pull down to refresh

Are real estate prices getting insane, basically everywhere?
1115 sats \ 10 comments \ @stack_harder 15h 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?
write
preview
related posts
14 sats \ 1 reply \ @Undisciplined 14h
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.
reply
55 sats \ 0 replies \ @stack_harder OP 14h
makes me think of this chart
reply
340 sats \ 2 replies \ @Solomonsatoshi 14h
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.
reply
66 sats \ 1 reply \ @krispy_donkey 4h
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.
reply
46 sats \ 0 replies \ @Solomonsatoshi 4h
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 ;)
reply
0 sats \ 0 replies \ @realBitcoinDog 2h
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
reply
0 sats \ 0 replies \ @Jimmyhoneyalchemist 5h
Yes this is one of the reasons I live in a van. That and the fact that I may or may not be insane.
reply
0 sats \ 0 replies \ @OT 9h
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.
reply
0 sats \ 0 replies \ @Machiavelli23 11h
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.
reply
0 sats \ 0 replies \ @zodthebarbarian 12h
deleted by author