Crazy Inflated Home Construction Costs?

[Chad_E]

Our builder is coming back to take care of some punch items from our build that finished last year in May. He told us our house would have been a minimum $85K more if we built today. Wild!

[BlackoutRam2500]

With all this crazy going on I just wonder what all our property tax appraisals are gonna look like in 2022? [emoji33]

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[44mAG]

Crazy Inflated Home Construction Costs?

My wife and I have been putting everything in place over the last five years to start construction on our forever home Summer 2022 on our land. I really hope this craziness calms down by then. At this point we will not be able to afford to build our house we have planned.


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[Biggs]

With all this crazy going on I just wonder what all our property tax appraisals are gonna look like in 2022? [emoji33]

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I worry about this!

[RascalArms]

With all this crazy going on I just wonder what all our property tax appraisals are gonna look like in 2022? [emoji33]

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I worry about this!

I'm fairly confident it will be alarming! I cringe at the thought of what my CAD will be sending us!!!

[FLASH_OUTDOORS]

I'm fairly confident it will be alarming! I cringe at the thought of what my CAD will be sending us!!!

HCAD went up 10% this year. I’m disputing it but who knows what will happen.


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[CTR0022]

With all this crazy going on I just wonder what all our property tax appraisals are gonna look like in 2022? [emoji33]

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This is why texas will have to incorporate an income tax, I suspect we will see it within the next 5 years.

[BlackoutRam2500]

This is why texas will have to incorporate an income tax, I suspect we will see it within the next 5 years.

I bind that in Jesus name.

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[Fordnandez]

According to a few websites I have looked at and what the bank is willing to give me on a home equity loan the value of my house went up 100k......... last year. Good problem to have but this isn't sustainable and it will come crumbling down.

[FULL DRAW]

I live in Austin, I have all my life, and it is nuts. My neighbor put their house on the market for 400K which was 25K over the appraised amount. It sold a few days later for 525K after tons of offers. My friend is a realtor and he has sold plenty of houses for 115% over asking. He said they are all cash buyers from other states. Several of his clients are buying sight unseen and still live in the cities they are moving from. Funny thing is they all say the same thing, "houses are so cheap here".

Another neighborhood by us was selling on average for about $450K or so and a house got flipped and they put it on the market for 700K. It finally closed for 850K when it was said and done.

I am for sure concerned about my property tax for the years to come.

[tigerscowboy]

This is why texas will have to incorporate an income tax, I suspect we will see it within the next 5 years.

Disagree. The state has more tax income with the current sales tax than an income tax. Due greatly to the sales of products with non-residents just South.

Millions of workers are paid cash for labor and that would increase if income tax was implemented.

[Lone_Wolf]

There's two schools of thinking. Some think it's a bubble that will eventually burst, and other's think hyperinflation is unavoidable at this point, and they should buy or build now, and borrow at a fixed rate, and when the value of the dollar is worthless they have a house( real asset ) that essentially they bought cheap with borrowed money that in the future would cost 10 times the amount to buy/build with ridiculous interest rates.

How does the fed fight Hyperinflation. You jack up the interest rates. This could cause a crash. It's will be very interesting to see how it all plays out.

[BrianL]

Big factor in play right now is out of state money. I don't see that changing for several years even if rates go up some, which they have to go up 2% just to get to neutral or unsupported

[RR 314]

I live in Austin, I have all my life, and it is nuts. My neighbor put their house on the market for 400K which was 25K over the appraised amount. It sold a few days later for 525K after tons of offers. My friend is a realtor and he has sold plenty of houses for 115% over asking. He said they are all cash buyers from other states. Several of his clients are buying sight unseen and still live in the cities they are moving from. Funny thing is they all say the same thing, "houses are so cheap here".

Another neighborhood by us was selling on average for about $450K or so and a house got flipped and they put it on the market for 700K. It finally closed for 850K when it was said and done.

I am for sure concerned about my property tax for the years to come.

I followed along, but don't think he is selling for 115% over asking. Housing is nuts in the area.

[RiverRat1]

According to a few websites I have looked at and what the bank is willing to give me on a home equity loan the value of my house went up 100k......... last year. Good problem to have but this isn't sustainable and it will come crumbling down.

FED printing trillions can hold it up.

Lumber prices may come down some and housing prices may stabilize and stop selling over asking prices...But I can't see homes ever coming down even remotely close to what they were a year ago. Not a chance.

There's two schools of thinking. Some think it's a bubble that will eventually burst, and other's think hyperinflation is unavoidable at this point, and they should buy or build now, and borrow at a fixed rate, and when the value of the dollar is worthless they have a house( real asset ) that essentially they bought cheap with borrowed money that in the future would cost 10 times the amount to buy/build with ridiculous interest rates.

How does the fed fight Hyperinflation. You jack up the interest rates. This could cause a crash. It's will be very interesting to see how it all plays out.

Inflation has and is already happening. They want everyone to think it's a bubble or market with ups and downs. Prices almost never go down (for goods, homes, cars).

It will be interesting for sure. Time to finally pay the piper? We shall see. But even if they raise rates I doubt they will do it fast enough to make home prices come down more than 10%. Just too much money was created in the last 12 months.

The question is what's next to skyrocket? Cars, food, utilities, taxes, gas?
Cases can be made already for each of those to increase in price...a lot.