Where housing prices are totally out of sync with reality

So a friend of mine is a real estate agent here in Rhode Island and is constantly posting listings on his facebook page. 

Many are little 20 or 30 by 80 or so cracker boxes with 2 bedrooms, a bathroom etc. And they cost high hundreds to a couple hundred thousand. 

Meanwhile if I search homes in the areas near Atlanta, GA for $75,000 I can get a four bedroom two and a half bath place. 

This leads me to my next conjecture. 

The price of real estate should be set by supply and demand. And in RI they say the high prices are because of limited supply and high demand. Which of course is utter bovine effluvia. Because all one needs to do is drive around different parts of RI and see all the For Sale signs on homes or count the empty homes. There’s no way the high prices can be sustained – it’s all echo chamber and nothing more. 

Nothing like talking up a price. That’s precisely what they are doing here in RI. But down in Atlanta they seem to be a bit more pragmatic about it. My plan of course is this:

I’ll put down 30-35% of the price of a home but I have certain requirements. The location is one but the home also needs to have teh following:

1) At least a one car but best if two car garage with high bay. 

2) 4+ Bedrooms 

3) 2+ baths and possibly a half bath

4) An in ground pool with deck is a requirement too. 

See – it’s all very simple. And I bet you we’ll get a couple thousand square foot home – probably built in the 1990’s or so and for far less money than we’d have to pay here in Rhode Island. 

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