My salary didn’t change at all, but homes went up 82%. The money I saved for a down payment and my salary no longer are good enough for this home and many others. This ain’t even a “good” home either. It was a 200k meh average ok home before. Now it’s simply unaffordable
82%, feel lucky. I bought my house in 2015 for $85k. Last assessment was almost $300k
My lucky ass bought a house in late 2019. I’m happy I’m making money on it but this doesn’t seem healthy
You’re right. It’s not healthy to profit so much from corporations greed.
Therefore, it’s only right that you sell me your house for $1
With you there. Didn’t realize how lucky we were, and honestly thought about waiting just one more year on multiple occasions. What’s done is done, all I can do now is not feel guilty I got in, but rather just make the most of it. Pay off as quickly as I can, and vote to help others afford houses too.
We got in on on our house in early 2016 and the price of real estate in our area increased by 20% while we were in escrow.
Our house has more than doubled in price since then but if we had fallen out of escrow, we would not have been able to buy anything anywhere near our jobs/preferred city (and my partner and I have a combined income north of 150k/year).
Shit is crazy these days
You’re only making money if you downsize, move somewhere cheaper, or switch back to renting. If you move and all the other houses have gone up, then you just end up having to sink any gained equity into affording your new place. Rising prices really only help developers, realtors, and REIT’s.
Housing price increases are actively harmful to those who want to upgrade, since it increases the incremental cost of upgrading.
Right but you then control the appreciation on a much larger asset. In terms of pure net worth and net present value, trading up is a huge gain even if it doesn’t generate more short term liquidity.
You can also rent out the smaller place and get both cash flow and NPV upgrade.
Friend of mine was saving up for a house 5 years ago. Prices have gone up almost 150%
Yeah that was me too… I FINALLY got to the point where I could realistically start looking, got the pre-approval and everything just after COVID started… People had already starting WFH and moving away from where they worked and investment companies kept buying and now I’m still living in someone else’s garage because prices went through the roof pretty much as I was looking…
Of course once you mention WFH everyone gets defensive and claims this was a trend, but those charts are the same everywhere. Houses in 2018-19 were often less than half of what they cost now…
WFH is a logical thing to imagine, but there’s a simpler trend that can be seen by looking at two graphs:
https://fred.stlouisfed.org/series/M2SL
https://fred.stlouisfed.org/series/MSPUS
“Please don’t melt the economy” printing press fired up in 2020 and real estate investors seemed to get plenty of that cash. While inflation didn’t quite match the M2 injection, anything “investment” like saw that bump. The M2 injection was enough to save the stock market, but housing, which did not see the same crash as stocks, got the same boost.
This is why, more than ever, people see that individuals almost don’t get to participate and big companies are instead buying the stuff and maybe letting people rent them if they feel so inclined. The big companies got the boon of the M2 and most individuals got a modest bump by comparison.
printing press fired up in 2020 and real estate investors seemed to get plenty of that cash.
Maybe I’m just ignorant, but in a just world that should have never been allowed to happen… I’m sure our politicians had nothingggg to do with that “oversight.” :/
Thanks for the links!
Is this one of the areas where corps are buying up a shitload of real estate?
In the lat 80s / early 90s, my SO and I saved up for 7 years to be able to afford the down payment for our first home. Now, that would be more like 20 years, which is too much.
Time to consider moving to Europe or Costa Rica or Mexico City or somewhere, if you’re in that boat now.
It’s not as bad in Germany, but pretty close. It’s a very good time to sell houses. And on top of that they are generally much more expensive than American houses to begin with.
And on top of that they are generally much more expensive than American houses to begin with.
That very much depends on the area and the house itself.
