You Versus Pandemic Inflation (What to Consider)

[ss20ts]

Vacation housing also counts as luxury housing, IMO. They're products for the rich(er) and result in a lack of availability for the poor(er).

It's all not luxury housing. I mean if you call a 900 square foot ranch house that hasn't been updated since it was built in the 60's luxury.... Many houses in vacation areas aren't luxurious by any stretch of the imagination. Lots of these homes have been owned by the same family since they were built decades ago.

[LevelUP]

We bought our house on March 6th 2020.  About a week before the shut down.   The supposed value of our house has increased about $80,000 to $100,000.  Sometimes my husband is like… sell sell sell.  But at the same time, we really like our house.  

You guys are doing well. I wouldn't sell. 

My property went up a similar amount.

My cousin was in a situation where they were bummed because they had to buy a home after the market went up. But then they got more for their old house, so it ended up being a wash though they had to put down a little more cash.

[SteveFoerster]

Nobody wants to sell their home because they would be buying a similar house at a similar price, so they would gain nothing.

Finances are not the only factor in housing decisions. For example, I do, because I'm getting married and we need enough space for my kids and hers. 

And right now it's a crazy seller's market in my area -- houses here are selling in less than a week. That's been very annoying for buying the new house, but it makes it a piece of cake to unload the old one for a good price.

[uncapentin]

I am in the building industry. This is how some of it has been going. = Contractor bids on a project with an estimated start date and price. Start date gets put out a few months due to material supply issues, costs increase because contractor can't purchase and store the large quantity of material to begin and complete said project early. Contractor has issues from the supply chain, inspections, employees and subs. The subs have the same issues as the contractors. With home builders, they have to have it written in their contracts that price increases get passed on to the buyer or they're just out of luck. ( same with commercial contractors)
  The housing bubble is being driven hugely by large banks and investment firms purchasing like crazy. It began almost to the day that the covid shut downs started. That fueled people to hurry up and make the decision to move or sell to make a profit on their home and then found the next home was over priced and they had trouble finding a home. Many ended up in bid wars. Do your research and you will find there are big banks behind a multitude of these home purchases. Oddly, everyone believes they are getting in on this so heavily for the investment purpose. I fail to believe that. Most investors invest when the market is down so the return on the investment happens sooner. Yes, there are everyday folks buying and selling, but a vast majority of homes are being purchased by firms owned by banks.
  The used vehicle market is bizarre. Never in my life have I ever heard of every day used vehicles gaining value at a rate higher than gold. Actually, at any rate. The only vehicles notorious for gaining value are classic, highly sought after vehicles. I've asked folks older than me and it's never happened in their lifetime either. They just shake their head. A friend purchased a diesel pick up several years ago for around $16,000. I believe it's a 2014. Someone crashed into him recently and totaled his truck. The insurance company paid him over $30,000 which was the "new value" of his truck. Now he's having a time finding another vehicle comparable without spending $60,000. It's insanity.
  I remember the gas lines of the 70's and lived on ration cards in Germany while military. I'm not excited about the current state of things. What folks should be considering is doing everything they can to lessen their debt, cut out expenditures and lower bills any way they can.

[Xyxyfendz]

I think our pandemic inflation is nothing if compared with Russia's economical situation now