The cost of building has gone up a lot as well

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Mar 1, 2021
3:44:23pm

RockyBalboa All-American

The cost for lumber, materials, etc for builders has gone through the roof.

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RockyBalboa

Previous username: MesaCougar
Bio page: RockyBalboa
Joined: Apr 24, 2002
Last login: May 8, 2024
Total posts: 48,334 (1,436 FO)

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Messages

Author

Time

For those who think Utah is in this temporary housing bubble....

macdizzle

3/1/21 3:34pm

Those are all factors, but the biggest factor is insanely low rates. Once rates go back up, demand for housing will

Pimpin4Paradise

3/1/21 3:38pm

^ if rates go back up

Heath Squashwell

3/1/21 3:40pm

“If”? Are you suggesting they will not?

Big Daddy D

3/1/21 3:46pm

I don't expect rates to increase because our federal government can't afford it!

DoseOfReality

3/1/21 3:57pm

At the tipping point there is no other option. We are not quite there obviously.

Big Daddy D

3/1/21 7:11pm

my brother the liberal thinks we don't have to worry about the debt bc a country

BYU Grounds

3/1/21 7:44pm

actually there is a huge difference between a currency issuer going into debt

Nat Gas Man

3/1/21 7:48pm

that is exactly what he said, when times are good "print" money to spend, pay de

BYU Grounds

3/1/21 10:13pm

I know rates will rise. But certainly in times like these it's hard to see.

Heath Squashwell

3/1/21 10:09pm

When

Coug-de-Lyon

3/1/21 4:30pm

Great point. I don't know that it dramatically changes overall demand, but just

macdizzle

3/1/21 3:41pm

Agreed. This will be the result of increased rates. Demand stay strong. Bang for

TarCoug

3/1/21 3:44pm

$500k homes are no longer worth that if there is nobody to buy them. So it's still a function of supply and demand.

Pimpin4Paradise

3/1/21 3:45pm

Plenty of Californians willing to pay that still

Mike Honcho

3/1/21 4:23pm

This makes sense but historically rates go up because there is inflation which

johnnybyu

3/1/21 4:34pm

It didn't slow when it was in the 4's. I doubt it will slow enough to mean

Lip Gallagher

3/1/21 4:51pm

^This, especially for the >400k range

flyzag

3/1/21 6:37pm

Why can't supply catch up? Won't more builders jump on the wagon?

Ryan M

3/1/21 3:42pm

Why haven't they to this point? What I've heard them say is they can't secure

macdizzle

3/1/21 3:44pm

There are greater physical challenges than other western cities with explosive

Diddy

3/1/21 3:44pm

Because people don't like high density housing next to their house.

All-American

3/1/21 3:46pm

My FIL runs the homebuilding arm of a large Utah builder.

rad dawg

3/1/21 4:20pm

The other issue is water rights. Some water basins are already fully allocated.

DwigtA2RM

3/1/21 4:37pm

These giant things called mountains. Area is maxed out except WJ.

Lip Gallagher

3/1/21 4:48pm

The cost of building has gone up a lot as well

RockyBalboa

3/1/21 3:44pm

Lehi high school went 20 million over budget due to construction costs...

1984coug

3/4/21 6:43am

What?! Oh crap that’s gonna be another bond

BYU Grounds

3/4/21 9:23am

I hate buying during the peak, so please keep going up.

TarCoug

3/1/21 3:45pm

I heard this before. You may be right. But we are going on 13 year bull run in R

Iman23

3/1/21 3:46pm

Something inevitably happens. It will go down but maybe not very sharply in Utah

pink22

3/1/21 4:01pm

Truth. There is a long line of out of state buyers waiting to buy here and no inventory.

dryflyelk

3/1/21 3:46pm

Salaries in Utah aren't high enough to justify the house prices and investors

donnerstag

3/1/21 3:49pm

Also lots of kids and people that still like having kids. Internal growth projections were already strong

Grit for Brains

3/1/21 3:53pm

Yeah...they’re crazy.

pink22

3/1/21 4:02pm

A couple of things that people wont look at.

rad dawg

3/1/21 4:04pm

I suspect the recent mortgage demand drop is more refinance than purchase

DC12

3/1/21 4:06pm

Refinance data is separate. Those are down even more.

rad dawg

3/1/21 4:09pm

Interesting- not sure what to make if that because demand still seems so strong

DC12

3/1/21 4:22pm

One other factor is the number of Airbnb properties

Nat Gas Man

3/1/21 4:08pm

what about when y'all move to Missouri

fulano

3/1/21 4:07pm

sellers don't want to be buyers right now, so they're not listing their homes.

BYUFBDAD

3/1/21 4:11pm

Buy high, sell low. This is the way.

Coug-de-Lyon

3/1/21 4:34pm

Why do you believe the California migration won’t slow down?

lilpenny

3/1/21 4:41pm

its always temporary BUT the factors you named makes the question,"when will it

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