Say goodbye to the 20% down payment. Zillow says you’ll need to put down roughly 35%, or almost $128,000, to afford a typical home

[LordBrownTrout]

Interest rates are not high. They are if anything pretty normal. When I bought my first house in 1985 I paid 9.9%.

Money isn't supposed to be "free".

Housing prices can't be both high and unaffordable for people.

Interest rates indexed historically aren't high but compared to 10 years ago, they are. That doesn't address the housing market inflation tripling over the last four years though.

 

[Dekster]

Yah, that's what you get when deregulation has allowed mega-corporations like Zillow to buy up all the properties and gouge the prices up to where they are literally unaffordable for those who are not wealthy.

Curious as to how you think deregulation caused this. What specific regulations went away? There is actually correlation that regulation drives prices up, not deregulation. The real question you should be asking yourself is what in Biden's historic economy is causing so many venture capitalists to prefer housing over stocks and bonds and such. I mean bonds don't require that you have someone go out and mow the grass.

 

[Harpy Eagle]

The real question you should be asking yourself is what in Biden's historic economy is causing so many venture capitalists to prefer housing over stocks and bonds and such. I mean bonds don't require that you have someone go out and mow the grass.

Do you really think them buying up houses just started in 2021?

 

[Moonglow]

One trick is to buy raw land a develop it yourself.

 

[gipper]

Yah, that's what you get when deregulation has allowed mega-corporations like Zillow to buy up all the properties and gouge the prices up to where they are literally unaffordable for those who are not wealthy.

Yeah but the problem is lack of supply. Few homes for sale drive up the prices of homes for sale. The nation’s big home builders have since the Great Recession, refused to build more homes to meet demand. Yet, US population has grown. Plus people with low interest rate mortgages aren’t selling, because a new mortgage is too costly.

One would think a federal government with a $35 trillion debt would have done something to help first time home buyers, but apparently that government only really helps the 1%.
Housing Starts

 

[Toddsterpatriot]

Yeah but the problem is lack of supply. Few homes for sale drive up the prices of homes for sale. The nation’s big home builders have since the Great Recession, refused to build more homes to meet demand. Yet, US population has grown. Plus people with low interest rate mortgages aren’t selling, because a new mortgage is too costly.

One would think a federal government with a $35 trillion debt would have done something to help first time home buyers, but apparently that government only really helps the 1%.
Housing Starts

Import 10 million illegal aliens, surprisingly they need to live somewhere.

 

[Dragonlady]

Say goodbye to the 20% down payment. Zillow says you’ll need to put down roughly 35%, or almost $128,000, to afford a typical home

In Los Angeles, a median-income household would need to put roughly 80% down to afford a typical home and its monthly payments in the city, according to Zillow.

finance.yahoo.com

Thinking about buying a home? You might be in for a rude awakening: a 20% down payment is no longer enough for most people to afford monthly payments—not when home values are 45% higher than before the pandemic, and mortgage payments are roughly 115% higher, according to Zillow.

“Down payments have always been important, but in the current market, where interest rates remain high and volatile and home values are stable or rising, boosting the amount you put down can make the difference between a home that’s affordable and one that’s not,” Zillow’s chief economist, Skylar Olsen, wrote in an analysis yesterday.

The analysis, looking at major metropolitan areas, found homebuyers earning the median income need to put down 35.4%, which equates to almost $127,750, to comfortably afford payments on the typical home in America.

Comfortably, in this case, means you’re spending no more than 30% of the typical income in your specific area on housing—so your mortgage payment, property taxes, and insurance. Anyone who spends more than 30% of their income on housing is considered cost-burdened, and severely-cost burdened if housing takes up more than half their income. (In May, the value of a typical home was $360,310, and the typical monthly mortgage payment was $1,931, after a 20% down payment.....

I say Zillow is partly to blame for it. Their "Zestimates" have been grossly elevated for a long time. The "Zestimate" on my mom's house/lot was about $75k over appraisal.....No fucking way.

Also municipalities have latched on to their inflated bullshit and taxes followed suit. I always laugh when I look at what they say my place is worth....Till appraisal time rolls around and then I'm down at the county office fighting it.

The correlation between Zillow and assessments is no accident. I believe that at this point accessors are just looking up the Zillow estimate and running with it.

Interest rates are not “high”. Interest rates were artificially lowered after 9/11 to prevent recession and have remained artificially low ever since because Republicans have refused to raise them.

Trump should’ve raised both interest rates and taxes when he first took office but of course he didn’t which is why your economy crash during Covid.

 

[1srelluc]

Interest rates are not “high”. Interest rates were artificially lowered after 9/11 to prevent recession and have remained artificially low ever since because Republicans have refused to raise them.

Trump should’ve raised both interest rates and taxes when he first took office but of course he didn’t which is why your economy crash during Covid.

Hoser says what?

 

[MarcATL]

This mega corporation purchased up all the properties to make it so.

This is late stage capitalism.

 

[Woodznutz]

Interest rates are not “high”. Interest rates were artificially lowered after 9/11 to prevent recession and have remained artificially low ever since because Republicans have refused to raise them.

True. I bought three properties between 1972-1994. Interest rate was around 8 percent on all three. All bought with 20 percent down. Interest rate began falling before 9/11.