How are people affording these crazy home prices?

[timekiller13]

Higher end homes sales in my area have slowed. And by higher end I mean 750k+. That may not be high end in some areas but around here it is.

Now, homes in $250-500k range are still selling as soon as they hit the market. They just built a new neighborhood about 10 minutes from where I live. 125 homes, spec houses, all of them 2500 square feet. $400k asking. All 125 of them are sold.

My neighbor down the road just put their house on the market. They asked $450k, sold it in 3 days for $460k.

The house across from me has been on the market for 5 months now. Asking price started at $849k and now has dropped to $799k. I saw the realtor the other day and she said they had only had one offer.

 

[dtrkyman]

Prices are still way up here, sales have slowed way down, but as said above these are mostly 7-750k+ houses I see hanging around, "cheap" stuff may well be selling still?

 

[z987k]

There was a local article the other day about how mortgage officers are seeing people apply for homes where the payment is 50% of their income. I really hope they are denying those people.

 

[Bountyhunter]

Here on shore of NC New Englanders are selling their homes up North for big $ and moving here. They pay cash with quick closing. Our house has almost doubled in price in 9 years with no letup

 

[TheGDog]

Everybody and their Mama gripin' and complaining about the housing prices... and yet.. all the same people wantin' to pitch a hissy-fit the moment anybody starts talkin' 'bout anything Family-planning-services related... you can't make this stuff up folks. SMDH

It'll only get worse from here on out. Supposedly we're on track to hit 10 Bil humans worldwide by 2050.

So... we have demand ever-increasing. The only dips or downturns will be when things like pandemics or unstable periods of war/conflict begin, which make people hold on and take a wait-and-see attitude for a sec.

 

[william schmaltz]

Everybody and their Mama gripin' and complaining about the housing prices... and yet.. all the same people wantin' to pitch a hissy-fit the moment anybody starts talkin' 'bout anything Family-planning-services related... you can't make this stuff up folks. SMDH

It'll only get worse from here on out. Supposedly we're on track to hit 10 Bil humans worldwide by 2050.

What? Almost every model shows that we are near the peak as far as world population and will be somewhere back around 7 billion by the end of the century. Very few countries are reproducing above replacement and those that are we consider "third world countries." Don't worry, we're well on track to poising our population into infertility. I grew up in a trailer and we had 3 boys sharing my room. My mom shared her room with 5 other sisters growing up. We both had great childhoods, hell we probably had more fun than a family that's spread out over 3500 square feet. Believe it or not, you don't need a 5 bedroom house for a family of 6! I would whole-heartedly suggest to anyone to have as many kids as possible!

Everything is steady in my part of the woods. I'd reflect what was mentioned above applies to our area - anything over $800K seems to be dropping and/or not selling. Reasonable houses in good commute locations under $500K are still going quickly. We planned to "upgrade" after 3-5 years when we bought in 2019. That's not happening with these interest rates, and if it does, I'll buy another house and keep this one with the fantastic interest rate on it and rent it for almost double our mortgage. I don't foresee a dramatic drop happening in most markets. What I'm watching closely is the fall of Air B and B and if that will force some sell off with people not getting the returns they need. But that issue seems to be very market-specific.

 

[Ferrulewax]

What? Almost every model shows that we are near the peak as far as world population and will be somewhere back around 7 billion by the end of the century. Very few countries are reproducing above replacement and those that are we consider "third world countries." Don't worry, we're well on track to poising our population into infertility. I grew up in a trailer and we had 3 boys sharing my room. My mom shared her room with 5 other sisters growing up. We both had great childhoods, hell we probably had more fun than a family that's spread out over 3500 square feet. Believe it or not, you don't need a 5 bedroom house for a family of 6! I would whole-heartedly suggest to anyone to have as many kids as possible!

Everything is steady in my part of the woods. I'd reflect what was mentioned above applies to our area - anything over $800K seems to be dropping and/or not selling. Reasonable houses in good commute locations under $500K are still going quickly. We planned to "upgrade" after 3-5 years when we bought in 2019. That's not happening with these interest rates, and if it does, I'll buy another house and keep this one with the fantastic interest rate on it and rent it for almost double our mortgage. I don't foresee a dramatic drop happening in most markets. What I'm watching closely is the fall of Air B and B and if that will force some sell off with people not getting the returns they need. But that issue seems to be very market-specific.

If the economy slows and there is a reduction in disposable income, Air bnb properties are the first things to feel it. We have a ton of Airbnb rentals in our area, pricing out homebuyers. I wouldn’t mind seeing that bubble pop.

 

[Redwing]

What? Almost every model shows that we are near the peak as far as world population and will be somewhere back around 7 billion by the end of the century.

I don't know what models you're looking at. PEW Research predicts 10.9 billion by 2100. The UN predicts 10.4 billion by 2085. The NIH predicts 11.1 billion by 2100. The world added one BILLION humans from 2011 to 2022.

In the USA the CBO predicts that we'll add nearly 40 million people in the next 20 years, from 336 million today to 373 million in 2053. It's not going to magically stop without intervention.

 

[william schmaltz]

The top 20 google responses I get all say that the population will peak mid centrury before pulling back nearly 2 billion by the end. The Guardian, Scientific American, Life Science, Pew Research, Nature Journal, Popular Mechanics, Science Daily, Business Insider just to name a few results. Jordan Peterson has some very good information about how the population will fall and he sites all his data. I'd suggest looking some stuff up on Youtube if you care to learn more. But I won't act like an expert here and I'll welcome the fact I could be wrong. I don't want to derail this thread any further. As a side note, the UN would love to force some globalist regulations down our throat and a population boom would reinforce their reasoning to do so. So I'm throwing that one out the window.

 

[Beendare]

We need more Tim Tok Challenges...its the new Darwin Award.....

 

[z987k]

The top 20 google responses I get all say that the population will peak mid centrury before pulling back nearly 2 billion by the end. The Guardian, Scientific American, Life Science, Pew Research, Nature Journal, Popular Mechanics, Science Daily, Business Insider just to name a few results. Jordan Peterson has some very good information about how the population will fall and he sites all his data. I'd suggest looking some stuff up on Youtube if you care to learn more. But I won't act like an expert here and I'll welcome the fact I could be wrong. I don't want to derail this thread any further. As a side note, the UN would love to force some globalist regulations down our throat and a population boom would reinforce their reasoning to do so. So I'm throwing that one out the window.

And as some of those 3rd world countries industrialize, they'll do the same thing we did. Stop having kids.
From and asset on the farm to a really expensive liability in the city. Mexico is already starting that way.

In the US, if you can maintain an upper middle class lifestyle with more than 1 kid that's almost like showing off you have a Ferrari. Not that you can't have kids for less, but to make enough to maintain or get to that economic rung, you're doing really well.

 

[Hnthrdr]

Prices in frontrange/west side co have held fast and creeped a little depending on the neighborhood. Not many deals to be had out there. Heck what I would consider a rental home or a starter home near me is around 600k now. Which a lot of people could and wanted that with a 2% mortgage, but at 7% that’s a harder pill to swallow. I for sure thought that we would have pull back it some kind, but with a super tight/ competitive market it just hasn’t happened. Maybe it still will but I doubt it.

 

[TheGDog]

What? Almost every model shows that we are near the peak as far as world population and will be somewhere back around 7 billion by the end of the century. Very few countries are reproducing above replacement and those that are we consider "third world countries." Don't worry, we're well on track to poising our population into infertility. I grew up in a trailer and we had 3 boys sharing my room. My mom shared her room with 5 other sisters growing up. We both had great childhoods, hell we probably had more fun than a family that's spread out over 3500 square feet. Believe it or not, you don't need a 5 bedroom house for a family of 6! I would whole-heartedly suggest to anyone to have as many kids as possible!

Everything is steady in my part of the woods. I'd reflect what was mentioned above applies to our area - anything over $800K seems to be dropping and/or not selling. Reasonable houses in good commute locations under $500K are still going quickly. We planned to "upgrade" after 3-5 years when we bought in 2019. That's not happening with these interest rates, and if it does, I'll buy another house and keep this one with the fantastic interest rate on it and rent it for almost double our mortgage. I don't foresee a dramatic drop happening in most markets. What I'm watching closely is the fall of Air B and B and if that will force some sell off with people not getting the returns they need. But that issue seems to be very market-specific.

What are yu talking about? We're ALREADY at 7.888 Bil (2021). Like I said... we're projected to hit 10 Bil by 2050.

Besides.. quite literally EVERY Hot-Button topic they want to try to B*tch about these days and impose Draconian rule over us in regards to.... Climate Change, Environmental issues, oil consumption, energy production, supply chain woes. ALL stems from there just being too dang many of us.

So... we can either do something pro-active about it.. now... OR... you wait for Mother Nature to just "handle it" like she alwyas has.. but you ain't gon' like how she does it.

EDIT: The KEY is to have the population change ebb downward gradually so that our economy can react and alter it's course over time to move away from the way it currently works, which is with the notion that there will always be more and more backs of the young to exploit in order for it to continue to grow as they want it to do. It obviously can't go on growing forever, agreed? So, if we set out gradually reducing back down our Human numbers... the resultant descendancy will have a much better world handed down to them, all things considered. In just my lifetime alone the US population has grown 60%!!! From 170 Mil ... to.. now I think it's about 325 Mil or so. We can't just keep filling up the Fwy's more and more year after year. Just not sustainable.

 

[z987k]

What are yu talking about? We're ALREADY at 7.888 Bil (2021). Like I said... we're projected to hit 10 Bil by 2050.

Besides.. quite literally EVERY Hot-Button topic they want to try to B*tch about these days and impose Draconian rule over us in regards to.... Climate Change, Environmental issues, oil consumption, energy production, supply chain woes. ALL stems from there just being too dang many of us.

So... we can either do something pro-active about it.. now... OR... you wait for Mother Nature to just "handle it" like she alwyas has.. but you ain't gon' like how she does it.

He's right, the only countries growing are in the 3rd world. Almost every industrialized country isn't replacing itself. In the US we are, barely at 2.1 per couple. None of the models that say we're going to have that many people have taken in to account that almost the entire industrialized world more or less stopped having kids.
Some are in rather poor shape, as once you have no kids long enough, even your kids can't have enough kids to keep the population where it is today. I guess they could, but baring a collapse into some agrarian society, they're not going to.

 

[Happy Antelope]

When you give out trillions of dollars, it eventually ends up in the pockets of the smart and savvy people.

 

[UtahJimmy]

Believe it or not, you don't need a 5 bedroom house for a family of 6!

This might be true for the average American family, but this is Rokslide... We each need 2 bedrooms converted to gear rooms for all the stuff everyone here recommends. Hell, I need to build another shed to be able to store my soon to arrive tiller that I didn't know I needed

 

[wind gypsy]

He's right, the only countries growing are in the 3rd world. Almost every industrialized country isn't replacing itself. In the US we are, barely at 2.1 per couple. None of the models that say we're going to have that many people have taken in to account that almost the entire industrialized world more or less stopped having kids.
Some are in rather poor shape, as once you have no kids long enough, even your kids can't have enough kids to keep the population where it is today. I guess they could, but baring a collapse into some agrarian society, they're not going to.

So the US isn't growing in population?

 

[z987k]

So the US isn't growing in population?

It is, almost entirely from immigration. But we are replacing ourselves and then some, slightly, since 2.1 is greater than 2.0, although 2.1 is considered replacement.

Take a look at this list. They have the US at lower numbers than I've seen recently, but anyone under 2.1 is shrinking save for immigration.

https://en.wikipedia.org/wiki/List_of_sovereign_states_and_dependencies_by_total_fertility_rate

 

[BenP]

So glad I've held onto mine. We bought in 2019 and refinanced in 2021. I don't think prices in my area are ever going to pull back.

 

[Loo.wii]

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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I thought this was posted in 2023. Bro its getting worse. what did you end up doing ?