Pure Insanity

[Lost_in_the_HTTP]

In the early 1990s, I bought a house on the far west side of Detroit, along the Redford Twp. line. I paid something like $43,000 or so. In the late 1990s, I sold the place for somewhere in the low $70s and that was far too high.

I know the place inside and out. Did a lot of work on it and know the bones of it. Nothing special. Basic 1 1/2 story brick bungalow with full basement and a 2 car detached garage. I personally replaced all of the wiring and plumbing, updating it all from the 1940s materials. Upstairs was finished as one big room with no closets, just hanger space. Two bedrooms, one bath, living room, dining room and very small kitchen. Around 900-1200 sq ft if include the upstairs or not. City lot was 60' x 150'. City schools and services.

All houses on the block were 40s post war cookie cutter and nearly identical with some facial differences like brick or siding, porch or no porch, etc.

I just looked up prices in that area. All in the $110-130K range. There is no chance at all any of them are worth that.

 

[nakedfrog]

In the early 1990s, I bought a house on the far west side of Detroit, along the Redford Twp. line. I paid something like $43,000 or so. In the late 1990s, I sold the place for somewhere in the low $70s and that was far too high.

I know the place inside and out. Did a lot of work on it and know the bones of it. Nothing special. Basic 1 1/2 story brick bungalow with full basement and a 2 car detached garage. I personally replaced all of the wiring and plumbing, updating it all from the 1940s materials. Upstairs was finished as one big room with no closets, just hanger space. Two bedrooms, one bath, living room, dining room and very small kitchen. Around 900-1200 sq ft if include the upstairs or not. City lot was 60' x 150'. City schools and services.

All houses on the block were 40s post war cookie cutter and nearly identical with some facial differences like brick or siding, porch or no porch, etc.

I just looked up prices in that area. All in the $110-130K range. There is no chance at all any of them are worth that.

Seems to be happening all over the country, even the podunk town in Nebraska I moved out of. A friend who still lives there has a kid that just bought a house in town and it's a good thing I wasn't drinking something when I found out how much they paid. The house just behind my old one sold for what I'd consider an absurdly high price two years ago (without any notable remodeling).

 

[igor_kavinski]

Humans are making sure that no one else is able to live in peace, other than themselves and their friends/family.

It's a war/chaos out there. Only difference is, everyone is smiling and pretending everything is awesome.

 

[nakedfrog]

Humans are making sure that no one else is able to live in peace, other than themselves and their friends/family.

It's a war/chaos out there. Only difference is, everyone is smiling and pretending everything is awesome.

This has not been my experience with talking to younger people...

 

[[DHT]Osiris]

My first home, which is in the flight path of daily f16 landings and about a quarter mile from a firing range is worth more now than I could afford. Good investment though.

 

[highland145]

Same here. Paid $75K in 96. House next door, 100sqft bigger, sold for $425K last year. 7/2020, paid $115K for a 1400sqft rental. One across the street, 200' smaller, sold last year for $182K. Nuts.

This has not been my experience with talking to younger people...

Can't blame em. At the current rate, most will never own a house.

 

[thestrangebrew1]

We bought our first house in 2009 when people were foreclosing for $149k. The original buyer bought it for $380k! I told my wife at the time that there was no house in this podunk town worth $380k unless it came with land. We sold that house in 2016 for $250k and bought our "forever home" in the same town for $295k. We're at least on an acre in a more desirable part of town but even then I had a hard time buying a house here for that much.

Just looked on Redfin - $337k
Zillow $471k

 

[Red Squirrel]

It's crazy how just bad it is. I'm glad I was able to buy mine, in 2009. Just when prices started to get bad but not like now.

My parents built their house in 1986 for under 100k. Now I doubt you could even buy the materials for less than that, let alone the labour.

Now vehicles cost more than what a house cost back in the day. It's nuts how bad we are getting screwed 6 ways to Sunday with costs of living.

 

[waffleironhead]

I bought a 650 ft2 house in madison for 125k in 2007, sold it for 150k in 2018. Market value shows at 250k now.
Absolutly insane. Should have just kept renting it out, but i was tired of dealing with tenants and thier BS.

 

[manly]

House appreciates over 25 years. More at 11.

Relative to national trends, Detroit is actually a special case. They are at about 1/3 of their peak population nearly 3 generations ago. Which explains why their houses are so cheap; $120k is about one third of the national average? Having said that, downtown Detroit is gentrifying with new condos for hipsters. These all cost a lot more than the old housing stock OP is referring to. I'm not familiar with Detroit but I imagine speculators are looking at blocks they could redevelop.

 

[pete6032]

In the early 1990s, I bought a house on the far west side of Detroit, along the Redford Twp. line. I paid something like $43,000 or so. In the late 1990s, I sold the place for somewhere in the low $70s and that was far too high.

I know the place inside and out. Did a lot of work on it and know the bones of it. Nothing special. Basic 1 1/2 story brick bungalow with full basement and a 2 car detached garage. I personally replaced all of the wiring and plumbing, updating it all from the 1940s materials. Upstairs was finished as one big room with no closets, just hanger space. Two bedrooms, one bath, living room, dining room and very small kitchen. Around 900-1200 sq ft if include the upstairs or not. City lot was 60' x 150'. City schools and services.

All houses on the block were 40s post war cookie cutter and nearly identical with some facial differences like brick or siding, porch or no porch, etc.

I just looked up prices in that area. All in the $110-130K range. There is no chance at all any of them are worth that.

CPI Inflation Calculator

data.bls.gov

$70,000 in 1999 = $131,000 in 2024.

 

[highland145]

So my rental should be at $137K. That sounds about right...but it's not.

edit: and my home of 28 years should be $149K