Real Estate prices

[viking33]

I was browsing through the Sunday papers today and got to the Real Estate section. I usually don't bother reading this section, mainly because I'm not interested in buying another house and moving and all that.
I was rather startled by the average price of homes here on the Cape.
Seems to be around 1 to 5 million bucks! That's not even for a big lot or waterfront property! Granted they are nice looking houses but sure aren't a castle! I don't think I could afford to buy here with today's prices! I always thought I "stole" my present home when I bought but WOW!

That got me to thinking ( yes, I do that occasionally ) just what the going prices are in other areas of the country and the world? Curiosity killed the cat?

[John Gray]

I think you'll find that house prices almost anywhere vary from 'expensive' to 'mind-blowingly, stratospherically expensive'... The degree depends on location, location, location.

[HansV]

Here in The Netherlands, house prices are going up quickly, but regional differences are large. The market has gone crazy in Amsterdam, and to a lesser extent in other cities in the west of the country - houses are frequently sold for far more than the original asking price. In the south, east and north of the country it hasn't gotten that far yet. And the same amount that'll get you a one bedroom apartment in Amsterdam will get you a four bedroom house on a decent-sized stretch of land in the north-east...

[Argus]

Well, in the three major metropolitan areas in Sweden, and especially in the Stockholm area, the prices have kept on rising since 2008-2009. In relation to income ratio I think the prices are in top 3 in the world, mortgage debts are growing, so it's quite bad. There have been recurring warnings from some about a bubble.

The main reasons for the high prices we see are very low interest rates, two decades with low level of housing construction, and a fast growing population (the last million took only 13 years, the one before took 35 years (and now we need 700,000 new homes in less than a decade; we did build one million homes in 10 years 1965-1975, but many of these have fallen into disrepute now, so many are not too keen to follow that path, and back then we had interest subsidies, supply-side subsidies, but no longer, so "expensive" flats are being build)). So one could say there are market fundamental explanations. But the high mortgage debts do worry.

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Even outside these parts of the country we have seen prices double in 10 years, or less; but that's nothing compared to the Stockholm area.

[Claude]

Same here in Sydney or Melbourne. We bought our house in the late seventies for $42,000 . It is now worth approximately 1,5 Million.

[Jay Freedman]

Some cities in the United States are very high-priced and still rising. San Francisco, Seattle, and Boston are some of the worst. Here in the area around Philadelphia, the situation is very mixed -- in some neighborhoods the median prices have even decreased recently. Here's an article from a couple of weeks ago: http://www.philly.com/philly/business/r ... 70527.html

[Rudi]

In Cape Town, we to have, as John said, "stratospherically expensive" homes, (love that description John!). Granted, these are on the mountain overlooking some amazing sea vistas, but in the suburbs, the trend has also caught on and even standard houses and complex units are very expensive. In the country, say about 50 - 100 km outside of Cape Town, one can buy/rent a four bedroom house for about the same price as a large bachelor unit or two bedroom apartment. Its quite ridiculous in my humble opinion!!

[StuartR]

Here in London prices range from £500K for something tiny in the very cheapest parts, up to £2M or more for a decent size house in a popular area. and many times more than that for something large in an expensive district.

[AlanMiller]

A friend was amazed when I told her you could still pick up something in one of Melbourne's most expensive suburbs for around AU$300K ... until she saw what you get!

Alan

[HansV]

326,000 Australian dollars (about €217.000, £189,000 or US$244,000) for a beach hut?

[ChrisGreaves]

I was rather startled by the average price of homes here on the Cape.

Toronto $CDN916,000.
That's an average over 2,500,000 people, half of whom live in high-rises

Chris

[BobArch2]

The Toronto/GTA Real Estate market was skyrocketing until Ontario's Premier Wynne introduced this.

Then the market decided to slow down.

Some economists are suggesting a drop of 40%.

Bought my house in 1979 for Cdn$80K. Same model currently selling for Cdn$900K. That is until the above issues hit the fan.

[ChrisGreaves]

The Toronto/GTA Real Estate market was skyrocketing until Ontario's Premier Wynne ...

I just want you all to know that on this occasion I couched my reply to Bob in a PM.

Bit oh! the temptation to respond here took its toll on me.
(signed) "Hairless" of Toronto

[HansV]

Thanks, Chris.

[Argus]

I would expect quite a change over 30-40 years, comparing to the 70s and the 80s. The last 3-5-10 years, however, is a completely different game. For example, an increase of between 7.1 and 8.8 % over the last 12 month period (depending on type of home) (and that's for the whole kingdom ). Local markets, as mentioned earlier, have seen higher increases.

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Ah yes, we saw this thread the other week.
Tickets vs candy (eh, sweets, chocolate).

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[steveh]

A friend was amazed when I told her you could still pick up something in one of Melbourne's most expensive suburbs for around AU$300K ... until she saw what you get!

Alan

Hi Alan

Better than a parking spot though in Hong Kong

[viking33]

A friend was amazed when I told her you could still pick up something in one of Melbourne's most expensive suburbs for around AU$300K ... until she saw what you get!

Alan

Hi Alan

Better than a parking spot though in Hong Kong

That's close. A year or so ago, a parking slot in Beacon Hill Boston, sold for $650K. Who knows what it would go for today?
That's just a slot off street, no cover and it would take good driving skills to maneuver your vehicle onto the spot without encroaching on the guy next to you , who also bought a slot there. 1.3 mil for two places to park your BMW or Mercedes? What a deal! Where do I sign?