- Jan 27, 2004
- Professional Status
- Certified Residential Appraiser
This area (just a couple miles outside of Indpls) is being turned into the warehouse capital of the Midwest. Within 3 miles of my office there is about 30-40 Million SF of big box warehouses and 5M+ being built every year. Amazon alone has 5, each about 1M plus. The jobs pay about $15 - $20/hr avg. and there's signs on every building for 'help wanted'. A lot of these workers are competing fiercely with investors for the low end housing driving prices (purchase and rents) up about 50%-60% plus in the past 3 years..... (think warehousing--if there is a population shift in this country, and/or more people shop online, than warehousing/distribution makes large changes too).
Down here, the investors are jumping in on the lower-end homes, buying them and turning them into rentals. But to make the mortgage, taxes, insurance, management and reserves, rental rates for a small 2/2 or 3/2 is $1400-1600, well beyond what a lot of renters can afford. What they are getting are people moving down and renting while waiting for their homes to get built. Just south of us, the county approved a whole new town of 11,000 people, all to be constructed from the ground up. Our county is already subdivided and has lot capacity for a half-million people. In the last few years, the population jumped from 125K to 200K. And they are coming down from the north with money from their homes, paying cash, and getting into bidding wars when they buy. Rate of price inflation last year was 12-15%, but now, would bet in the 25% or more range.
The average LP/SP in Orlando is 105%. My buddy, a residential broker has a buyer that put in 7 different offers above asking price and has not landed a home yet. It's crazy.The red-hot U.S. housing market is widening the gap between what a home is objectively worth and what eager buyers are willing to pay for it. Home prices have rocketed to new highs and many homes are selling for more than their appraised value. “This might be the most competitive housing...www.yahoo.com