3 ms·

Prices went up because real estate prices went up because people sold - not the other way around.

TedDoesntTalk 5y ago
When people don’t sell, market prices still go up: it’s called supply and demand, and in the situation you describe, there is very little supply.
- emteycz 5y ago
  But then it's the same people who wanted to "own their town" who are raising the prices for their neighbors, not some alien invaders pushing the poor locals away.
ehnto 5y ago
What are you expecting to have happened? The town to get together and everyone refuses to sell? Like I said it wasn't an ultimatum people were given to sell or keep their town, it didn't just spring on them one day in a town meeting where they could vote to gentrify or not. Some people are going to sell because they're moving on, some people die and their estate sells, it's just going to happen. Over time more of them get sold to holidaymakers and investors, and you can start to pick up on what's happening, but it's not like you have personal agency over the problem anymore. You could refuse to sell, but your neighbor might not. Prices are going up, the town is changing whether you like it or not.
- emteycz 5y ago
  I don't expect anything, I just find the notion of selling without wanting to sell funny.
  - ehnto 5y ago
    I guess I'm not sure what your point is then. Think of a young couple, new kid, want a bigger house in their home town, no longer possible because their wages at the ski lodge don't actually let them afford a home the size they need. They sell their current one and leave. I'm not saying feel sorry for them, just using it as an example.
  - aahortwwy 5y ago
    Some friends in WA sold without wanting to sell. The market value of their home grew enormously, and with it their property taxes. They live frugally on a low, fixed income and eventually the tax burden grew too much. So yeah, they got a nice capital gain, but they had to move away from the home they bought as newlyweds and raised their family in. It probably would've been better for their children's inheritance if they hadn't sold the house, too. Shit happens, I suppose.
    - kkjjkgjjgg 5y ago
      Sounds like shitty property tax laws. That kind of law is not normal in the rest of the world, afaik.
      - aahortwwy 5y ago
        It's a very common type of property tax law in the USA, and quite popular here on HN (see: opposition to Prop. 13 in CA).
        kkjjkgjjgg 5y ago
        It sounds insane to me - so basically if you want to buy your own home to be safe against rent inflation, you can still be priced out of your own home. How does that make any sense?
        jseban 5y ago
        Well, only if your home is really oversized. The "issue" is that retired people are "forced" to move to a home sized for 1/2 people and not stay forever in a home made for 6 people, unless they have savings to pay for the property tax. And that's "sad" somehow
    - jseban 5y ago
      Yeah but they were still forced to do something that actually makes sense, I mean considering the big picture it's good that an actual family now get to live in that home, that really needs a big home. And the couple downsized to a suitable home, and got a big pile of cash for the inconvenience. Seems like it's working great if you ask me, what's the issue here and how is it any "better" if we would spend tax money for singles/couples to live in large family homes that they don't need and can't afford?
buttercraft 5y ago
Prices also went up because the housing supply disappeared. There simply weren't any houses available to buy or rent for a while. People were willing to pay a ton of money for anything thay they could find. So, naturally, many land lords increased rent to force the old tenants out, and then rented to new, higher-paying tenants from out of town.

When people don’t sell, market prices still go up: it’s called supply and demand, and in the situation you describe, there is very little supply.

emteycz 5y ago
But then it's the same people who wanted to "own their town" who are raising the prices for their neighbors, not some alien invaders pushing the poor locals away.

ehnto 5y ago

What are you expecting to have happened? The town to get together and everyone refuses to sell? Like I said it wasn't an ultimatum people were given to sell or keep their town, it didn't just spring on them one day in a town meeting where they could vote to gentrify or not. Some people are going to sell because they're moving on, some people die and their estate sells, it's just going to happen. Over time more of them get sold to holidaymakers and investors, and you can start to pick up on what's happening, but it's not like you have personal agency over the problem anymore. You could refuse to sell, but your neighbor might not. Prices are going up, the town is changing whether you like it or not.

emteycz 5y ago
I don't expect anything, I just find the notion of selling without wanting to sell funny.
- ehnto 5y ago
  I guess I'm not sure what your point is then. Think of a young couple, new kid, want a bigger house in their home town, no longer possible because their wages at the ski lodge don't actually let them afford a home the size they need. They sell their current one and leave. I'm not saying feel sorry for them, just using it as an example.
- aahortwwy 5y ago
  Some friends in WA sold without wanting to sell. The market value of their home grew enormously, and with it their property taxes. They live frugally on a low, fixed income and eventually the tax burden grew too much. So yeah, they got a nice capital gain, but they had to move away from the home they bought as newlyweds and raised their family in. It probably would've been better for their children's inheritance if they hadn't sold the house, too. Shit happens, I suppose.
  - kkjjkgjjgg 5y ago
    Sounds like shitty property tax laws. That kind of law is not normal in the rest of the world, afaik.
    - aahortwwy 5y ago
      It's a very common type of property tax law in the USA, and quite popular here on HN (see: opposition to Prop. 13 in CA).
      - kkjjkgjjgg 5y ago
        It sounds insane to me - so basically if you want to buy your own home to be safe against rent inflation, you can still be priced out of your own home. How does that make any sense?
        jseban 5y ago
        Well, only if your home is really oversized. The "issue" is that retired people are "forced" to move to a home sized for 1/2 people and not stay forever in a home made for 6 people, unless they have savings to pay for the property tax. And that's "sad" somehow
  - jseban 5y ago
    Yeah but they were still forced to do something that actually makes sense, I mean considering the big picture it's good that an actual family now get to live in that home, that really needs a big home. And the couple downsized to a suitable home, and got a big pile of cash for the inconvenience. Seems like it's working great if you ask me, what's the issue here and how is it any "better" if we would spend tax money for singles/couples to live in large family homes that they don't need and can't afford?

buttercraft 5y ago

Prices also went up because the housing supply disappeared. There simply weren't any houses available to buy or rent for a while. People were willing to pay a ton of money for anything thay they could find. So, naturally, many land lords increased rent to force the old tenants out, and then rented to new, higher-paying tenants from out of town.