San Juan County housing costs up by more than half in last six ...

Housing costs have increased dramatically this decade in San Juan County, significantly outpacing smaller gains in household income, according to a report by the city of Farmington.

[Daniel C]

The housing prices in this area are outrageous. Even renting a run-down 30 year old mobile home runs over $700 a month. Even the slums of Farmington are rented at exorbitant prices.

[hillbilly]

Supply and demand. With the price of natural gas below $5.00 mbtu, the market will change.

[SavageMike]

Daniel C wrote:

The housing prices in this area are outrageous. Even renting a run-down 30 year old mobile home runs over $700 a month. Even the slums of Farmington are rented at exorbitant prices.

agreed. san juan county is roughly the size of the state of delaware, but most of the land is locked up (like most of the western USA) by the "gummint".

the "gummint" "protects" "public lands". that means the "public" cannot use the land.

the rest is rez.

ergo: artificail shortage of land; inflated land prices.

so, move, or pay the price.

or maybe.....vote for a REAL change.

[Booger]

Who inflated this price in the first place? And didn't our wages increase accordingly? Has anyone compared inflation with wage increase for the last forty years.

[A GRANDMOTHER]

I say what wage increase? Have not seen one of those in 3 years.
And I agree housing is very unafordable.
And Rent is outrageous. I also agree for a run down piece of crap the try and tell you is a home they want 700, to 1500 a month, and then you can't even get the land lords half the time to fix anything. They don't care if anything brakes or you have mold, you can call until you are blue in the face and nothing the only time you ever see them is when the RENT is DUE. Am I right? And God help ya if your ever late.
Even by a week, cause next thing ya know theres a eviction notice on your door, Nobody care what your living conditions are in what you are living, All they care about is there Rent money.

[Booger]

A house in Aztec that was recently listed at 219,000 sold for less than 12,000 in 1970. Does anyone know what oilfield roughnecks were making in 1970? I bet it was not much less than it is now.

[Mojo]

Just eight years ago Aztec did not have but a few 200,000 dollar houses. How much have wages gone up in the last eight years?

[ISIT]

Good deals are coming.

[Retired]

I have seen this boom bust happen at least three significant times. This one is different.

[hillbilly]

Retired wrote:

I have seen this boom bust happen at least three significant times. This one is different.

This oilfield boom/bust is coupled with a global depression.

[C Lee Nickel]

Actually, real estate people I know are saying that since the third quarter of last year, houses are flying off the market around here, and the banks are approving anyone with a job and half-way decent credit.

It will be quite a while before there is a housing surplus here.

Oil is a small portion of the market in San Juan County, thus, oil prices affect this area very little.

What affects this area is costs of drilling and production in the natural gas industry. Drilling costs are up due to new pit rules enacted by state government. Other states will welcome the industry and workers unless our state government realizes and corrects it's error. If every state enacts the onerous rules enacted by New Mexico, the drilling industry will simply leave the United States completely and go to nations where they will be welcomed, just as the mining and timber industry has done. We import lumber and minerals from outside the United States because it costs less, simple as that. If it costs less in the future to get our natural gas from overseas, industry will find a way to do that also.

The cost to the consumer will stay the same. We'll merely lose yet another industry for domestic workers. Unless voters get smart and make the connection between government and the loss of jobs, the nation of Wal-Mart and fast-food workers will continue to vote against the interests of the United States.

[TX gal]

Go on Realtor.com and look what you can get in Houston for the same prices! We just moved here and were astounded by what we had to pay here!
It is unreal! And oil is a BIG thing there! So I don't think that can be to blame!

[C Lee Nickel]

TX gal wrote:

Go on Realtor.com and look what you can get in Houston for the same prices! We just moved here and were astounded by what we had to pay here!
It is unreal! And oil is a BIG thing there! So I don't think that can be to blame!

Oh, there's no doubt that real estate is high here. Partially brought on by the outrageousness in Durango and southern Colorado, I would guess, partly because of the economic boom here the last decade which brought on a housing shortage.

When I worked in Las Vegas, Nevada back in the late 1980's, the boom there meant that construction companies were building 100 houses at a time in huge tracts. Entire streets of homes all being built at the same time on desert land that had been way out in the boonies just a few years before. And still housing prices were astronomical, partially because of the absolutely outrageous prices in populated parts of California.

Now that has changed, but it was a long time coming there. Here, it's different. There's never been massive construction of homes, or overbuilding, as there was in California and southern Nevada.

When my brother in law was looking for a place to rent last year, he had maybe 3-4 a week to look at, and that was it. And the landlords said either no teenagers, or no dogs. He wasn't about to throw his kids, OR his dogs, out, so it took quite a while for him to find a place.

My mother thought about moving here from the Omaha, Nebraska area, but took one look at real estate prices and said there was no way she was going to pay over $100,000 for a mobile home on an acre of land.

The fixer-upper I live in, on a third of an acre, cost $50,000 and I've put a lot of money and labor into it, and it's STILL a fixer upper. The only saving grace is that it was on a 15 year note, and I'm halfway through it.

[You might]

C Lee Nickel wrote:

Actually, real estate people I know are saying that since the third quarter of last year, houses are flying off the market around here, and the banks are approving anyone with a job and half-way decent credit.
It will be quite a while before there is a housing surplus here.
Oil is a small portion of the market in San Juan County, thus, oil prices affect this area very little.
What affects this area is costs of drilling and production in the natural gas industry. Drilling costs are up due to new pit rules enacted by state government. Other states will welcome the industry and workers unless our state government realizes and corrects it's error. If every state enacts the onerous rules enacted by New Mexico, the drilling industry will simply leave the United States completely and go to nations where they will be welcomed, just as the mining and timber industry has done. We import lumber and minerals from outside the United States because it costs less, simple as that. If it costs less in the future to get our natural gas from overseas, industry will find a way to do that also.
The cost to the consumer will stay the same. We'll merely lose yet another industry for domestic workers. Unless voters get smart and make the connection between government and the loss of jobs, the nation of Wal-Mart and fast-food workers will continue to vote against the interests of the United States.

Sounds good, wish it were true

[Just_a_Thought]

C Lee Nickel wrote:

and the banks are approving anyone with a job and half-way decent credit.
It will be quite a while before there is a housing surplus here.

hmm. I haven't seen that. Credit standards have tightened up significantly over the last six months. If you don't believe me, call any lender in town and say you have a 540 FICO, & want to buy a home. Just for fun, tell them you want your interest rate below 5% and no origination or discount points.

A short time ago, that was a reasonable scenario (except for the interest rate, of course)

Let me know if anyone bites...

[hillbilly]

The housing prices in this area will drop. Supply and demand is an economic rule. No matter how much you love social justice, gubmnent ballots or other fantasies, the amount of qualified buyers will pale in comparison to the excessive amount of homes for sale.
Here is the rub, since the lending institutions have realized that social justice does not equal good credit, less people will be able to buy homes. Also, on a major note, there is no more money to be lent.( Becuse of the fact we are a 'service nation' and Wall Street greed.) This conundrum will mean that housing prices and lending constraints will allow those with cash to buy at ridiculously low prices.
This depression, coupled with Federal policy, will only further the gap between the haves and have nots. Those of us in the middle, better be sharpening the pitch forks.
The revolution has started with the the outcome of this election, those that could vote themselves money did. I mean that grant receivers, politicians, social extremists and gubment cheese eaters won. Those of us that market our skills for financial compensation lost, and the sensible wealthy will be fine.

[Pinto Beans]

hillbilly wrote:

The housing prices in this area will drop. Supply and demand is an economic rule. No matter how much you love social justice, gubmnent ballots or other fantasies, the amount of qualified buyers will pale in comparison to the excessive amount of homes for sale.
Here is the rub, since the lending institutions have realized that social justice does not equal good credit, less people will be able to buy homes. Also, on a major note, there is no more money to be lent.( Becuse of the fact we are a 'service nation' and Wall Street greed.) This conundrum will mean that housing prices and lending constraints will allow those with cash to buy at ridiculously low prices.
This depression, coupled with Federal policy, will only further the gap between the haves and have nots. Those of us in the middle, better be sharpening the pitch forks.
The revolution has started with the the outcome of this election, those that could vote themselves money did. I mean that grant receivers, politicians, social extremists and gubment cheese eaters won. Those of us that market our skills for financial compensation lost, and the sensible wealthy will be fine.

Already happening! Fat cash is scoring houses from the desperate and scared for 1999 prices. My question is what are those guys going to do with all the houses and land they are getting for so cheap. They should be buying beans, jerky, and hard tack. I love beans.

[C Lee Nickel]

Just_a_Thought wrote:

<quoted text>
hmm. I haven't seen that. Credit standards have tightened up significantly over the last six months. If you don't believe me, call any lender in town and say you have a 540 FICO, & want to buy a home. Just for fun, tell them you want your interest rate below 5% and no origination or discount points.
A short time ago, that was a reasonable scenario (except for the interest rate, of course)
Let me know if anyone bites...

Your "reasonable scenario" is part of the reason we are in the situation we are in nationwide. It once was a person needed to be responsible to buy a home, and the rest were renters, or bought owner carry. I don't recall a 540 FICO ever being considered decent credit, and when my score was that low, I could barely get a car loan and never tried for a home loan.

[C Lee Nickel]

Pinto Beans wrote:

<quoted text>
Already happening! Fat cash is scoring houses from the desperate and scared for 1999 prices. My question is what are those guys going to do with all the houses and land they are getting for so cheap. They should be buying beans, jerky, and hard tack. I love beans.

It's not happening around here.

[richy rich]

C Lee Nickel wrote:

<quoted text>
It's not happening around here.

Guess again $$$$$$$$$$