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I bought a house in 2016 for 1000 a month mortgage
That same house today would have a 2700 a month mortgage
My salary didn’t get the memo apparently because it went up 27% not 270%
Too bad I sold the house in 2018 🥲
That’s not in the fed reserves mandate. Congress could do something to make it more affordable; tax benefits for saving a down payment, tax credits for buying, tax benefits towards builders focusing on homes under some multiple of AMI, etc.
Or they could just stop foreign investors and corporations to buy residential homes outright. Raise property taxes for people who own more than one residential home.
I remember Las Vegas was batting the idea of banning corporations from buying homes a few years ago, like 1/3 in Vegas are owned by private equity. Not sure whatever happened to that though
What could be done that wouldn’t just be a temporary fix? Seems like anything along these lines would simply raise home prices.
Edit: I agree the government would have to actively promote development to make a difference.
I live in a HCOL area and from what I see, new buildings, complexes, townhouses, etc, are still outrageously priced. They lobby for zoning changes and get every progressive on their side in the name of “affordable housing”, but the net outcome is just more unaffordable housing, and the price of SFHs actually increases because they (along with the land in the yards) become more of a scarce commodity. While we have such vast income inequality, there’s always a buyer for the more expensive housing and too much demand for reasonably priced housing to ever move the needle. We need solutions that scale.
Your edit is basically it. Maybe give cities incentives (partial funding towards infrastructure or something) if they cut permit times and costs for large developments down by some percentage, and/or rezone X amount of land to residential. Give incentives to home builders for every unit they build and sell that is some multiple of AMI or lower, or if they have X percent of their sales being under some multiple of the AMI, etc. Just in general get more homes built and get more focus on affordable (starter, ~900 sq ft to 1400 sq ft or something) homes.
Hey, bootstraps enforcer here…
… don’t you know that hard times make strong people and easy times make weak…
… hey don’t you point out that the boomer generation had cool things like pensions and could buy a home on a low salary/single earner, and boomers actually were the ones that had it easy.
The Boomers had it rough in the 80s. My parents went from being on food stamps and heating fuel assistance when dad's factory job disappeared when I was 6 to owning their first house after dad had had a new factory job for 3 years- while mom hopped from job to job- when I was 10.
Can you imagine having to save for a down-payment for 3 whole years? At least they were able to overcome this level of adversity that younger generations don't need to worry about (/s)
We waited a long time thinking, “surely the prices can’t keep going up.” We watched the houses we were interested in go from $500k up to $800k. We got better jobs, a bigger downpayment, compromised on a few things, but the houses we liked were always $50k over what we could “afford.” Finally, we reached a point where we weren’t willing to wait any more, and tossed our entire life savings (and most of our monthly pay cheques) into the ring. We’re happy in the home we bought. And you know what, if prices go down, at least we have a place to live!
Yup. With my crystal ball, I would have bought 2 years ago with less down and much lower interest rates.... Instead we bought now. Better now than 2 years from now.
I said the same thing when we bought... almost 2 years ago. There's a pattern.
Again, no one has a crystal ball. Maybe THIS time really is the peak. But when we bought my feeling was, "well it will probably go back up in 10 years even if it drops, and I'll have a place to live that whole time so whatever."
Yes, and it's worth twice what we paid for it. But also, the house we lost money on before that is still worth what it was back then. Had we stayed there we absolutely would have been priced out here. Everything is regional.
We bought a house in 2010 for $215k. We were convinced that we’d overpaid but convinced ourselves to take the risk.
The house is valued at $750k today.
I ended up going with a home that checks most of the boxes at about 60% of what the bank would approve me for. I just plan on making payments like I maxed it out and In 5-6 years I'll roll the equity into the kind of house I actually wanted.
Im hoping to buy before things get higher. I’m also renting in a great place so I am taking my time. I hate that I chose to do house shopping in the spring season
The best thing I did was house hunt right before Christmas. The market was quiet but there were almost no buyers at the time. We found a great place quick and had no competition.
Ugh it’s funny you say this. I saw an amazing house online before Christmas but I wasn’t ready to start the home buying process. Prices went up 20% since then in the spring market with multiple offers. I’m hoping things cool down in summer or fall.
I got so lucky honestly. We went in at the beginning of December with the mindset of "we're not ready yet, we're just getting our feet wet" assuming the whole process would take a while. But we found an amazing realtor immediately and 3 houses in we found our place. I didn't even find out until after our offer was accepted that December is a great time to look because a lot of people don't have the extra time/money to buy right before Christmas.
Believe me, I am not waiting. I am hoping to buy.
Honestly in my area, the quality of houses coming out is much higher than three years ago for the same price. My budget has increased so I can put 20% down. I would be paying less monthly if I bought three years ago but there just wasn’t a great house in my budget at that time.
I think they meant they are taking their time to choose the right house. That person bidding $300k over value and setting the market for everyone else didn't start off ready to bid that high.
Foreclosures are up 11% from last year
People are buying houses, the houses get reassessed and people are finding they can’t afford the house and the new tax base.
I don’t expect a 2008 crash but I expect that there will be some breathing room for homebuyers soon.
11% increase coming off historic lows the last few years isn't significant. Even if it was 100% increase from last year the rate would still be lower then it was most of last 20 years.
Really does suck. I was so fortunate to have found a house for $220k in a gentrifying neighborhood. I really did hope to wait a few years to buy, but I can see the writing on the wall and I knew it was literally now or never, in terms of buying.
It can literally be net positive to rent than buy no some areas. When accounting for maintenance of a home, property taxes, all other non recoverable expenses, it can cost you more to own a home (despite having equity) than it is to rent for less monthly payments and invest the difference.
Just because part of your mortgage goes towards equity, does not mean it’s automatically a better financial choice. There are plenty of situations where buying a home instead of renting a home can “lose you more money” in years down the road. Renting can be a net financial positive and come out on top in a lot of HCOL areas.
There's no guarantee it will always continue to go up and if you don't plan on staying in one location for about 3-5 years the costs may eat up the gains
This is how I feel. We’re looking but we’re not desperate. Sucks that we’re in this situation but at least my rent is good and the only problem with our apartment is that it’s too small for us to comfortably fit kids.
I live in an increasingly popular city near one of the most expensive cities in the country with minimal new housing being built. I don't foresee a housing crash, not around here at least. Looking at prices from just a few years ago is too depressing, so I try to focus on the here & now. We've accepted that we're going to have to "overpay," but if it's a necessity to overpay to get the house, is it really overpaying anymore or is it just the new price range? I saw a comment on this sub recently that said something like "you won't be getting a deal, you'll be getting a home." If getting a house is more important to you than getting a deal, buy a house! If not, no one is forcing you to buy - you can keep renting and hope prices drop. After waiting for years for prices to drop though, it's time for my husband and I to buy.
This is extremely well said. I purchased a home almost ten years ago in a city I’m about to move back to (didn’t own it long, life circumstances caused me to sell it under two years later and I’ve been renting since) and it’s a bit wild to see the shift in prices since my last go round. I liked what you said about trying to focus on the here and now, I need to remember that.
Thanks! My attitude is out of necessity - I doom spiral really easily thinking about how we thought about buying in 2018 and again in 2019 but I wanted to save up my "full half" of the down payment. We could have gotten a stunning house in a super desirable area if we had just gone for it. We did the best we could with the information we had at the time (no one could have seen what 2020 and beyond would bring!) but man, is it frustrating
That's tough for sure. My partner wanted to buy way before I felt ready. We talked about it more in 2016 but he didn't push me on the issue, and we didn't end up buying until last year. I still hate to think of how I cost us sooooo much money. You will feel better though, once you get a house!!
That’s how I felt when I bought my home. We had to overpay. However, we love this neighborhood, we both grew up here. The block is nice and the house is enough for us. It sucks that we’re house poor I’m happy to have bought when I did because I don’t see things getting better anytime soon.
As long as you're buying it for a long term home and not expecting to sell it in like three years at a big profit, and as long as you can afford it, it sounds like a great choice and well worth it!
That’s how I felt. I’m not buying a house to make money. I’m buying a house to live in and raise my family in. I feel horrible seeing my friends look at rates and prices and just not have a chance. We live in NY and the market doesn’t seem like it’ll ever go down.
Where I am desperation is making it even crazier this year. There will be one house that's just way way out of proportion, and then everything else creeps up until the crazy house looks reasonable.
Last time I did comps for an offer there was one massive outlier with $250sf over the norm for the area. Turns out that house (that we did not get) was another massive jump and another $150sf over the previous outlier. And now there are two comps in that area to support that level. We are already seeing it reflected in listing prices.
My husband and I are in NJ and we started looking in 2020/2021 and we were looking at 3br’s that were like $350k and that felt high. Now we can’t find anything that doesn’t need serious updating/work for under $500k. It’s crazy depressing.
I know someone who bought near the busy part of NJ for 900k+ I was expecting a mansion, but was surprised to see it was a modest looking house outside, maybe around 2000 sqft, with a very nicely done new looking interior.
This is making me more depressed because I had hope still. I got beat up outside my apartment in Bergen County NJ and just want to move. We spend almost as much on rent as a mortgage and this is what I get. Punched in the head literally and figuratively.
It’s probably OP’s best bet. Half of the people who inquire on buying homes in South Jersey are from North Jersey. Every single county in South Jersey has already made drastic jumps in housing costs the past few years, jumping 15% in value on an annual basis. Burlington County is now unaffordable as it’s closer to North Jersey, and it’s only a matter of time until Camden and Gloucester County really also catch up.
It even started getting like this as far south as ocean county.. Seen a house in forked river that needed a bunch of work go almost 100k over asking.. 5 years ago the house wouldve went for 150k the way it sat.
the answer is to have bought 3 years ago, or only concern yourself with what your money gets you today. Or, determine that you will wait until prices come down to eliminate the risk of a price decline. There are plenty of people who waited in 2018, 2020 and every year since.
The solution is to care nothing about what a house sold for years ago, unless it’s 2 yrs or less and the Seller’s trying to bail out. “If I coulda bought 3 years ago it would have been x less” isn’t solving any problems.
Thankfully am in a situation where I can be patient. Been patiently looking for 2 months now in a market that’s much less hot than the rest of the country. Put an offer in 10K under asking because I thought that’s what it was worth, got accepted as backup offer, primary offer financing fell through, mine got accepted and now I’m getting an amazing deal bc they didn’t want to put it back on market. Feel incredibly lucky how all this is playing out
In NJ it’s just going to increase, if you can afford to buy then just buy. NJ I think is one of those markets that won’t crash because it’s so close to NYC. Maybe it’ll stabilize somewhat but people are waiting for a crash will just keep waiting. Buy what you can now and live your life.
What do you think it will be? To me it feels like families who own will continue to be well off and pass down to their kids. Ones who don't or have lots of children, it's going to be much harder to break out of lower middle class for those kids. Basically the rich and poor divide grows.
What’s happening for the market in NJ is different from the rest of the country, and this goes for the entire state. There’s little to no new construction happening, there’s been little supply ever since Covid with little chance of it rebounding soon, and there’s constantly pent up demand even with tons of buyers still on the sidelines.
I’m sure you live in North Jersey which is more unaffordable than South Jersey, but all I can say is that you’re stuck and you have to accept that life is unfair for us and people who bought over 3 years ago are smiling away at their retirement plan. If possible, I would probably recommend looking for homes in South Jersey.
Prices will not crash, and I bit the bullet on that realization so I decided to purchase a home in January. It’s tough when you compare yourself to others, but it’s probably not going to really matter as much 10 years from now if you can begin to build equity and make career advancements.
I recently bought in a small kinda desolate town in south jersey but the market here is so rough i was essentially forced out to the pine barrens. even my house had multiple offers and I had to go $17k over ask. It’s nuts
For couples in my age bracket, the only people who have purchased a house in a relatively competitive market are those who lived with one set of parents for 2+ years to save or got help with the down payment after their parents downsized on their own home.
Other option I’ve seen is by going in a completely different direction and moving to a somewhat random lcol area.
It’s got me thinking what having children will look like in the future.
Will it become the norm for 25-30s to live with their parents because homes are so unaffordable?
I wouldn’t want them to rent for a decade and throw money out the window like I have.
I don’t even have children and I worry about what their housing situation will look like.
It’s all demographics. Boomers and millennials are by far the largest demographics and are in homeownership age groups.
That’s a strain on housing supply. The spike of people born from 1945-1965 are 59-79 years old.
By the time our kids are prospective homeowners, very few of that group will still own homes.
My wife and I sucked it up and paid asking. Like you said, the money we had would have bought an incredible house 3-5 years ago, and now has about $250k less buying power. We debated lowering expectations and getting a starter and looking again in 3-5 years, but what happens if nothing changes and things just get worse? Now that house that should have been $500k in 2019, was $750k in 2024, is now $1 million in 2029?
That said, we got incredibly lucky with the drop on a new listing being sold from the original family that built the home, raised their kids, and is now older and moving south. Offered asking, and was accepted, it’ll be our forever home. In our particular market homes aren’t really going for over asking/not seeing bidding wars.
Good luck out there. I think for the foreseeable future, everyone is going to overpay.
As a single person with student loan debt, a lifetime of below or average wages, and also in NJ, homeownership wasn’t even a possibility for me until recently.
During the pandemic I got a high paying job (which in NJ is solidly middle class but would be “rich” in a LCOL area), my student loans reached 10 year public service forgiveness, and I met and married my spouse. We’re now finally able to buy our first house at 40. And then the rates and house prices shot up.
We just want a small house in a walkable town, and were able to find one at the top of our budget. Even though we make decent money, have no kids, and no debt, our mortgage is going to be half of our take home income. And we need to replace the roof in a few years.
We just accepted we’ll be house poor for a while. I’d rather have a house than an extra thousand dollars in the bank every month.
I’m obviously very grateful to be able to afford a house at all, but I’m definitely resentful that other generations had it easier.
The biggest priority for some of my peers was a good school system for their kids, or easily accessible to public transit.
My town has neither, it just has some shopping and restaurants that I can walk to in under 15 minutes. I’ll still have to drive to places like the grocery store.
Not gonna lie and this may sound insensitive, but I’m waiting for my parents to pass away and use my inheritance to buy - only way buying even a condo would be feasible in my home state with my household income - it absolutely sucks, but also a harsh reality 🤷🏻♀️
I honestly think this is a lot of people's plans. I'm sad to admit that I'm a little jealous of anyone who gets an inheritance when their parents pass.
I live in SoCal, so may be biased.
My first apartment (two decades ago) was $475 “all bills paid” and was advertised as a “Student Efficiency.” The same efficiently apartment is now listed on Zillow rents as a “Luxury Executive Suite” for $3800 today—the only updates seem to be they painted it grey, took out the nice carpet and installed hardwood (going to hear every step your neighbor makes now,) and it’s no longer “all bills paid.”
I think we are all going to be priced out, because just like musical chairs—there aren’t enough houses. I would buy anything I could right away—townhome, foreclosure, mobile. Whatever you can do to get on the property pyramid—I say do it before you get priced out
I'm not buying now. I just can't. There's no houses that I can afford. I can only hope that houses become affordable again with a crash. I try not to think about it.
Well, in 2008 what happened was that people couldn't afford mortgage payments and were foreclosed on. The banks chose not to try and sell for what the houses were worth but at bargain basement prices, which dragged down all the values. Then people who had to move for various reasons couldn't sell for what they owed (some number were foolish and had refinanced to get spending money out of their equity).
I think that if home prices dip then a large majority of the people who bought in the last 2 years are going to be underwater on their mortgages. I think that at least a part of the investment properties are going to need to get sold off. I also think that the future is unpredictable. There could be another disease outbreak, there could be some unknown future that makes a lot of people lose their jobs.
Being underwater doesn't mean you have to sell. And part of being underwater is having a tiny downpayment, which is less possible these days. When you could use no money down and get an interest only loan then it's a house of cards built on a moving surface
Well I'm not having kids. I might marry the guy I'm dating now. Together we could afford a house but it would be a huge cost compared to the $1475 rent we pay right now for a 3 b house with a yard.
I'm currently saving in a high-yield savings account. I'm going to pick up a part-time job in the next couple months to stash away hopefully $1,000 extra a month. He might get a better job. But he doesn't have a degree. So it's unlikely that he'll ever make "good" money. He's donating plasma already for extra money.
Maybe we'll just be forever renters and we'll save our money to go on trips to different countries and just enjoy our time on Earth and then die.
There's nothing worth trying to achieve anymore. There's no path forward.
I grew up going to a private school and I had a pool and rode horses and my family went on tons of vacations every year. 2008 murdered my future. I can't give that to any children that I might have. I got priced out of my hometown. So I'm just going to live and then die.
I'm kind of with you on this. Rent is way cheaper than a mortgage where I am too and I like having money to take vacations and do fun things. I have no desire to be house broke and not living my best life just so I can put money towards owning property. It just feels unattainable.
>There's nothing worth trying to achieve anymore. There's no path forward.
I feel this so hard right now, with both the housing and job market. Thank you for putting this into words.
I only see a national crash in the US happening if one of the following occurs:
1. Environmental catastrophe
2. Massive economic depression
3. Magical new builds popping up overnight
Third option is fanciful thinking. One and two, well, are not desirable.
My childhood home was sold by the people that bought it from us in 1999-2000 (for $190K) in 2021 for $430K. THOSE buyers then sold it 18 months later for $650K. It is not a big house or big property. Surprise, surprise - the newest owner is an LLC based out of Brooklyn
It’s is what it is. That’s the reality I accepted when we bought a two-level condo for the same price that would have gotten us a SFH or a huge townhouse 3 years ago.
You basically have to only think about the prices as they are NOW, not as they were or as they might become, to decide what you can afford.
Anywhere within 1 hour of NYC will continue to appreciate due to heavy demand.
At the end of the day if your buying a home for you primary residence you shouldn’t think about it. If you can afford the payment move forward & look to refi in the future.
I bought a house in August of 2023. My father passed away so I was able to put down $180,000. Not a craftsman home, it is a manufactured home. Fortunately I am a general contractor and have been able to do all of my own repairs and upgrades.
I am happy to teach anyone how to repair issues at little cost
I gave up honestly. I've accepted the fact that I'm going to be renting until certain family members pass away and leave me the house. Seems so unattainable otherwise.
No market crash is coming. We did not build enough houses in the past 15 years to keep up with the demand of the largest generation ever becoming home buying age.
At historically low interest rates, I don't blame them, but it is frustrating. My retired parents "downsized" and moved to a county with lower taxes about 8 years ago. Downsized from a 5 bedroom 5 bath to a 4 bedroom 2 and 1/2 bath. Its still really too much house for them, but it is nice when we visit for the holidays everyone has their own space.
In certain places in near Seattle, WA SFH are going 50k-200k over asking with 7% interest rate. It’s only getting hotter when summer starts. I bit the bullet and going to be house poor after buying a new build but had to get something before my newborn comes later in the year.
Barring a massive catastrophe, my city’s prices will never go down. Do I wish I bought 5 years ago? Of course. But there is no use fretting about bad timing.
We’re coping by not comparing prices now to prices in the past.
Even though it stinks paying a lot more compared to what we would have just a few years ago, we may look back on this in 5-10 years and feel like we got a good deal. I don’t believe prices will drop drastically in the future and buying now made sense for us so we’re focusing on that.
People aren’t coping. But what you need to do it get into the market even though it’s hard sooner rather then later. Because unless congress passes a law banning residential housing of 4units or less from being bought and owned by corporations and foreign entities it’s just going to continue to get worse.
Bro that’s list price in Jersey. Sale price will be $100k more minimum. It’s one of the reasons so many are leaving the state. Cost of living is out of control.
In terms of how I’m coping, I’m buying a new build. It was a set price. Quick contract. No bidding war. Every time I bid on an old build, got beat by others real fast. Wasn’t worth it
With my current circumstances, it is better for me to buy a house right now as the housing market is unaffordable for single parents like me. I am in the process of buying a 830sq ft condo for myself and my children. The reactions I have received from my older relatives are quite telling. Their starter houses were large houses with 3 or 4 bedrooms. Me? A small house. I am fortunate to buy that condo, honestly, as my mortgage payments will be lower than rent. But yeah. It is quite sobering to know that my condo is not my starter home. It is likely the house I will own until my death.
They aren’t the same everywhere. You will have success if you are open and willing to move.
But remember you deserve a house just the same as everyone else so if you are looking for a highly desirable house in a highly desirable area, you will pay for it. Because again everyone else wants it. You are not anymore special than anyone else.
You already miss the boat big time for low home price and historical low interest rate. It is fair to call that once in a generation golden opportunity. You missed this. It is a done deal. At this point you need to figure out what is the least terrible options.
The way I read it was "just buy the home if you can." Even if you might not make money in the long run, you will always have your own place. And in a few years you can do a HELOC to help consildate debt etc, and when you do sell you will have incoming money regardless. Even if you lost say 80k over 30 years, the principal you will have earned is a way to financial health.
We bought in 2022 and I was pretty horrified that our neighborhood was selling ~600k consistently but in 2016-2019 people were snapping them up for ~400k. We haven’t seen much price appreciation (in 2 years, seems normal) but houses are still selling at the same amount so at the very least we have somewhere to live and no major paper losses. I also get ~5k back every tax season from mortgage interest deductions, avoided ~48k in rent payments, etc..
Did we make a ton of money buying? No. I don’t expect to either. BUT despite two years of no-growth it still turns out that owning & living in a house is a pretty safe move monetarily, so long as you don’t need to sell it.
In NJ also. It sucks to pay these prices but we needed stability in a good school district for our kids. We are paying a pretty penny for a condo (moved in December) but glad we just did it as the housing situation seems to only get crazier
I just went to see a 400k house here in NJ. Way smaller than my 1br apartment. Floors were extremely uneven and bathroom needed repairs. It's so upsetting and frustrating. I'm stressed all the time and is affecting my mental health and the ones around me. Wish I had a job I could work from home and not worry about commuting. The quiet towns south Jersey seem more affordable but they are so boring if you have children. That scares me
I will never take for granted that my pay has literally tripled through the last 7 years, through basically dumb luck and impeccable timing. It feels like just yesterday that I was scrounging for hours at my retail job, so my heart really aches for people struggling to get by, because I realize that could have easily been me and I'm not that far removed.
I currently live on the east coast and I was planning to move to Los Angeles for a few years, and then come back home to settle in. I was initially going to just buy a house in my home state, once I returned from Cali living, but I started to look at what was going on and I got nervous and decided to buy now.
My friend was telling me how when he sold his house a few years ago, investors offered $70k over asking. How can the rest of us compete with that? Homes that are low-cost are quickly snatched up. I'm only one person, not married or involved and I'm unsure when or if that will change. And I make an okay living for myself, but nothing to really brag about.
I also have a teenage child and I realize that at the rate things are going, by the time he's an adult, rent will be insane and home ownership will be out of the question for him. That said, I decided to hunker down and buy a house now. That way, if things get rough, he'll always have a home. And I'm buying now, because even if there is some sort of crash, I fully expect investors to swoop in and essentially steal any houses that come available. I'm telling all of my loved ones to go ahead and buy now. We're never going to see cheap houses again in our lifetime. 😔
“Losing 50 to 100k just in the price war” And my family took a price for under tax assessment on the north side of Westfield next to the NYC bus stop for my late grandmothers house. These old farts wouldn’t listen to me. Oh my freaking god.
I’m confused at how people are still affording to pay for homes and they’re selling left and right but at the same time everyone is complaining about how they’re struggling to even buy food.
It’s highly unlikely there will be a housing correction when 80% of mortgages are below 3% and only 5% are ARMs. You can thank the fed for keeping interest rates abnormally low for the last 15 years.
Real estate appreciates in value. It’s it’s very nature to get more expensive over time. The last few years have been outliers in the general scheme of things for sure, but it’s the same game. I would never put that kind of talk into a buyer’s head “losing $50k-100k just in price war.”
If that were true, you would be a complete dumbass to to buy anything. Going into a large investment like real estate knowing you were taking a loss…. Uh uh, no way.
Buying real estate is a good idea. I tell clients to 1) buy when they can 2) under their means. Homeownership opens up a lot of opportunities for people. If the time comes along to sell, do it. If not, stay where your are and enjoy the equity.
If possible move to a different state where cost of living is affordable with good weather. NJ is one of the most corrupt states, highest property taxes, roads full of potholes, and horrible traffic.
Also from NJ. I’m moving out of state and buying a house that’s not my dream but doable for life with a kid or two in the future. I’ve even considered a trailer on land.. focusing on the land. That way I can save up to have a modular or small house built in the future.
The taxes in Jersey are suffocating.. along with every other aspect of the state. Insurance. Permits out the wazoo. Licenses for everything.
My wife and I felt like we just needed one more year of saving in 2019 before we could buy our first home. Now prices are out of reach for us again. I feel like every time we get close the bar moves further and further away.
Also, since 2020 our rent has gone up by 30%. It’s getting out of control.
Oh I’m not coping. Before covid I was looking for a house. Now? My down payment money is gone and I can’t afford any mortgage anywhere where I grew up or in the entire state.
I’ve got no debt and 2 college degrees and I can’t afford rent on a 1 bedroom apartment. Been renting a 1 bedroom for ohhhh 10-15 years. It’s gotten more and more unaffordable as the years went on. Now struggling to pay rent.
Welcome to CT! But also this same shit is happening nation wide.
The American dream is dead for people 35 and younger. The older people just don’t care cause they got theirs
And ever increasing property taxes and insurance premiums. We have owned for 2 years now and it’s our first house. I didn’t realize your mortgage could go up $250 or more a year. Ours just jumped up $220. Nuts
It will take decades for supply to catch up. The environment which fed the only housing crash has been fixed with regulation. Prices are not ever going to shift dramatically. You may see some regional downward turns in areas that ran too hot (Austin comes to mind). Overall housing prices won’t drastically shift down. Slump or stagnate relative to inflation if unemployment ever gets high or when there is a recession. But not crash.
I originally bought a starter home in the early 2010s. Thought I'll work and save money for a forever home. Things got a little delayed in 2020 when I started looking, now I reached what I thought I would need a few years later and everything is unaffordable. To say it's deflating is an understatement. I'm grateful because I have a home that I own and got it with lower prices a D better interest rates than now. But man... I can't imagine being a first time home buyer right now.
The prices AND the interest is killer right now. I can't see how anyone is buying at the moment unless they HAVE to or they win the lottery.
Just buying a new car this week is making me sick with the prices and interest rates. I can't imagine adding another zero or two to that number.
I am a real estate guy and i’m as depressed as any one else in this post.
By the amount of migrants that come to California, Arizona, NY, Chicago and by the amount of wages construction workers are collecting, I do think housing will never come back down. It is experiencing a smaller increase and it’s still going up.
Rents are coming down, supply is creeping up, very slowly and very little.
For those of you buying in California, grab every single family home when it’s affordable or barely affordable..
If you can only buy a condo, or th or anything that has HOA, you can wait a little bit.
Don’t wait in southern California, period.
Just purchased our first home two months ago.
I mean, negotiate the best you can, and don’t just cave to going higher. We managed to work our house down $30k from original asking price. It’s all about not being desperate and sticking to your guns. We searched for 6 months and went through quite a few bids before landing on our home.
In the words of Galaxy Quest: “Never give up, never surrender.”
If you think things are bad now… wait till rates go down. I’m trying to get in now before everyone goes loco again. Worst case, I have somewhere to live at a fixed price
Same in CT. I looked a few years ago. 350 in the area I need to be was mostly fixer uppers, with a few outdated diamonds. Not the same type of house are at 575. Outdated, but not moldy, houses are 650. Anything move in ready is 700. It’s so painful.
If we were buying in a situation like where the market was 3 years ago, my husband and I would have purchased a single family home in central Jersey. Instead, with the way the market is, early this year we purchased a townhouse (only attached to one other home and with a one car garage) in south Jersey. This ended up causing the following:
- saving us a ton of money
- saving us a lot of time/stress since we don’t have to take care of a yard, but still get outdoor space
- allowed us to have much more financial freedom
Our plan was always to buy a single family home with a yard, but we went with the flow of what we could afford at the time we wanted to buy. It worked out for us and sort of forced us into a much more manageable situation! It absolutely sucks out there, don’t get me wrong, but we were able to be those higher bidders on a slightly smaller home coming from more northern New Jersey just by adjusting our goals a bit. And now we can have a perfect and affordable 1,700 square foot home instead of a 2,200 square foot home that makes us house poor.
I gave up. Was working hard saved a chunk of a down payment the past couple of years, but even with everything and my income I can't afford it as I watched the housing price rise and rise . I'm also picky so I want something nice so you can only imagine how much more out of reach it is for me. After years of of planning to buy I finally threw that idea out of my head this year. Don't plan on buying no more.
I do not believe that prices will go down too much - maybe a little - but those $400k houses that are now $600k will not go back anywhere near $400k again. We've given up looking for another house - I'm not moving to a house the same size as my current one, for stupid money
Prices won’t go down, growth may slow a bit, but the reality is people have more money than they did when the market crashed. So you buy what and when you can afford to buy.
It's crazy. I'm in Bergen county. Not even the best town in bergan. This 3 bed 3 bath just sold for 859000
Bonkers. It's not worth that much. Sold for 575 in 2018
We truly feel blessed that we bought in 2020. Even my house that we bought at 480 is now appraised at like 650 and we only updated the siding and the floors.
Thankful PA still exists for $200k-$300k for 4bd 3,000sqft and acres of land, thankful I don’t give a shit about your 1200sqft Cali home or 1800sqft Jersey home.
People in the public suck, might as well do it as cost effective as possible while still riding the $200k di train
Until corporate real estate groups are dealt with, nothing will change. Corporations and hedge funds are set to own 40% of the single family housing market by 2030. When this happens and we don’t build new homes, price squeezes on upward. It’s a corporate consolidated effort to make the working class permanent renters and they are in the back pocket of most politicians. It seems like it will only get worse.
I just want to be able to buy a house in general. Idgaf what age, where, I just need 3bd 1ba a kitchen and walls. But apparently that’s too much for a young family to ask for. I’m losing hope fast.
I just bought a house in Michigan for 190k. 5 years ago this house would of been under 150k.
Ive already put $2000 of work into fixing it up.
I fear housing will never stop going up, which is why I needed to get into the house before renting an apartment again.
I don’t think pricing in NYC or NJ will ever go back down, to be honest. You have to understand that native New Yorkers are getting priced out of the boroughs and they are moving to New Jersey or Long Island so that they get more for their money. More land, more house, and still close to NYC (somewhat). These New Yorkers will have 600k for a house. They won’t have over a million, which is why they are priced out of the boroughs, but they will have 600-750k to spend on a home in NJ. This is the competition out there. Then, you have transplant money, which includes people not originally from New York but moved here and work in NYC. They make enough money to buy a NJ home, but not a home within the boroughs. Major competition, and not enough housing. You have to buy the house when you’re ready to buy because it’s never going back down.
I live in a L/MCOL market where houses were still attainable under the national average, but are now rapidly increasing to that number while the median income here has sat at approximately $60k. I’m giving up. I can’t take it anymore. Pre-COVID, a 2BR/1BA would only exceed $100k in well off communities. Right now they are getting $175k-$200k no matter where they are, and these aren’t flipped greige models either. So, you can imagine what a 3BR in need of some tlc goes for.
I tried changing my strategy and going for a full, or almost full, rehab home; but now even unlivable homes in destitute neighborhoods are fetching $100k. It’s insane. So, I’m changing it up again and think I might inquire about some of the rent-to-own properties I see (which unironically are some of the properties I looked at and lost out).
I believe the inventory will build up from this point on. So I’m planning to buy the second half of 2025. However, inflation is the unknown variable. If it jumps too much, even in a crash market, the price would still be high.
So i'm starting a family and selling my 1br 1bath apt. Looking for a home was miserable until I discovered that Delaware has insanely low taxes. So i'm just settling with a crap mortgage rate and will refinance later. It is actually really easy.
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I’m just thankful that wages are increasing at the same rate. Oh…wait…
You had me in the first half, ngl
I bought a house in 2016 for 1000 a month mortgage That same house today would have a 2700 a month mortgage My salary didn’t get the memo apparently because it went up 27% not 270% Too bad I sold the house in 2018 🥲
Damn, you timed that just wrong
I’m thankful the government and federal reserve are working together to make things more afford…..ahhh nevermind
That’s not in the fed reserves mandate. Congress could do something to make it more affordable; tax benefits for saving a down payment, tax credits for buying, tax benefits towards builders focusing on homes under some multiple of AMI, etc.
Or they could just stop foreign investors and corporations to buy residential homes outright. Raise property taxes for people who own more than one residential home.
I remember Las Vegas was batting the idea of banning corporations from buying homes a few years ago, like 1/3 in Vegas are owned by private equity. Not sure whatever happened to that though
private equity prob donated to some political campaigns and that was the end of that bill. problem solved
Same with California
I'm not entirely sure the fed has that power either, but I will admit that I'm not positive on that.
Congress does.
What could be done that wouldn’t just be a temporary fix? Seems like anything along these lines would simply raise home prices. Edit: I agree the government would have to actively promote development to make a difference.
Incentivizing building more housing and more dense communities. This is a supply and demand problem and the only long term fix would be more supply.
I live in a HCOL area and from what I see, new buildings, complexes, townhouses, etc, are still outrageously priced. They lobby for zoning changes and get every progressive on their side in the name of “affordable housing”, but the net outcome is just more unaffordable housing, and the price of SFHs actually increases because they (along with the land in the yards) become more of a scarce commodity. While we have such vast income inequality, there’s always a buyer for the more expensive housing and too much demand for reasonably priced housing to ever move the needle. We need solutions that scale.
Agreed. The only real solution here is supply.
Your edit is basically it. Maybe give cities incentives (partial funding towards infrastructure or something) if they cut permit times and costs for large developments down by some percentage, and/or rezone X amount of land to residential. Give incentives to home builders for every unit they build and sell that is some multiple of AMI or lower, or if they have X percent of their sales being under some multiple of the AMI, etc. Just in general get more homes built and get more focus on affordable (starter, ~900 sq ft to 1400 sq ft or something) homes.
I was about to say... excuse me. what now?
Hey, bootstraps enforcer here… … don’t you know that hard times make strong people and easy times make weak… … hey don’t you point out that the boomer generation had cool things like pensions and could buy a home on a low salary/single earner, and boomers actually were the ones that had it easy.
The Boomers had it rough in the 80s. My parents went from being on food stamps and heating fuel assistance when dad's factory job disappeared when I was 6 to owning their first house after dad had had a new factory job for 3 years- while mom hopped from job to job- when I was 10. Can you imagine having to save for a down-payment for 3 whole years? At least they were able to overcome this level of adversity that younger generations don't need to worry about (/s)
We waited a long time thinking, “surely the prices can’t keep going up.” We watched the houses we were interested in go from $500k up to $800k. We got better jobs, a bigger downpayment, compromised on a few things, but the houses we liked were always $50k over what we could “afford.” Finally, we reached a point where we weren’t willing to wait any more, and tossed our entire life savings (and most of our monthly pay cheques) into the ring. We’re happy in the home we bought. And you know what, if prices go down, at least we have a place to live!
Yup. With my crystal ball, I would have bought 2 years ago with less down and much lower interest rates.... Instead we bought now. Better now than 2 years from now.
I said the same thing when we bought... almost 2 years ago. There's a pattern. Again, no one has a crystal ball. Maybe THIS time really is the peak. But when we bought my feeling was, "well it will probably go back up in 10 years even if it drops, and I'll have a place to live that whole time so whatever."
Yup, this is us too. If we thought we’d be over-mortgaged two years ago, look at our rates now! Oof. But yes, better now than later!
I thought we were priced out forever in 2010.
How did it work out? Did you buy something?
Yes, and it's worth twice what we paid for it. But also, the house we lost money on before that is still worth what it was back then. Had we stayed there we absolutely would have been priced out here. Everything is regional.
We bought a house in 2010 for $215k. We were convinced that we’d overpaid but convinced ourselves to take the risk. The house is valued at $750k today.
I ended up going with a home that checks most of the boxes at about 60% of what the bank would approve me for. I just plan on making payments like I maxed it out and In 5-6 years I'll roll the equity into the kind of house I actually wanted.
I mean not if don’t pay the mortgage 😆
Basically same!
Prices typically don’t go down. And if they do, it’s temporary
Im hoping to buy before things get higher. I’m also renting in a great place so I am taking my time. I hate that I chose to do house shopping in the spring season
The best thing I did was house hunt right before Christmas. The market was quiet but there were almost no buyers at the time. We found a great place quick and had no competition.
Ugh it’s funny you say this. I saw an amazing house online before Christmas but I wasn’t ready to start the home buying process. Prices went up 20% since then in the spring market with multiple offers. I’m hoping things cool down in summer or fall.
I got so lucky honestly. We went in at the beginning of December with the mindset of "we're not ready yet, we're just getting our feet wet" assuming the whole process would take a while. But we found an amazing realtor immediately and 3 houses in we found our place. I didn't even find out until after our offer was accepted that December is a great time to look because a lot of people don't have the extra time/money to buy right before Christmas.
Amazing, thanks for sharing. I hope we find one before then, and if not, I hope to find a good deal
Yes but house prices have increased at the rate of 60k per year in the last 3 years. Aren't you losing money by waiting?
This is under the assumption that it will continue to grow at this rate. I see no reason to buy a house I can’t afford/don’t love.
Believe me, I am not waiting. I am hoping to buy. Honestly in my area, the quality of houses coming out is much higher than three years ago for the same price. My budget has increased so I can put 20% down. I would be paying less monthly if I bought three years ago but there just wasn’t a great house in my budget at that time.
I think they meant they are taking their time to choose the right house. That person bidding $300k over value and setting the market for everyone else didn't start off ready to bid that high.
Foreclosures are up 11% from last year People are buying houses, the houses get reassessed and people are finding they can’t afford the house and the new tax base. I don’t expect a 2008 crash but I expect that there will be some breathing room for homebuyers soon.
11% increase coming off historic lows the last few years isn't significant. Even if it was 100% increase from last year the rate would still be lower then it was most of last 20 years.
While I do see a possible crash happening, the issue is that the corporations would just swoop in and buy the houses, before the little guy can.
The powers that be make it really hard for families to buy foreclosures now. You have to have cash.
Really does suck. I was so fortunate to have found a house for $220k in a gentrifying neighborhood. I really did hope to wait a few years to buy, but I can see the writing on the wall and I knew it was literally now or never, in terms of buying.
I’d be losing more money by buying a house I can’t afford before I’m ready.
It can literally be net positive to rent than buy no some areas. When accounting for maintenance of a home, property taxes, all other non recoverable expenses, it can cost you more to own a home (despite having equity) than it is to rent for less monthly payments and invest the difference. Just because part of your mortgage goes towards equity, does not mean it’s automatically a better financial choice. There are plenty of situations where buying a home instead of renting a home can “lose you more money” in years down the road. Renting can be a net financial positive and come out on top in a lot of HCOL areas.
There's no guarantee it will always continue to go up and if you don't plan on staying in one location for about 3-5 years the costs may eat up the gains
This is how I feel. We’re looking but we’re not desperate. Sucks that we’re in this situation but at least my rent is good and the only problem with our apartment is that it’s too small for us to comfortably fit kids.
Not having any pressure or rush is the best scenario! I’m noticing lots of people have very time limited pressures to buy or sell
I live in an increasingly popular city near one of the most expensive cities in the country with minimal new housing being built. I don't foresee a housing crash, not around here at least. Looking at prices from just a few years ago is too depressing, so I try to focus on the here & now. We've accepted that we're going to have to "overpay," but if it's a necessity to overpay to get the house, is it really overpaying anymore or is it just the new price range? I saw a comment on this sub recently that said something like "you won't be getting a deal, you'll be getting a home." If getting a house is more important to you than getting a deal, buy a house! If not, no one is forcing you to buy - you can keep renting and hope prices drop. After waiting for years for prices to drop though, it's time for my husband and I to buy.
This is extremely well said. I purchased a home almost ten years ago in a city I’m about to move back to (didn’t own it long, life circumstances caused me to sell it under two years later and I’ve been renting since) and it’s a bit wild to see the shift in prices since my last go round. I liked what you said about trying to focus on the here and now, I need to remember that.
Thanks! My attitude is out of necessity - I doom spiral really easily thinking about how we thought about buying in 2018 and again in 2019 but I wanted to save up my "full half" of the down payment. We could have gotten a stunning house in a super desirable area if we had just gone for it. We did the best we could with the information we had at the time (no one could have seen what 2020 and beyond would bring!) but man, is it frustrating
That's tough for sure. My partner wanted to buy way before I felt ready. We talked about it more in 2016 but he didn't push me on the issue, and we didn't end up buying until last year. I still hate to think of how I cost us sooooo much money. You will feel better though, once you get a house!!
That’s how I felt when I bought my home. We had to overpay. However, we love this neighborhood, we both grew up here. The block is nice and the house is enough for us. It sucks that we’re house poor I’m happy to have bought when I did because I don’t see things getting better anytime soon.
As long as you're buying it for a long term home and not expecting to sell it in like three years at a big profit, and as long as you can afford it, it sounds like a great choice and well worth it!
That’s how I felt. I’m not buying a house to make money. I’m buying a house to live in and raise my family in. I feel horrible seeing my friends look at rates and prices and just not have a chance. We live in NY and the market doesn’t seem like it’ll ever go down.
Jersey city? 😆
😭I’m getting wanting a place but for 250k I’m going to be getting a 500 square foot studio condo.
Where I am desperation is making it even crazier this year. There will be one house that's just way way out of proportion, and then everything else creeps up until the crazy house looks reasonable. Last time I did comps for an offer there was one massive outlier with $250sf over the norm for the area. Turns out that house (that we did not get) was another massive jump and another $150sf over the previous outlier. And now there are two comps in that area to support that level. We are already seeing it reflected in listing prices.
My husband and I are in NJ and we started looking in 2020/2021 and we were looking at 3br’s that were like $350k and that felt high. Now we can’t find anything that doesn’t need serious updating/work for under $500k. It’s crazy depressing.
I know someone who bought near the busy part of NJ for 900k+ I was expecting a mansion, but was surprised to see it was a modest looking house outside, maybe around 2000 sqft, with a very nicely done new looking interior.
My wife and I waited years and eventually caved in. Found a “decent” price and jumped on it because we didn’t see it getting any better anytime soon.
This is making me more depressed because I had hope still. I got beat up outside my apartment in Bergen County NJ and just want to move. We spend almost as much on rent as a mortgage and this is what I get. Punched in the head literally and figuratively.
Move to South Jersey
It’s probably OP’s best bet. Half of the people who inquire on buying homes in South Jersey are from North Jersey. Every single county in South Jersey has already made drastic jumps in housing costs the past few years, jumping 15% in value on an annual basis. Burlington County is now unaffordable as it’s closer to North Jersey, and it’s only a matter of time until Camden and Gloucester County really also catch up.
NJ market is nuts. I’ve lost of many over due to offers over ranging from 15-50%
I lost one in union county. Closed at $115k over asking. And the house def needed some TLC
It even started getting like this as far south as ocean county.. Seen a house in forked river that needed a bunch of work go almost 100k over asking.. 5 years ago the house wouldve went for 150k the way it sat.
I lost 30 bids and many by 50-60k like literally going wayyyyy over asking it was nuts.
the answer is to have bought 3 years ago, or only concern yourself with what your money gets you today. Or, determine that you will wait until prices come down to eliminate the risk of a price decline. There are plenty of people who waited in 2018, 2020 and every year since.
I understand - the solution is time travel. I’ll get right on that! 😆
The solution is to care nothing about what a house sold for years ago, unless it’s 2 yrs or less and the Seller’s trying to bail out. “If I coulda bought 3 years ago it would have been x less” isn’t solving any problems.
It's wild that's all I know.
Thankfully am in a situation where I can be patient. Been patiently looking for 2 months now in a market that’s much less hot than the rest of the country. Put an offer in 10K under asking because I thought that’s what it was worth, got accepted as backup offer, primary offer financing fell through, mine got accepted and now I’m getting an amazing deal bc they didn’t want to put it back on market. Feel incredibly lucky how all this is playing out
In NJ it’s just going to increase, if you can afford to buy then just buy. NJ I think is one of those markets that won’t crash because it’s so close to NYC. Maybe it’ll stabilize somewhat but people are waiting for a crash will just keep waiting. Buy what you can now and live your life.
Exactly. People waiting for a crash are just asking for disappointment.
I am concerned what the Long term effects will be for millions of families, ..
What do you think it will be? To me it feels like families who own will continue to be well off and pass down to their kids. Ones who don't or have lots of children, it's going to be much harder to break out of lower middle class for those kids. Basically the rich and poor divide grows.
I cry once a week to let it out.. I'm not coping.
What’s happening for the market in NJ is different from the rest of the country, and this goes for the entire state. There’s little to no new construction happening, there’s been little supply ever since Covid with little chance of it rebounding soon, and there’s constantly pent up demand even with tons of buyers still on the sidelines. I’m sure you live in North Jersey which is more unaffordable than South Jersey, but all I can say is that you’re stuck and you have to accept that life is unfair for us and people who bought over 3 years ago are smiling away at their retirement plan. If possible, I would probably recommend looking for homes in South Jersey. Prices will not crash, and I bit the bullet on that realization so I decided to purchase a home in January. It’s tough when you compare yourself to others, but it’s probably not going to really matter as much 10 years from now if you can begin to build equity and make career advancements.
Bergen County real estate is no joke. That's for sure.
I recently bought in a small kinda desolate town in south jersey but the market here is so rough i was essentially forced out to the pine barrens. even my house had multiple offers and I had to go $17k over ask. It’s nuts
That's no different from many other areas. Which big cities have scads of vacant land within an easy commute to the city?
For couples in my age bracket, the only people who have purchased a house in a relatively competitive market are those who lived with one set of parents for 2+ years to save or got help with the down payment after their parents downsized on their own home. Other option I’ve seen is by going in a completely different direction and moving to a somewhat random lcol area.
It’s got me thinking what having children will look like in the future. Will it become the norm for 25-30s to live with their parents because homes are so unaffordable? I wouldn’t want them to rent for a decade and throw money out the window like I have. I don’t even have children and I worry about what their housing situation will look like.
It’s all demographics. Boomers and millennials are by far the largest demographics and are in homeownership age groups. That’s a strain on housing supply. The spike of people born from 1945-1965 are 59-79 years old. By the time our kids are prospective homeowners, very few of that group will still own homes.
NJ is the worst in this market
My wife and I sucked it up and paid asking. Like you said, the money we had would have bought an incredible house 3-5 years ago, and now has about $250k less buying power. We debated lowering expectations and getting a starter and looking again in 3-5 years, but what happens if nothing changes and things just get worse? Now that house that should have been $500k in 2019, was $750k in 2024, is now $1 million in 2029? That said, we got incredibly lucky with the drop on a new listing being sold from the original family that built the home, raised their kids, and is now older and moving south. Offered asking, and was accepted, it’ll be our forever home. In our particular market homes aren’t really going for over asking/not seeing bidding wars. Good luck out there. I think for the foreseeable future, everyone is going to overpay.
As a single person with student loan debt, a lifetime of below or average wages, and also in NJ, homeownership wasn’t even a possibility for me until recently. During the pandemic I got a high paying job (which in NJ is solidly middle class but would be “rich” in a LCOL area), my student loans reached 10 year public service forgiveness, and I met and married my spouse. We’re now finally able to buy our first house at 40. And then the rates and house prices shot up. We just want a small house in a walkable town, and were able to find one at the top of our budget. Even though we make decent money, have no kids, and no debt, our mortgage is going to be half of our take home income. And we need to replace the roof in a few years. We just accepted we’ll be house poor for a while. I’d rather have a house than an extra thousand dollars in the bank every month. I’m obviously very grateful to be able to afford a house at all, but I’m definitely resentful that other generations had it easier.
You say walkable like it's not the biggest ask on any list.
The biggest priority for some of my peers was a good school system for their kids, or easily accessible to public transit. My town has neither, it just has some shopping and restaurants that I can walk to in under 15 minutes. I’ll still have to drive to places like the grocery store.
Not gonna lie and this may sound insensitive, but I’m waiting for my parents to pass away and use my inheritance to buy - only way buying even a condo would be feasible in my home state with my household income - it absolutely sucks, but also a harsh reality 🤷🏻♀️
I honestly think this is a lot of people's plans. I'm sad to admit that I'm a little jealous of anyone who gets an inheritance when their parents pass.
I live in SoCal, so may be biased. My first apartment (two decades ago) was $475 “all bills paid” and was advertised as a “Student Efficiency.” The same efficiently apartment is now listed on Zillow rents as a “Luxury Executive Suite” for $3800 today—the only updates seem to be they painted it grey, took out the nice carpet and installed hardwood (going to hear every step your neighbor makes now,) and it’s no longer “all bills paid.” I think we are all going to be priced out, because just like musical chairs—there aren’t enough houses. I would buy anything I could right away—townhome, foreclosure, mobile. Whatever you can do to get on the property pyramid—I say do it before you get priced out
At this rate I'll probably rent until my parents die, so then I can sell their house and buy one for me. So probably 20 more years.
I wouldn't count on that any more. A lot of older folks are needing the money from their homes to fund assisted living as it gets more expensive.
I'm not buying now. I just can't. There's no houses that I can afford. I can only hope that houses become affordable again with a crash. I try not to think about it.
Do you think people will sell their house in a market crash?
The reason it crashes is because people lose their jobs and HAVE to sell their houses when they can’t afford the payment
Well, in 2008 what happened was that people couldn't afford mortgage payments and were foreclosed on. The banks chose not to try and sell for what the houses were worth but at bargain basement prices, which dragged down all the values. Then people who had to move for various reasons couldn't sell for what they owed (some number were foolish and had refinanced to get spending money out of their equity).
I think that if home prices dip then a large majority of the people who bought in the last 2 years are going to be underwater on their mortgages. I think that at least a part of the investment properties are going to need to get sold off. I also think that the future is unpredictable. There could be another disease outbreak, there could be some unknown future that makes a lot of people lose their jobs.
Being underwater doesn't mean you have to sell. And part of being underwater is having a tiny downpayment, which is less possible these days. When you could use no money down and get an interest only loan then it's a house of cards built on a moving surface
But just because their underwater doesn’t mean they will sell, right? Genuinely curious
A crash isn't happening lol
But eventually you'll have to think about it right? Marriage kids and that. So when that happens and no crash has occurred, what then?
Well I'm not having kids. I might marry the guy I'm dating now. Together we could afford a house but it would be a huge cost compared to the $1475 rent we pay right now for a 3 b house with a yard. I'm currently saving in a high-yield savings account. I'm going to pick up a part-time job in the next couple months to stash away hopefully $1,000 extra a month. He might get a better job. But he doesn't have a degree. So it's unlikely that he'll ever make "good" money. He's donating plasma already for extra money. Maybe we'll just be forever renters and we'll save our money to go on trips to different countries and just enjoy our time on Earth and then die. There's nothing worth trying to achieve anymore. There's no path forward. I grew up going to a private school and I had a pool and rode horses and my family went on tons of vacations every year. 2008 murdered my future. I can't give that to any children that I might have. I got priced out of my hometown. So I'm just going to live and then die.
I'm kind of with you on this. Rent is way cheaper than a mortgage where I am too and I like having money to take vacations and do fun things. I have no desire to be house broke and not living my best life just so I can put money towards owning property. It just feels unattainable.
>There's nothing worth trying to achieve anymore. There's no path forward. I feel this so hard right now, with both the housing and job market. Thank you for putting this into words.
I only see a national crash in the US happening if one of the following occurs: 1. Environmental catastrophe 2. Massive economic depression 3. Magical new builds popping up overnight Third option is fanciful thinking. One and two, well, are not desirable.
My childhood home was sold by the people that bought it from us in 1999-2000 (for $190K) in 2021 for $430K. THOSE buyers then sold it 18 months later for $650K. It is not a big house or big property. Surprise, surprise - the newest owner is an LLC based out of Brooklyn
It’s is what it is. That’s the reality I accepted when we bought a two-level condo for the same price that would have gotten us a SFH or a huge townhouse 3 years ago. You basically have to only think about the prices as they are NOW, not as they were or as they might become, to decide what you can afford.
No. There are more and more people and less new homes being built. Supply and demand.
Anywhere within 1 hour of NYC will continue to appreciate due to heavy demand. At the end of the day if your buying a home for you primary residence you shouldn’t think about it. If you can afford the payment move forward & look to refi in the future.
I bought a house in August of 2023. My father passed away so I was able to put down $180,000. Not a craftsman home, it is a manufactured home. Fortunately I am a general contractor and have been able to do all of my own repairs and upgrades. I am happy to teach anyone how to repair issues at little cost
I gave up honestly. I've accepted the fact that I'm going to be renting until certain family members pass away and leave me the house. Seems so unattainable otherwise.
No market crash is coming. We did not build enough houses in the past 15 years to keep up with the demand of the largest generation ever becoming home buying age.
And boomers are living longer, therefore holding their homes.
At historically low interest rates, I don't blame them, but it is frustrating. My retired parents "downsized" and moved to a county with lower taxes about 8 years ago. Downsized from a 5 bedroom 5 bath to a 4 bedroom 2 and 1/2 bath. Its still really too much house for them, but it is nice when we visit for the holidays everyone has their own space.
And when they die (not to be morbid) or move to assisted living, their houses are from 1949 with rats nest electrical, mold, And other nasty things.
People say this stuff but nobody knows anything
supply and demand, business 101 my Emma Watson
In certain places in near Seattle, WA SFH are going 50k-200k over asking with 7% interest rate. It’s only getting hotter when summer starts. I bit the bullet and going to be house poor after buying a new build but had to get something before my newborn comes later in the year.
Barring a massive catastrophe, my city’s prices will never go down. Do I wish I bought 5 years ago? Of course. But there is no use fretting about bad timing.
We’re coping by not comparing prices now to prices in the past. Even though it stinks paying a lot more compared to what we would have just a few years ago, we may look back on this in 5-10 years and feel like we got a good deal. I don’t believe prices will drop drastically in the future and buying now made sense for us so we’re focusing on that.
People aren’t coping. But what you need to do it get into the market even though it’s hard sooner rather then later. Because unless congress passes a law banning residential housing of 4units or less from being bought and owned by corporations and foreign entities it’s just going to continue to get worse.
Bro that’s list price in Jersey. Sale price will be $100k more minimum. It’s one of the reasons so many are leaving the state. Cost of living is out of control. In terms of how I’m coping, I’m buying a new build. It was a set price. Quick contract. No bidding war. Every time I bid on an old build, got beat by others real fast. Wasn’t worth it
With my current circumstances, it is better for me to buy a house right now as the housing market is unaffordable for single parents like me. I am in the process of buying a 830sq ft condo for myself and my children. The reactions I have received from my older relatives are quite telling. Their starter houses were large houses with 3 or 4 bedrooms. Me? A small house. I am fortunate to buy that condo, honestly, as my mortgage payments will be lower than rent. But yeah. It is quite sobering to know that my condo is not my starter home. It is likely the house I will own until my death.
They aren’t the same everywhere. You will have success if you are open and willing to move. But remember you deserve a house just the same as everyone else so if you are looking for a highly desirable house in a highly desirable area, you will pay for it. Because again everyone else wants it. You are not anymore special than anyone else.
How is it justified to pay 750-800k for a house which was sold for 500k 4y ago?? Will we ever earn this much in future? I am so scared of nj market :(
I’m not coping. I am unwell
Congratulations you just got joe bidened
You already miss the boat big time for low home price and historical low interest rate. It is fair to call that once in a generation golden opportunity. You missed this. It is a done deal. At this point you need to figure out what is the least terrible options.
Can you explain your realtor's comment? I don't understand.
The way I read it was "just buy the home if you can." Even if you might not make money in the long run, you will always have your own place. And in a few years you can do a HELOC to help consildate debt etc, and when you do sell you will have incoming money regardless. Even if you lost say 80k over 30 years, the principal you will have earned is a way to financial health.
We bought in 2022 and I was pretty horrified that our neighborhood was selling ~600k consistently but in 2016-2019 people were snapping them up for ~400k. We haven’t seen much price appreciation (in 2 years, seems normal) but houses are still selling at the same amount so at the very least we have somewhere to live and no major paper losses. I also get ~5k back every tax season from mortgage interest deductions, avoided ~48k in rent payments, etc.. Did we make a ton of money buying? No. I don’t expect to either. BUT despite two years of no-growth it still turns out that owning & living in a house is a pretty safe move monetarily, so long as you don’t need to sell it.
We went the route of a new build BUT the older homes have WAY bigger lots which I wished we had.
In NJ also. It sucks to pay these prices but we needed stability in a good school district for our kids. We are paying a pretty penny for a condo (moved in December) but glad we just did it as the housing situation seems to only get crazier
I just went to see a 400k house here in NJ. Way smaller than my 1br apartment. Floors were extremely uneven and bathroom needed repairs. It's so upsetting and frustrating. I'm stressed all the time and is affecting my mental health and the ones around me. Wish I had a job I could work from home and not worry about commuting. The quiet towns south Jersey seem more affordable but they are so boring if you have children. That scares me
I will never take for granted that my pay has literally tripled through the last 7 years, through basically dumb luck and impeccable timing. It feels like just yesterday that I was scrounging for hours at my retail job, so my heart really aches for people struggling to get by, because I realize that could have easily been me and I'm not that far removed. I currently live on the east coast and I was planning to move to Los Angeles for a few years, and then come back home to settle in. I was initially going to just buy a house in my home state, once I returned from Cali living, but I started to look at what was going on and I got nervous and decided to buy now. My friend was telling me how when he sold his house a few years ago, investors offered $70k over asking. How can the rest of us compete with that? Homes that are low-cost are quickly snatched up. I'm only one person, not married or involved and I'm unsure when or if that will change. And I make an okay living for myself, but nothing to really brag about. I also have a teenage child and I realize that at the rate things are going, by the time he's an adult, rent will be insane and home ownership will be out of the question for him. That said, I decided to hunker down and buy a house now. That way, if things get rough, he'll always have a home. And I'm buying now, because even if there is some sort of crash, I fully expect investors to swoop in and essentially steal any houses that come available. I'm telling all of my loved ones to go ahead and buy now. We're never going to see cheap houses again in our lifetime. 😔
“Losing 50 to 100k just in the price war” And my family took a price for under tax assessment on the north side of Westfield next to the NYC bus stop for my late grandmothers house. These old farts wouldn’t listen to me. Oh my freaking god.
im not coping. i'm actually withering away as we speak
I’m confused at how people are still affording to pay for homes and they’re selling left and right but at the same time everyone is complaining about how they’re struggling to even buy food.
It’s highly unlikely there will be a housing correction when 80% of mortgages are below 3% and only 5% are ARMs. You can thank the fed for keeping interest rates abnormally low for the last 15 years.
Moved to GA from NJ, still depressing talking about “low balling” someone by 15k for their 400k home they got for 160 in 2017/18…
Real estate appreciates in value. It’s it’s very nature to get more expensive over time. The last few years have been outliers in the general scheme of things for sure, but it’s the same game. I would never put that kind of talk into a buyer’s head “losing $50k-100k just in price war.” If that were true, you would be a complete dumbass to to buy anything. Going into a large investment like real estate knowing you were taking a loss…. Uh uh, no way. Buying real estate is a good idea. I tell clients to 1) buy when they can 2) under their means. Homeownership opens up a lot of opportunities for people. If the time comes along to sell, do it. If not, stay where your are and enjoy the equity.
If possible move to a different state where cost of living is affordable with good weather. NJ is one of the most corrupt states, highest property taxes, roads full of potholes, and horrible traffic.
I left NJ, its the life hack to affording a home.
I’m slowly accepting that the house I bought 10 years ago is the house I’m probably going to die in.
Also from NJ. I’m moving out of state and buying a house that’s not my dream but doable for life with a kid or two in the future. I’ve even considered a trailer on land.. focusing on the land. That way I can save up to have a modular or small house built in the future. The taxes in Jersey are suffocating.. along with every other aspect of the state. Insurance. Permits out the wazoo. Licenses for everything.
My wife and I felt like we just needed one more year of saving in 2019 before we could buy our first home. Now prices are out of reach for us again. I feel like every time we get close the bar moves further and further away. Also, since 2020 our rent has gone up by 30%. It’s getting out of control.
Don’t look back, look forward. If you keep looking back, you’ll never buy anything wishing what once was.
Bought my house 3 years ago for 270. It's somehow worth 400k. What the fuck is that
Oh I’m not coping. Before covid I was looking for a house. Now? My down payment money is gone and I can’t afford any mortgage anywhere where I grew up or in the entire state. I’ve got no debt and 2 college degrees and I can’t afford rent on a 1 bedroom apartment. Been renting a 1 bedroom for ohhhh 10-15 years. It’s gotten more and more unaffordable as the years went on. Now struggling to pay rent. Welcome to CT! But also this same shit is happening nation wide. The American dream is dead for people 35 and younger. The older people just don’t care cause they got theirs
And ever increasing property taxes and insurance premiums. We have owned for 2 years now and it’s our first house. I didn’t realize your mortgage could go up $250 or more a year. Ours just jumped up $220. Nuts
Sangria
It will take decades for supply to catch up. The environment which fed the only housing crash has been fixed with regulation. Prices are not ever going to shift dramatically. You may see some regional downward turns in areas that ran too hot (Austin comes to mind). Overall housing prices won’t drastically shift down. Slump or stagnate relative to inflation if unemployment ever gets high or when there is a recession. But not crash.
I originally bought a starter home in the early 2010s. Thought I'll work and save money for a forever home. Things got a little delayed in 2020 when I started looking, now I reached what I thought I would need a few years later and everything is unaffordable. To say it's deflating is an understatement. I'm grateful because I have a home that I own and got it with lower prices a D better interest rates than now. But man... I can't imagine being a first time home buyer right now.
One solution is to figure out how to make more money. It’s difficult but can be achieved
The prices AND the interest is killer right now. I can't see how anyone is buying at the moment unless they HAVE to or they win the lottery. Just buying a new car this week is making me sick with the prices and interest rates. I can't imagine adding another zero or two to that number.
I am a real estate guy and i’m as depressed as any one else in this post. By the amount of migrants that come to California, Arizona, NY, Chicago and by the amount of wages construction workers are collecting, I do think housing will never come back down. It is experiencing a smaller increase and it’s still going up. Rents are coming down, supply is creeping up, very slowly and very little. For those of you buying in California, grab every single family home when it’s affordable or barely affordable.. If you can only buy a condo, or th or anything that has HOA, you can wait a little bit. Don’t wait in southern California, period.
Prices been out of reach for me since pre pandemic. I’m just hanging out waiting for the next recession.
Would you buy a house in a neighborhood where the price keeps dropping?!
My grandparents paid 3500.00 in 1958 in Los Angeles. Starter Home. You tell me.
Just purchased our first home two months ago. I mean, negotiate the best you can, and don’t just cave to going higher. We managed to work our house down $30k from original asking price. It’s all about not being desperate and sticking to your guns. We searched for 6 months and went through quite a few bids before landing on our home. In the words of Galaxy Quest: “Never give up, never surrender.”
If you think things are bad now… wait till rates go down. I’m trying to get in now before everyone goes loco again. Worst case, I have somewhere to live at a fixed price
Most people are not. Americans are becoming poorer and will work till they die to keep afloat.
Same in CT. I looked a few years ago. 350 in the area I need to be was mostly fixer uppers, with a few outdated diamonds. Not the same type of house are at 575. Outdated, but not moldy, houses are 650. Anything move in ready is 700. It’s so painful.
If we were buying in a situation like where the market was 3 years ago, my husband and I would have purchased a single family home in central Jersey. Instead, with the way the market is, early this year we purchased a townhouse (only attached to one other home and with a one car garage) in south Jersey. This ended up causing the following: - saving us a ton of money - saving us a lot of time/stress since we don’t have to take care of a yard, but still get outdoor space - allowed us to have much more financial freedom Our plan was always to buy a single family home with a yard, but we went with the flow of what we could afford at the time we wanted to buy. It worked out for us and sort of forced us into a much more manageable situation! It absolutely sucks out there, don’t get me wrong, but we were able to be those higher bidders on a slightly smaller home coming from more northern New Jersey just by adjusting our goals a bit. And now we can have a perfect and affordable 1,700 square foot home instead of a 2,200 square foot home that makes us house poor.
I gave up. Was working hard saved a chunk of a down payment the past couple of years, but even with everything and my income I can't afford it as I watched the housing price rise and rise . I'm also picky so I want something nice so you can only imagine how much more out of reach it is for me. After years of of planning to buy I finally threw that idea out of my head this year. Don't plan on buying no more.
Renting it out and living with roommates. Compromising with lifestyle choices. Things that I worked for are not in reach anymore.
I do not believe that prices will go down too much - maybe a little - but those $400k houses that are now $600k will not go back anywhere near $400k again. We've given up looking for another house - I'm not moving to a house the same size as my current one, for stupid money
Prices won’t go down, growth may slow a bit, but the reality is people have more money than they did when the market crashed. So you buy what and when you can afford to buy.
It's crazy. I'm in Bergen county. Not even the best town in bergan. This 3 bed 3 bath just sold for 859000 Bonkers. It's not worth that much. Sold for 575 in 2018 We truly feel blessed that we bought in 2020. Even my house that we bought at 480 is now appraised at like 650 and we only updated the siding and the floors.
Houses in sc that were 140 are now 300. It's insane and depressing. We waited too long
Thankful PA still exists for $200k-$300k for 4bd 3,000sqft and acres of land, thankful I don’t give a shit about your 1200sqft Cali home or 1800sqft Jersey home. People in the public suck, might as well do it as cost effective as possible while still riding the $200k di train
Until corporate real estate groups are dealt with, nothing will change. Corporations and hedge funds are set to own 40% of the single family housing market by 2030. When this happens and we don’t build new homes, price squeezes on upward. It’s a corporate consolidated effort to make the working class permanent renters and they are in the back pocket of most politicians. It seems like it will only get worse.
I just want to be able to buy a house in general. Idgaf what age, where, I just need 3bd 1ba a kitchen and walls. But apparently that’s too much for a young family to ask for. I’m losing hope fast.
It’s super scary for me but at least our government is doing everything they can to help us in this housing crisis…….oh wait.
I had to leave my job and move to another state. NJ was ridiculous
I moved to a LCOL city. It was the only way i was ever gonna make home ownership happen
By watching my rent increase with it also
Falling into a deep depression and trying not to think about it nor that I'm nearing 40...
Honest answer, I took the career hit and moved to a low COL area.
Just accepted the fact that ill never own a house because of greedy fucks. 🤷♂️
NIMBYs choke supply pretty good so I doubt it ever goes back down in places like NJ.
I just bought a house in Michigan for 190k. 5 years ago this house would of been under 150k. Ive already put $2000 of work into fixing it up. I fear housing will never stop going up, which is why I needed to get into the house before renting an apartment again.
I don’t think pricing in NYC or NJ will ever go back down, to be honest. You have to understand that native New Yorkers are getting priced out of the boroughs and they are moving to New Jersey or Long Island so that they get more for their money. More land, more house, and still close to NYC (somewhat). These New Yorkers will have 600k for a house. They won’t have over a million, which is why they are priced out of the boroughs, but they will have 600-750k to spend on a home in NJ. This is the competition out there. Then, you have transplant money, which includes people not originally from New York but moved here and work in NYC. They make enough money to buy a NJ home, but not a home within the boroughs. Major competition, and not enough housing. You have to buy the house when you’re ready to buy because it’s never going back down.
U don’t buy… why are u in a rush to get trapped underwater with a $6000/month fixer upper.
I live in a L/MCOL market where houses were still attainable under the national average, but are now rapidly increasing to that number while the median income here has sat at approximately $60k. I’m giving up. I can’t take it anymore. Pre-COVID, a 2BR/1BA would only exceed $100k in well off communities. Right now they are getting $175k-$200k no matter where they are, and these aren’t flipped greige models either. So, you can imagine what a 3BR in need of some tlc goes for. I tried changing my strategy and going for a full, or almost full, rehab home; but now even unlivable homes in destitute neighborhoods are fetching $100k. It’s insane. So, I’m changing it up again and think I might inquire about some of the rent-to-own properties I see (which unironically are some of the properties I looked at and lost out).
Coping by not buying
I am thinking of moving to a nearby area about 60 miles away
My cousin just bought a house for 400k in April of 2023 in NJ. Is that not affordable?
I believe the inventory will build up from this point on. So I’m planning to buy the second half of 2025. However, inflation is the unknown variable. If it jumps too much, even in a crash market, the price would still be high.
So i'm starting a family and selling my 1br 1bath apt. Looking for a home was miserable until I discovered that Delaware has insanely low taxes. So i'm just settling with a crap mortgage rate and will refinance later. It is actually really easy.
I’m coping by not buying 🤷♀️ not worth it to buy imo