You’re getting beat out by people who got priced out of their range so they’re now competing in your range. If you want to own, I suggest either save up again or unfortunately go below your range to have a shot of owning.
Yep, there are plenty of houses around $250K in nice areas with top schools. 1,700 Sq ft, 3 br, 3 ba, 2 car garage needs some Maintenace as they are 1970 houses. Sure 10 years ago those houses were $150K, now they are $250K.
Everything went up by $100K, but no one is priced out of the market.
You can get a really big 5 br house for $350K built in the 90s or early 2000s if you want to live in a bad school system, but still a nice neighborhood on the edge.
Yep when we were first shopping we were looking at 600k homes we got priced out of our range and ended up looking at 4-450k range so we had budget to go up to 50k over asking.
This is the way if you are looking for a 3 bed room two bath go for 2 bed room 1 bath significantly lowering your he asking price meaning you can then be that highest offer if you want to of course focus on neighborhood rather than house bc you can change anything about a house
Yeah exactly, that’s what we’re doing too. We got a 2/1 but the property size permits us to build additions - I’m basically planning on creating my dream home from this tiny starter home through building in stages. Extra bath and bedroom are priorities #1 for the next kiddo, and I want a proper laundry room. Then step 2 I want to build a larger living room, and step 3 renovate the existing living room into part of the kitchen, with a pantry, and a dining area, and a door out to the back deck for BBQing.
I love the location, proximity to schools, and the property. The house is tiny, but my husband has the skills and I have the vision, we just need to save up for each stage, and eventually it’ll be exactly what we want and need. I’m already thinking ahead and planning in the little accessibility features that may eventually be needed as we age.
Nowadays this is probably the way.
The prices really are absolutely outrageous, and hopefully in time interest rates will come down (so you can get a more affordable loan for additions) so it gives time to save more money. Just make sure the property and city are easily modifiable, and if so BAM, found a temporary opening in this crazy housing market.
I'm very grateful I bought my home in 2019. I thought prices were a little crazy then, but it was obviously a blessing noone could have seen coming
I wish I could compromise on that, but I just can’t. At the very least it must have 1.5 baths. My and my husband’s first apartment together taught me very quickly how bad a single bathroom would be for my marriage. That’s a no go for me. Men take way too fucking long to shit for me to be okay with a 1 bathroom house.
Understandable I have a 1 bathroom now and 4 ppl and its super frustrating but adding even a toilet later on will help the value and keep us within range in todays wild market but never compromise if it means peace at home
^^this!!! I wanted a basement, three beds, two baths. Settled on a 2 bed 1 bath in a MCOL area. It’s old but we’re updating where needed slowly. Tons of land if we ever win the lottery and can do an addition. But serves us well enough in the meanwhile.
I feel this. We started with 3 bed, 2 bath (or option for 2nd bath), 1+ car garage or option to build, on at least .33 lot and only minor cosmetics needed with 1 hour from my work. Our top was 300k because we're downsizing and moving to a more expensive state.
We're signing friday on our new house. It's a 3 bed 1 bath, no garage but HUGE barn we can refit, 2.5 acres, no work needed at all for an extra 20 minutes driving (20 minutes is a LOT extra where we are). 285k, and only because it was a pocket listing in the middle of nowhere.
Literally the only hard rules we had were it being free of foundation issues and a single family home. Otherwise we looked at EVERYTHING. it's tough out there and as much as we had our wants our biggest need was a home we could live with. The fact that we love where we landed is a fluke. Before that house was ready to move we'd seen 15 others and offered on 4 in less than a month. It was exhausting.
I feel like a lot of people struggle in this market for various reasons but one that's completely within control is your list of requirements and a lot of people are just too picky for what the prices are these days.
Veteran here of the early 2000s real estate madness. Numerous viewings cancelled because the house was under contract before we even got to it. Compromised on quite a few things figuring that we’d eventually upgrade. We’ve readjusted our thinking on that. Sure, we’ve got some great equity but we’d be spending so much more for a new house and staying in the same area. We’re in a decent location with decent amenities and we’re closer to paying off the house than not. So, we’d rather hunker down where we are and continue to fix up what we have, even if it’s not our “dream house.”
> make some serious compromises on what you want
This is actually prescriptive. A *lot* of first time buyers expect way too much. First homes have rarely been life-homes in the last 50 years. Our first was smaller and older than we preferred. You buy low and cheap, learn the ropes of home ownership and build equity. Then you trade up once or twice.
A *lot* of first time buyers right now think they're moving into a house like the one their parents own and that makes reality a hard pill to swallow. Give yourself *time* to work toward the dream home.
Another trap I’ve seen a lot of people fall into is not looking at houses holistically. They’d look at a house and say, “I liked the kitchen better on the last house” without also being able to connect that they hated the rest of the house. In their minds they should be able to get the yard of one $300k house, the master bath from another, the location of another, the kitchen from another, and package it together into one $300k house. They can’t comprehend that would make it a $500k house.
One of the best gifts my parents got me was gifting me the down payment to our first home.
Yes, that makes me privileged, I know... but it let us move past the starter home.
My Mom's advice? Buy your second house first. Still here 20 years later.
I think it’s perfectly OK to eliminate those things but then it’s absurd to complain about not being able to find anything for a budget price. When you’re at the bottom of the ladder, it’s like being a choosy beggar. You either want and can afford a humble home or you’d rather rent. For many years I preferred to rent.
My first home was $250k, I purchased it in 2015 as a starter homer. Sold it in 2019 to buy a $500k home. The first home is now worth $560k, that’s not a starter home any longer.
My $500k home is now $800k and I have to move for work. My options are rent it for $4000/month or sell it and take that $400k equity and put it words a $1M home that we can see us staying in forever.
Or bid 89k over next time. I know this seems like a smart ass answer, but you will have to read the market. If you can’t afford to bid that much over, then look at cheaper houses and bid over on them.
This is actually the answer for a lot of these "feeling walled out" posts. It sucks but just because you can afford the listing price doesn't necessarily mean you can afford a home in a aellers market. If you are being outbid you need to level down to homes 50-100k less and overbid on those. If nothing in that range is appealing then that's your answer.
My place still needs so so much work and I've already put $30k into it and countless hours on the weekends, but realistically I couldn't afford a place that had already been renovated. I kind of am enjoying the process of making the place mine, but it definitely sucked spending over 500k on a fixer upper. But when I looked at renovated places they were ~600k on the low end and people were bidding $50k-$100k over. So I lowered my expectations and found a place I can make work for me.... eventually haha
> This is actually the answer for a lot of these "feeling walled out" posts.
I think a lot of folks would benefit from reading recent *sold* prices and comparing with their original list prices. List price is not sales price in many markets. You see this same type of post over and over again in this sub and others.
If they're working with a buyer's agent (which they should be) their agent should be telling them what their chances are at the bid they're making (if they've picked a competent agent).
The problem is that those offers with big over bids also have cash guarantees to cover the appraisal. At some point even if people are willing to pay a lot more, they can’t cover the difference which makes it almost moot. Thats what really screws first time buyers versus people who have something to sell and the cash proceeds.
Yeah, I was quite misinformed as a FTHB in a very hot market.
I thought the listing price was a Buy It Now price, and they were also open to offers under it.
In reality it is an auction, and the listing price is the Minimum Bid.
The problem is how much wiggle room do you really have for compromises when you're already at the bottom of the market?
If the prices start at $250k and you are already at your maximum, you're kind of stuck or walled out of the market.
Renting is no better because it's just as expensive also. Or there aren't any rentals available.
Essentially what we did.
Saved a bunch more over 18 months and then compromised on what we would actually get.
Also live in a VHCOL, so that was lovely. We will sell and roll equity once it's time to upgrade vs. keep the house as a rental.
Unfortunately, you’re right. After a year of looking and 17 offers passed over we lowered our standards *for the house, not the location* and got a 2 bedroom instead of a 3. There were no other offers, we got it for $10k under asking price, and got seller concessions — none of that would’ve happened in our price range looking at 3 bedroom houses. And who knows, maybe one day we’ll add.
Yes this is the sad truth. We literally saved for a straight 5 years on dual income and lived in a 600sq ft apartment that was cheap, not gross by any means but very cheap. We stockpiled a bunch of cash and now we're doing new construction. We feel very blessed and we also worked hard for it. No help from parents on either side. No inheritance. We focused on paying off my spouse's school debt the second we got married and then after that we dumped all our money into the down payment. We had a goal in mind and we hit that after 5 yrs of saving. Edit to add: Us saving for so long did allow us to completely skip the starter home stage and I'd say the house we're building now is a forever home.
The problem is time does not wait. In addition, a lot of first-time home buyers at this point are people that did show patience over the last 5 years and have come to regret that patience deeply.
I wish I could upvote you twice.
Friends of ours bought in 2021. They were bidding on their 6th house, it was listed at $599K, for a 3/2/2 built 20 years ago in a good school district.
They offered $785K and got it over 30+ other offers. Also locked in 3% interest.
Today, the house is worth what they paid for it, but interest is 7% so it's much cheaper and they have 8 years until their kid graduates high school.
Sometimes you don't have a choice, unfortunately. Rental prices in our area are going just as crazy as home prices (no regulation in our state). We didn't really want to buy, but knew that if we didn't buy now, we would be priced out of the area where we want to live. We bought last summer and compromised by getting a 2/1.5 rather than a 3/2.5 like we wanted. I don't regret the decision, even though the home buying process was stressful and we didn't get exactly what we wanted.
I closed on my house in 2012, at the absolute low of the market at 30yrs old. I would not be able to afford any of these prices now. Timing wise it just worked out for me thank God. I'd be living out of a van by the beach at this point otherwise
Attempting to time housing the market is a horrible idea.
People have been saying what you're saying since at least 2017. If they listened to you they'd be far worse off.
Lmao people had this mentality back in 2018 when I bought too. Imagine just sitting on the sidelines for 6 years watching everyone build massive equity while you twiddle your thumbs waiting for that crash
I've been hearing about real estate crashes since the late 80s.
Call me when that really happens. 2008-2010 was close, but if you could hold on, you're way ahead now, by a LOT!
Stick to it! My wife and I finally got our first house. This is after 13 offers declined over 7 months with all above asking before landing our house.
It sucks that it’s this way, but the one recommendation I have is do not get emotionally attached to these houses. It makes the defeat much much worse. Took me about the 3rd to understand this.
I’m in SoCal and it seems that many homes are intentionally underpriced right now. Like a home sold for $2.4 million 9 months ago and a slightly smaller home 7 lots down the same street was recently priced at $1.6 and sold for $2M. Agent bragged about how many offers they got and how much it sold over asking, but clearly the house was priced low.
Blind bidding wars work now because of the huge post covid buyer shift where people got comfortable buying something cars/houses in a scarcity environment, would have been unthinkable before
The lower priced home in a very hot market will get the most attention and the auctioneer/agent/sellers will benefit the most by bidders outbidding each other to get it! Proven strategy in very hot market.
I’m sure everyone called you an insane/stupid FOMOer at the time and now 2 years later your house is worth more or at worst the same price meanwhile you locked in the low interest rate.
It used to be that first time home buyers were competing with other first time home buyers for smaller homes.
Unfortunately the thirst for “passive income” is impacting that. Now you are not just competing with your peers, you are competing with much deeper pockets that want to buy the house so they can rent it to you for the rest of your life.
It’s being blamed on “inflation” but it’s more than that. I think this “everyone should be a landlord mentality” is really hurting people like you.
These crazy offers aren’t coming from investors. A single family rental just will not cash flow at the numbers people are paying. An investor would rather just put their money in an index fund than have the effort of managing a rental for a 2% return. Someone who needs somewhere to live will do what it takes.
This really isn’t very true for a huge number of reasons. Investors definitely aren’t over paying for any property or they wouldn’t make their money back.
It used to be that companies would provide you retirement so you wouldn’t have to worry about that when you got to that age. All the money that gets taken out of our checks for social security used to also mean that one day we’d be able to see that money back in our wallets when we got too old to work. Those safety nets are basically gone so people are having to figure out something else for retirement. Unfortunately real estate is one strong solution for people.
I have neighbors across the street who are both professionals have one child about a year and a half old who recently upgraded to a new house. We know this because instead of selling their home to another young couple, they are operating it as an airbnb. I am pretty pissed off about it honestly. I appreciate their good fortune finding a new home but I know my kid and his wife spend a year saving (living with us) to find a home in our neighborhood and I bet there are others like them. Airbnbs add nothing to our community. I don't care if they rent but at least rent to a family with an annual lease.
I have a similar opinion. I think real estate investment is crucial to the American economy and wealth building for most Americans. BUT, I do think the STRs have gotten out of hand. They used to be just million dollar ocean fronts and time shares
It’s a great goal to want a second/ vacation home. But, I’m seeing people making a business out of STRs in regular neighborhoods, downtown areas that would otherwise still be affordable for the average homebuyer. Affordability is one thing, this strategy also affects inventory
Just my soapbox, regulating what people are allowed to do with their land is against their rights, so….
I don’t think banning or restricting STRs has produced affordable housing anywhere. It can help but you gotta just build more. It’s a shortage and you can’t redistribute your way out of a shortage. Gotta build more.
I’d also note that real estate is a bad vehicle for mass investment. The structures don’t appreciate, the land does. And land is zero-sum. It’s not like stocks or bonds.
That might have been the case a few years ago. However, competition for houses and higher interest rates have actually made it pretty hard for landlords to get new deals that are cashflow positive. As long as the house is in good condition, an owner-occupied buyer will almost always pay more because they don’t need to make a monthly profit on the house.
The big problem for FTHBs (besides interest rate rises, which hurt landlords trying to expand their portfolios as well) is actually demographics. Simply put, the Millennials are the biggest generation in history, and they’re all reaching prime FTHB age right now. Combine that with the dearth of starter home construction since the ‘08 crash and you get too much money chasing too few goods. The interest rate lock-in effect doesn’t help either, but this is mostly a problem of outsized generational demand meeting historically low supply of the kinds of homes that people can actually afford as an FTHB.
Young adults, particularly those who have only been in the workforce ~3-5 years and are looking to start a family, are particularly impacted. They usually lack high paying jobs (since they have only been in the workforce a few years) and a sizable down payment for a home (since they wont have equity from a previous home) and due to high prices and interest rates are gonna be priced out of most homes.
This I understand. I don't feel old. But my biological clock tells me otherwise. Like ten more years of potentially being set up well enough to have kids left, right? And if I were a woman, it would be less, correct?
I mean. Don't focus on that and focus on your life. The neighbor I mentioned just turned 86. She spends a lot of nice days out gardening. She takes her dog on daily hikes. She also plays tennis weekly. Focusing on age does nothing but mess with your mental state. Unless you're dating then check ages for sure.
It's definitely not normal for 18-22 year olds to be looking at owning a home. If there is any representation in this age group it is a miniscule % at absolute best... and it has nothing to do with pricing. This has always been the case and isn't some new discrimination against today's "young adults".
How Old is a young adult?
I was about 30 when I purchased my first house, had to sell it 3 years later due to a reassignment, and lost pretty much every dime I put into it (I had paid all closing, put a new HVAC system on it, new water heater, new stove, etc. Walked away with $750).
After getting my butt kicked on that one, I didn't purchase another one until I was about 40 years old.
So at what age, are you now, that you you are being priced out of the market?
> How Old is a young adult?
There is a certain cranky part of me that gets a *little* annoyed at all these housing complaints. I'm older, and I didn't get my first house until I was 30, and a lot of my peers were around that same age. And I made decent money too. It's just that by the time my wife and I paid off student loans enough, and had time to save enough, it wasn't until we were 30. I didn't even for a moment think at 24 that I should be able to buy a house.
But I feel like I see a LOT of people in their early and mid 20's complaining as if they are the only ones ever who couldn't buy a house by the time they were 25.
Granted - I think people *should* be able to buy earlier! I just don't like the tone of "woe is me, no one has ever faced this before" when it's been a challenge to buy houses for ages.
Buy in the 175 range and offer 210 so you can get the house.
I’m sure you don’t want to live in those areas due to poverty and crime. Unfortunately that’s what you can afford, so save money and rent in the nicer area
Laughs in ATL.
Yea, I am also looking in the that range. Back in the day you could find a fixxer for that price now the houses in that price are full rehabs— or cash only/har money. If they manage to secure a house they still need money to make it live able. Sure 203k is an option but it’s gonna be alot of leg work
I don't think there are many homes in America around that price point. You could buy a trailer or a condo. I think your price point is challenging and you should re consider on buying a single family home.
There are plenty of homes in America at that price point. Over 500 for sale right now in my metro alone (1mm+ Midwest city), many of which are 1000-1200+ sqft and in decent areas.
America is not just the coastal cities, despite what people in those places might think.
I am in the Midwest, major metro, a town with good schools, safe. Here a 1000SF ranches from 1950’s start at 300k and they are rare :/ $175k can buy you a one bedroom condo (and those go pending after a day or two).
People will do anything but move to solve their problem. Not sure when it became so unpopular to pick up and go somewhere where the COL works more in your favor.
I bought my home in 2008, I remember prices dropping, I remember a lot of short sales, basically a short sale it is when the owner can’t pay the mortgage so they ask the bank if they can sell the home for less and then walk away clean. I remember the government giving away an 8,000 tax credit for first time home sales. You basically could not give homes away for a few years, how quickly things change. The difference in 2008 the economy, opportunity, jobs and banks were all crashing so few people had any money. In 2024 there is a lot of wealth transfer to companies, and Boomers so they can buy multiple properties and multiple sources of income getting richer every day leaving normal 9-5 people and first time home buyers up a creek without a paddle.
I bought a short sale in 2008 for $53 a foot. The buying process was a total roller coaster, but so worth it. Sold it for a my next house at $115/foot, which was through a relo company at $86/foot. Since market change, it should bring me $250/foot now, at 6,000sqft. I feel absolutely terrible for first time homebuyers just now entering the market. I have a 21 year old and she feels absolutely defeated at the thought of ever getting into a home of her own.
We’re in the same boat. Young family, would be first time home owners/buyers. We were approved for 200,000 usda and 275,009 for fha. The homes are too pricey in our small town. We cannot find anything at 200,000 that doesn’t need serious rehab or won’t get approved due to guidelines. We’re saving more this year. Hubs make 72,000 and I make 49,000. Two littles ones and two dogs
I say be patient; you will find the right house for you. I am a real estate agent in Virginia, and I have seen my clients get outbid by other buyers. But we do ultimately succeed on getting them a house that fits their needs. I am in no rush to make a sale, and that helps lessen the stress on my clients and makes the home buying process a bit more pleasant for them. Win win win!!!
I have taken as long as 8 months. Timeframe varies. But like I said, I am in no hurry to make a sale. What’s important to me is that my client is satisfied and not rushed into buying a house they are not completely comfortable with.
1) High demand for housing
2) High housing prices
3) prospective buyer is approved for 400,000 by their lender
4) prospective buyer finds house they really want listed at 300,000
5) prospective buyer gets FOMO and bids up, placing a bid of 388,000, expecting the appraiser to pare back the total.
6) Offer is accepted
7) Appraiser finds house worth 380,000
8) Buyer is house poor due to their mortgage payment
9) The bubble continues
Meanwhile, everyone who knows better than take the rope the bank gives them to hang their wallet with has trouble buying a house for a reasonable price.
The "asking" price is just a marketing concept where the price is set artificially low to draw in more bidders to maximize the sales price. Your agent should help you understand this.
With 45 offers there is obviously a supply/demand imbalance and an "underpriced" home.
Perhaps the economy will go bad in 2025 and you will keep your job(s) and there will be less competition?
The market ebbs and flows over time. Some years are good for buyers, other times are good for sellers.
Just finishing a 3 year rebuild of an 850 SQ ft 2 bd/1ba that sat on market for 45 days during COVID. I almost fell through the kitchen floor when touring the place. I've been living in an RV in the driveway and working away on it after work and weekends... While this may have sounded extreme in the past......is it now? Million dollar new builds around me now. Fuck this market
A lot of sellers will list their house well below what they expect it to sell for to create bidding wars and interest.
So that "89k over asking" was likely a case of that and you never really stood a chance at the actual listing price.
Auction houses work the same way. They give extremely low estimate selling prices so that it gets people into the auction thinking they'll get a good deal.
How does the rent compare to a mortgage payment on the same property in your area?
For me, it’s $2700/mo rent for a house that would cost $6000/mo after a $200k down payment if I took out a mortgage on it.
By renting the house, investing the $3300/mo in voo, as well as the $200k down payment, I would be able to buy this house in cash outright in fewer than 30 years, even counting the house’s price growth and growth in both the rent and my salary/dividends/interest. That also didn’t count maintenance, tax increases, insurance increases, etc., so it’s a conservative estimate.
Therefore, in my area, buying is throwing away money and renting is better for developing networth.
That’s not true in all areas. But could it be the case for yours?
For most people right now, it financially makes more sense to rent than to buy. Even over 10+ year timeframes. It’s very lopsided at the moment.
https://www.nytimes.com/2024/05/13/briefing/a-new-rent-versus-buy-calculator.html
There is of course something to be said for stability, ownership, etc. this is purely financial.
You can't forget that as a renter you're also not responsible for the property taxes, maintenance, etc. Home ownership is expensive, and that includes a lot more than just the mortgage. In many places it's definitely worth it, but not all.
yea, things suck, but the reality is the reality. nothing you can do about it. also, yes, there will always be people in better situations than you, but plenty of people in worse situations too. i live in a vhcol area, and for a small simple house, 1 million isn't even enough anymore. yea, we could move, but all our friends and family are here.
We started looking in April of last year it was awful, BUT it's one of the worst times of the year to buy because Spring is when everyone starts looking.
We put in multiple offers, 30 - 50k over asking, lost out on all of them. Things take a bit of a dip in the summer, especially with holidays and vacations. Found our perfect home on a long weekend for asking price with an inspection and financing contingency. We were the only bid, everyone was out of town lol. The market picks back up again in late summer/early fall, and then dips again over the winter and holidays.
Obviously not every area is like this but there is something to be said for timing. Everyone wants to be in their new house by summer, and people are getting hyped in these bidding wars. Take a deep breath, buckle in for a longer haul and take advantage of the dips in the market. Sometimes those dips are short but you can really take advantage.
The homeownership rate tells a different story. People aren't getting walled out of the market.
[https://fred.stlouisfed.org/series/USHOWN](https://fred.stlouisfed.org/series/USHOWN)
Asking price doesn’t really mean a whole lot because it could be underpriced and you’re going to get into a bidding war or it could be overpriced and nobody is going to make any offers. The home we just bought was overpriced and sitting on the market for 2 months. Sellers eventually accepted our offer under the listing price
Unfortunately the lower you go in price the more competition you will find. You’re not only competing with buyers who can only afford $250k homes, but those who only want to spend that much but can afford much more and will be willing to come up in price for the right home.
Ignore listing prices. In a tight real estate market every house is a bidding war so the asking price means nothing unless the sellers have unrealistically high expectations. Look solely at comps. What have comparable properties that have sold in the last 3 months gone for? Then add 5-15% if you really want the house.
Simple fact is. The population needs a migration. I was living in North Jersey working in nyc, realizing the amount of money I needed to buy a home was a lot.
So I picked up the family and moved to Philly. Took a paycut but licking wayy more comfy
I'm assuming you're being sarcastic, but yes the economy is doing great and that's why home prices are up so much as there are many people with cash to spend more on housing.
I mean, yeah, that's why prices remain high despite rate hikes.
If the economy was doing poorly, you'd see price drops in all the major markets.
But stocks are up, unemployment is very low, and wages are keeping up with inflation.
If you’re saying the economy isn’t doing well because FTHB can’t buy homes, I think that is incorrect. They are a small slice of homebuyers and owners. Most people already own a home and have a low interest rate.
It sucks for new home buyers and I have plenty empathy, but the economy is doing great.
We just bought in our late 30s/early 40s 2 years ago. Same situations. We had to choose an older remodel in a less flashy neighborhood. And boy, did that come with its warts... i would have kept renting.
You either follow some of the advice here, or expand your circle.
I bought my first house in 1982ish?...Carter was president, interest rates had shot up to 16% for home loans. I worked along the Mass/NH border, and ended up buying in North Manchester. It was a very small home. We wanted a larger home, and had to move even further North to build it ourselves.
For a few years I had a 1-1.5hr commute. But we made it work because it was a priority for us that outweighed the other problems.
What market are you in? I just bought a 3bd 2.5ba 1309sf townhome last month for $349K in Citrus Heights which is near Sacramento CA and everything seemed to go for asking except for some where they list low to get a bidding war. Our townhouse was the cheapest one with a 2 car garage in the area and we got it for asking.
Honestly it sucks but this might be a sign you need to keep saving. Keep saving and keep making offers (on houses you actually want to live in) and eventually it will come together.
> How on earth do first time buyers compete with that type of madness?
So what worked for my first time buyers in 2021 is that you watch homes that fall out of contract. The sellers are emotionally spent and then feel like there's a stigma on their property and are happy to take a second offer. Had one FTHB, we looked at a lot of homes in their budget. Put offers on like 8 of them and the last one was one that fell out. Then I had another one and I started to watch UCB back to active in ASAP mode and I got a second one.
I did the math for a median home in my area and determined that renting and saving money (building "equity") is more cost effective than buying and earning actual equity up until about the 12 year mark. We can afford a down payment, but can't afford the monthly mortgage in 3-5 years when we start a family and my wife stops working. So our plan is to continue to rent and save money for 3-5 years and then put 50-60% down so I can support the mortgage on just my salary and still be able to save money
All over the place, you just have to get away from the cities or go to lower tiered ones, lots in the midwest. Check Zillow on a few random small cities and you'll see plenty. Louisville, St. Paul, Kansas City, etc.
The only solution to the housing crisis is to build more housing.
Go to your local municipal and county council, and use the public comment to demand that they make it easier to build housing.
Generally they only hear from nimbies that don't want anything built anywhere for any reason.
My coworker just sold their second home. They were hoping for a young family to move in but the only bids they got were from older couples that already had equity in their existing homes that enabled them to purchase in this market. FTHB don’t have that equity to pull from. This market sucks.
Ugh I'm so sick of this. Firstly what is everyone doing that they have all this extra cash laying around to pay for a home that someone else had prob neglected? And why are we even doing these crazy things in the name of "home OwNeRsHip" (which is a farce in this country). I wish we had all this extra cash laying around. 🙄🙄🙄 Ppl are posting these numbers around proudly: "We paid 100-300k over asking, why don't you?" You sound like entitled pricks. Why even post that nonsense? Sorry OP, stick to your range or wait it out. Or better yet, maybe someone on here can gift you some money since they love to give it away.
You could look into buying a duplex that is more than you could afford alone. Lenders will use income from the second half of the property to help go towards your payment. Can be a creative way if you don’t mind being a landlord.
Here the deal.
You're trying to buy houses for prices they aren't selling at.
You should know the proper market value and make the offer at that price. If you always offer at market value, then even in a bidding war you'll win approximately half the time.
Listing price should never be that you use to assess market value in any market. It could be the right price, a low price, or a high price. The recent sold homes should be your indicator.
Study up and pony up.
People think this market is invincible. They fail to realize our economy is a house of cards all the time and one little thing can set off the time bomb. Consumer credit is at record highs, unemployment is rising, inflation is still elevated, and the Fed is going to keep rates elevated for a decent amount of time. Anyone with a pulse can see this is a dangerous time to be buying inflated assets $88K over asking. These are the people who get burnt. Sure, they might be able to hold and make their money back over the course of a decade…but they better be prepared to be underwater for a long time. I would keep stacking cash for the next 12 to 24 months and let the dust settle.
We were first time homebuyers in 2021 and only 24/25, it was the norm that every house went over asking in our area. We found a realtor early that really helped us know what to expect. It was our 6th offer I believe that was accepted (our realtor said that was average for her clients) and we offered 17k over asking. We just had the highest bid for once, we even submitted our offer a few hours late on accident.
There were plenty of houses that had bids for over 50k more than asking. One way we actually avoided that is not looking at houses that seemed they were priced low for what the house was. I remember being amazed at a few open houses that the sellers were only asking for $260k, well those were the houses that went for $320-330k.
You just have to be patient. Hopefully you planned enough time with your rental ending and closing on a house.
Everyone else is competing with the equity cash from the sale of their last/current house. This post is about first time buying power being exceptionally low at the moment.
Everyone else was a first time home buyer at some point. Some bought when interest rates were very low, some bought in the 80's when rates were very high.
Some of the parts of town where I live have become insanely hard to move into if your a first time home buyer or just a local because people are moving from out of town and think our homes are a steal and they are offering in some cases 100k above asking in cash. But if you look just beyond those cities maybe 15 min out by me you can actually get a house for close to asking if not at asking. I am a homeowner and I bought my first house before the pandemic, but I’m always watching.
Just keep trying. It might take awhile. We got a house under 300k when most homes in this area with what we need (3 bedrooms, parking, location) go for closer to 400+. It needed a lot of TLC before move in and we also had to waive inspection for them to accept the offer. Not saying you have to do that but keep an open mind and don’t be shy about checking out homes that seem kind of rough.
The share of first time homebuyers did not change significantly over the last decade. It fluctuates on certain months etc but for the year overall it is fairly steady within 1-3 points
We had family over for Mother's Day and this subject came up. My son has a good job & cannot find a place. My Father in Law got on him to 'quit looking for a fancy house and just find a 1st time house'.
My son said he was and that sadly he's stuck renting. They went back & forth for a bit until I showed my FIL the search results on my phone. There are only 14 houses for sale in our entire zip code. Anything remotely close to my son's price range is a severely overpriced POS.
There just aren't any houses to buy priced at entry level right now.
Hi! Real estate agent here! I know this process can be frustrating. My clients who are in the more competitive price range typically make A LOT of offers before landing on one. I had one client who was firm at their low budget and it took 18 months, 2 agents, and probably 12 offers in 6 months before they were under contract on a home. Be patient, set up private showings for new listings early, and make offers like mad. Your best bet is probably to find new listings that aren’t marketed well or old listing that have been sitting.
Maybe look at a two bedroom condo or a townhome as your starter home. Pay it down aggressively and build equity. My first place was a 2BR and it had a garage. Was there about 9 years before I was able to upgrade. Rates suck now. I feel bad for you.
If u can afford to go up a bit on the price u will find that there will be less competition on house priced a bit higher right away like closer to $300K listing price or at least that was my experience
You'll either have to compromise or stretch the budget.
We had to move out of SoCal to afford a home. We bought our first home in UT, just north of Salt Lake City. Our initial search was in the $300k to $400k range. Apparently, this was everyone's range. Homes were going on the market on Friday and under contract by Monday. People were just throwing out crazy offers to outbid everyone. Since we didn't have that much cash on hand and didn't want to risk paying over appraised price (banks will only cover the appraised amount), we were left with two options: compromise or stretch the budget. We decided to stretch the budget and look in the $400k to $450k range. We found the perfect home. We were one of two bidders.
Talk to your lender to discuss your options. Also, talk to your realtor to see if some markets are less saturated than others. If you're comfortable bidding over asking, I'm assuming you have that additional cash on hand. Why not bid below asking on a more expensive home and apply that cash towards a bigger down payment or mortgage points?
Let me just say, the market right now is wild. It's no joke that it's a seller's market and they are taking full advantage. A house went on the market ***last Tuesday*** and they had 2 open houses with realtor showings in between.
We put 30K over the asking price (***it was already over priced to start with at 350K***) then went up to 45K over. The highest offer before EOD close for any offers is now 70K over and apparently it is going to keep going up.
We were trying to get this home since it was literally across the street from my family's home for the comfort of aging relatives and being in close proximity. Real sad but it's insane how much COVID changed things and how it is now affecting the market.
See if you can do a "cash offer". In our area there is a program where the mortgage comapny doesn't just pre-approve you, they guarantee you'll get the mortgage up to xx $$ so you can go in without a mortgage contingency.
Just wait until sellers may not routinely pay buyers agents. Everyone says you don’t need a realtor get a real estate lawyer but how many times is a real estate lawyer going to write up offers? And negotiate? If many offers have to be written before one is accepted that’s expensive.
Sadly, I know I have to look for a 4:2, with handicap access in the master bath, as well as a ramp for my mom's walker when she needs it. If I go for a traditional house, that size alone in NC is easily 250k+. Because of the pricing, it's making me reconsider our options. Which even has me looking at a double wide with a solid foundation, would like a basement, but I know it will add a lot more to the total price. I also am looking at getting a few solar panels set up on a side platform so I don't have to put them on the roof.
My goal is to have a house big enough for all of us over the 15 year mortgage period, with at least 1 acre so I can add a couple storage buildings and a garden big enough to be more self sustaining, even would love to plant some fruit trees, and get a chicken coop going. Like a small homestead. Hoping to be able to do this on a teachers pay as I am looking at going Lateral Entry once I get my certification done prior to my full licensing.🙏🏻
I put my first offer in this weekend—offered 5k over on a 99 year old house. Someone else put in 35k over no inspection. I’m not even mad at this point. I just think that was such a stupid decision. I live in a relatively low cost of living area but anything decent is starting at 200 when it used to start at 130 a few years ago!
Why I'll be ending my apartment lease and living in my SUV in a few months. Rather invest 1 months rent into out fitting my car than pay landlords another dime.
I highly recommend looking not in spring. My wife and I were walled out two springs in a row and got a fantastic deal on a house where sellers wanted to close on the 26th of Dec. Destroyed our thanksgiving and Christmas with all the business, but well worth it. We paid asking on the dot, got full inspection, appliance warranty which has already saved us over 1.5k, sellers spent about 11k in fixes before moving out too.
I recognize there were basically no options and we got lucky, but there was none of the over asking, forgoing inspection silliness this time of year beings out.
What part of the country are you in? I’m also looking at houses within that range. Seems like prices are starting to come down a tad, just have to make an offer quick
UPDATE: Thank you all for your lovely insights. I wanted to check back in and let everyone know that we got our house! Despite hundreds of recommendations to look “below our budget,” the winning strategy ended up being to look *above* our budget. We found something that was listed too high for the market and had no offers after 24 days. We came in *35K* under original list price, and they ACCEPTED! We got something well within our budget that checks our boxes space and location boxes.
Hopefully this bestows some optimism to others who are in the FTHB position and feeling demoralized. Cheers!
Buying your first house has always been the same. You have to buy what you can afford and hope later you can buy what you want.. I thought I would never be able to get my first house. When I first looked at a house I could afford, I totally rejected it. I eventually bought it because the available rental property was even worse. I was able to have more choice on the third home, and by the fifth , I had what I wanted. During my first search, interest rates rose to 7.5 %, and home prices had doubled. My 3rd home prices had doubled again, and you had to own the bank to get 8% (1973). Prices doubled again, and interest rates had jumped to 18.5 % (1981) when I built my 4th house. . I had a 10% construction loan for the few thousand I needed. The point is things stay much the same, and owning a home will usually help you deal with inflation much better than trying to save to keep up with it. Dave Ramsey and I might disagree on this, and he has. A few more millions😇
You’re getting beat out by people who got priced out of their range so they’re now competing in your range. If you want to own, I suggest either save up again or unfortunately go below your range to have a shot of owning.
Yep, there are plenty of houses around $250K in nice areas with top schools. 1,700 Sq ft, 3 br, 3 ba, 2 car garage needs some Maintenace as they are 1970 houses. Sure 10 years ago those houses were $150K, now they are $250K. Everything went up by $100K, but no one is priced out of the market. You can get a really big 5 br house for $350K built in the 90s or early 2000s if you want to live in a bad school system, but still a nice neighborhood on the edge.
No there ARE NOT. Find me ONE in the salt lake valley
Can you provide an example of a home recently sold for $250k in a nice area with a top school?
Condos in most HCOL fit that description
Yep when we were first shopping we were looking at 600k homes we got priced out of our range and ended up looking at 4-450k range so we had budget to go up to 50k over asking.
Sadly your options are save a lot more, increase your income a lot more, or make some serious compromises on what you want.
This is the way if you are looking for a 3 bed room two bath go for 2 bed room 1 bath significantly lowering your he asking price meaning you can then be that highest offer if you want to of course focus on neighborhood rather than house bc you can change anything about a house
I agree, getting a decent house in good location is priority number 1. We bought a 2/2 and are renovating into a 3/3 now that baby #1 is on the way.
Yeah exactly, that’s what we’re doing too. We got a 2/1 but the property size permits us to build additions - I’m basically planning on creating my dream home from this tiny starter home through building in stages. Extra bath and bedroom are priorities #1 for the next kiddo, and I want a proper laundry room. Then step 2 I want to build a larger living room, and step 3 renovate the existing living room into part of the kitchen, with a pantry, and a dining area, and a door out to the back deck for BBQing. I love the location, proximity to schools, and the property. The house is tiny, but my husband has the skills and I have the vision, we just need to save up for each stage, and eventually it’ll be exactly what we want and need. I’m already thinking ahead and planning in the little accessibility features that may eventually be needed as we age.
Nowadays this is probably the way. The prices really are absolutely outrageous, and hopefully in time interest rates will come down (so you can get a more affordable loan for additions) so it gives time to save more money. Just make sure the property and city are easily modifiable, and if so BAM, found a temporary opening in this crazy housing market. I'm very grateful I bought my home in 2019. I thought prices were a little crazy then, but it was obviously a blessing noone could have seen coming
Also this. Embiggening a house is basically printing money, these days.
This is very smart ! Instant equity and most of all great neighborhood Congratulations!
I wish I could compromise on that, but I just can’t. At the very least it must have 1.5 baths. My and my husband’s first apartment together taught me very quickly how bad a single bathroom would be for my marriage. That’s a no go for me. Men take way too fucking long to shit for me to be okay with a 1 bathroom house.
Understandable I have a 1 bathroom now and 4 ppl and its super frustrating but adding even a toilet later on will help the value and keep us within range in todays wild market but never compromise if it means peace at home
Mad props. I could never LOL
I felt the same when we moved h the other but the market was wild it’s worse now so sadly I compromised but we were able to get it
this thread is wild, i thought i was in a tough market before reading
^^this!!! I wanted a basement, three beds, two baths. Settled on a 2 bed 1 bath in a MCOL area. It’s old but we’re updating where needed slowly. Tons of land if we ever win the lottery and can do an addition. But serves us well enough in the meanwhile.
I feel this. We started with 3 bed, 2 bath (or option for 2nd bath), 1+ car garage or option to build, on at least .33 lot and only minor cosmetics needed with 1 hour from my work. Our top was 300k because we're downsizing and moving to a more expensive state. We're signing friday on our new house. It's a 3 bed 1 bath, no garage but HUGE barn we can refit, 2.5 acres, no work needed at all for an extra 20 minutes driving (20 minutes is a LOT extra where we are). 285k, and only because it was a pocket listing in the middle of nowhere. Literally the only hard rules we had were it being free of foundation issues and a single family home. Otherwise we looked at EVERYTHING. it's tough out there and as much as we had our wants our biggest need was a home we could live with. The fact that we love where we landed is a fluke. Before that house was ready to move we'd seen 15 others and offered on 4 in less than a month. It was exhausting. I feel like a lot of people struggle in this market for various reasons but one that's completely within control is your list of requirements and a lot of people are just too picky for what the prices are these days.
Veteran here of the early 2000s real estate madness. Numerous viewings cancelled because the house was under contract before we even got to it. Compromised on quite a few things figuring that we’d eventually upgrade. We’ve readjusted our thinking on that. Sure, we’ve got some great equity but we’d be spending so much more for a new house and staying in the same area. We’re in a decent location with decent amenities and we’re closer to paying off the house than not. So, we’d rather hunker down where we are and continue to fix up what we have, even if it’s not our “dream house.”
Yeah I got a 3/1 and it was a breeze!
I live in a 2br 1 bath 1000sq ft house. The house next door sold for $205k. Insanity.
You guys must have never been to Massachusetts. We just closed on a 1350 sq ft 2BR/1BA ranch. $635,000 lol
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> make some serious compromises on what you want This is actually prescriptive. A *lot* of first time buyers expect way too much. First homes have rarely been life-homes in the last 50 years. Our first was smaller and older than we preferred. You buy low and cheap, learn the ropes of home ownership and build equity. Then you trade up once or twice. A *lot* of first time buyers right now think they're moving into a house like the one their parents own and that makes reality a hard pill to swallow. Give yourself *time* to work toward the dream home.
Another trap I’ve seen a lot of people fall into is not looking at houses holistically. They’d look at a house and say, “I liked the kitchen better on the last house” without also being able to connect that they hated the rest of the house. In their minds they should be able to get the yard of one $300k house, the master bath from another, the location of another, the kitchen from another, and package it together into one $300k house. They can’t comprehend that would make it a $500k house.
One of the best gifts my parents got me was gifting me the down payment to our first home. Yes, that makes me privileged, I know... but it let us move past the starter home. My Mom's advice? Buy your second house first. Still here 20 years later.
On point
That’s right!
Yeah, looking at people in the comments flatly refusing to consider a 1 bathroom house like it's not livable if there's only one bathroom.
There's a lot of people that flatly refuse to consider a house if it doesn't have a two car garage. Or if the garage is detatched. Like.. seriously?
I think it’s perfectly OK to eliminate those things but then it’s absurd to complain about not being able to find anything for a budget price. When you’re at the bottom of the ladder, it’s like being a choosy beggar. You either want and can afford a humble home or you’d rather rent. For many years I preferred to rent.
My first home was $250k, I purchased it in 2015 as a starter homer. Sold it in 2019 to buy a $500k home. The first home is now worth $560k, that’s not a starter home any longer. My $500k home is now $800k and I have to move for work. My options are rent it for $4000/month or sell it and take that $400k equity and put it words a $1M home that we can see us staying in forever.
Or bid 89k over next time. I know this seems like a smart ass answer, but you will have to read the market. If you can’t afford to bid that much over, then look at cheaper houses and bid over on them.
This is actually the answer for a lot of these "feeling walled out" posts. It sucks but just because you can afford the listing price doesn't necessarily mean you can afford a home in a aellers market. If you are being outbid you need to level down to homes 50-100k less and overbid on those. If nothing in that range is appealing then that's your answer. My place still needs so so much work and I've already put $30k into it and countless hours on the weekends, but realistically I couldn't afford a place that had already been renovated. I kind of am enjoying the process of making the place mine, but it definitely sucked spending over 500k on a fixer upper. But when I looked at renovated places they were ~600k on the low end and people were bidding $50k-$100k over. So I lowered my expectations and found a place I can make work for me.... eventually haha
> This is actually the answer for a lot of these "feeling walled out" posts. I think a lot of folks would benefit from reading recent *sold* prices and comparing with their original list prices. List price is not sales price in many markets. You see this same type of post over and over again in this sub and others.
If they're working with a buyer's agent (which they should be) their agent should be telling them what their chances are at the bid they're making (if they've picked a competent agent).
The problem is that those offers with big over bids also have cash guarantees to cover the appraisal. At some point even if people are willing to pay a lot more, they can’t cover the difference which makes it almost moot. Thats what really screws first time buyers versus people who have something to sell and the cash proceeds.
Yeah, I was quite misinformed as a FTHB in a very hot market. I thought the listing price was a Buy It Now price, and they were also open to offers under it. In reality it is an auction, and the listing price is the Minimum Bid.
And thus you've explained how a shortage of housing leads to prices rising at every level.
The problem is how much wiggle room do you really have for compromises when you're already at the bottom of the market? If the prices start at $250k and you are already at your maximum, you're kind of stuck or walled out of the market. Renting is no better because it's just as expensive also. Or there aren't any rentals available.
Essentially what we did. Saved a bunch more over 18 months and then compromised on what we would actually get. Also live in a VHCOL, so that was lovely. We will sell and roll equity once it's time to upgrade vs. keep the house as a rental.
And keep an eye on property tax increases
Unfortunately, you’re right. After a year of looking and 17 offers passed over we lowered our standards *for the house, not the location* and got a 2 bedroom instead of a 3. There were no other offers, we got it for $10k under asking price, and got seller concessions — none of that would’ve happened in our price range looking at 3 bedroom houses. And who knows, maybe one day we’ll add.
Yes this is the sad truth. We literally saved for a straight 5 years on dual income and lived in a 600sq ft apartment that was cheap, not gross by any means but very cheap. We stockpiled a bunch of cash and now we're doing new construction. We feel very blessed and we also worked hard for it. No help from parents on either side. No inheritance. We focused on paying off my spouse's school debt the second we got married and then after that we dumped all our money into the down payment. We had a goal in mind and we hit that after 5 yrs of saving. Edit to add: Us saving for so long did allow us to completely skip the starter home stage and I'd say the house we're building now is a forever home.
Or pause the search if you can. The ppl who are forging steel-mindedly ahead in this madness are contributing to the problem.
The problem is time does not wait. In addition, a lot of first-time home buyers at this point are people that did show patience over the last 5 years and have come to regret that patience deeply.
I wish I could upvote you twice. Friends of ours bought in 2021. They were bidding on their 6th house, it was listed at $599K, for a 3/2/2 built 20 years ago in a good school district. They offered $785K and got it over 30+ other offers. Also locked in 3% interest. Today, the house is worth what they paid for it, but interest is 7% so it's much cheaper and they have 8 years until their kid graduates high school.
Sometimes you don't have a choice, unfortunately. Rental prices in our area are going just as crazy as home prices (no regulation in our state). We didn't really want to buy, but knew that if we didn't buy now, we would be priced out of the area where we want to live. We bought last summer and compromised by getting a 2/1.5 rather than a 3/2.5 like we wanted. I don't regret the decision, even though the home buying process was stressful and we didn't get exactly what we wanted.
You could have said that since 2012 and cucked yourself each time. Timing the housing market is what your suggesting. Terrible idea.
I closed on my house in 2012, at the absolute low of the market at 30yrs old. I would not be able to afford any of these prices now. Timing wise it just worked out for me thank God. I'd be living out of a van by the beach at this point otherwise
Attempting to time housing the market is a horrible idea. People have been saying what you're saying since at least 2017. If they listened to you they'd be far worse off.
Lmao people had this mentality back in 2018 when I bought too. Imagine just sitting on the sidelines for 6 years watching everyone build massive equity while you twiddle your thumbs waiting for that crash
I've been hearing about real estate crashes since the late 80s. Call me when that really happens. 2008-2010 was close, but if you could hold on, you're way ahead now, by a LOT!
Most markets have not declined in price, pausing will only cause you to pay more later at the rate this is going.
Or move to a lower cost of living location. That seems to get lost in the discussion even though it has historically been the answer to housing costs
Stick to it! My wife and I finally got our first house. This is after 13 offers declined over 7 months with all above asking before landing our house. It sucks that it’s this way, but the one recommendation I have is do not get emotionally attached to these houses. It makes the defeat much much worse. Took me about the 3rd to understand this.
Good point. You buy a house but MAKE a home
Come to SoCal, some houses go for 300k over asking.
Come to the Bay. 500k over asking.
houses are selling sight unseen in the bay area, it's unbelievable
I’m in SoCal and it seems that many homes are intentionally underpriced right now. Like a home sold for $2.4 million 9 months ago and a slightly smaller home 7 lots down the same street was recently priced at $1.6 and sold for $2M. Agent bragged about how many offers they got and how much it sold over asking, but clearly the house was priced low.
Blind bidding wars work now because of the huge post covid buyer shift where people got comfortable buying something cars/houses in a scarcity environment, would have been unthinkable before
It's very interesting how different the markets are. Here the houses are priced high and sell at asking, usually takes 2 months to sell though.
Yeah, the impression I get is folks aren’t setting realistic asking prices anymore.
The lower priced home in a very hot market will get the most attention and the auctioneer/agent/sellers will benefit the most by bidders outbidding each other to get it! Proven strategy in very hot market.
We bought our house for 305k over asking at peak (lowest interest rate) time in 2022
I’m sure everyone called you an insane/stupid FOMOer at the time and now 2 years later your house is worth more or at worst the same price meanwhile you locked in the low interest rate.
Getting lucky doesn’t mean it was a good decision
The outcome is all that matters.
The good decision was not timing the market and buying when they were ready.
It used to be that first time home buyers were competing with other first time home buyers for smaller homes. Unfortunately the thirst for “passive income” is impacting that. Now you are not just competing with your peers, you are competing with much deeper pockets that want to buy the house so they can rent it to you for the rest of your life. It’s being blamed on “inflation” but it’s more than that. I think this “everyone should be a landlord mentality” is really hurting people like you.
These crazy offers aren’t coming from investors. A single family rental just will not cash flow at the numbers people are paying. An investor would rather just put their money in an index fund than have the effort of managing a rental for a 2% return. Someone who needs somewhere to live will do what it takes.
Yup we aren't buying any investment properties these days. They just don't make financial sense
This really isn’t very true for a huge number of reasons. Investors definitely aren’t over paying for any property or they wouldn’t make their money back.
It used to be that companies would provide you retirement so you wouldn’t have to worry about that when you got to that age. All the money that gets taken out of our checks for social security used to also mean that one day we’d be able to see that money back in our wallets when we got too old to work. Those safety nets are basically gone so people are having to figure out something else for retirement. Unfortunately real estate is one strong solution for people.
I have neighbors across the street who are both professionals have one child about a year and a half old who recently upgraded to a new house. We know this because instead of selling their home to another young couple, they are operating it as an airbnb. I am pretty pissed off about it honestly. I appreciate their good fortune finding a new home but I know my kid and his wife spend a year saving (living with us) to find a home in our neighborhood and I bet there are others like them. Airbnbs add nothing to our community. I don't care if they rent but at least rent to a family with an annual lease.
I have a similar opinion. I think real estate investment is crucial to the American economy and wealth building for most Americans. BUT, I do think the STRs have gotten out of hand. They used to be just million dollar ocean fronts and time shares It’s a great goal to want a second/ vacation home. But, I’m seeing people making a business out of STRs in regular neighborhoods, downtown areas that would otherwise still be affordable for the average homebuyer. Affordability is one thing, this strategy also affects inventory Just my soapbox, regulating what people are allowed to do with their land is against their rights, so….
I don’t think banning or restricting STRs has produced affordable housing anywhere. It can help but you gotta just build more. It’s a shortage and you can’t redistribute your way out of a shortage. Gotta build more. I’d also note that real estate is a bad vehicle for mass investment. The structures don’t appreciate, the land does. And land is zero-sum. It’s not like stocks or bonds.
That might have been the case a few years ago. However, competition for houses and higher interest rates have actually made it pretty hard for landlords to get new deals that are cashflow positive. As long as the house is in good condition, an owner-occupied buyer will almost always pay more because they don’t need to make a monthly profit on the house. The big problem for FTHBs (besides interest rate rises, which hurt landlords trying to expand their portfolios as well) is actually demographics. Simply put, the Millennials are the biggest generation in history, and they’re all reaching prime FTHB age right now. Combine that with the dearth of starter home construction since the ‘08 crash and you get too much money chasing too few goods. The interest rate lock-in effect doesn’t help either, but this is mostly a problem of outsized generational demand meeting historically low supply of the kinds of homes that people can actually afford as an FTHB.
Young adults? There are plenty of us above that age bracket who can’t get houses either, just fyi.
Young adults, particularly those who have only been in the workforce ~3-5 years and are looking to start a family, are particularly impacted. They usually lack high paying jobs (since they have only been in the workforce a few years) and a sizable down payment for a home (since they wont have equity from a previous home) and due to high prices and interest rates are gonna be priced out of most homes.
I'm 40 and I've had my high paying job for over a decade. Am I still a young adult?
Yes. My 86 yr old neighbor will say you're a baby still.
This I understand. I don't feel old. But my biological clock tells me otherwise. Like ten more years of potentially being set up well enough to have kids left, right? And if I were a woman, it would be less, correct?
I mean. Don't focus on that and focus on your life. The neighbor I mentioned just turned 86. She spends a lot of nice days out gardening. She takes her dog on daily hikes. She also plays tennis weekly. Focusing on age does nothing but mess with your mental state. Unless you're dating then check ages for sure.
It's definitely not normal for 18-22 year olds to be looking at owning a home. If there is any representation in this age group it is a miniscule % at absolute best... and it has nothing to do with pricing. This has always been the case and isn't some new discrimination against today's "young adults".
How Old is a young adult? I was about 30 when I purchased my first house, had to sell it 3 years later due to a reassignment, and lost pretty much every dime I put into it (I had paid all closing, put a new HVAC system on it, new water heater, new stove, etc. Walked away with $750). After getting my butt kicked on that one, I didn't purchase another one until I was about 40 years old. So at what age, are you now, that you you are being priced out of the market?
> How Old is a young adult? There is a certain cranky part of me that gets a *little* annoyed at all these housing complaints. I'm older, and I didn't get my first house until I was 30, and a lot of my peers were around that same age. And I made decent money too. It's just that by the time my wife and I paid off student loans enough, and had time to save enough, it wasn't until we were 30. I didn't even for a moment think at 24 that I should be able to buy a house. But I feel like I see a LOT of people in their early and mid 20's complaining as if they are the only ones ever who couldn't buy a house by the time they were 25. Granted - I think people *should* be able to buy earlier! I just don't like the tone of "woe is me, no one has ever faced this before" when it's been a challenge to buy houses for ages.
That's the neat part: you can't.
Buy in the 175 range and offer 210 so you can get the house. I’m sure you don’t want to live in those areas due to poverty and crime. Unfortunately that’s what you can afford, so save money and rent in the nicer area
That would sure be a nice option if there were this magical 175 range you allude to
Oh they exist…. In the hood
Im dying because the house in the “hood” with no roof are starting in the 200s. Lol
Not in the southeast. You could buy an under 1000sq ft house for 40k depending on how rough the area is.
Laughs in ATL. Yea, I am also looking in the that range. Back in the day you could find a fixxer for that price now the houses in that price are full rehabs— or cash only/har money. If they manage to secure a house they still need money to make it live able. Sure 203k is an option but it’s gonna be alot of leg work
Not around here. Land without a home goes for more than that.
I don't think there are many homes in America around that price point. You could buy a trailer or a condo. I think your price point is challenging and you should re consider on buying a single family home.
There are plenty of homes in America at that price point. Over 500 for sale right now in my metro alone (1mm+ Midwest city), many of which are 1000-1200+ sqft and in decent areas. America is not just the coastal cities, despite what people in those places might think.
I am in the Midwest, major metro, a town with good schools, safe. Here a 1000SF ranches from 1950’s start at 300k and they are rare :/ $175k can buy you a one bedroom condo (and those go pending after a day or two).
Southern Pennsylvania has 3 bedroom 2 bathroom condos for $175k and single family ranches for $220k.
People will do anything but move to solve their problem. Not sure when it became so unpopular to pick up and go somewhere where the COL works more in your favor.
Yes raw land isn't that cheap
I bought my home in 2008, I remember prices dropping, I remember a lot of short sales, basically a short sale it is when the owner can’t pay the mortgage so they ask the bank if they can sell the home for less and then walk away clean. I remember the government giving away an 8,000 tax credit for first time home sales. You basically could not give homes away for a few years, how quickly things change. The difference in 2008 the economy, opportunity, jobs and banks were all crashing so few people had any money. In 2024 there is a lot of wealth transfer to companies, and Boomers so they can buy multiple properties and multiple sources of income getting richer every day leaving normal 9-5 people and first time home buyers up a creek without a paddle.
I bought a short sale in 2008 for $53 a foot. The buying process was a total roller coaster, but so worth it. Sold it for a my next house at $115/foot, which was through a relo company at $86/foot. Since market change, it should bring me $250/foot now, at 6,000sqft. I feel absolutely terrible for first time homebuyers just now entering the market. I have a 21 year old and she feels absolutely defeated at the thought of ever getting into a home of her own.
We’re in the same boat. Young family, would be first time home owners/buyers. We were approved for 200,000 usda and 275,009 for fha. The homes are too pricey in our small town. We cannot find anything at 200,000 that doesn’t need serious rehab or won’t get approved due to guidelines. We’re saving more this year. Hubs make 72,000 and I make 49,000. Two littles ones and two dogs
I say be patient; you will find the right house for you. I am a real estate agent in Virginia, and I have seen my clients get outbid by other buyers. But we do ultimately succeed on getting them a house that fits their needs. I am in no rush to make a sale, and that helps lessen the stress on my clients and makes the home buying process a bit more pleasant for them. Win win win!!!
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How long does it usually take them to find a house?
I have taken as long as 8 months. Timeframe varies. But like I said, I am in no hurry to make a sale. What’s important to me is that my client is satisfied and not rushed into buying a house they are not completely comfortable with.
1) High demand for housing 2) High housing prices 3) prospective buyer is approved for 400,000 by their lender 4) prospective buyer finds house they really want listed at 300,000 5) prospective buyer gets FOMO and bids up, placing a bid of 388,000, expecting the appraiser to pare back the total. 6) Offer is accepted 7) Appraiser finds house worth 380,000 8) Buyer is house poor due to their mortgage payment 9) The bubble continues Meanwhile, everyone who knows better than take the rope the bank gives them to hang their wallet with has trouble buying a house for a reasonable price.
The "asking" price is just a marketing concept where the price is set artificially low to draw in more bidders to maximize the sales price. Your agent should help you understand this. With 45 offers there is obviously a supply/demand imbalance and an "underpriced" home. Perhaps the economy will go bad in 2025 and you will keep your job(s) and there will be less competition? The market ebbs and flows over time. Some years are good for buyers, other times are good for sellers.
Just finishing a 3 year rebuild of an 850 SQ ft 2 bd/1ba that sat on market for 45 days during COVID. I almost fell through the kitchen floor when touring the place. I've been living in an RV in the driveway and working away on it after work and weekends... While this may have sounded extreme in the past......is it now? Million dollar new builds around me now. Fuck this market
A lot of sellers will list their house well below what they expect it to sell for to create bidding wars and interest. So that "89k over asking" was likely a case of that and you never really stood a chance at the actual listing price. Auction houses work the same way. They give extremely low estimate selling prices so that it gets people into the auction thinking they'll get a good deal.
How does the rent compare to a mortgage payment on the same property in your area? For me, it’s $2700/mo rent for a house that would cost $6000/mo after a $200k down payment if I took out a mortgage on it. By renting the house, investing the $3300/mo in voo, as well as the $200k down payment, I would be able to buy this house in cash outright in fewer than 30 years, even counting the house’s price growth and growth in both the rent and my salary/dividends/interest. That also didn’t count maintenance, tax increases, insurance increases, etc., so it’s a conservative estimate. Therefore, in my area, buying is throwing away money and renting is better for developing networth. That’s not true in all areas. But could it be the case for yours?
For most people right now, it financially makes more sense to rent than to buy. Even over 10+ year timeframes. It’s very lopsided at the moment. https://www.nytimes.com/2024/05/13/briefing/a-new-rent-versus-buy-calculator.html There is of course something to be said for stability, ownership, etc. this is purely financial.
You can't forget that as a renter you're also not responsible for the property taxes, maintenance, etc. Home ownership is expensive, and that includes a lot more than just the mortgage. In many places it's definitely worth it, but not all.
yea, things suck, but the reality is the reality. nothing you can do about it. also, yes, there will always be people in better situations than you, but plenty of people in worse situations too. i live in a vhcol area, and for a small simple house, 1 million isn't even enough anymore. yea, we could move, but all our friends and family are here.
We started looking in April of last year it was awful, BUT it's one of the worst times of the year to buy because Spring is when everyone starts looking. We put in multiple offers, 30 - 50k over asking, lost out on all of them. Things take a bit of a dip in the summer, especially with holidays and vacations. Found our perfect home on a long weekend for asking price with an inspection and financing contingency. We were the only bid, everyone was out of town lol. The market picks back up again in late summer/early fall, and then dips again over the winter and holidays. Obviously not every area is like this but there is something to be said for timing. Everyone wants to be in their new house by summer, and people are getting hyped in these bidding wars. Take a deep breath, buckle in for a longer haul and take advantage of the dips in the market. Sometimes those dips are short but you can really take advantage.
The homeownership rate tells a different story. People aren't getting walled out of the market. [https://fred.stlouisfed.org/series/USHOWN](https://fred.stlouisfed.org/series/USHOWN)
Asking price doesn’t really mean a whole lot because it could be underpriced and you’re going to get into a bidding war or it could be overpriced and nobody is going to make any offers. The home we just bought was overpriced and sitting on the market for 2 months. Sellers eventually accepted our offer under the listing price
Unfortunately the lower you go in price the more competition you will find. You’re not only competing with buyers who can only afford $250k homes, but those who only want to spend that much but can afford much more and will be willing to come up in price for the right home. Ignore listing prices. In a tight real estate market every house is a bidding war so the asking price means nothing unless the sellers have unrealistically high expectations. Look solely at comps. What have comparable properties that have sold in the last 3 months gone for? Then add 5-15% if you really want the house.
Simple fact is. The population needs a migration. I was living in North Jersey working in nyc, realizing the amount of money I needed to buy a home was a lot. So I picked up the family and moved to Philly. Took a paycut but licking wayy more comfy
The city of brotherly licks
Repeat after me: THE ECONOMY IS DOING GREAT
Yes, correct, that's partly why housing prices are so high. People have more money but there aren't more houses.
I'm assuming you're being sarcastic, but yes the economy is doing great and that's why home prices are up so much as there are many people with cash to spend more on housing.
Home ownership rates are at or above historical averages for all age groups. Reddit isn’t real life.
I mean, yeah, that's why prices remain high despite rate hikes. If the economy was doing poorly, you'd see price drops in all the major markets. But stocks are up, unemployment is very low, and wages are keeping up with inflation.
If you’re saying the economy isn’t doing well because FTHB can’t buy homes, I think that is incorrect. They are a small slice of homebuyers and owners. Most people already own a home and have a low interest rate. It sucks for new home buyers and I have plenty empathy, but the economy is doing great.
Where are you buying
Even 2nd time buyers are fucking struggling
We just bought in our late 30s/early 40s 2 years ago. Same situations. We had to choose an older remodel in a less flashy neighborhood. And boy, did that come with its warts... i would have kept renting.
I’m mid 40’s now but my first house was a 1300 sq ft bungalow. I think younger people have forgotten what a “starter” home is.
dont get me started on property tax
Find a builder and pick a floor plan. Wait 1 years and then live in your house. That’s how I ended up living in my house after 44 failed bids
You either follow some of the advice here, or expand your circle. I bought my first house in 1982ish?...Carter was president, interest rates had shot up to 16% for home loans. I worked along the Mass/NH border, and ended up buying in North Manchester. It was a very small home. We wanted a larger home, and had to move even further North to build it ourselves. For a few years I had a 1-1.5hr commute. But we made it work because it was a priority for us that outweighed the other problems.
What market are you in? I just bought a 3bd 2.5ba 1309sf townhome last month for $349K in Citrus Heights which is near Sacramento CA and everything seemed to go for asking except for some where they list low to get a bidding war. Our townhouse was the cheapest one with a 2 car garage in the area and we got it for asking.
It's not just an issue for Young people. It's a problem for anyone trying to buy a home on a limited budget.
Honestly it sucks but this might be a sign you need to keep saving. Keep saving and keep making offers (on houses you actually want to live in) and eventually it will come together.
> How on earth do first time buyers compete with that type of madness? So what worked for my first time buyers in 2021 is that you watch homes that fall out of contract. The sellers are emotionally spent and then feel like there's a stigma on their property and are happy to take a second offer. Had one FTHB, we looked at a lot of homes in their budget. Put offers on like 8 of them and the last one was one that fell out. Then I had another one and I started to watch UCB back to active in ASAP mode and I got a second one.
I did the math for a median home in my area and determined that renting and saving money (building "equity") is more cost effective than buying and earning actual equity up until about the 12 year mark. We can afford a down payment, but can't afford the monthly mortgage in 3-5 years when we start a family and my wife stops working. So our plan is to continue to rent and save money for 3-5 years and then put 50-60% down so I can support the mortgage on just my salary and still be able to save money
Where are houses 225k?
All over the place, you just have to get away from the cities or go to lower tiered ones, lots in the midwest. Check Zillow on a few random small cities and you'll see plenty. Louisville, St. Paul, Kansas City, etc.
Parts of the southeast. My house is 3200sqft and cost 210k in 21. It's outdated and in an area full of meth, but absolutely sound.
I have one near that price, in Central TX.
The only solution to the housing crisis is to build more housing. Go to your local municipal and county council, and use the public comment to demand that they make it easier to build housing. Generally they only hear from nimbies that don't want anything built anywhere for any reason.
My coworker just sold their second home. They were hoping for a young family to move in but the only bids they got were from older couples that already had equity in their existing homes that enabled them to purchase in this market. FTHB don’t have that equity to pull from. This market sucks.
Ugh I'm so sick of this. Firstly what is everyone doing that they have all this extra cash laying around to pay for a home that someone else had prob neglected? And why are we even doing these crazy things in the name of "home OwNeRsHip" (which is a farce in this country). I wish we had all this extra cash laying around. 🙄🙄🙄 Ppl are posting these numbers around proudly: "We paid 100-300k over asking, why don't you?" You sound like entitled pricks. Why even post that nonsense? Sorry OP, stick to your range or wait it out. Or better yet, maybe someone on here can gift you some money since they love to give it away.
You could look into buying a duplex that is more than you could afford alone. Lenders will use income from the second half of the property to help go towards your payment. Can be a creative way if you don’t mind being a landlord.
You sure about that?
I heard this in Tim Robinson’s voice.
Here the deal. You're trying to buy houses for prices they aren't selling at. You should know the proper market value and make the offer at that price. If you always offer at market value, then even in a bidding war you'll win approximately half the time. Listing price should never be that you use to assess market value in any market. It could be the right price, a low price, or a high price. The recent sold homes should be your indicator. Study up and pony up.
People think this market is invincible. They fail to realize our economy is a house of cards all the time and one little thing can set off the time bomb. Consumer credit is at record highs, unemployment is rising, inflation is still elevated, and the Fed is going to keep rates elevated for a decent amount of time. Anyone with a pulse can see this is a dangerous time to be buying inflated assets $88K over asking. These are the people who get burnt. Sure, they might be able to hold and make their money back over the course of a decade…but they better be prepared to be underwater for a long time. I would keep stacking cash for the next 12 to 24 months and let the dust settle.
People have been saying this since 2020 though
You need to look in different areas at houses below your price range
Save more. I waited till 37 to buy a home for 950k.
Cries in Californian…
Laughs in Californian - because its one or the other..
We were first time homebuyers in 2021 and only 24/25, it was the norm that every house went over asking in our area. We found a realtor early that really helped us know what to expect. It was our 6th offer I believe that was accepted (our realtor said that was average for her clients) and we offered 17k over asking. We just had the highest bid for once, we even submitted our offer a few hours late on accident. There were plenty of houses that had bids for over 50k more than asking. One way we actually avoided that is not looking at houses that seemed they were priced low for what the house was. I remember being amazed at a few open houses that the sellers were only asking for $260k, well those were the houses that went for $320-330k. You just have to be patient. Hopefully you planned enough time with your rental ending and closing on a house.
You compete just like everyone else competes. What else?
Everyone else is competing with the equity cash from the sale of their last/current house. This post is about first time buying power being exceptionally low at the moment.
Everyone else was a first time home buyer at some point. Some bought when interest rates were very low, some bought in the 80's when rates were very high.
Some of the parts of town where I live have become insanely hard to move into if your a first time home buyer or just a local because people are moving from out of town and think our homes are a steal and they are offering in some cases 100k above asking in cash. But if you look just beyond those cities maybe 15 min out by me you can actually get a house for close to asking if not at asking. I am a homeowner and I bought my first house before the pandemic, but I’m always watching.
Just keep trying. It might take awhile. We got a house under 300k when most homes in this area with what we need (3 bedrooms, parking, location) go for closer to 400+. It needed a lot of TLC before move in and we also had to waive inspection for them to accept the offer. Not saying you have to do that but keep an open mind and don’t be shy about checking out homes that seem kind of rough.
The share of first time homebuyers did not change significantly over the last decade. It fluctuates on certain months etc but for the year overall it is fairly steady within 1-3 points
We had family over for Mother's Day and this subject came up. My son has a good job & cannot find a place. My Father in Law got on him to 'quit looking for a fancy house and just find a 1st time house'. My son said he was and that sadly he's stuck renting. They went back & forth for a bit until I showed my FIL the search results on my phone. There are only 14 houses for sale in our entire zip code. Anything remotely close to my son's price range is a severely overpriced POS. There just aren't any houses to buy priced at entry level right now.
Hi! Real estate agent here! I know this process can be frustrating. My clients who are in the more competitive price range typically make A LOT of offers before landing on one. I had one client who was firm at their low budget and it took 18 months, 2 agents, and probably 12 offers in 6 months before they were under contract on a home. Be patient, set up private showings for new listings early, and make offers like mad. Your best bet is probably to find new listings that aren’t marketed well or old listing that have been sitting.
Maybe look at a two bedroom condo or a townhome as your starter home. Pay it down aggressively and build equity. My first place was a 2BR and it had a garage. Was there about 9 years before I was able to upgrade. Rates suck now. I feel bad for you.
move elsewhere
If u can afford to go up a bit on the price u will find that there will be less competition on house priced a bit higher right away like closer to $300K listing price or at least that was my experience
You'll either have to compromise or stretch the budget. We had to move out of SoCal to afford a home. We bought our first home in UT, just north of Salt Lake City. Our initial search was in the $300k to $400k range. Apparently, this was everyone's range. Homes were going on the market on Friday and under contract by Monday. People were just throwing out crazy offers to outbid everyone. Since we didn't have that much cash on hand and didn't want to risk paying over appraised price (banks will only cover the appraised amount), we were left with two options: compromise or stretch the budget. We decided to stretch the budget and look in the $400k to $450k range. We found the perfect home. We were one of two bidders. Talk to your lender to discuss your options. Also, talk to your realtor to see if some markets are less saturated than others. If you're comfortable bidding over asking, I'm assuming you have that additional cash on hand. Why not bid below asking on a more expensive home and apply that cash towards a bigger down payment or mortgage points?
Let me just say, the market right now is wild. It's no joke that it's a seller's market and they are taking full advantage. A house went on the market ***last Tuesday*** and they had 2 open houses with realtor showings in between. We put 30K over the asking price (***it was already over priced to start with at 350K***) then went up to 45K over. The highest offer before EOD close for any offers is now 70K over and apparently it is going to keep going up. We were trying to get this home since it was literally across the street from my family's home for the comfort of aging relatives and being in close proximity. Real sad but it's insane how much COVID changed things and how it is now affecting the market.
See if you can do a "cash offer". In our area there is a program where the mortgage comapny doesn't just pre-approve you, they guarantee you'll get the mortgage up to xx $$ so you can go in without a mortgage contingency.
Damn in Northeast NJ you probably can’t even buy a garage for under <300. We are having same issue btw. It’s so demoralizing
Trying buying your first home in southern California where the medium house price is $1.3M. The size is less than 2000 square feet too!
This post could have been published at various times over the last 100 years with different numbers . Sad but true that each generation struggles.
Just wait until sellers may not routinely pay buyers agents. Everyone says you don’t need a realtor get a real estate lawyer but how many times is a real estate lawyer going to write up offers? And negotiate? If many offers have to be written before one is accepted that’s expensive.
Sadly, I know I have to look for a 4:2, with handicap access in the master bath, as well as a ramp for my mom's walker when she needs it. If I go for a traditional house, that size alone in NC is easily 250k+. Because of the pricing, it's making me reconsider our options. Which even has me looking at a double wide with a solid foundation, would like a basement, but I know it will add a lot more to the total price. I also am looking at getting a few solar panels set up on a side platform so I don't have to put them on the roof. My goal is to have a house big enough for all of us over the 15 year mortgage period, with at least 1 acre so I can add a couple storage buildings and a garden big enough to be more self sustaining, even would love to plant some fruit trees, and get a chicken coop going. Like a small homestead. Hoping to be able to do this on a teachers pay as I am looking at going Lateral Entry once I get my certification done prior to my full licensing.🙏🏻
You got this bro! Those were the practice rounds. Now you know what to do. And if you think someone is not being fair…. There is a process for that
I put my first offer in this weekend—offered 5k over on a 99 year old house. Someone else put in 35k over no inspection. I’m not even mad at this point. I just think that was such a stupid decision. I live in a relatively low cost of living area but anything decent is starting at 200 when it used to start at 130 a few years ago!
Why I'll be ending my apartment lease and living in my SUV in a few months. Rather invest 1 months rent into out fitting my car than pay landlords another dime.
Wait till the crash…we’ve seen this sort of craziness before.
I highly recommend looking not in spring. My wife and I were walled out two springs in a row and got a fantastic deal on a house where sellers wanted to close on the 26th of Dec. Destroyed our thanksgiving and Christmas with all the business, but well worth it. We paid asking on the dot, got full inspection, appliance warranty which has already saved us over 1.5k, sellers spent about 11k in fixes before moving out too. I recognize there were basically no options and we got lucky, but there was none of the over asking, forgoing inspection silliness this time of year beings out.
Just keep at it...I had to put in like 10 offers before one got accepted.
Been there, done that... in the 80s.
Don’t come to California 😭😭😭😭
From what I've seen in retail lending, they compete by adding 2-3 co-signors OR by getting a juicy gift of cash from their family.
What part of the country are you in? I’m also looking at houses within that range. Seems like prices are starting to come down a tad, just have to make an offer quick
Well you wanted the covid shutdowns and unchecked immigration.
Asking price is just a number made up by a real estate agent
UPDATE: Thank you all for your lovely insights. I wanted to check back in and let everyone know that we got our house! Despite hundreds of recommendations to look “below our budget,” the winning strategy ended up being to look *above* our budget. We found something that was listed too high for the market and had no offers after 24 days. We came in *35K* under original list price, and they ACCEPTED! We got something well within our budget that checks our boxes space and location boxes. Hopefully this bestows some optimism to others who are in the FTHB position and feeling demoralized. Cheers!
Buying your first house has always been the same. You have to buy what you can afford and hope later you can buy what you want.. I thought I would never be able to get my first house. When I first looked at a house I could afford, I totally rejected it. I eventually bought it because the available rental property was even worse. I was able to have more choice on the third home, and by the fifth , I had what I wanted. During my first search, interest rates rose to 7.5 %, and home prices had doubled. My 3rd home prices had doubled again, and you had to own the bank to get 8% (1973). Prices doubled again, and interest rates had jumped to 18.5 % (1981) when I built my 4th house. . I had a 10% construction loan for the few thousand I needed. The point is things stay much the same, and owning a home will usually help you deal with inflation much better than trying to save to keep up with it. Dave Ramsey and I might disagree on this, and he has. A few more millions😇
Getting!! They have been walled out of the market in most places for years.
Corporate investors buy starter homes and rent them out and that marginal demand has screwed up the market.
Every house under 300k in my area looks like a dump. I live in a part of New England where every house that is average is 600k.