fan-of-fans
Well-known member
I think I had posted on this quite some time ago but I wanted to update.
So home prices have basically doubled or more around here since 2019. Everyone told me in 2030 that the prices were unsustainable and would need to come down. It hasn’t happened and ironically most people that told me that have either bought second homes or sold their existing home and upgraded since then.
Then two years ago, when the interest rates started going up I was told that it was going to make “sellers have to lower their prices, guaranteed.” I was told this would happen “in a year or two.”
Hasn’t happened, prices here have still gone up, and people don’t need to sell. Sure there have been some $20k price cuts on homes that were ridiculously overpriced, even for this market. But we’re not approaching even 2022 pricing, let alone 2019.
I’ve been saving up for 12 years now. I finally have enough that I could make a 50% down payment on a pretty good house, with the major stuff updated, or a new construction house. However, I can’t really get the payment, property tax and insurance below 25% of my take home pay like some suggest. It would be more like 30-32%.
I’m just very concerned we’re in a bubble like 2007, as prices have gone up so quickly, and now interest rates that were 2-3% are now above 7% and don’t appear to be coming down.
I’m afraid I’ll put all this money into a down payment on an overpriced home, and then the market crashes, I’ll lose my job in a recession, lose the house and be even worse off with very little or no savings.
Also, I fear buying and having the property tax and insurance eventually pricing me out of the house, along with inflation everywhere else.
On the other hand, supply seems tight and practically nobody wants to sell as they will end up with a higher mortgage rate and have to pay more to buy their next house. It makes it in that aspect seem different than 2007, and as if prices won’t go down much if at all.
I don’t know what to do but I think I’d be much happier in my own place, but things just seem so volatile right now. On the other hand, renting an apartment is safer as it doesn’t require much tie up of savings, however it feels like throwing away money to me as I know I’ll be stuck there a long time as it’s not like it would be a short wait for home prices to come down, if they even do.
IF the market crashes, I’d be in a good position though as I could easily buy one or two homes for cash.
It feels like I’m running out of time to buy as I’m approaching my mid 30s and if I wait I won’t have enough time to pay off a mortgage.
Buying a fixer upper isn’t really an option now as they rarely come up for sale anymore, practically none, and the labor and material costs to do repairs and remodels right now are sky high.
So home prices have basically doubled or more around here since 2019. Everyone told me in 2030 that the prices were unsustainable and would need to come down. It hasn’t happened and ironically most people that told me that have either bought second homes or sold their existing home and upgraded since then.
Then two years ago, when the interest rates started going up I was told that it was going to make “sellers have to lower their prices, guaranteed.” I was told this would happen “in a year or two.”
Hasn’t happened, prices here have still gone up, and people don’t need to sell. Sure there have been some $20k price cuts on homes that were ridiculously overpriced, even for this market. But we’re not approaching even 2022 pricing, let alone 2019.
I’ve been saving up for 12 years now. I finally have enough that I could make a 50% down payment on a pretty good house, with the major stuff updated, or a new construction house. However, I can’t really get the payment, property tax and insurance below 25% of my take home pay like some suggest. It would be more like 30-32%.
I’m just very concerned we’re in a bubble like 2007, as prices have gone up so quickly, and now interest rates that were 2-3% are now above 7% and don’t appear to be coming down.
I’m afraid I’ll put all this money into a down payment on an overpriced home, and then the market crashes, I’ll lose my job in a recession, lose the house and be even worse off with very little or no savings.
Also, I fear buying and having the property tax and insurance eventually pricing me out of the house, along with inflation everywhere else.
On the other hand, supply seems tight and practically nobody wants to sell as they will end up with a higher mortgage rate and have to pay more to buy their next house. It makes it in that aspect seem different than 2007, and as if prices won’t go down much if at all.
I don’t know what to do but I think I’d be much happier in my own place, but things just seem so volatile right now. On the other hand, renting an apartment is safer as it doesn’t require much tie up of savings, however it feels like throwing away money to me as I know I’ll be stuck there a long time as it’s not like it would be a short wait for home prices to come down, if they even do.
IF the market crashes, I’d be in a good position though as I could easily buy one or two homes for cash.
It feels like I’m running out of time to buy as I’m approaching my mid 30s and if I wait I won’t have enough time to pay off a mortgage.
Buying a fixer upper isn’t really an option now as they rarely come up for sale anymore, practically none, and the labor and material costs to do repairs and remodels right now are sky high.
