Home Values Are Rising by $800 a Day in San Jose • Hacker News Board

Re: Home Values Are Rising by $800 a Day in San Jose

#241

Post by hn0 » Wed, Apr 11, 2018, 12:35 PM UTC

jostmey wrote: post #168

sokoloff wrote: post #158

Earlier quoted context omitted.

If they’re the ones demanding housing at a rate that outstrips the supply, then they are the ones causing prices to rise: they’re just not the ones editing the listings.

The demand for housing is not the problem. It's the supply that is the problem. The supply is being kept artificially low

The dominant factor driving house prices is mortgage credit inflation, not supply and demand, both the hypothesis and the data for this are very strong.

See for instance: https://seekingalpha.com/amp/article/4161999-mother-deflatio...

Re: Home Values Are Rising by $800 a Day in San Jose

#242

Post by sidlls » Wed, Apr 11, 2018, 6:44 PM UTC

klipt wrote: post #236

sidlls wrote: post #32

Earlier quoted context omitted.

2% in SJ? That's insane. I'm paying 0.35% of the average sale price in rent for a townhouse in my community (San Mateo/Burlingame area).

Is that per month or per year?

Per month. I generally charge my tenants (outside the Area) pretty close to 1% per month, for reference. If I can't get 0.9% per month or more, the property isn't worth the effort at renting it out.

Re: Home Values Are Rising by $800 a Day in San Jose

#243

Post by tehlike » Wed, Apr 11, 2018, 7:07 PM UTC

abritinthebay wrote: post #235

selimthegrim wrote: post #53

Earlier quoted context omitted.

What was that, for us non-Bay Area dwellers?

Seems like he’s talking about standard seasonal variations (December is the worst month to sell in) However the difference is crazy even accounting for that

No, i lowballed at 15%. Some places saw 30% which is not attributable to that. I thought it was the tax laws, but still not clear what it is to date.

Re: Home Values Are Rising by $800 a Day in San Jose

#244

Post by pontifier » Thu, Apr 12, 2018, 1:59 AM UTC

Autonomous RVs are going to pop this bubble. You're going to see a lot of people dropping static homes for RV's, or even a couple of them.

You'll see a new generation of people who have never had a static home, but always been at home wherever they are, and they'll never be more than a few steps from their own bed.

Re: Home Values Are Rising by $800 a Day in San Jose

#245

Post by abritinthebay » Thu, Apr 12, 2018, 9:38 PM UTC

tehlike wrote: post #243

abritinthebay wrote: post #235

Earlier quoted context omitted.

Seems like he’s talking about standard seasonal variations (December is the worst month to sell in) However the difference is crazy even accounting for that

No, i lowballed at 15%. Some places saw 30% which is not attributable to that. I thought it was the tax laws, but still not clear what it is to date.

The supply has been almost nonexistent since September. Literally a handful of properties for sale.

Suddenly people started listing - so there’s a LOT of pent up demand.

Re: Home Values Are Rising by $800 a Day in San Jose

#246

Post by Treblemaker » Fri, Apr 13, 2018, 1:54 AM UTC

nwah1 wrote: post #167

taurath wrote: post #99

Earlier quoted context omitted.

Prop 13 doesn't exist in Seattle, yet prices are rising as fast or faster than the bay (on a percentage basis). There the lesson is supply/demand - there is only 1 month or less of housing stock available, when 6 would be a historically median market. Everyone is going crazy to buy something as fast as possible before they get left behind. Absolutely though Prop 13 hurts liquidity in California though. There's a lot…

Yep, Prop 13 is flagrantly unfair, but the general mechanisms by which land value rises is intrinsic to our system of land tenure. However, these windfall gains can be recycled into public coffers via the tax system and lighten tax burdens on productive activity. As a nice bonus, it would make it much harder to be an idle landlord in a prime area... the physical equivalent of a patent troll.

> Prop 13 is flagrantly unfair

How do you define "fairness" in this context?

* Edited to less confrontational question.

Re: Home Values Are Rising by $800 a Day in San Jose

#247

Post by nwah1 » Tue, Apr 17, 2018, 1:29 PM UTC

Treblemaker wrote: post #246

nwah1 wrote: post #167

Earlier quoted context omitted.

Yep, Prop 13 is flagrantly unfair, but the general mechanisms by which land value rises is intrinsic to our system of land tenure. However, these windfall gains can be recycled into public coffers via the tax system and lighten tax burdens on productive activity. As a nice bonus, it would make it much harder to be an idle landlord in a prime area... the physical equivalent of a patent troll.

> Prop 13 is flagrantly unfair How do you define "fairness" in this context? * Edited to less confrontational question.

It privileges long time titleholders over newcomers, in addition to the basic problem of land speculation being exacerbated, allowing random titleholders to capture even more of the gains of surrounding economic development that they, in their role as titleholder, played no necessary role in.

In fact, by effectively being a tollbooth operator upon the prerequisites for economic development they are an active hindrance. Land titles are necessary, but it is not necessary that they keep the land rent, only the improvement values that they are responsible for.