Hey real estate moguls - what’s going on in the housing market?

[BabaYaga 15298]

6 minutes ago, 'stache said:

So much of fucking this, and those of us living in the city are paying taxes out the ass to subsidize the roads and utilities and suffering from the pollution for their cheap lifestyles and need to drive fucking everywhere.

I'd add that the suburbanization era resulted in the belief that anything less than 3500 sq. ft. detached single family home past the age of 30 is a sign of failure. We (or the olds rather) zoned the fuck out of everything and literally made it illegal to build anything but detached single family homes or massive apartment complexes. Keep the "poors" (i.e., anyone who lives in an apartment not to mention the racial element to avoid cr'ing the topic here) completely separate from the rest of us. Most cities have made it illegal to build duplexes, quadplexes, townhomes, or any type of mid size housing that would provide some density and affordability. My area of town has some of this but all of them are old as shit and built before this zoning era made them iillegal to build. Just last week our city council passed a zoning amendment that made it easier to build this type of housing in the neighborhoods in and around downtown. The NIMBY's are of course losing their shit because how dare my neighbor build a garage apartment and let one of those poors live on the street for less than $1000 a month. It's fucking infuriating. I'm hoping to have some money saved up in a few years to start investing in this type of housing to encourage people to move back to the city and provide enough density that small businesses can start opening up on corners that can be accessed by walking or cycling a short distance instead of having to drive 2-4 miles just to buy a bottle of milk or get your drycleaning.

JFC, take a breath.  They are zoned SFR because that's what the builders that finance these subdivisions sell.  That's what they sell because that's what the markets demand.  You want to start your own, go for it.  If you are saying HOA's are a giant goat-fuck, then I'm in complete agreement.  They have too much power, and again, fuck them....

I've been to too many city planning meetings in Frisco.  The biggest concern early on is the first-time homebuyer.  Apartments fill that gap nicely, while not utilizing a significant amount of land to do so.  You must have such entry points for younger generations.  Neighborhoods "turn over" every 7-10 years, and you need to try and get more and more couples into the area.  

*families with kids want to live next to other families with kids

As to duplexes and quadplexes, very few builders offer those as they are significantly less desirable and considerably more expensive up front and obvious rental properties that occupancy rate issues (see HOA rant above) latch on it.  Further, if I'm swimming in a sea of SFR's, and I somehow get a triplex built, where are my comps to valuation?  It's a chicken/egg issue that I want no part of.

[crash_davis 23113]

20 hours ago, midtown said:

B.  The newer generation has less and less desire to own homes.  This changing mindset will cause a slow domino affect in general housing over the coming decades IMO.  People will have trouble moving up the home ownership ladder if there are no buyers for their starter homes.  

The younger generation definitely want to buy homes. They just realize that the game is stacked against them so this leads to them not going through the motions of buying homes. Why the fuck set themselves up for disappointment.

The best analogy I read is this.

Imagine starting a game of Monopoly except there are a tons of players who started the game long before you do. Imagine there are hotels in almost every property that you land on owned by those people who had the head start. That's the problem faced by 20-30 year olds. So yea, why even play the fucking game?

[midtown 3345]

5 minutes ago, crash_davis said:

The younger generation definitely want to buy homes.

Not true.   They value experiences, travel, technology and being mobile.   Not mowing lawns and having to replace appliances. 

[Chewbacca 7777]

4 hours ago, Bookman said:

Because the banks make more money that way.

The borrowers can sell them before the banks can foreclose.  I'm not saying there will be no foreclosures, but I'm not seeing some foreclosure tsunami.  I see a lot of houses about to be sold.

[crash_davis 23113]

5 minutes ago, midtown said:

Not true.   They value experiences, travel, technology and being mobile.   Not mowing lawns and having to replace appliances. 

first two links from Google. first time buyer demand is robust and growing.

 

https://getfea.com/end-use/desire-for-home-ownership-moderated-slightly-in-q3-2021-but-still-remains-strong

https://bdmag.com/homeownership-desire-continues-to-increase/

[Homercles 10205]

I gotta hand it to the Indian families in my neighborhood, and I mean this without sarcasm.  They do build 3500 square foot homes, yes, but most of them have 3 generations of about 6-7 folks living in them.  
 

I personally don’t understand why they average about a year before all the windows have blinds, or why slate-gray Honda Odyssey is the defacto vehicle…but they take full advantage of all that space.  
 

I work with more Indian folks than any other nationality and my best friend is 2nd gen…asked him one time why some of my neighbors won’t even wave back.  He said “if grandma and grandpa are living there, it’s a whole other world inside.”   Regardless I admire their industriousness because some of my friends with huge houses only have furniture in 2 rooms and it seems such a waste.  
 

/has nothing to do with current topic, just find it interesting. 

[midtown 3345]

First of all I don't believe or trust any stats written or funded by anyone associated with the real estate industry.  

First time home buyers is not the same as the newest college graduated demographic and generation.  IT's not something instant but its a trend with the younger demographic.

[Johnny Sack 8397]

4 hours ago, TwiceHorn said:

There is some evidence/studies that indicate that even a good housing investment can be beaten by modest renting and good investment in the market.

A lot of variables, for sure, but from a purely financial standpoint, home ownership is not all that it has been cracked up to be.

There may be other reasons that government and powers that be want more people in homes.  Whether those reasons are good for the people in the homes is less clear.

I could see that.  I have been lucky.  I bought a house in a desirable area 15 years ago and the value has close to tripled.  But even then, I have put a lot of cap ex into the house (redid garage, new flooring, remodeled kitchens and bathroom, new driveway) in addition to big ticket maintenance type stuff (new AC, new plumbing, foundation, landscaping, fencing).  To keep a house nice, it costs a shitload of money.  Renters are spending nothing on maintenance and cap ex.  Their yearly spend is less than mortgage, insurance and property taxes.  If one had the discipline to invest the delta between rent and renter's insurance and mortgage, property taxes, maintenance and cap ex -- I could see them coming out ahead in the long haul.

[Chuckie Finster 22694]

One of my time-killing hobbies is clicking through HAR in my area, and I do it probably a few times per week just to browse.  I've been doing it long enough that I've seen a few houses that I recognize from a year or so ago (with no discernible upgrades) hitting the market for like 40% higher than their previous listing.  IN KATY FUCKING TEXAS.  What are we even doing?  How does this end well for society?

[fattyflattie 4639]

6 minutes ago, Chuckie Finster said:

One of my time-killing hobbies is clicking through HAR in my area, and I do it probably a few times per week just to browse.  I've been doing it long enough that I've seen a few houses that I recognize from a year or so ago (with no discernible upgrades) hitting the market for like 40% higher than their previous listing.  IN KATY FUCKING TEXAS.  What are we even doing?  How does this end well for society?

Same area, little bit less aggy here. I get letters from realtors telling me we should be selling at 50% over what we built for a few years ago.  Sucks because we were looking at moving a bit west, but everything that was ~600 last year is $950 now.  Furk. 

[UT_OB1 2223]

2 hours ago, BabaYaga said:

JFC, take a breath.  They are zoned SFR because that's what the builders that finance these subdivisions sell.  That's what they sell because that's what the markets demand.  You want to start your own, go for it.  If you are saying HOA's are a giant goat-fuck, then I'm in complete agreement.  They have too much power, and again, fuck them....

I've been to too many city planning meetings in Frisco.  The biggest concern early on is the first-time homebuyer.  Apartments fill that gap nicely, while not utilizing a significant amount of land to do so.  You must have such entry points for younger generations.  Neighborhoods "turn over" every 7-10 years, and you need to try and get more and more couples into the area.  

*families with kids want to live next to other families with kids

As to duplexes and quadplexes, very few builders offer those as they are significantly less desirable and considerably more expensive up front and obvious rental properties that occupancy rate issues (see HOA rant above) latch on it.  Further, if I'm swimming in a sea of SFR's, and I somehow get a triplex built, where are my comps to valuation?  It's a chicken/egg issue that I want no part of.

also building multifamily doesn’t help first time homebuyers. How many first time buyers have the cash or want to buy MF if they do?  The answer is not many. MF just concentrates the money in those that want to make managing a rental business their job and/or those that want to invest money in MF. 

Edited October 28, 2021 by UT_OB1

[Chuckie Finster 22694]

4 minutes ago, fattyflattie said:

Same area, little bit less aggy here. I get letters from realtors telling me we should be selling at 50% over what we built for a few years ago.  Sucks because we were looking at moving a bit west, but everything that was ~600 last year is $950 now.  Furk. 

Yep.  We were planning to upgrade before the little ones started school, but it's looking like we've been priced out of all the areas we were eying.  So I guess we're staying put.

Edited October 28, 2021 by Chuckie Finster

[BabaYaga 15298]

14 minutes ago, UT_OB1 said:

also building multifamily doesn’t help first time homebuyers. How many first time buyers have the cash or want to buy MF if they do?  The answer is not many. MF just concentrates the money in those that want to make managing a rental business their job and/or those that want to invest money in MF. 

They're too expensive.  Require larger down pmts.  Usually have higher rates.  And the zoning for them is usually far away from the rest of the SFR communities where families with kids want to be near.  

[BabaYaga 15298]

17 minutes ago, fattyflattie said:

Same area, little bit less aggy here. I get letters from realtors telling me we should be selling at 50% over what we built for a few years ago.  Sucks because we were looking at moving a bit west, but everything that was ~600 last year is $950 now.  Furk. 

This affordability issue is going to come to a head sooner than later

[Guest]

1 hour ago, crash_davis said:

The younger generation definitely want to buy homes. They just realize that the game is stacked against them so this leads to them not going through the motions of buying homes. Why the fuck set themselves up for disappointment.

The best analogy I read is this.

Imagine starting a game of Monopoly except there are a tons of players who started the game long before you do. Imagine there are hotels in almost every property that you land on owned by those people who had the head start. That's the problem faced by 20-30 year olds. So yea, why even play the fucking game?

Decent analogy. I don't know if it's hotels on every property, but it's definitely two houses.

Surprisingly (although it may be changing), I've felt for awhile that rents compared to home prices are very low in Austin. Seems like you can find a 2/3 bedroom place -- although likely not new -- for under $1K per bed pretty easy. But given inequality, turning younger folks into a generation of renters is not ideal. 

For me, owning a home has been by far the best investment I've made. But that ladder is getting pulled up.

[Bookman 4639]

1 hour ago, Chewbacca said:

The borrowers can sell them before the banks can foreclose.  I'm not saying there will be no foreclosures, but I'm not seeing some foreclosure tsunami.  I see a lot of houses about to be sold.

And they should. But the problem is they don’t want to sell, and in Texas we can do a nonjudicial foreclosure very quickly.

[Chewbacca 7777]

3 minutes ago, Bookman said:

And they should. But the problem is they don’t want to sell, and in Texas we can do a nonjudicial foreclosure very quickly.

You seem to think banks want to get all these houses.  They don't.  They want to get their loans repaid.  Banks are not efficient at disposing of collateral they take in lieu of payment.

In most cases, if borrower says they're selling, bank will wait until closing.  They're not going to let the borrower fuck around just to stay in the house longer, but the transactional costs to the bank of foreclosing and then valuing and selling the collateral is something they would prefer to avoid in most cases.

[Bookman 4639]

Just now, Chewbacca said:

You seem to think banks want to get all these houses.  They don't.  They want to get their loans repaid.  Banks are not efficient at disposing of collateral they take in lieu of payment.

In most cases, if borrower says they're selling, bank will wait until closing.  They're not going to let the borrower fuck around just to stay in the house longer, but the transactional costs to the bank of foreclosing and then valuing and selling the collateral is something they would prefer to avoid in most cases.

I’m a bank lawyer dude.

[tbone_ 14123]

Not true.   They value experiences, travel, technology and being mobile.   Not mowing lawns and having to replace appliances. 

Not true. I work for a well known public homebuilder. Far and away our fasting growing buyer segment is younger buyers. There is a shitload of demand from younger buyers. All of the builders have significantly rotated to entry level homes in their mix.

Doesn’t discount the challenges they face. But there are a bunch of them that want a yard and ownership and no landlord. And the builders are trying their best to meet that demand.

[Chewbacca 7777]

16 minutes ago, Bookman said:

I’m a bank lawyer dude.

Then you know how inefficient bank workout departments are, dude.  They just want their money back.

 

BTW, any bank that looks at being able to foreclose so they can make more money is a shit bank that I would not want to do business with.

Edited October 28, 2021 by Chewbacca

[tbone_ 14123]

First of all I don't believe or trust any stats written or funded by anyone associated with the real estate industry.

With all due respect, that is a regarded take.

Here’s an example. At my company we capitalize $2-2.5 billion in new apartments annually. Which means we raise about $750MM in equity each year for those transactions. That’s a lot of money. And that money comes from a who’s who list of extremely well capitalized institutional and private equity sources. I assure those guys aren’t stupid. They have better stats on the real estate markets than you could possibly imagine.

Brenda Bimbo who can barely calculate 6% of $500k on her calculator they are not.

[Bookman 4639]

5 minutes ago, Chewbacca said:

Then you know how inefficient bank workout departments are, dude.  They just want their money back.

 

BTW, any bank that looks at being able to foreclose so they can make more money is a shit bank that I would not want to do business with.

I’ve had many bank clients and they’re all different. And they all have different special assets officers. Based on my experience, it’s simplistic to say “they just want their money back.” I have a pending litigation case right now where that pretty clearly isn’t true. 
 

I started doing foreclosures in 2009, after the financial crisis, and have been clamoring for foreclosure reform since then. Nothing has changed in the last twelve years.

[BabaYaga 15298]

18 minutes ago, Chewbacca said:

Then you know how inefficient bank workout departments are, dude.  They just want their money back.

 

BTW, any bank that looks at being able to foreclose so they can make more money is a shit bank that I would not want to do business with.

Band of America made almost a BILLION dollars off all their forbearance, foreclosure, and fees back in 2008, and that was in a market of rapidly declining values.  In THIS market, you think they won't gobble those appreciating assets up in a heartbeat?

Again, in the brief period of time between June and the extension at the end of July, FB and FC claim rates went up more than 30%.  I do not think it's going to tip or even teeter the market, but a lot can happen between now and  the end of the moratorium to cool down values.  

[BabaYaga 15298]

17 minutes ago, Bookman said:

I’ve had many bank clients and they’re all different. And they all have different special assets officers. Based on my experience, it’s simplistic to say “they just want their money back.” I have a pending litigation case right now where that pretty clearly isn’t true. 
 

I started doing foreclosures in 2009, after the financial crisis, and have been clamoring for foreclosure reform since then. Nothing has changed in the last twelve years.

Banks have you by the short-hairs for those that were in the process of FC and "paused" by the moratorium.  Once that lifts, if game on, as mentioned, a nonjudicial FC can be done in a matter of days.  There's a reason banks have REO and PPI departments.  

Only reason the big banks did all the mods back in the day as the value of the home was underwater, and some money was better than no money.  In THIS market, you are fooooooked.  

[Telegraph_it 3357]

2 hours ago, Homercles said:

I gotta hand it to the Indian families in my neighborhood, and I mean this without sarcasm.  They do build 3500 square foot homes, yes, but most of them have 3 generations of about 6-7 folks living in them.  
 

I personally don’t understand why they average about a year before all the windows have blinds, or why slate-gray Honda Odyssey is the defacto vehicle…but they take full advantage of all that space.  
 

I work with more Indian folks than any other nationality and my best friend is 2nd gen…asked him one time why some of my neighbors won’t even wave back.  He said “if grandma and grandpa are living there, it’s a whole other world inside.”   Regardless I admire their industriousness because some of my friends with huge houses only have furniture in 2 rooms and it seems such a waste.  
 

/has nothing to do with current topic, just find it interesting. 

You must have lived in my first neighborhood. They also put kitchens in their garages.

[Chewbacca 7777]

8 minutes ago, BabaYaga said:

Banks have you by the short-hairs for those that were in the process of FC and "paused" by the moratorium.  Once that lifts, if game on, as mentioned, a nonjudicial FC can be done in a matter of days.  There's a reason banks have REO and PPI departments.  

Only reason the big banks did all the mods back in the day as the value of the home was underwater, and some money was better than no money.  In THIS market, you are fooooooked.  

If you're already in the process of foreclosure and got paused by the moratorium and haven't already sold, you're dumb.  And if you know you can't pay the mortgage and wait around to get foreclosed on instead of selling, you're also dumb.  I'm sure there are dumb people out there, but most will just sell.  

[BabaYaga 15298]

3 minutes ago, Chewbacca said:

If you're already in the process of foreclosure and got paused by the moratorium and haven't already sold, you're dumb.  And if you know you can't pay the mortgage and wait around to get foreclosed on instead of selling, you're also dumb.  I'm sure there are dumb people out there, but most will just sell.  

If you have a population of 8 million (those in FB/FC prior to the moratorium), how many dumb people do you think are represented in that group?  Guessing hundreds of thousands.  Predictions are between 250-500K from what I've seen.  

It also takes time to sell a house, especially if the seller is financing.  Non-judicial FC's can take a few days.

[TwiceHorn 31470]

2 hours ago, Chewbacca said:

The borrowers can sell them before the banks can foreclose.  I'm not saying there will be no foreclosures, but I'm not seeing some foreclosure tsunami.  I see a lot of houses about to be sold.

And, most banks don't want to take a foreclosure if they can avoid it. No matter how profitable it may be.

[Johnny Sack 8397]

2 hours ago, Telegraph_it said:

You must have lived in my first neighborhood. They also put kitchens in their garages.

They don't want to smell their cooking either.

[South Austin 52504]

4 hours ago, BabaYaga said:

Band of America made almost a BILLION dollars off all their forbearance, foreclosure, and fees back in 2008, and that was in a market of rapidly declining values. 

Their live show is epic.

[Incredulity 11671]

32 minutes ago, South Austin said:

Their live show is epic.

 

[Clintonaldo 2574]

6 hours ago, Bookman said:

I’ve had many bank clients and they’re all different. And they all have different special assets officers. Based on my experience, it’s simplistic to say “they just want their money back.” I have a pending litigation case right now where that pretty clearly isn’t true. 
 

I started doing foreclosures in 2009, after the financial crisis, and have been clamoring for foreclosure reform since then. Nothing has changed in the last twelve years.

I always thought if a bank took back a forclosure that they couldn’t sell it for more than amount owed. Am I wrong? Sounds like I am. 

[Clintonaldo 2574]

Also, I love this thread as I have been bitching about this for awhile. I sold a lot and 2 houses 5 years ago and have been renting for the last 4 years and will be buying most likely in the summer of 22. I live in an area in Tennessee that’s desirable right now and it’s making home prices regarded. I am not a 1% or anything but wife and I combined make around $180,000 a year and we have no debt and I feel like we cannot afford anything close to the house we want.  The neighborhood we live in had 1 2 bedroom house that recently sold for $260,000 which is ridiculous to me. All we are wanting is 2,000 sq ft and we willl be lucky to find something under $360,000 unless we want to live in the hood. I don’t see how everyone is affording this shit and maybe I am just tight with money but that just doesn’t appear affordable to me. 

[mchookem 16336]

Austin market laughs at those TN prices lol 

[StruggleBus 3922]

8 hours ago, Bookman said:

I’m a bank lawyer dude.

[TwiceHorn 31470]

1 hour ago, Clintonaldo said:

I always thought if a bank took back a forclosure that they couldn’t sell it for more than amount owed. Am I wrong? Sounds like I am. 

Incorrect. In Texas at least, the debtor may have a claim on foreclosure sales in excess of the loan balance and all the dick fees the bank will charge.  And can be sued for any deficiency against the loan balance.

Post-foreclosure, the debtor/mortgagor has no claim on proceeds from subsequent sales.  Pretty sure that's fairly universal in most states.  Some states have generous rights of redemption, where a post-foreclosure sale is still theoretically possible.

The absolute minimum time to achieve a foreclosure in Texas is 41 days.  The writing is on the wall for months, usually, before that.

But, the majority of people in foreclosure are dumb as rocks, generally evidenced by the note they took out, and their failure to take actio (sell) as soon as it became apparent that it was a pig they couldn't swallow.

Edited October 29, 2021 by TwiceHorn

[Clintonaldo 2574]

47 minutes ago, mchookem said:

Austin market laughs at those TN prices lol 

Probably laugh at our income also. 

[burntorangebongos 10710]

2 hours ago, Clintonaldo said:

Also, I love this thread as I have been bitching about this for awhile. I sold a lot and 2 houses 5 years ago and have been renting for the last 4 years and will be buying most likely in the summer of 22. I live in an area in Tennessee that’s desirable right now and it’s making home prices regarded. I am not a 1% or anything but wife and I combined make around $180,000 a year and we have no debt and I feel like we cannot afford anything close to the house we want.  The neighborhood we live in had 1 2 bedroom house that recently sold for $260,000 which is ridiculous to me. All we are wanting is 2,000 sq ft and we willl be lucky to find something under $360,000 unless we want to live in the hood. I don’t see how everyone is affording this shit and maybe I am just tight with money but that just doesn’t appear affordable to me. 

The answer is right there in front of you. Look in the neighborhood area you want to live in and find a house that is too small or older and needs love and snap it up. Remodel/add on within reason (there are calculators to figure this out) and then enjoy the fact that you bought into a good area and got a home with the size and amenities that you wanted in an area that will likely keep appreciating over time. You just have to be able to live with the inconvenience of the add on/remodel. 

[Neonmoon 38129]

9 hours ago, Clintonaldo said:

I am not a 1% or anything but wife and I combined make around $180,000 a year and we have no debt and I feel like we cannot afford anything close to the house we want.  The neighborhood we live in had 1 2 bedroom house that recently sold for $260,000 which is ridiculous to me. All we are wanting is 2,000 sq ft and we willl be lucky to find something under $360,000 unless we want to live in the hood. I don’t see how everyone is affording this shit and maybe I am just tight with money but that just doesn’t appear affordable to me. 

You make 180K a year with no debt, and you want to find something under 360K?
 

I can confirm you are tight with money. At least compared to 99.9% of Americans 

[Clintonaldo 2574]

You make 180K a year with no debt, and you want to find something under 360K?
 
I can confirm you are tight with money. At least compared to 99.9% of Americans 

I’m 40 with a 9 month old and will have private school in a few years so I am always thinking ahead. I keep hoping that it’s all going to workout for me but I’ve never been one to buy something just because I can afford it.


Sent from my iPhone using Tapatalk

[Neonmoon 38129]

8 minutes ago, Clintonaldo said:

I’m 40 with a 9 month old and will have private school in a few years so I am always thinking ahead. I keep hoping that it’s all going to workout for me but I’ve never been one to buy something just because I can afford it.


Sent from my iPhone using Tapatalk

Makes sense, and kudos to you. Smart. But you can afford way more than 360K, it’s the same reason people making way less than you can afford houses that are 360. Most Americans are not as responsible with money as you. 

[South Austin 52504]

17 minutes ago, Neonmoon said:

Makes sense, and kudos to you. Smart. But you can afford way more than 360K, it’s the same reason people making way less than you can afford houses that are 360. Most Americans are not as responsible with money as you. 

There’s also the concept of being “house poor,” if you do it correctly. Putting most of your income in your home, if your expenditures are more modest when it comes to cars, travel, dining out, etc., can be smart way to spend your money. But many folks who want to dump most of their monthly income into a nice home also want the nice car, frequent travel, etc.

[burntorangebongos 10710]

He should shoot for 25 to 30 percent of his monthly income being housing costs. I think that still is a valid yardstick. You've got a good problem, Clintonaldo. 

 

 

[gmr548 16580]

11 hours ago, Clintonaldo said:

Also, I love this thread as I have been bitching about this for awhile. I sold a lot and 2 houses 5 years ago and have been renting for the last 4 years and will be buying most likely in the summer of 22. I live in an area in Tennessee that’s desirable right now and it’s making home prices regarded. I am not a 1% or anything but wife and I combined make around $180,000 a year and we have no debt and I feel like we cannot afford anything close to the house we want.  The neighborhood we live in had 1 2 bedroom house that recently sold for $260,000 which is ridiculous to me. All we are wanting is 2,000 sq ft and we willl be lucky to find something under $360,000 unless we want to live in the hood. I don’t see how everyone is affording this shit and maybe I am just tight with money but that just doesn’t appear affordable to me. 

At a $180k income with no other debts you can easily afford a $360k home. Now, given the state of the market, you may think a $360k price tag is steep for a given house, or that inventory at that price point is a little meh, but that's kind of another conversation. 

Also, 2,000sf is a ton of space for two adults and a baby. I bet you could open up your options some if you were willing to go down to 1,600 or 1,700 square feet, and I almost guarantee you wouldn't notice the difference unless you both work at home or something.

[TexasPride10 577]

11 hours ago, Clintonaldo said:

Also, I love this thread as I have been bitching about this for awhile. I sold a lot and 2 houses 5 years ago and have been renting for the last 4 years and will be buying most likely in the summer of 22. I live in an area in Tennessee that’s desirable right now and it’s making home prices regarded. I am not a 1% or anything but wife and I combined make around $180,000 a year and we have no debt and I feel like we cannot afford anything close to the house we want.  The neighborhood we live in had 1 2 bedroom house that recently sold for $260,000 which is ridiculous to me. All we are wanting is 2,000 sq ft and we willl be lucky to find something under $360,000 unless we want to live in the hood. I don’t see how everyone is affording this shit and maybe I am just tight with money but that just doesn’t appear affordable to me. 

Edit: Damn, gmr548 beat me to the punch by about 30 seconds, but I'll still leave mine up anyway. 

 

This post is confusing to me. Maybe you're just being sarcastic, in which case you can just ignore the rest of this post. But with $180k combined income and no other debt, you can certainly afford a $360,000 house. Just doing some quick, back of napkin math: let's say you put 5% down ($18k), and you do a 30-year mortgage with a 3.1% rate; your payment would be roughly $1,800/month (Plus or minus a few bucks depending on your exact insurance, taxes, etc.) I'm not sure what part of Tennessee you live in, but based on what I'm seeing in my area right now (Spring Hill, TN just south of Nashville), you are more than likely paying more than $1,800/month in rent right now. Also, based on what I'm seeing in my area, you're not going to like what you see if you wait until Summer 22 to buy something.

Edited October 29, 2021 by TexasPride10

[Neonmoon 38129]

The teacher making $66,000/ year is putting in offers on 400K houses. They're putting $12,000 down they've saved up, and pay $2000/month mortgage. 

[gmr548 16580]

10 hours ago, Clintonaldo said:

Probably laugh at our income also. 

You're in the top 10-15 percent of household income earners pretty much anywhere outside of VHCOL coastal markets, so probably not.

[Clintonaldo 2574]

I am a little disappointed I didn’t get any smart ass answers guys and I appreciate the responses. I would happily go down to 1,600 if I could find something. The thought of an $1,800 house payment scares the absolute shit out of me. I am probably too conservative( financially) to a fault. I am kind of like Ben Stiller’s character in Along Came Polly( even have the same job as he did in movie) in that I am constantly running worst case scenarios. What if we lose one income... what if someone gets sick... etc. I will say it was awesome to not have to worry about money when we found out the wife was pregnant  

Maybe some of my angst is the inventory in this area is small. Every house on Zillow is already pending.  

[StruggleBus 3922]

37 minutes ago, Clintonaldo said:

I am a little disappointed I didn’t get any smart ass answers guys and I appreciate the responses. I would happily go down to 1,600 if I could find something. The thought of an $1,800 house payment scares the absolute shit out of me. I am probably too conservative( financially) to a fault. I am kind of like Ben Stiller’s character in Along Came Polly( even have the same job as he did in movie) in that I am constantly running worst case scenarios. What if we lose one income... what if someone gets sick... etc. I will say it was awesome to not have to worry about money when we found out the wife was pregnant  

Maybe some of my angst is the inventory in this area is small. Every house on Zillow is already pending.  

Honestly, an $1800 house payment is pretty low for today's standards. Hell, you'd have a hard time finding a decent apartment for that amount in many places. 

[DonkeyCigars 143]

1 hour ago, Clintonaldo said:

I am a little disappointed I didn’t get any smart ass answers guys and I appreciate the responses. I would happily go down to 1,600 if I could find something. The thought of an $1,800 house payment scares the absolute shit out of me. I am probably too conservative( financially) to a fault. I am kind of like Ben Stiller’s character in Along Came Polly( even have the same job as he did in movie) in that I am constantly running worst case scenarios. What if we lose one income... what if someone gets sick... etc. I will say it was awesome to not have to worry about money when we found out the wife was pregnant  

Maybe some of my angst is the inventory in this area is small. Every house on Zillow is already pending.  

You own a sporting goods store?