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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    The people behind the Los Angeles Times (the source for the Yahoo article) are irrational. 

     The article ends with, "But at the time of sale, let’s tap the seller with a small equity tax, and funnel that money into workforce housing and better schools in every neighborhood."

     Why did an article on California house prices end with a call for increased Taxation?

Apr 17, 2022 04:56 PM
Rainmaker
987,590
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The article is an opinion piece and not real news. There is already a bill in the the California legislature that seeks to penalize those who sell their house in less than seven years with an exorbitant income tax. Bigger the first few years and tapering off later. Now, the writer of the article is proposing a tax for those who hold or have held their houses for a long time and benefited from the increase in value when they sell. Both of these proposals fly in the face of Federal Tax Rules that give a break to those who sell their principal residence after having lived in it for two of the proceeding five years.

Apr 17, 2022 07:10 PM
Ambassador
2,737,519
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

People are going to pay today what the market/seller's demand and potentially pay a greater price later, after the market shifts again and property values decline. We will see.

Apr 17, 2022 06:05 PM
Ambassador
3,133,076
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

People have money and are more than willing to throw whatever is needed to get a home in a hot seller market.  

Does that make them irrational?  I bet they don't think so. 

Apr 17, 2022 02:25 PM
Rainmaker
2,677,364
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

People without a doubt. The housing market answers to Real Estate cycles, the market, acts of man, acts of God. 

Apr 17, 2022 01:17 PM
Ambassador
4,703,527
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Well, however you describe it it's the people that make the housing market what it is.

Apr 17, 2022 04:01 PM
Ambassador
2,023,115
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Double the list price which was apparently based at market pricing? So the market indicated $1.2M was a rational price. 60 offers, multiple offers over $2M. Even with deep pockets, why would you want to pay double what a house was worth? To write off the loss when you sell it?

That area needs a deluge of inventory to stop the insanity.

Apr 17, 2022 03:08 PM
Rainmaker
932,007
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I'm like okay so what part of California is this? South Pasadena, very nice but these people are overpaying and I hope they don't think things will continue to appreciate forever because they won't.

Apr 17, 2022 12:43 PM
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

PEOPLE (Buyers) are solidly proving the age-old definition of market value; market value is what someone is willing to pay. 

Apr 18, 2022 07:04 AM
Rainmaker
1,334,501
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

The housing market is people, so one in the same.
The stock market and the real estate market self-inflict wounds constantly because they knee-jerk react emotionally; when if they operated pragmatically or "rationally" they'd suffer far fewer troubles.

Apr 17, 2022 09:57 PM
Rainmaker
3,640,422
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Gary Frimann, CRS, GRI, SRES probably combination of market and people.

Apr 17, 2022 02:47 PM
Rainmaker
4,384,558
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It's all about supply and demand... a basic economic concept... is it an irrational concept? I suppose that depends on how you think about it.

Apr 18, 2022 04:54 AM
Rainmaker
6,911,598
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No. Simply, supply and demand.

Apr 18, 2022 04:44 AM
Rainmaker
4,464,136
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

One man's junk is another man's treasure. So irrational for one is not for another.

Apr 18, 2022 04:24 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Both are rational.

People need a home, and the current supply and demand requires all to act accordingly if they want to buy a home.

Apr 18, 2022 02:22 AM
Rainmaker
1,116,152
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Supply and Demand wins out in our economy. Also, people HAVE to have a place to live. They do not NEED a big screen TV or the latest automobile. Also the number of people moving to our country creates even more demand for housing and real estate. 

Apr 18, 2022 12:47 AM
Rainer
144,841
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

Are you saying that if someone spends their money in a different way than you do than they are irrational?

Apr 18, 2022 06:06 AM
Rainmaker
949,059
Peter Mohylsky. BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

It’s not a negotiation anymore, it is a competition.

Apr 18, 2022 04:39 AM
Rainmaker
798,721
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Someone found a treasure map and believes there's a treasure buried on that lot. So, very rational. 

Seriously, it is supply and demand. We have a home shortage and someone really wanted to be in that community. 

Once building catches up with the demand things will cool off for a while in many areas.

As far as taxes, I'm kinda tired of everyone thinking the government should tax someone for benefiting when they make smart decisions.

Apr 18, 2022 07:54 AM
Rainmaker
5,215,158
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I think the market is, and causes people to become irrational too!   

Apr 18, 2022 06:19 AM
Rainmaker
682,755
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Gary Frimann, CRS, GRI, SRES I believe that people are like sheep.  They buy because everyone is buying and the sell when people decide to sell.  It's like having a universal mind.  Thinking people study history and know that the end will always eventually come but when it happens seems to always be a surprise to most people.

Apr 18, 2022 12:37 AM
Rainmaker
841,342
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Yes and yes. There are many different factors at play here.

Apr 19, 2022 08:10 AM
Rainmaker
865,368
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Could be both at times.

Apr 18, 2022 10:39 AM
Ambassador
1,005,288
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Yes ; )

 

The saying "A fool and his money are soon parted" comes to mind. 

Apr 18, 2022 09:57 AM