How are people affording these crazy home prices?

[Joe Schmo]

I’d just get a custom quote on a 45 year.

 

[amassi]

I’d just get a custom quote on a 45 year.

Only if it's an arm

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[ben h]

I really feel bad for the 1st time home buyer right now. it's not that big of a deal to sell your house for $500k and pick up another for $700k, but starting from nothing would be tough. I personally feel 30 year mortgages should be discuraged if not illegal; 45 year mtg blows my mind why somone would do that.

 

[KnuckleChild]

I really feel bad for the 1st time home buyer right now. it's not that big of a deal to sell your house for $500k and pick up another for $700k, but starting from nothing would be tough. I personally feel 30 year mortgages should be discuraged if not illegal; 45 year mtg blows my mind why somone would do that.

If 30 year were illegal I’d have been unable to buy my house that I’m perfectly capable of paying, though.

 

[ben h]

If 30 year were illegal I’d have been unable to buy my house that I’m perfectly capable of paying, though.

I make most of my income selling mortgages. I would do a 30 for income flexibility if needed, but there is no way I'd do one myself. Look at an Amortization Schedule and see how front end loaded the interest is. Then figure in, most people refi in a few years for $5k and the cycle continues. You're a renter if you do that and quite a few do.

​

 

[Anglo-American]

I’m that guy that was an idiot and sold my house in 2019 when the market was at an all time high where I live in Southern Utah and had decided that it was a good time to sell. We had a 4900sq/ft custom built home and our 2 oldest had just moved out so it left us with 1 kid at home. I talked my wife into selling because it seemed like we were due for a correction in my mind since it had been over 10 years since the last dip and we never planned on retiring in this home. Also with only 1 son at hike we didn’t need a hike the size of what we were living in. We had planned on buying property after we rented for a year or so and building our next home that would take us into retirement and live in until we die. So we ended up selling for $570k which at that time seemed like a ton since we had bought it 9 years earlier for $350k. Used some of the equity to pay off all our debt so we were debt free and kept a nice chunk of money in the bank. Now we have literally priced ourselves out of the market where we live and this is we’re we want to retire. Our house would have easily sold for a million right now. That’s over $400k that we have lost by selling. I’m so sick about how this has all worked out and not even sure what to think or do anymore. I make a great 6 figure salary but can’t imagine what people do to afford these $700k + mortgages. Are people in serious debt or is the rest of the country just making more money than I can even imagine. Talking to the realtors around here they are saying that many of the people buying the homes where we live in St. George are buying them as second homes and many paying cash. That’s just crazy. Also they say these are well qualified loans and have income to pay the mortgages unlike the 2008 housing crisis where they gave anyone a loan even without income verification.

What’s the end game here. Are these high prices here to stay (new normal) or is something catastrophic gonna happen or will there just be a small dip in real estate? I don’t know what or who to believe anymore. All I know is I’m always second guessing myself for selling but on the other hand happy I’m 100% debt free. My biggest concern is I had planned on retiring in 5 years. (Age 55). Now not owning a home I know that’s most likely a pipe dream and not gonna happen. I can’t go into retirement with a $3k a month mortgage. What are your thoughts. Should I buy now or wait it out at this point? My next home will be my forever home more than likely.


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That's unfortunate.

Yes, it's debt.

Either the market collapses in 1-3 years, or it doesn't but people become renters with all the housing stock owned by large corps, over time.

I hope for everyone's sake, yours included it crashes and people stop signing themselves up to lifetimes worth of unfathomable debt.

The pyramid scheme has been out of control for some time.

 

[amassi]

I really feel bad for the 1st time home buyer right now. it's not that big of a deal to sell your house for $500k and pick up another for $700k, but starting from nothing would be tough. I personally feel 30 year mortgages should be discuraged if not illegal; 45 year mtg blows my mind why somone would do that.

I'd much sooner lobby for it to be illegal for corporations to purchase swaths of homes.

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[bozeman]

Find a modest house, not a 3,000 sq ft house you don’t need…..pay it off, live in it and enjoy…..

 

[ODB]

I'd much sooner lobby for it to be illegal for corporations to purchase swaths of homes.

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Right next door to the school out here is a development going up by Blackrock Homes. That’s Blackrock as in the investment company. They aren’t even buying anymore, they are competing with traditional builders for the cash.

 

[KnuckleChild]

I make most of my income selling mortgages. I would do a 30 for income flexibility if needed, but there is no way I'd do one myself. Look at an Amortization Schedule and see how front end loaded the interest is. Then figure in, most people refi in a few years for $5k and the cycle continues. You're a renter if you do that and quite a few do.

​

I got into this one with the plan to either have sold before 10 years or refi by then. My situation was probably different than most, though.

 

[amassi]

Right next door to the school out here is a development going up by Blackrock Homes. That’s Blackrock as in the investment company. They aren’t even buying anymore, they are competing with traditional builders for the cash.

They built a 500 home community next to my daughter's high-school, single family homes- only rentals. Not for sale

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[Poser]

Find a modest house, not a 3,000 sq ft house you don’t need…..pay it off, live in it and enjoy…..

#BoomerAdvice

You checked the prices on 1200 square foot houses lately? I looked at a 900 square foot house a couple of months ago that ended up selling for 700k cash.

 

[fngTony]

Find a modest house, not a 3,000 sq ft house you don’t need…..pay it off, live in it and enjoy…..

I don’t think that’s possible anymore except for a few select areas. Here’s the cheapest home in Denver under 1750sqft.

 

[KnuckleChild]

#BoomerAdvice

You checked the prices on 1200 square foot houses lately? I looked at a 900 square foot house a couple of months ago that ended up selling for 700k cash.

This depends on the market you’re in for sure but yea. I ended up with more than I was planning, but got quite literally double the square footage for ~$125k-150k more. It’s not needed but nice to have for our purposes, and where it’s at it’ll likely make it easier to sell

 

[amassi]

The days of buying a single family home on one union income while one parent stayed home and raised tje kids are dead and buried.

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[406flyfish]

We purchased a home in Gallatin County less then 3 years ago. Our realtor told us recently that we could list it for a 7 figure profit. Tempted to sell it off and move back East. Gallatin County is becoming a zoo.

 

[svivian]

Find a modest house, not a 3,000 sq ft house you don’t need…..pay it off, live in it and enjoy…..

Maybe 10-15 years ago. That ship has sailed…. Tell that to a high school or college graduate today.

 

[Customweld]

I feel for the youngsters trying to get into the housing market. Especially here in Southern Idaho. The kids just starting out don’t stand a chance with the out of state money coming in.

 

[GarnerAF1]

I feel for the youngsters trying to get into the housing market. Especially here in Southern Idaho. The kids just starting out don’t stand a chance with the out of state money coming in.

My brother is in his mid twenties and has given up on the housing market. He had big plans after college but has decided to toss in the towel for the foreseeable future. Just not viable for him to dump that much capital into these current prices. I honestly don’t blame him.

 

[McCrapper]

The amount of risky loans out there has to be incredible.


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