Price increases and shortages

[baymule]

The Big Short is a great movie @baymule ! I think he also said real estate in your neck of the woods was gonna go crazy high, highest in the country likely.

Tell me about it! A dear friend of the last 40 years inherited from her father. She and her siblings had NO idea of all the investment accounts and real estate he had. He passed away 5 or 6 years ago and left them all wealthy. She told me they just sold the last piece of land he had, 109 acres in Pflugerville, Tx. It sits between a Amazon warehouse and Tesla. Guess what it sold for? Try NINETEEN MILLION!! Developers bought it to build new houses for the Tesla and Amazon workers.

I just want to sell my little patch of dirt, go sit back and see what happens. I don't think real estate prices can keep going up, middle class is being priced out of the market. When middle class can't afford housing, that means trouble.

 

[Ridgerunner]

I hope the housing market stays stupid high so I can sell my place for that stupid money.

The way I look at that is that if you are selling high you are also buying high. If you stay somewhat equivalent it's pretty much a wash. If the market is at a peak you'll do better if you downgrade. If you are in a valley it might be a good time to upgrade. But I don't play the market with my house. If I don't need to move I don't. If I have a good reason to, I move.

The present housing prices are unsustainable, housing is over priced. It can’t stay up like this forever.
When middle class can't afford housing, that means trouble.

I totally agree.

 

[Rhodie Ranch]

"The world is facing a desperate shortfall of arabica coffee, the variety that gives the smoothest flavor and makes up about 60% of world production. Supplies were decimated after extreme weather destroyed crops, and with a La Nina pattern forecast through early 2022 expected to further hurt yields, it could take years for the market to recover. Arabica prices are surging to reflect the mounting crisis, while global shipping congestion is making it even harder to get beans where they are needed."

https://www.supplychainbrain.com/ar...sis-means-more-expensive-bitter-tasting-brews

 

[baymule]

I feel bad for the farmers.

 

[flowerbug]

I feel bad for the farmers.

imagine a world on caffiene withdrawal headaches... eek!

 

[Pulsegleaner]

imagine a world on caffiene withdrawal headaches... eek!

That really won't happen. Remember it said Arabica was affected, not coffee in general. Robusta is a lot tougher that Arabica, and so is probably doing fine. So coffee isn't going away, it's just going to taste like crap. Or maybe they'll start experimenting with the other dozen or so species (Racemosa, Canephora, Kona etc.) more.

Of course, if you are REALLY worried, remember C. arabica can be growing as a houseplant, and beans can be roasted in a standard kitchen oven.


It was a similar situation with tea. With China in covid lockdown, no one was picking. Basic tea in the US wasn't affected much , since most of ours comes from Argentina. But fine premium tea production took a nosedive, and still hasn't really recovered (least year, it was not unusual for my tea supplier to get in one unit of a tea, and not get more all year)

 

[baymule]

The way I look at that is that if you are selling high you are also buying high. If you stay somewhat equivalent it's pretty much a wash. If the market is at a peak you'll do better if you downgrade. If you are in a valley it might be a good time to upgrade. But I don't play the market with my house. If I don't need to move I don't. If I have a good reason to, I move.


I totally agree.

I’m not buying. Money will go into an account. I’m moving into a house my son has. I don’t know exactly where I want to be, I’m taking my time. I can wait for prices to come down, I’m in no hurry. Son also has 35 acres he said I could build on. So I have options.

 

[heirloomgal]

Tell me about it! A dear friend of the last 40 years inherited from her father. She and her siblings had NO idea of all the investment accounts and real estate he had. He passed away 5 or 6 years ago and left them all wealthy. She told me they just sold the last piece of land he had, 109 acres in Pflugerville, Tx. It sits between a Amazon warehouse and Tesla. Guess what it sold for? Try NINETEEN MILLION!! Developers bought it to build new houses for the Tesla and Amazon workers.

I just want to sell my little patch of dirt, go sit back and see what happens. I don't think real estate prices can keep going up, middle class is being priced out of the market. When middle class can't afford housing, that means trouble.

19 million!

I've read in the news that gov backed mortgage conforming loan limit will jump in 2022, up to 1 million. This will probably have the effect of stimulating the bubble further by increasingly demand when supply is low.

 

[Zeedman]

Tell me about it! A dear friend of the last 40 years inherited from her father. She and her siblings had NO idea of all the investment accounts and real estate he had. He passed away 5 or 6 years ago and left them all wealthy. She told me they just sold the last piece of land he had, 109 acres in Pflugerville, Tx. It sits between a Amazon warehouse and Tesla. Guess what it sold for? Try NINETEEN MILLION!!

So maybe they have enough to buy a bigger house.

 

[baymule]

So maybe they have enough to buy a bigger house.

They retired some years ago, on 50 acres inherited from his father. They built a sensible, nice brick home from the inheritance from her father. They recently added onto it to accommodate grandchildren, but nothing ostentatious or overdone. They are taking their wealth and setting up trust accounts for their children (2) and grandchildren (4). It couldn’t happen to nicer people.