \ 0 replies \ @Machiavelli23 25 Oct

Where I’m from prices are high but there is a lot of houses on the market. I keep an eye on the housing market because we’re looking to buy but prices are ridiculously high. Homes stay on the market for a long time and don’t sell until the price has been lowered once or twice. Overall, the market in my area is stagnant to slightly lower but there is a lot of inventory out there for those with deep pockets.

14 sats \ 1 reply \ @Undisciplined 25 Oct

I think it is just global liquidity going through the roof.

The same thing happened here. We bought our first home in a small town and sold it a few years later for more than double what we paid.

55 sats \ 0 replies \ @stack_harder OP 25 Oct

makes me think of this chart

47 sats \ 1 reply \ @Jimmyhoneyalchemist 26 Oct

Yes this is one of the reasons I live in a van. That and the fact that I may or may not be insane.

0 sats \ 0 replies \ @stack_harder OP 26 Oct

van life is pretty popular on youtube so you're definitely not alone. i follow a few channels and enjoy the content

14 sats \ 2 replies \ @realBitcoinDog 26 Oct

Makes sense ppl think Bulgaria officially adopting the euro elevates your country to a higher status, so they think ppl might move there and so its value goes up

I don’t know anywhere that housing cost goes down except a major market crash

10 sats \ 1 reply \ @stack_harder OP 26 Oct

in our nearest city it's non stop construciton and i asked, who is even buying this stuff, the job market is absolutely cooked and the most common answer i get is Bulgarians with jobs abroad who buy multiple units on cheap mortgages or foreigners, and even then , the amounts of brtis, russians and germans buying is lower than ever

0 sats \ 0 replies \ @realBitcoinDog 26 Oct

Bitcoin fixes this

Buying for the investment premium. Not even to live in!

373 sats \ 4 replies \ @Solomonsatoshi 25 Oct

No, property prices in New Zealand and Australia and I hear the US as well are stagnant if not in decline...after decades of increasing more than inflation the price of debt has now bottomed out and property prices can be expected to be stagnant for some time now.

In your case joining the EU monetary union probably adds value to property as you are presumably gaining access to a larger scale economy and increased expectations of future economic performance compared to past performance.

Governments and monetary unions are major factors in determining the wealth of nations and people are apparently expecting/speculating upon the value of property in Bulgaria to be increased by EU monetary union.

98 sats \ 2 replies \ @krispy_donkey 26 Oct

Definitely seems to be the case in NZ, and I am not sure about the US and can imagine it very much depends on the specific local market, however as a whole in Australia we are off the races, again, at least for the next few months.

I have a conspiracy theory that after the US Govt bailed out the banks in the GFC, the resultant increase to the US money supply meant other country’s currencies were suddenly very competitive with the dollar, possibly explaining the exchange rates at the time. This would’ve been painful for American importers, I can only imagine how expensive NZ lamb must have gotten for instance. Anyway at this point the US would have asked their closest allies and trading partners if they could also kindly send expand their money supplies too, in order to get exchange rates back to their historical norms. For allies such as NZ and Australia, the only feasible way of doing this was to lend, lend, lend, in doing so creating money/debt and increasing their total money supplies.

I may be completely wrong but comparing the USD/AUD chart with the mean Australian house price between 2010-2020 is interesting.

46 sats \ 1 reply \ @Solomonsatoshi 26 Oct

Yes NZ and other tributaries to the US military and monetary hegemony definitely follow the lead of the Fed. It began really pumping early 2000s with Bush2s war on Iraq and massive loosening of housing lending discipline- pumping the middle classes wealth perception. It has gone right back to 1990 since interest rates declined globally from 20%+ until Covid when they reached zero or even below zero. The constant easing of monetary discipline combined with cheaper and cheaper mortgage finance inflated house prices- but from here on the price of fiat debt cannot go much lower and incomes are constrained- the rentseeking fiat debt slavery bankers/military industrial combine its extracting maximum tribute but the whole shebang is unravelling. Thats my hapennyworth view on it. You can only financialise, rentseek and debt farm up to a point and then it stops. We are at that point or close to it. We need to actually return at some point to producing things that other people want/need to buy to earn an honest crust- but the west has mostly forgotten that and needs a wake up call. NZ grass fed lamb beef and dairy are the best value BTW- not that I'm biased ;)

100 sats \ 0 replies \ @krispy_donkey 27 Oct

Yes you're right I remember those times living in Welly and the concept of property ownership and investment really spreading right up until I left in 2007, some of my friends were getting into it and it all sounded like Greek to me. I am 100% biased but I believe overall NZ has the best lamb, beef, seafood and produce in the world. Aussie beef is right behind, but one thing they do have is multiple supermarkets selling rump cap for roasting at home, which is a damn shame because it's a delicious cut and absolutely piss easy to make, hopefully this changes in NZ soon.

0 sats \ 0 replies \ @beyond_turbulence 27 Oct

The Desalination Bubble (or: When the Pipes Run Dry)

For decades, the Anglo property desalination plants—New Zealand, Australia, the US—pumped out ever-saltier home prices, turning sandcastles into gold mines.

BTC white paper ? https://beyondturbulence.blogspot.com/p/bitcoin-white-paper-analysis-correcting.html?m=1

The formula was simple: cheap debt + scarcity panic = This shack is now a million-dollar starter home. Shanty town ? What’s that ? Off grid tiny home communities ?

But the debt (cash) feedstock just hit peak brine. The pumps are still running, but the output?

Stagnant. Murky.

The “market” is constraining flow and finally realizing that you can’t distill wealth from thin air.. forever...

The party’s over like the silver !

The hangover’s called affordability.

Meanwhile, over in Bulgaria, the pipes are suddenly gleaming. Why?

Because the EU monetary union just rolled up with surgical tools to do dead giant surgery like Oak Flats —Apache Stronghold!

"Under New Management"

That’s what the sign reads lol

A promise to plug the plant into a bigger grid. Investors are lining up, squinting at the blueprints, whispering: “Future EU water pressure? That’s gotta be worth… something."

The old local taps—leaky, rusty, but your taps are being recalibrated for Euro-scale flow!!!

The bet isn’t on what the property is, but what it might become once the Brussels-backed plumbing kicks into full gear ..

Moral of the story:

Your plants? Are they running on fumes and nostalgia? Surviving ? God help us, God save us from being angry and God please please please remove our fears, please!

Their plants? Thriving! God bless em and their property | rekationships, etc.

Speculation’s the new freshwater even if hauling buckets instead of building pipelines is the path to enlightenment…