Can't help but think about the inflation and something has to give

[Boat 405]

So housing prices in Havasu are up about double from a few years ago, boat prices are similar... Yet has your income doubled in that same time period? Just asking....

 

[Mandelon]

That's a negative Ghostrider.

 

[LargeOrangeFont]

It's supply and demand, not inflation. The two are different. You are speaking of the prices of luxury items here - boats, 2nd houses, retirement homes, etc.

No one has stopped building pools, building houses, buying trucks or buying boats. Boat, truck and house prices keep rising because people are lined up willing to pay for them and don't want to wait. So suppliers raise prices.

Inventory of housing is low, that also drive up RE prices.

 

[RCDave]

Its the definition of inflation. Too many dollars chasing too little goods. all artificially induced via massive money printing and trillions in new debt

 

[LargeOrangeFont]

Its the definition of inflation. Too many dollars chasing too little goods. all artificially induced via massive money printing and trillions in new debt

But he just said no one is making more salary to support it. If you got your $3K from Biden and/or Trump, and your $600/month, you still aren't buying a house or a boat.

We are not talking about bread and milk here, we are talking about luxury items bought with discretionary monies.

 

[WhatExit?]

Its the definition of inflation. Too many dollars chasing too little goods. all artificially induced via massive money printing and trillions in new debt

Not exactly. Inflation is the decline of purchasing power of a given currency over time. Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.

While inflation has caused a decline in purchasing power it has not driven up home/truck/boat prices. That's supply and demand exacerbated by Covid which has caused people to do more home improvement, buy new homes, trucks, cars and boats instead of taking vacations and traveling, etc.

 

[LowRiver2]

But he just said no one is making more salary to support it. If you got your $3K from Biden and/or Trump, and your $600/month, you still aren't buying a house or a boat.

We are not talking about bread and milk here, we are talking about luxury items bought with discretionary monies.

For Havasu: the retirement crowd is a huge reason for demand/ prcing .
I saw it coming in 19’. Havasu is out of Ca but only 4 hours to visit kids/grandkids in Ca. vs a flight to TX / East coast states.

It was inevitable to happen. Havasu is a so cal gen X, late Boomer gen paradise.
NV. is as well but Havi only has so much land.
The idea of home values isnt as big a deal to retirees who plan to do 20 years plus there; they get that life is not certain after 50, so make the jump now( low interest rates are the final straw to pull the trigger)

 

[530RL]

Inflation is simply a measure of the rise in price of a good or service.

If the price is going up, regardless of the reason, there is inflation in that good or service.

 

[Tooms22]

Question: Where did all the money come from? PPP funds that companies didn't need but got anyway?

Increased unemployment isn't enough to buy houses, cars, and boats.

Everyone just had 25-50% more for houses in their bank account? Did the new demand people live in apartments and condos and all of a sudden decide they wanted house and have plenty of cash to pay 10% over list?

 

[NicPaus]

Yes. And if I could find more Guys willing to work it could triple. Almost everyone I know that owns a business had there most profitable year last year. Surpassed the last boom.

 

[coolchange]

But he just said no one is making more salary to support it. If you got your $3K from Biden and/or Trump, and your $600/month, you still aren't buying a house or a boat.

We are not talking about bread and milk here, we are talking about luxury items bought with discretionary monies.

Have you bought bread or milk lately?

 

[Gonefishin5555]

It feeds off itself. The increase in housing prices leads a lot of people into tapping into their home equity to buy things they really can't afford. Maybe they don't directly do an equity line but they say fuck it my house is now $1M I can sure as hell afford a $60K truck or $100K boat and they just go finance it. You see a side effect in the other thread about hiring people..no one wants to work for $15 an hour it seems that entry level is now $20 an hour. Everything is fucked up and gives people opportunity to profit off the confusion as opposed to hard work. Hopefully it will settle down and salaries and prices can stabilize but I don't think my house is ever going back under $1M as the damage is done.

 

[OldSchoolBoats]

Damn, was starting to get worried. We were almost going on 2 weeks without a thread like this.........

 

[sintax]

Damn, was starting to get worried. We were almost going on 2 weeks without a thread like this.........

sky is falling!

Best thing you can do is live responsibly, regardless of what others are doing. Do what works well for your goals / finances. Learn from the 2008 era nonsense, and dont let it happen to you. Plan for the worst, hope for the best.

 

[LargeOrangeFont]

Have you bought bread or milk lately?

Its not double.

 

[2FORCEFULL]

It's supply and demand, not inflation. The two are different. You are speaking of the prices of luxury items here - boats, 2nd houses, retirement homes, etc.

No one has stopped building pools, building houses, buying trucks or buying boats. Boat, truck and house prices keep rising because people are lined up willing to pay for them and don't want to wait. So suppliers raise prices.

Inventory of housing is low, that also drive up RE prices.

you need to go shopping, ... the house that was 229k on your lot is now 379k.. fuel , metal, lumber, cabinets ,auto parts all taking the same hike...

 

[2FORCEFULL]

they same 100k cash has a buying power of 50k

 

[2FORCEFULL]

there's a huge increase in the price of auto's on the way.... with the rise of every thing there will be no "Bubble".... only a big over the board recession

 

[Mandelon]

Prices will rise until buying drops off. Then prices will level off and drop. Y'all know the cycle by now.

Havasu is getting lots of people selling and moving from California. An expensive home in Havasu/Nevada/Idaho/Texas is still pretty darn affordable to people selling out of coastal CA and bringing cash.

 

[Cole 392]

 

[2FORCEFULL]

I bought my first new car for $3000, and my first house for 30k.....prices of homes in havasu just did a catch up to so-cal,... people from cal sold less of a home for way way more, and bought way way more of a home for way way less in havasu,... and at the same time upped their income level.... they lived in lower income home areas in cal and moved in to upper income homes in havsu, and pocketed money...

 

[LowRiver2]

I bought my first new car for $3000, and my first house for 30k.....prices of homes in havasu just did a catch up to so-cal,... people from cal sold less of a home for way way more, and bought way way more of a home for way way less in havasu,... and at the same time upped their income level.... they lived in lower income home areas in cal and moved in to upper income homes in havsu, and pocketed money...

And thus all cash sales / offers 20-50k over asking in Havi this last week.
The retirement factor the key to Havi pricing.

 

[RCDave]

Not exactly. Inflation is the decline of purchasing power of a given currency over time. Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.

While inflation has caused a decline in purchasing power it has not driven up home/truck/boat prices. That's supply and demand exacerbated by Covid which has caused people to do more home improvement, buy new homes, trucks, cars and boats instead of taking vacations and traveling, etc.

Sorry nope. This inflation is principally triggered by what classically triggers inflation. Artificial government induced massive increases in money and debt. Plus, much exported us dollars (arising from years of trade deficits) are coming back to the US from China, exacerbating too many dollars in circulation. Investors have no where else to put money than the stock and real estate markets

 

[mesquito_creek]

I did not receive any of the Trump handouts or the Biden handout, BUT for 1 full year we didn't hardly go to resturant's or entertainment. Additionally I had all my commuting costs basically get cut to zero. So even if you didn't get a big raise any conservative person who did not lose their job should have come out the back end with a nice pile of cash.

 

[zbudman]

Wife just read an article saying Havasu housing prices fell 13% in March/April.

 

[LowRiver2]

Wife just read an article saying Havasu housing prices fell 13% in March/April.

I saw that too and laughed.
I’d talk to any agent under RDP, J Luizzi, etc. Every agent has multiple buyers looking for the same thing.
The decline must be on duplexes, shitty lots or shit box houses.
Just follow any RV garage home on zillow.
Only 1% of those don’t move in a couple weeks.
Only 8 homes listed in the $500-800k range right now, was over 60 on average a year ago in same range.

 

[RodnJen]

There are a number of contributing factors but generational wealth transfer is one of them. A ten+ year run in the stock market helps as well.

The Greatest Wealth Transfer In History: What’s Happening And What Are The Implications

Experts predict nearly $30 trillion will be passed on from Baby Boomers to younger generations over the next many years. The implications on the market, real estate and healthcare will be significant. Can Generation-X and Millennials handle what's about to happen?

www.forbes.com

 

[Ultra912]

I have a friend who sold in Havasu in March and he told me his RE agent told him if he waited another 30-45 days he could have fetched another 15-20K

 

[LargeOrangeFont]

you need to go shopping, ... the house that was 229k on your lot is now 379k.. fuel , metal, lumber, cabinets ,auto parts all taking the same hike...

Living staples are not rising anywhere close to that same rate. Prices are high because of supply problems. That is not to be confused with inflation. Inflation is a factor, sure. but not the complete picture.

You have people here crying “hyperinflation OMG”. Hyperinflation is a loaf of bread coating $200. We are not experiencing any hyperinflation.

The supply chains that lost money in 2020 due to dwindling demand are now subject to overwhelming demand, not because of inflation, because people want to spend money.

No one “needs” a boat, no one “needs” kitchen cabinets, no one “needs” a vacation home. If you want those things today, pay up.

 

[LargeOrangeFont]

There are a number of contributing factors but generational wealth transfer is one of them. A ten+ year run in the stock market helps as well.

The Greatest Wealth Transfer In History: What’s Happening And What Are The Implications

Experts predict nearly $30 trillion will be passed on from Baby Boomers to younger generations over the next many years. The implications on the market, real estate and healthcare will be significant. Can Generation-X and Millennials handle what's about to happen?

www.forbes.com

So you’d like to take what, $26T, $28T of that in taxes right?

 

[scottchbrite]

Everyone just had 25-50% more for houses in their bank account? Did the new demand people live in apartments and condos and all of a sudden decide they wanted house and have plenty of cash to pay 10% over list?

I had a conversation with a friend that manages a large portfolio of apartments. She was saying that a whole lot of tenants didn’t pay rent during Covid and then used that rent money as a down payment on a house and walked. I don’t knows how true that is but it sounds feasible.

 

[LargeOrangeFont]

I bought my first new car for $3000, and my first house for 30k.....prices of homes in havasu just did a catch up to so-cal,... people from cal sold less of a home for way way more, and bought way way more of a home for way way less in havasu,... and at the same time upped their income level.... they lived in lower income home areas in cal and moved in to upper income homes in havsu, and pocketed money...

Exactly my point.. supply and demand. No one cares if their dream retirement Havasu house costs 5% more when they are still pocketing money and cashing out on the back side of the deal. It is just the cost of doing business.

Look at all the pools going in around Havasu. If everyone was so worried about costs and inflation, why did you waste your money putting a watering hole in the ground? Because they have the money and even at the increased cost it was worth it to them.

Has nothing to do with inflation.

 

[LargeOrangeFont]

I had a conversation with a friend that manages a large portfolio of apartments. She was saying that a whole lot of tenants didn’t pay rent during Covid and then used that rent money as a down payment on a house and walked. I don’t knows how true that is but it sounds feasible.

When you can’t evict people, I believe it.

 

[ArizonaKevin]

I am quite annoyed with the "never finance a toy" crowd who talked me out of buying a boat 2 years ago. I have now saved up to buy what used to be a decent boat with cash, and now anything decent is flying off the market in a day.

If I wasn't in hawaii when it was listed, i would have been all over the 240 that @gqchris just bought.

 

[gqchris]

I am quite annoyed with the "never finance a toy" crowd who talked me out of buying a boat 2 years ago. I have now saved up to buy what used to be a decent boat with cash, and now anything decent is flying off the market in a day.

If I wasn't in hawaii when it was listed, i would have been all over the 240 that @gqchris just bought.

Im still in shock I was able to get the deal done and got it sir! I know the line was so long of people ready to swoop it up.

I have financed many toys, and rarely take financial advice here with a grain of salt! I have caught quite a few tall tales from members over the decades.

Life is too short, the older I get I realize that I need a toy to keep from going crazy!

 

[farmo83]

Combination of factors in my opinion.

Many forms of debt payments are suspended(student loans, Mortgages)
Anyone that had money in the stock market last year had a major windfall
No one is traveling so people with money are looking for places to spend it
Folks can work from anywhere now, so why not lake houses ? My wife and I worked from the lake house 6 weeks last summer, on pace for even more this summer
PPP loans are running rampant. The owner of my brother in laws shop took a huge PPP loan and has a big new motorhome to show for it.

We do have inflation, we have basically pitched trillions of dollars out of a helicopter and hoped people spent it. In addition we have backed off all the debt loads for people.

 

[RCDave]

We do have inflation, we have basically pitched trillions of dollars out of a helicopter and hoped people spent it. In addition we have backed off all the debt loads for people.

BINGO

 

[ArizonaKevin]

Im still in shock I was able to get the deal done and got it sir! I know the line was so long of people ready to swoop it up.

I have financed many toys, and rarely take financial advice here with a grain of salt! I have caught quite a few tall tales from members over the decades.

Life is too short, the older I get I realize that I need a toy to keep from going crazy!

For sure, I just turned 27 so I still (hopefully) have plenty of time, but you never know when your day will come.

 

[76 Southwind]

Its the definition of inflation. Too many dollars chasing too little goods. all artificially induced via massive money printing and trillions in new debt

And possibly from other countries. Certain ethnic group is bringing cash with them to buy houses....

 

[RodnJen]

So you’d like to take what, $26T, $28T of that in taxes right?

Nah, that’s a little progressive.

 

[ONE-A-DAY]

Quite a few of our friends as well as ourselves are business owners, the common theme is revenue is up with record years including the current one. Costs of goods sold are up with those that have that type of organization, but for me we dont have a cost of good sold, just my time and payroll, that coupled with the increase in revenue is a good thing. Add in the income earned from buying and selling homes in CA and AZ over the last few years we really cant complain.

 

[GRADS]

My salary has stayed the same...$0 last year, $0 this year. Although I did find a dollar bill while walking through the grocery store the other day so I guess I could say it's doubled.

 

[GRADS]

I got a quote for a fence the other day and almost fell out of my chair when I saw the dollar amount. So I went to the Home Depot site to see what the lumber cost and almost fell out of my chair again....One fence board/picket is freaking $4.00 Now that's inflation.

Mendocino Forest Products 3/4 in. x 5-1/2 in. x 6 ft. FSC Construction Common Redwood Dog-Ear Wood Fence Picket 05353 - The Home Depot

Mendocino Redwood fence provides a breathtaking first impression by blending into the landscape. It creates a peaceful outdoor living environment and is easy to maintain. The Redwood material, with minor

www.homedepot.com

 

[EmpirE231]

if it is a supply/demand issue.... how is there so much more demand, if peoples general incomes have not increased?

I think we have a mix of some serious inflation / FOMO / and some supply-demand issues

 

[lbhsbz]

Interestingly enough, I'm getting ready to place a $20K order with a supplier from China and their latest quote came back about 5% less than the last quote I had from 3 years ago for some cast iron assemblies

 

[jetboatperformance]

Just got a 30% increase on the raw material to make my pump shafts

 

[Christopher Lucero]

if it is a supply/demand issue.... how is there so much more demand, if peoples general incomes have not increased?

I think we have a mix of some serious inflation / FOMO / and some supply-demand issues

nobody has said it yet: the supply side is a factor as well.

people sitting on assets combined with loose money equals a tendency to mania (speculative bubble)

 

[Looking Glass]

It's supply and demand, not inflation. The two are different. You are speaking of the prices of luxury items here - boats, 2nd houses, retirement homes, etc.

No one has stopped building pools, building houses, buying trucks or buying boats. Boat, truck and house prices keep rising because people are lined up willing to pay for them and don't want to wait. So suppliers raise prices.

Inventory of housing is low, that also drive up RE prices.

Supply & Demand = Milk, Bread, Meat and All other Groceries and Commodities.

No Problem. Just Supply & Demand.

It'll straighten out soon.

 

[LargeOrangeFont]

Supply & Demand = Milk, Bread, Meat and All other Groceries and Commodities.

No Problem. Just Supply & Demand.

It'll straighten out soon.

Exactly my point. Those staples have only slightly increased.

 

[boatdoc55]

So you’d like to take what, $26T, $28T of that in taxes right?

Fock NO!!!!! He wants at least half so his Demoshit side can redistribute it to welfare people to make sure they keep voting against us Patriots. He's a Communist and could care less about this Country that you and I care about. Ask if he was ever able to beat the Calif. taxes on his boat ownership????