this post was submitted on 13 Sep 2023
631 points (86.7% liked)
Memes
45755 readers
955 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Then buy a home in a lower cost of living area. There’s government grants to assist with down payments and closing costs.
My first house, that I bought about 5 years ago before you start calling me a boomer, was a HUD foreclosure. I was only required to do 100 dollars as a downpayment.
Buying in a lower cost of living area is easier when you don't have to consider things like school districts for children, availability of public transportation to get to work, or even safe walkable areas to get groceries.
Yes, it turns out that high demand for real estate in certain areas leads to higher prices because of a finite supply.
You might have to look at different areas and consider the differences. I’d love to live in a penthouse downtown, but I’ll settle for my 1600 sq foot home in the suburbs.
"You might have to look at different areas and consider the differences."
Always, but there are certain factors that aren't so pliable. Getting a loan based on your income at a stable job means that you need to live within a reasonable area to continue to access that job. Six years ago when I was looking for a house I could have moved to a lower cost of living area, but that would have meant a 90 minute commute or changing jobs (at which time would have been an irresponsibly risky move.) Another factor was the question of changing school districts, and custody arrangements with the kids father. I wasn't, but I know some who are restricted by custody agreements where they are required to live in certain districts or within X number of miles of the other parent. People in those situations don't get to shop around and find other areas to live.
People who buy a house today are quite literally paying double for the same house that they would have 5 years ago due to the federal reserve increasing the interests rates to 'fight inflation' same selling price for thr house accounted for they are paying double the mortgage because of the increased rates.
Mortgage rates have returned to an average range. Still lower than they were in the 90s.
Your payment isn’t doubled because of rates, it’s because of high demand areas.
Thats untrue, it isnt because of the demand (News flash there is always demand for housing) it is because of the increase in the intrest rate of the loan. Monetary policy trying to reign in inflation that isn't actually inflation, but corporations taking profits at exorbitant levels while the average citizens can barely make ends meet.
Man, I’m a loan officer at a bank. I know a lot more about this than what you do. Interest rate increases are squeezing all levels to decrease spending across the board. Banks are beginning to cut back lending to businesses.
And demand for housing ebbs and flows. Things skyrocketed during Covid because of a lack of supply. There’s actually been decreases in pricing at this point.
You must be a few crayons short of a full box, you just admitted prices are decreasing, yet folks who buy a house today will effectively pay almost double on their monthly mortgage rate because of the increasing interest rates, which have nothing to do with housing demand and everything to do with fighting inflation, which was caused by keeping the rates at effectively zero to prop up Obama's bull economy that 45 ran into the ground.
A few thousand dollars of decrease doesn’t offset the doubling of prices that happened during Covid. You should consider asking for specifics instead of trying to do a witty insult.
Rates weren’t effectively zero prior to Covid. They were too low, yes, and should have been higher, but the bottom fell out during Covid.
Lol, does that look like the norm in the graph you posted?