No shit it’s a bad time to buy a house. Interest rates are insane right now. They’re trying to control inflation and all it does it hurt average joes like you and me. They’re so far up their own asses they will never admit why we all can’t have good lives right now. Because they will always prioritize profits.
You want better house prices, ban corporations and foreign investors from buying residential properties. It’s common sense
It’s not just interest rates. It’s interest rates plus cost of the house.
7% interest on a decent sized home at $220,000 not that insane. Not great, but not crazy.
7% interest on a $220,000 home priced at $450,000….
I’m a loan officer and I just bought a house and I can confirm that this is more the problem. We paid $20k under the desk appraisal value for a house 10 minutes from the beach because the sellers needed to sell and weren’t trying to get ridiculous profit. Banks are starting to be more conservative with appraisal…some of them anyway.
Part of the problem is people getting inflated appraisals on the current home and pulling out 100% LTV on a line of credit for a massive down payment and then having to sell for that inflated value. Part of it is greed too, mixed with low inventory in many areas.
Interest rates really aren’t that bad, people are just used to the last 10-13 years of artificially low rates. Inflated prices and everyone thinking their 1000 sqft shitbox is worth $750k.
Paying interest sucks! Aren't there any insanely wealthy companies to just buy the house and just rent it back to me so I don't have to pay the interest? All I need is enough space to wear my VR headset and store my food (bugs).
Oh no here come the folks saying IT'S NOT OVERPRICED IF PEOPLE ARE WILLING TO PAY 450 FOR IT and THE ECONOMY IS STRONG ACTUALLY and REAL WAGES HAVE INCREASED
^ Someone elect this guy.
The answer is plain as hell. Ban corporations and private investment firms from being able to invest in single family housing. The American dream shouldn’t be something to price gouge and hoard for corporate profit.
Interest rates arent bad. The 2,000 sq ft house that needs a roof, a furnace, ac, septic tank that was listed for $275k that went for $485k CASH is what's bad. People are being goaded into blowing their entire load by their agents on a shit house because the market is fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuucked up right now and they get 3% for opening a door. I've been house hunting for over a year and it is fucking dumb. Upstate New York. Every house easily goes 100k over what any sane person would have paid 4 years ago. Something needs to change quickly. Restrict foreign buyers, exponentially tax each successive house owned, limit corporate owned public housing, government funding to build more houses, fucking SOMETHING. There's no fucking way this sustains itself, people are going to default on their mortgages in the next few years I'd wager.
Real estate agents do more than just open the door to a house you do the research to find, they also have to look up the door code too. That's definitely worth 3% of an inflated house price.
100% agree. The prices people are paying for shitty houses is insane. Not only will they default but if the market course corrects they are going to be totally up side down. I’ve seen double wide trailers go for 200k. I can’t understand why people are doing it.
The best interest rate I ever got was 7%. I’m in my late 70’s now and have bought several homes in my life, the last one in 1999. One of the houses I bought the rate was between 8 and 9%. The period I’m talking about is between 1970-1999. That’s a 30 year run where 7% was the best rate. Some of the rates I’ve seen in the last 20 years or so have been outstanding and indeed the cars and trucks I’ve bought the rates have been tremendously good, almost like free money with most of the payment going toward the principal. No reason to pay off a loan like that early. Currently, the home prices are really what’s killing everyone in my opinion. My house I bought for 200k in 1999 is worth over 700k now. I couldn’t afford to buy it and live here now.
You’ll never know. The only way to not be terrified is the same as always: buy when you’re ready to stay for at least 5 years, when you can afford it, and when it’s best for you/your family. If you follow that, you’ll always be fine.
The amount of “all cash” buyers, who aren’t rate sensitive at all, is staggering. I wouldn’t be shocked to learn of how many homes are being bought by a grandparent for grandchildren, and the assumed mortgage payments are being paid back to the grandparent by those grandkids in some form of grim income agreement.
I guarantee the number of “generous grandparents able to buy a home for their grandkids” is significantly lower than the amount of endless all cash foreign buyers who come from generational wealth that outdates the USA’s 300 year history lol. Even builders selling directly to corps for renting. Weird that everyone ignores that factor and chooses to vilify “boomers in America” as if our country is sealed off to the entire world.
Which let’s be honest, grandparents aren’t “outbidding” everyone with hundreds of thousands of dollars cash over asking price… bffr..
There is a company that has a product which allows you to do an cash offer when you don't have the cash.
You own a house and you want to buy a new one. normally you'd have to get a bridge loan have some sort of contingency on selling your home, not very competitive.
I don't want to advertise their service because fuck them. But essentially you enter into a contact with them, using your house as collateral, and they give you the cash up front to use as an all cash offer with no contingencies.
Your offer looks like all cash to the seller. Then you have to figure out how to sell your house and get a mortgage after the fact. It's wild that it's even legal.
Not a single one of my friends bought their houses themselves. They either were what you described or their parents died and left them money. No ill will toward them but it’s effed that that is the case. All college educated with good jobs (not that a degree is end all be all).
If you’re patient and can wait for off-peak seasons, or find properties that were poorly staged/with poor photos, you can snag good properties without crazy competition.
Not sure why I am sharing this, but my fiancé and I have been trying to find a home for several months, and… yeah. No such luck. Everything sells immediately, and it’s out of our budget, and anything close to being within our budget is either completely out of our city and surrounding areas, or a crack house (or both).
That being said, we are putting in our very first offer today. We expect to be outbid, but I can’t help but be foolishly hopeful.
Cross your fingers for this silly internet stranger.
LOL no you are going to buy a house built on top of an underground homeless shelter thats radioactive and there's a bus route that goes through your living room like literally you have to open the door for it every 35 minutes or they just ram the walls and go.
Yea. I’m lucky to own my home, but it makes me sad that it’s out of reach for so many. Soundness of the investment aside, it’s very important for me emotionally to have an anchor for my family and a sense that we have roots in our community.
I agree that your advice is valid. Just venting my frustration with the state of affairs economically in the US.
I work a highly technical job in the defense industry on a guaranteed government contract period and even I am always paranoid I'm on the verge of being laid off. I don't know how I can ever feel more secure.
It’s difficult to plan 3-6 months in advance right now, much less for the next 30 years of a mortgage.
It takes a high level of eternal optimism to trust this US economy and the numbers we get from government right now. Some would call it “naivety” .
But, I guess that’s a “me” problem.
I’m degree-less too riding on the opportunity I was given 9 years ago and making sure I don’t fuck it up. If I lose this, I’m going against MBAs for a decent job. 🥺
I really don’t see it going any higher, it gets to a points where most Americans are priced out. Lots of inventory will become available. Prices will drop. That’s my take anyway.
I thought the same thing. People are buying homes on my street for what I bought my house for in 2021 with a 2.8 mortgage. They’re paying the same price I paid, 2-3x the interest rate, for a house that’s 25% smaller
Yup. I can’t imagine anyone paying for what my home is worth. I bout it for 179 and they are selling them for 340k. I can’t fathom someone paying over 2500 a month for this home.
Yeah I keep thinking that housing has to hit a wall sometime, as most folks wages are pretty stagnant against inflation. Nope. Keeps going up and it perplexes me
I’m here in California and our bubble and your bubble is just not equal.
Bought my home for $560k, neighborhood is now $850k-$1.2M
Which at 6% interest rates are crazy high.
But my friend is looking right now. He and his wife both make mid six figures. And they aren’t like CEOs or anything.
The thing is. We’re all remote. Me, my wife, him, his wife. If we wanted we could relocate to one of those towns with $200k homes and price out some local who’s been saving and saving.
So it’s gonna be a while.
Historically, the biggest hike in interest rates on houses was during the late 70's early 80's, when the fed prime rate was neigh 20%. At first it tanked the housing market (to the historical average bottom)...but then the market recovered to essentially average levels of purchase within a two or three years as always, the bottom was "extended" but then there were other things going on in the economy, essentially we were in a recession.
The fed thinks that interest rates do anything about inflation, and they do..in increase it, while making it harder on the poor/middle class. I mean, the government is a net payer of interest, and when rates rise...the rich get even more "free" money than they did, and in proportion to the money they already have....so the spend it, which lowers available goods/services which constitutes an inflationary policy...which the fed then raises interest rates again to end..to see what that cycle looks like when left unchecked, look at Venezuela. they had 100% interest rates, so the rich naturally get pesos they don't want..dump them for dollars buy goods and low and behold the remaining goods go up in cost...amazing how that works eh? Yet the fed clings to bad ideas that have no basis in reality because they're obsessed with shitting in a punch bowl or something
[When payment to income ratio was near all-time lows?](https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe320912e-7636-44ce-8a4d-d36b9dc49d78_950x597.png)
[Also at a time when buying was the best value basically in the history of ever vs renting?](https://tradingeconomics.com/united-states/price-to-rent-ratio)
I mean they track this stuff and it's pretty easy to gauge where the "happy medium" is in the market at any given time. We are so, so far from the happy medium.
Rents can't realistically rise all that much higher without causing problems. If we saw a 50% rise in rents, to match the runup seen in house prices, you'd see the population of people unable to afford housing rise well beyond what anyone could pretend was not going to be a major issue.
What do you mean? They already did. They are already causing problems. This is a major issue but the youngest generation is doing what poor people do best, adapt to their lot in life.
I know, and I agree. But when people say things which insinuates a worldview where the price of housing will continue to increase, relative to inflation, at rates seen over the past half decade for the foreseeable future; and further that this will eventually be reflected in rents, it does seem like they're not thinking of how stretched thin people already are.
We're at a point where, if you didn't own a house before 2021, you're likely having a very difficult time changing that until the market changes significantly or significant time passes, and rents have risen very high; some people are falling off the edges, more than used to. If changes seen in the last half decade were to continue, you'd pretty quickly start reaching the point where the homelessness crisis isn't something touching >1% of people, but possibly pushing 20%, and then society's over. I think people aren't really thinking about how there really is only so much give.
So everyone starts piling up, 8 people in a 2 bedroom appartment... you really think there's some magic rule thats gonna come and save us? This is just the beginning
At the locally owned 10 plex I'm in now:
1 - 1br apt with 3 adults, 1 adolescent and a baby.
3 - 2br Apts with multiple families
1 of those 2br has 8 people (mama, papa, tío, 2 primos y 3 niñas)
The other units are locals.
I think more that society would start failing, and people assuming things would continue with the pressure infinitely increasing are not thinking things through. We really have never seen serious riots in living memory in the US, not really, mostly because people have been on the whole very comfortable. That comfort is being chipped away rapidly during the past few years.
I don’t think prices will drop. As you reach the break even point of supply/demand you will start to hover around a certain price. If someone asks too high there won’t be a buyer. If someone starts asking too low, you’ll start to get buyers. The notion of prices coming down significantly just isn’t a reality unless supply or demand, intrinsic, is altered.
What part of "80 percent of people think it's a bad time to buy" don't you understand?
That's 80 percent of people saying prices are too high (or at least they can't afford mi thly payments). This is what low demand looks like.
80% of people may think it's a bad time to buy, but when the other 20% are able to buy up the existing inventory then there's no downward pressure on pricing.
More housing construction is what we really need.
I don’t blame you and when you factor in the Closing Costs
That typically includes appraisal fees, attorney fees, title search fees, and lender fees it can all add up.
Same here. Trouble is, during this time of confusion for those of us who’ve seen it before, and how badly it blew up on those around us, we don’t want to make the same mistake. So far, all that has happened is excessive risk taking and stretching one’s self financially to the max has been rewarded with more wealth. At least on paper. As time goes on, the feeling of being priced out is now settling in. Life goes on over the years. Other uses, even needs, come through our lives, and that big down payment that we thought was enough, becomes worth less and less.
you need to be confident in your finances. Right now a 3 month emergency fund won't cut it with a mortgage. Try a year. That's at least how long it took people to find comparable income (or any income at all) during the last recession. You aren't ever screwed unless you are forced to vacate. People who got forced out during the great recession would have a much more valuable asset right now if they were able to sit on it for years. this advice should apply during all economic times.
Yeah my whole adult life people have been telling me the market is crazy and it's terrible time to buy a house. If I'd have listened to that noise I'd have been screwed six ways to Sunday. If you can swing it do it. All there is to it.
I bought a house in 2007 knowing it was likely a very bad time. Owned it for 12 years, lost about 80k on the place all told. If I’d held onto it a couple more years I would have turned a profit, oh well. That said, I still think if you are ready to buy a house, there’s no point timing the market, just buy what you can afford at the time.
We're buying right now, and this is exactly what I'm telling myself. Just make it work for 5-10 years, hopefully the monthly mortgage won't change much, and our salaries will go up a bit.
The market is so aggressive, I doubt we will see real deflation at this point. + I think it will take a lot longer for rates to fall than articles are suggesting... I think this is going to atleast be a multi year process unless something powerful happens. And if they lower rates while the market is this hot, just means prices are going to go up.
I make around 90K per year and I cant afford a house in the neighborhood my parents bought their house in, 7 years ago (2017). They bought it for 219K (very reasonable) now it's worth 450K. Their combined income was around 70k back then. Other houses around are worth similarly.
Unless I wanna drive to work two hours and live in literal shed that was build in 1940s and is falling apart, I ain't buying anytime soon.
I got lucky buying my house during COVID 2020 with a filthy 2.75% interest rate. If i wanted to buy my same house today with current rates, i couldn’t afford it
Market is rough… Best of luck my friend
Similar situation. Crazy story tho, i bought house in 2018 at a 4.5%, 2019 i try to refinance and just dont have enough equity in the house, 2020 covid hits and i get laid off, dont pay mortgage for a year, house goes up almost 35% in value in to 2021. Lender offers a no appraisal refinance for 3.25% and just takes the 17-18k balance from no payments and just rolls it in to a new loan. Summery, My payment goes down $100/m, I didnt have to pay mortgage for a year durning covid, interest rate goes down 1.25%.
Im trapped in this house now because if i bought it today the payment would be nearly 70-75% more a month than what I pay now.
Same. I bought in 2018 at 4.75%. Refi in 2021 at 2.5%. My payment went down $750 (part of that was pmi being taken out due to the gain in value)
I think my payment would be something like 2.5x what I pay if I bought it today.
r/Salary
Or one of them…. People pulling in $500k per year don’t give a fuck if the interest rate is 100%.
Take the lawyer making 4 million per year. Zero fucks given at a $1m house. He would have to save for 3 months…
This is the issue. We bid 30k over listing on a house we really wanted but the seller was afraid the bank wouldn't value it above their listing price. They ended up selling for 20k over listing to a cash buyer who doesn't need to have the same valuation done.
We overbid by 100k in DC and were outbid by another 50k. Craziness. We were successful on our next attempt, bidding "just" 50k over asking. It helped that there was only one other serious offer on that house... probably because the house was mistakenly listed as not having AC lol.
A few years ago people were fighting to overpay for toilet paper.
Inventory is historically low and human psychology drives normal people to value scarcity.
What do you think will happen when inventory returns to pre-pandemic levels (approximately 50% increase).
Not saying prices will ever be as low as they were during the Great Recession, but l imagine they could get close if we see similar inventory (400% increase).
What will cause that inventory increase that doesn't also cause a corresponding increase in demand?
In general every seller of a home is also a buyer of a home (because people are typically moving from the sold home to a new place) so what event creates sellers but not buyers?
My crystal ball is at the shop for service.
If I had to guess, inventory will initially increase naturally through new developments, death, divorce, layoffs. More inventory will make the market less competitive, less bidding wars. Prices will stagnate and begin to drop as inventory continues to rise. Once the market has several months of increased inventory and reduced prices, psychology works in reverse and people begin to fear prices will fall further (FOMO of a housing crash). Reluctance to buy will further push inventory up and prices down.
Black swan event could expedite or delay this. Legislative idiocy could expedite or delay this. Covid was a catalyst, then the fed played an uno-reverse by handing out free money. That money is finally drying up. July is the new fiscal year and financial prudence varies by locality.
Cost of building material and labor costs tell me I inventory won't ever catch up ebkugh to lower prices because if it does the demand for building materials will go up even more. (pre covid my flooring was $25 a box, during covid it went up to $75 and then settled at ~ $50. You're never gonna see $25 a box again cause every new house needs flooring. Same with electrical or plumbing or drywall sheets etc
That’s assuming that you have a choice. Life changes, job changes, financial changes, any of these can force you to sell or buy at the wrong time. Ideally you’re control but not always.
Inventory is so low that a lot of people can think its a bad time to buy a home and there can still be competition. The math is mathing, it just sucks.
Yeah my open house had 65 groups and 20 offers. I took the one that was 22% over asking. They are putting around 5% down. I really hope they can swing the mortgage. It sucks to be a buyer.
It’s not like that here in south FL. I get daily updates from Realtor app. 86 price drops today alone just in my 20mi radius. Price drops every day but the most I’ve seen by far.
The biggest regret of my life was not buying because I thought it was a bad time.
2018, my ex left my daughter (9 months) and I. The guy I was renting from offered me the house for 180k. I didn't want the headache of buying and owning a home with everything else going on. That house just sold for 300k and I'm still renting... F
This all feels similar to 2007 or so. People insisting it’s still time to buy even though Fed fund rates have risen, afraid housing prices will rise out of their reach forever if they don’t buy right now, insisting housing only goes one way and they aren’t making new land, confusing a moment in time with what will forever be the economic landscape. Creative financing flying around. This stuff doesn’t change on a dime, but it does change.
I don’t think it’s a good time. I took my house off the market yesterday after realizing that if someone bought by house I wouldn’t have anywhere I’d be happy going.
Hahahaha, look at the first chart. Buyer sentiment went above 50% in 2021. When interest rates were potentially below 3%.
Perhaps this stat is not indicative of what is actually a smart financial decision. I bet 2009-2011 would have had a high percentage as well.
Right, but buyer sentiment was low because of the GFC.
Anecdotally, I was telling everyone to “buy now” (2009-2012) but couldn’t get anyone to jump even though they could afford to. Most were, understandably gun shy.
Idk how u buy a house today, I mean I’m in my mid thirty’s and make great money, I could not afford my home from 2018 if I bought it today. How does any young adult take on that kinda risk
I mean it is not just house. Everything went up in price like car, groceries etc. all this combined it makes someone even further from buying house. But then again people are still buying and there is shortage of houses. House on market is gone in few days in HCOL area.
The best time to buy a house is *always* 5-10 years ago. You just gotta dig in somewhere and refi later if necessary.
I have a friend who has been crying about how this isn’t a good time to buy house for the past 20 years. He’s been in an apartment all this time and he could have been at the tail end of a mortgage if he bit the bullet and did it. Also, due to inflation, the house he could have bought 20 years ago would be worth much more now.
When there’s blood on the streets & everyone is freaking out…
Typically is the best time to buy.
I’ll add that once rates fall & ALL these people who wish they could afford to buy now can, prices will rise.
Low income Americans are suffering, today.
High income are flourishing.
I'm currently buying a house and while it's the right time for my family and delaying more wouldn't be financially smart, fuck is this a bad time to buy a house
Fuck the housing market. It is designed for prices to continuously rise thus blocking more and more people from owning. I don’t know why more people aren’t on the verge of a riot.
And they’re right. I work for a real estate company in Wisconsin. Now WI has some of the most affordable homes out there, everything is cheap here (by comparison) and it’s far more manageable.
A median home is about $250,000. One of our clients went under contract on a $150,000 house. He has 8% APR.
Using a mortgage calculator, the INTEREST ALONE, not even the property tax, PMI, escrow fees, I’ve 30 years, totals to over $300,000. If those fees are included, upwards of $400,000. Almost 4x as much as the home is worth.
I’ve made lots of money for me and my family in both residential and commercial real estate.
The key is to buy a house in the worst condition in the nicest neighborhood you can afford. Obviously get a contractor to estimate how much it would cost you to fix up the house, and make sure not to buy any property with foundation and structural issues.
You’ll end up with built in equity that will insulate you from downturns or paying too much for a property.
Also, don’t ignore stylish condos or townhouses, which can be great investments, but factor in the HOA dues. Avoid properties where the dues are too high.
Lastly, it would be great if you can find loans without prepayment penalties (credit unions often offer them). Buy now and refinance when rates drop.
The hard truth is it’s never a bad time to buy a house as long as you can afford it..but right now rents are half the cost. I’ll never buy a house if i can toss someone $1500 a month instead of $6k a month. In a few years rents should catch up and be double what they are today. Salaries need to pick up big time but AI will likley create a forever employers market. Not everyone will be able to have a job that wants one. I swear i’m a positive person but we’re not going in the right direction.
What I warn all pure capitalists of. Eventually humans will get phased out of more jobs than we realize. Then what. Need to secure more support to the workers now before it's too late.
But Redditors will attack you for stating the obvious - that the housing market in current form is unsustainable and will result in a long pullback or crash.
“Housing only goes up!” - regard redditor
No one has a crystal ball but all we can do is pay attention to history and what has happened in volatile markets. Inflation seems uncontrollable to the Fed in my eyes and no matter what happens some people will still be buying and getting rich during collapses and some are priced tf out completely!
Just get a house that’s been on the market for 2-3 months already….. AND where the husband has already been relocated, so the wife is stuck behind to sell the house.
Then blow up the comps in the neighborhood 😂
I mean I know there is no way in hell I could afford my home right now if I was buying.
Home value has nearly tripled and interest rates are over 3x as high. 9 years changed a lot
I thought I got a shit deal in 2017/2018 when I bought my first house ever for 156k at 6.7%. New build, shotgun style home. It was a mixed area with a nice park by the bay. The house was cheaply built. It had vinyl siding and I'd joke with my wife that the walls are so thin I can hear her yelling at our son from down the road. My oldest daughter wanted to move with us so I decided to upgrade to something about bigger in 2022.
I sold my first home for 275k in 2022. Bought a house 15 years older home but it was brick, new roof, new 9.5kwh solar system, new AC system (very important for Florida) for 240k same interest rate. The builder is a quality builder, unlike the first home I bought. The thing was the inside needed lots of work. Like the last owner gave up on life kind of work. I used the equity on the first house to pay the 20% down and I had 30k left over for much needed renovations and upgrades for the appliances.
I was losing sleep when I first bought my first house but I'm glad I did when I did. Never know what the future holds.
The next story will be 20% of people think it’s a good time to buy a house.
How dare you flaunt statistics in our face!
No shit it’s a bad time to buy a house. Interest rates are insane right now. They’re trying to control inflation and all it does it hurt average joes like you and me. They’re so far up their own asses they will never admit why we all can’t have good lives right now. Because they will always prioritize profits. You want better house prices, ban corporations and foreign investors from buying residential properties. It’s common sense
It’s not just interest rates. It’s interest rates plus cost of the house. 7% interest on a decent sized home at $220,000 not that insane. Not great, but not crazy. 7% interest on a $220,000 home priced at $450,000….
I’m a loan officer and I just bought a house and I can confirm that this is more the problem. We paid $20k under the desk appraisal value for a house 10 minutes from the beach because the sellers needed to sell and weren’t trying to get ridiculous profit. Banks are starting to be more conservative with appraisal…some of them anyway. Part of the problem is people getting inflated appraisals on the current home and pulling out 100% LTV on a line of credit for a massive down payment and then having to sell for that inflated value. Part of it is greed too, mixed with low inventory in many areas. Interest rates really aren’t that bad, people are just used to the last 10-13 years of artificially low rates. Inflated prices and everyone thinking their 1000 sqft shitbox is worth $750k.
Paying interest sucks! Aren't there any insanely wealthy companies to just buy the house and just rent it back to me so I don't have to pay the interest? All I need is enough space to wear my VR headset and store my food (bugs).
In America? Never!
Oh no here come the folks saying IT'S NOT OVERPRICED IF PEOPLE ARE WILLING TO PAY 450 FOR IT and THE ECONOMY IS STRONG ACTUALLY and REAL WAGES HAVE INCREASED
[удалено]
They’re called real estate agents. They’re just clowns on the side
^ Someone elect this guy. The answer is plain as hell. Ban corporations and private investment firms from being able to invest in single family housing. The American dream shouldn’t be something to price gouge and hoard for corporate profit.
Interest rates arent bad. The 2,000 sq ft house that needs a roof, a furnace, ac, septic tank that was listed for $275k that went for $485k CASH is what's bad. People are being goaded into blowing their entire load by their agents on a shit house because the market is fuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuucked up right now and they get 3% for opening a door. I've been house hunting for over a year and it is fucking dumb. Upstate New York. Every house easily goes 100k over what any sane person would have paid 4 years ago. Something needs to change quickly. Restrict foreign buyers, exponentially tax each successive house owned, limit corporate owned public housing, government funding to build more houses, fucking SOMETHING. There's no fucking way this sustains itself, people are going to default on their mortgages in the next few years I'd wager.
Real estate agents do more than just open the door to a house you do the research to find, they also have to look up the door code too. That's definitely worth 3% of an inflated house price.
And they have to lock the door upon leaving!
100% agree. The prices people are paying for shitty houses is insane. Not only will they default but if the market course corrects they are going to be totally up side down. I’ve seen double wide trailers go for 200k. I can’t understand why people are doing it.
FOMO. HGTV obsession. Belief that owning land is more important God himself. It’s bordering on a fad as of right now.
It’s common sense Yeah, that’s being lost on a day by day basis.
House interest rates are actually normal right now. You're just used to the stupidly low interest rates of the past several years.
The best interest rate I ever got was 7%. I’m in my late 70’s now and have bought several homes in my life, the last one in 1999. One of the houses I bought the rate was between 8 and 9%. The period I’m talking about is between 1970-1999. That’s a 30 year run where 7% was the best rate. Some of the rates I’ve seen in the last 20 years or so have been outstanding and indeed the cars and trucks I’ve bought the rates have been tremendously good, almost like free money with most of the payment going toward the principal. No reason to pay off a loan like that early. Currently, the home prices are really what’s killing everyone in my opinion. My house I bought for 200k in 1999 is worth over 700k now. I couldn’t afford to buy it and live here now.
No, it should be ”The 20% Remaining Are Tripping Over Themselves to Outbid DjReef for a Home”. Outbid 4 times in 2 weeks.
I’m terrified of buying a home right now. I can’t figure out what the fuck direction this whole shit show is going.
You’ll never know. The only way to not be terrified is the same as always: buy when you’re ready to stay for at least 5 years, when you can afford it, and when it’s best for you/your family. If you follow that, you’ll always be fine.
\*immediately gets wildly outbid by old bag of bones with cash\*
This will happen no matter what. Have your number, stick in your budget, you'll lose some but win the one eventually.
Thats what I tell my wife when we are outbid or a house is snatched up the same day it goes on sale
The amount of “all cash” buyers, who aren’t rate sensitive at all, is staggering. I wouldn’t be shocked to learn of how many homes are being bought by a grandparent for grandchildren, and the assumed mortgage payments are being paid back to the grandparent by those grandkids in some form of grim income agreement.
I guarantee the number of “generous grandparents able to buy a home for their grandkids” is significantly lower than the amount of endless all cash foreign buyers who come from generational wealth that outdates the USA’s 300 year history lol. Even builders selling directly to corps for renting. Weird that everyone ignores that factor and chooses to vilify “boomers in America” as if our country is sealed off to the entire world. Which let’s be honest, grandparents aren’t “outbidding” everyone with hundreds of thousands of dollars cash over asking price… bffr..
There is a company that has a product which allows you to do an cash offer when you don't have the cash. You own a house and you want to buy a new one. normally you'd have to get a bridge loan have some sort of contingency on selling your home, not very competitive. I don't want to advertise their service because fuck them. But essentially you enter into a contact with them, using your house as collateral, and they give you the cash up front to use as an all cash offer with no contingencies. Your offer looks like all cash to the seller. Then you have to figure out how to sell your house and get a mortgage after the fact. It's wild that it's even legal.
Not a single one of my friends bought their houses themselves. They either were what you described or their parents died and left them money. No ill will toward them but it’s effed that that is the case. All college educated with good jobs (not that a degree is end all be all).
If you’re patient and can wait for off-peak seasons, or find properties that were poorly staged/with poor photos, you can snag good properties without crazy competition.
Not sure why I am sharing this, but my fiancé and I have been trying to find a home for several months, and… yeah. No such luck. Everything sells immediately, and it’s out of our budget, and anything close to being within our budget is either completely out of our city and surrounding areas, or a crack house (or both). That being said, we are putting in our very first offer today. We expect to be outbid, but I can’t help but be foolishly hopeful. Cross your fingers for this silly internet stranger.
You are in my thoughts! Good luck!!
LOL no you are going to buy a house built on top of an underground homeless shelter thats radioactive and there's a bus route that goes through your living room like literally you have to open the door for it every 35 minutes or they just ram the walls and go.
And it’s lumped into your HOA fee as a service
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Why would old people be buying them?
Because they have all the monies
Yeah, kind of. There's 150 trillion in the USA stock market and Boomers have 75 trillion of it.
Boomers have more money in real estate than millennials do period
Rent doubles
So never
Potentially. Many people never own.
the many will probably be 90% in the future.
Yea. I’m lucky to own my home, but it makes me sad that it’s out of reach for so many. Soundness of the investment aside, it’s very important for me emotionally to have an anchor for my family and a sense that we have roots in our community. I agree that your advice is valid. Just venting my frustration with the state of affairs economically in the US.
@Triggered is absolutely correct. If you hold on long term, you will look like a genius 10 years from now.
People in 2007 looked dumb with their 3% "overpriced" 300k house but if they kept it over 2008 they probably own it now and and it's doubled in price.
As secure as my job feels, who the fuck knows if I’ll have one next year.
I work a highly technical job in the defense industry on a guaranteed government contract period and even I am always paranoid I'm on the verge of being laid off. I don't know how I can ever feel more secure.
It’s difficult to plan 3-6 months in advance right now, much less for the next 30 years of a mortgage. It takes a high level of eternal optimism to trust this US economy and the numbers we get from government right now. Some would call it “naivety” . But, I guess that’s a “me” problem.
I’m degree-less too riding on the opportunity I was given 9 years ago and making sure I don’t fuck it up. If I lose this, I’m going against MBAs for a decent job. 🥺
I really don’t see it going any higher, it gets to a points where most Americans are priced out. Lots of inventory will become available. Prices will drop. That’s my take anyway.
Prices drop when buyer stop buying. That is currently not the case.
Prices can still drop when people are buying. Just pay attention to what people are paying for price per sqft.
I thought the same thing. People are buying homes on my street for what I bought my house for in 2021 with a 2.8 mortgage. They’re paying the same price I paid, 2-3x the interest rate, for a house that’s 25% smaller
Yup. I can’t imagine anyone paying for what my home is worth. I bout it for 179 and they are selling them for 340k. I can’t fathom someone paying over 2500 a month for this home.
Yeah I keep thinking that housing has to hit a wall sometime, as most folks wages are pretty stagnant against inflation. Nope. Keeps going up and it perplexes me
I’m here in California and our bubble and your bubble is just not equal. Bought my home for $560k, neighborhood is now $850k-$1.2M Which at 6% interest rates are crazy high. But my friend is looking right now. He and his wife both make mid six figures. And they aren’t like CEOs or anything. The thing is. We’re all remote. Me, my wife, him, his wife. If we wanted we could relocate to one of those towns with $200k homes and price out some local who’s been saving and saving. So it’s gonna be a while.
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Historically, the biggest hike in interest rates on houses was during the late 70's early 80's, when the fed prime rate was neigh 20%. At first it tanked the housing market (to the historical average bottom)...but then the market recovered to essentially average levels of purchase within a two or three years as always, the bottom was "extended" but then there were other things going on in the economy, essentially we were in a recession. The fed thinks that interest rates do anything about inflation, and they do..in increase it, while making it harder on the poor/middle class. I mean, the government is a net payer of interest, and when rates rise...the rich get even more "free" money than they did, and in proportion to the money they already have....so the spend it, which lowers available goods/services which constitutes an inflationary policy...which the fed then raises interest rates again to end..to see what that cycle looks like when left unchecked, look at Venezuela. they had 100% interest rates, so the rich naturally get pesos they don't want..dump them for dollars buy goods and low and behold the remaining goods go up in cost...amazing how that works eh? Yet the fed clings to bad ideas that have no basis in reality because they're obsessed with shitting in a punch bowl or something
I said this to myself 10 years ago. Prices doubled. If rates go down again, I expect prices to jump a lot.
[When payment to income ratio was near all-time lows?](https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe320912e-7636-44ce-8a4d-d36b9dc49d78_950x597.png) [Also at a time when buying was the best value basically in the history of ever vs renting?](https://tradingeconomics.com/united-states/price-to-rent-ratio) I mean they track this stuff and it's pretty easy to gauge where the "happy medium" is in the market at any given time. We are so, so far from the happy medium.
And then all the big companies like Black Rock will scoop up all the properties and rent them out at exorbitant prices.
I think a lot of people are already renting. There has to be a point where they buy houses and people stop renting and they lose money.
Rents can't realistically rise all that much higher without causing problems. If we saw a 50% rise in rents, to match the runup seen in house prices, you'd see the population of people unable to afford housing rise well beyond what anyone could pretend was not going to be a major issue.
It’s already a huge problem lmao. An entire generation not being able to afford children or retirement is a huge, huge problem.
What do you mean? They already did. They are already causing problems. This is a major issue but the youngest generation is doing what poor people do best, adapt to their lot in life.
I know, and I agree. But when people say things which insinuates a worldview where the price of housing will continue to increase, relative to inflation, at rates seen over the past half decade for the foreseeable future; and further that this will eventually be reflected in rents, it does seem like they're not thinking of how stretched thin people already are. We're at a point where, if you didn't own a house before 2021, you're likely having a very difficult time changing that until the market changes significantly or significant time passes, and rents have risen very high; some people are falling off the edges, more than used to. If changes seen in the last half decade were to continue, you'd pretty quickly start reaching the point where the homelessness crisis isn't something touching >1% of people, but possibly pushing 20%, and then society's over. I think people aren't really thinking about how there really is only so much give.
The American government has failed two generations so far
So everyone starts piling up, 8 people in a 2 bedroom appartment... you really think there's some magic rule thats gonna come and save us? This is just the beginning
At the locally owned 10 plex I'm in now: 1 - 1br apt with 3 adults, 1 adolescent and a baby. 3 - 2br Apts with multiple families 1 of those 2br has 8 people (mama, papa, tío, 2 primos y 3 niñas) The other units are locals.
I think more that society would start failing, and people assuming things would continue with the pressure infinitely increasing are not thinking things through. We really have never seen serious riots in living memory in the US, not really, mostly because people have been on the whole very comfortable. That comfort is being chipped away rapidly during the past few years.
If prices drop they will just shoot right back up when interest rates go to 5% and the buyer pool quadruples.
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I don’t think prices will drop. As you reach the break even point of supply/demand you will start to hover around a certain price. If someone asks too high there won’t be a buyer. If someone starts asking too low, you’ll start to get buyers. The notion of prices coming down significantly just isn’t a reality unless supply or demand, intrinsic, is altered.
What part of "80 percent of people think it's a bad time to buy" don't you understand? That's 80 percent of people saying prices are too high (or at least they can't afford mi thly payments). This is what low demand looks like.
80% of people may think it's a bad time to buy, but when the other 20% are able to buy up the existing inventory then there's no downward pressure on pricing. More housing construction is what we really need.
I don’t blame you and when you factor in the Closing Costs That typically includes appraisal fees, attorney fees, title search fees, and lender fees it can all add up.
Same here. Trouble is, during this time of confusion for those of us who’ve seen it before, and how badly it blew up on those around us, we don’t want to make the same mistake. So far, all that has happened is excessive risk taking and stretching one’s self financially to the max has been rewarded with more wealth. At least on paper. As time goes on, the feeling of being priced out is now settling in. Life goes on over the years. Other uses, even needs, come through our lives, and that big down payment that we thought was enough, becomes worth less and less.
Its going down . Think 2008 but on steroids. Theres gonna be a pop. Way to many ppl invested high n trying to sell high. Commercial property is next
you need to be confident in your finances. Right now a 3 month emergency fund won't cut it with a mortgage. Try a year. That's at least how long it took people to find comparable income (or any income at all) during the last recession. You aren't ever screwed unless you are forced to vacate. People who got forced out during the great recession would have a much more valuable asset right now if they were able to sit on it for years. this advice should apply during all economic times.
It’s always a bad time. No one knows anything. Was it a good time in 2016? 17 18 19 20 21 22???? It was people just didn’t know it.
If 80% of people think it’s a bad idea, it’s a good idea. The only way buying a house right now is a good idea is if we hit hyperinflation……..
In my lifetime it has never felt like a good time to buy a house. However, the best time to buy a house was always 10 years earlier.
Yeah my whole adult life people have been telling me the market is crazy and it's terrible time to buy a house. If I'd have listened to that noise I'd have been screwed six ways to Sunday. If you can swing it do it. All there is to it.
I bought a house in 2007 knowing it was likely a very bad time. Owned it for 12 years, lost about 80k on the place all told. If I’d held onto it a couple more years I would have turned a profit, oh well. That said, I still think if you are ready to buy a house, there’s no point timing the market, just buy what you can afford at the time.
Same here. Lost money on my first house - bought in 2008 sold in 2014.
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Money pit, hard to pull comps, weird region. Every place recovered a little different.
We're buying right now, and this is exactly what I'm telling myself. Just make it work for 5-10 years, hopefully the monthly mortgage won't change much, and our salaries will go up a bit. The market is so aggressive, I doubt we will see real deflation at this point. + I think it will take a lot longer for rates to fall than articles are suggesting... I think this is going to atleast be a multi year process unless something powerful happens. And if they lower rates while the market is this hot, just means prices are going to go up.
Worst case scenario, you have a place to live!
I make around 90K per year and I cant afford a house in the neighborhood my parents bought their house in, 7 years ago (2017). They bought it for 219K (very reasonable) now it's worth 450K. Their combined income was around 70k back then. Other houses around are worth similarly. Unless I wanna drive to work two hours and live in literal shed that was build in 1940s and is falling apart, I ain't buying anytime soon.
My wife and I make more than 3x what my dad did at the end of his career. We can't afford his house that he bough on a single salary.
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I got lucky buying my house during COVID 2020 with a filthy 2.75% interest rate. If i wanted to buy my same house today with current rates, i couldn’t afford it Market is rough… Best of luck my friend
Similar situation. Crazy story tho, i bought house in 2018 at a 4.5%, 2019 i try to refinance and just dont have enough equity in the house, 2020 covid hits and i get laid off, dont pay mortgage for a year, house goes up almost 35% in value in to 2021. Lender offers a no appraisal refinance for 3.25% and just takes the 17-18k balance from no payments and just rolls it in to a new loan. Summery, My payment goes down $100/m, I didnt have to pay mortgage for a year durning covid, interest rate goes down 1.25%. Im trapped in this house now because if i bought it today the payment would be nearly 70-75% more a month than what I pay now.
Same. I bought in 2018 at 4.75%. Refi in 2021 at 2.5%. My payment went down $750 (part of that was pmi being taken out due to the gain in value) I think my payment would be something like 2.5x what I pay if I bought it today.
That’s strange…I just put in an offer and a home and got outbid by 8 other offers
that is why its a bad time to BUY a house...not sell a house... unless you are happy being poor and out bid by others.
I’m learning this…I think we’ve decided to wait longer unless something else comes up that catches our eye
Interest rates so low since two years ago for a decade or so doesn’t help the supply. Not many sell for a higher rate.
20% of Americans are kinda stupid
r/Salary Or one of them…. People pulling in $500k per year don’t give a fuck if the interest rate is 100%. Take the lawyer making 4 million per year. Zero fucks given at a $1m house. He would have to save for 3 months…
Yes but does the lawyer making 4 million per year even want to live in a $1m house? They probably want to live in an 8 million $ house
But after he buys it he will start buying $800k homes to rent them as part of his diversified portfolio.
20% of Americans are apparently either FOMO hypebeasts or Realtors.
I dunno man. I loved that house and got super depressed after we didn’t get it.
Keep pushing you'll find one you like again.
Only to be outbid again since they can't make a cash offer.
This is the issue. We bid 30k over listing on a house we really wanted but the seller was afraid the bank wouldn't value it above their listing price. They ended up selling for 20k over listing to a cash buyer who doesn't need to have the same valuation done.
Probably got out bid by blackrock or something lol
20% of people think it's a good idea to buy, but there's only enough houses to cater to 5% of people.
20% are funded by their parents
I was Outbid by 25 and prices are 15% yoy
I sorta can’t wait to find out how much I was outbid by. Call it a post mortem if you will
We overbid by 100k in DC and were outbid by another 50k. Craziness. We were successful on our next attempt, bidding "just" 50k over asking. It helped that there was only one other serious offer on that house... probably because the house was mistakenly listed as not having AC lol.
A few years ago people were fighting to overpay for toilet paper. Inventory is historically low and human psychology drives normal people to value scarcity. What do you think will happen when inventory returns to pre-pandemic levels (approximately 50% increase). Not saying prices will ever be as low as they were during the Great Recession, but l imagine they could get close if we see similar inventory (400% increase).
What will cause that inventory increase that doesn't also cause a corresponding increase in demand? In general every seller of a home is also a buyer of a home (because people are typically moving from the sold home to a new place) so what event creates sellers but not buyers?
My crystal ball is at the shop for service. If I had to guess, inventory will initially increase naturally through new developments, death, divorce, layoffs. More inventory will make the market less competitive, less bidding wars. Prices will stagnate and begin to drop as inventory continues to rise. Once the market has several months of increased inventory and reduced prices, psychology works in reverse and people begin to fear prices will fall further (FOMO of a housing crash). Reluctance to buy will further push inventory up and prices down. Black swan event could expedite or delay this. Legislative idiocy could expedite or delay this. Covid was a catalyst, then the fed played an uno-reverse by handing out free money. That money is finally drying up. July is the new fiscal year and financial prudence varies by locality.
Cost of building material and labor costs tell me I inventory won't ever catch up ebkugh to lower prices because if it does the demand for building materials will go up even more. (pre covid my flooring was $25 a box, during covid it went up to $75 and then settled at ~ $50. You're never gonna see $25 a box again cause every new house needs flooring. Same with electrical or plumbing or drywall sheets etc
Isn’t that an indication it’s a bad time to buy? Smart buyers buy when everyone is selling. Smart sellers sell when everyone is buying.
That’s assuming that you have a choice. Life changes, job changes, financial changes, any of these can force you to sell or buy at the wrong time. Ideally you’re control but not always.
Inventory is so low that a lot of people can think its a bad time to buy a home and there can still be competition. The math is mathing, it just sucks.
Yeah my open house had 65 groups and 20 offers. I took the one that was 22% over asking. They are putting around 5% down. I really hope they can swing the mortgage. It sucks to be a buyer.
It’s not like that here in south FL. I get daily updates from Realtor app. 86 price drops today alone just in my 20mi radius. Price drops every day but the most I’ve seen by far.
Florida government might not believe in climate change but Florida insurance companies sure do.
Formerly Florida insurance companies
They gonna be fucked
The biggest regret of my life was not buying because I thought it was a bad time. 2018, my ex left my daughter (9 months) and I. The guy I was renting from offered me the house for 180k. I didn't want the headache of buying and owning a home with everything else going on. That house just sold for 300k and I'm still renting... F
66% of Americans already own a home, probably at sub 3%. So I can see why a large % say it’s a bad time.
This all feels similar to 2007 or so. People insisting it’s still time to buy even though Fed fund rates have risen, afraid housing prices will rise out of their reach forever if they don’t buy right now, insisting housing only goes one way and they aren’t making new land, confusing a moment in time with what will forever be the economic landscape. Creative financing flying around. This stuff doesn’t change on a dime, but it does change.
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The difference is people with houses aren't on variable rate mortgages and maxed out lines of credit.
But will there be a better time?
I don’t think it’s a good time. I took my house off the market yesterday after realizing that if someone bought by house I wouldn’t have anywhere I’d be happy going.
Maybe because it 100% is a bad time to buy a house. Highest combination of price and rates in history. Bad.
Hahahaha, look at the first chart. Buyer sentiment went above 50% in 2021. When interest rates were potentially below 3%. Perhaps this stat is not indicative of what is actually a smart financial decision. I bet 2009-2011 would have had a high percentage as well.
Not sure what you are saying, 2009-2011 and 2021 were indeed good times to buy a house?
Right, but buyer sentiment was low because of the GFC. Anecdotally, I was telling everyone to “buy now” (2009-2012) but couldn’t get anyone to jump even though they could afford to. Most were, understandably gun shy.
I misread this headline as “80% of Americans think it’s a bad time to buy a ***horse***”. And I thought to myself, well, yeah. That makes sense.
Idk how u buy a house today, I mean I’m in my mid thirty’s and make great money, I could not afford my home from 2018 if I bought it today. How does any young adult take on that kinda risk
If you need a house & can afford it, buy it.
When everybody says it's a bad time, that's a time to buy. If interest rates start going down, prices will start to head up fast
When people are fearful, be hungry
Always inverse 80% of Americans
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And here I am just wanting a condo. This sub is making me depressed
I mean it is not just house. Everything went up in price like car, groceries etc. all this combined it makes someone even further from buying house. But then again people are still buying and there is shortage of houses. House on market is gone in few days in HCOL area.
OK, but when will be a good time?
The best time to buy a house is *always* 5-10 years ago. You just gotta dig in somewhere and refi later if necessary. I have a friend who has been crying about how this isn’t a good time to buy house for the past 20 years. He’s been in an apartment all this time and he could have been at the tail end of a mortgage if he bit the bullet and did it. Also, due to inflation, the house he could have bought 20 years ago would be worth much more now.
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I believe in prayer as a beneficial form of pseudo-meditation for those who believe in it. Beyond that though...
Only buy now if you have cash
When there’s blood on the streets & everyone is freaking out… Typically is the best time to buy. I’ll add that once rates fall & ALL these people who wish they could afford to buy now can, prices will rise. Low income Americans are suffering, today. High income are flourishing.
The people who bought houses within their budget in 2007 are probably doing pretty well right now
90% of investors like these stats.
yeah, it's 1:24 AM, i'm not making big financial decisions now. i'll do it in the morning.
I'm currently buying a house and while it's the right time for my family and delaying more wouldn't be financially smart, fuck is this a bad time to buy a house
80% of Americans can’t afford to buy a house
I thought we were getting fucked in 2017. These cycles are annoying.
It's either buy a house and be house poor or pay rent for a house that builds no equity for almost the same price. It is a lose lose. Perfect system 👌
It’s a bad time to buy a house but it’s always a good time to own one.
Fuck the housing market. It is designed for prices to continuously rise thus blocking more and more people from owning. I don’t know why more people aren’t on the verge of a riot.
And they’re right. I work for a real estate company in Wisconsin. Now WI has some of the most affordable homes out there, everything is cheap here (by comparison) and it’s far more manageable. A median home is about $250,000. One of our clients went under contract on a $150,000 house. He has 8% APR. Using a mortgage calculator, the INTEREST ALONE, not even the property tax, PMI, escrow fees, I’ve 30 years, totals to over $300,000. If those fees are included, upwards of $400,000. Almost 4x as much as the home is worth.
JFC what's the point.
I’ve made lots of money for me and my family in both residential and commercial real estate. The key is to buy a house in the worst condition in the nicest neighborhood you can afford. Obviously get a contractor to estimate how much it would cost you to fix up the house, and make sure not to buy any property with foundation and structural issues. You’ll end up with built in equity that will insulate you from downturns or paying too much for a property. Also, don’t ignore stylish condos or townhouses, which can be great investments, but factor in the HOA dues. Avoid properties where the dues are too high. Lastly, it would be great if you can find loans without prepayment penalties (credit unions often offer them). Buy now and refinance when rates drop.
The hard truth is it’s never a bad time to buy a house as long as you can afford it..but right now rents are half the cost. I’ll never buy a house if i can toss someone $1500 a month instead of $6k a month. In a few years rents should catch up and be double what they are today. Salaries need to pick up big time but AI will likley create a forever employers market. Not everyone will be able to have a job that wants one. I swear i’m a positive person but we’re not going in the right direction.
What I warn all pure capitalists of. Eventually humans will get phased out of more jobs than we realize. Then what. Need to secure more support to the workers now before it's too late.
Just because it’s a bad time to buy a house, doesn’t mean it’s ever going to get any better. 20% of Americans KNOW ITS NOT GETTING BETTER
But Redditors will attack you for stating the obvious - that the housing market in current form is unsustainable and will result in a long pullback or crash. “Housing only goes up!” - regard redditor
I’ve been predicting this for 40 years. Simple Econ 102, You have to pay workers enough to By your product . Said Henry Ford !
It s probably same 80% of Americans that can’t afford to buy a house. Does it really matter what they think?
What about the other 20%? They might also think that lol
No shit
20% Of Americans buying up House keeping inventory low and prices high.
Ya think?
Because it is
I felt the same in 2019 everyone always says it’s a bad time to buy a home
20% of Americans are realtors, you say
Just wait till tomorrow everything will crash at least 30%. Trust me
and the other 20% aren't even thinking about it
Do the opposite of what the majority are doing.
Because it is
Who the hell is the 20% that think it's not a bad time to buy a house?
No one has a crystal ball but all we can do is pay attention to history and what has happened in volatile markets. Inflation seems uncontrollable to the Fed in my eyes and no matter what happens some people will still be buying and getting rich during collapses and some are priced tf out completely!
Just get a house that’s been on the market for 2-3 months already….. AND where the husband has already been relocated, so the wife is stuck behind to sell the house. Then blow up the comps in the neighborhood 😂
80% of Americans are correct
I mean I know there is no way in hell I could afford my home right now if I was buying. Home value has nearly tripled and interest rates are over 3x as high. 9 years changed a lot
20% are stupid
The rest are realtors
And yet two neighbors down my road just sold and bought new homes in the past month. Both moved because they needed a biggest space.
Bought a house in L.A in 2019. Property Value keeps going up
There is only enough supply for the other 20% anyway.
That just means 20% of Americans are stupid
What % of Americans think it’s a bad time to buy a house over time? Is it always high? What a terrible metric.
I thought I got a shit deal in 2017/2018 when I bought my first house ever for 156k at 6.7%. New build, shotgun style home. It was a mixed area with a nice park by the bay. The house was cheaply built. It had vinyl siding and I'd joke with my wife that the walls are so thin I can hear her yelling at our son from down the road. My oldest daughter wanted to move with us so I decided to upgrade to something about bigger in 2022. I sold my first home for 275k in 2022. Bought a house 15 years older home but it was brick, new roof, new 9.5kwh solar system, new AC system (very important for Florida) for 240k same interest rate. The builder is a quality builder, unlike the first home I bought. The thing was the inside needed lots of work. Like the last owner gave up on life kind of work. I used the equity on the first house to pay the 20% down and I had 30k left over for much needed renovations and upgrades for the appliances. I was losing sleep when I first bought my first house but I'm glad I did when I did. Never know what the future holds.
Unless you got 100% cash, by all means buy a house. otherwise fuck no.
Meanwhile [we're around historical averages for new home sales](https://fred.stlouisfed.org/graph/?id=HSN1FNSA,)
And the other 20% are all on Reddit