The Cost of Buying a Home Hits New Record

[HikerGuy83]

That’s still pretty steep. A 400,000 loan even with 60,000 down at 3% is like $2600 per month total with interest and insurance.

At $75,000 income that payment would be like 41% of your gross pay..

That number looks high to me. Just using an internet P&I Calculator on 340,000 at 3%, its more like 1,400 per month. Add T&I to get 1,700/month.

I could be wrong.

 

[ThisIsMe]

That number looks high to me. Just using an internet P&I Calculator on 340,000 at 3%, its more like 1,400 per month. Add T&I to get 1,700/month.

I could be wrong.

I see different ones. I used the calculator at bankrate. Who knows how accurate they are.

 

[sparky]

If they did, there would be no lending industry. That should be everyone's goal--to be debt free. It is difficult, but I am proof that it is possible and it is a great way to survive.

Modern banking depends on a debt driven economy, "Modern money is debt and debt is money". >a Nixonian era quip.

The end result 1/2 century after severing the link between money and gold being balancing debt and inflation so as to keep everyone in as much debt as they can possibly bare ,while maintaining marketable housing for us all to do so

Any and everyone is fat & happy to own a home assuming valuation , until the hedge against inflation becomes bloated with greed

Then it goes 'boom' as it has many times , and those same bankers riding the wave of debt go before Congress to reboot the valuation re>quantitative sleasing

Joe average home owners existence ends up being worth less, but s/he just got a raise (and didn't know it)

Fractional banking then continues this same cycle with Joe average completely unaware he's no more than a tool to usury which is why the ancients outlawed it

~S~

 

[Captain Caveman]

Wow, that means your house is worth more than you probably paid for it. This is good for people looking to sell.

My place is worth 40K more than what I paid for it right now. That's awesome.

Price changes is all relative if you move. Your house increased by 40k, the house you're moving to increased 40k. And vice versa if your properly fell 40k. So unless to plan to sell and not buy, then the 40k is particularly relevant.

House price fluctuations are really more concerning/applicable for first time buyers.

 

[HikerGuy83]

Price changes is all relative if you move. Your house increased by 40k, the house you're moving to increased 40k. And vice versa if your properly fell 40k. So unless to plan to sell and not buy, then the 40k is particularly relevant.

House price fluctuations are really more concerning/applicable for first time buyers.

EXACTLY.

The only benefit is to those who downsize or to heirs when someone dies.

Otherwise....it is making it darn hard for young people.

 

[XponentialChaos]

House prices have been going up for a long time. It has continued to out-pace household income.

It’s fine for people who have accumulated home equity. The people who keep getting screwed over are the younger people trying to become first-time home buyers.

This has been a problem before Biden’s presidency and it will be a problem after Biden‘s presidency.

 

[Care4all]

well, I look at averages and it seems average income is between $60,000 and $75,000, but average home price is between $350,000 and $417,000

Am I looking at it wrong but…if you are making $75,000 per year..how can you afford a $400,000 home??

30 years of $75000..... Your 1 years salary doesn't pay for it...30 years of your salary pays for it...

And you likely won't be at $75k 30 years from now....more like $125k plus.

It all works out....

My first townhouse mortgage was 13.5% interest rate, my second home was at 8% mortgage rate.... We managed to live through it, and sold our second home... 2 times plus of what we paid and was able to pay cash on our third now smaller home with the profit ....with no mortgage....we were free at last! All uphill after that...

It was high inflation and mortgages starting out and holy hell trying to make the mortgage payments and property taxes....but in the end, investing in a home was the best decision in our life....

 

[2aguy]

Wow, that means your house is worth more than you probably paid for it. This is good for people looking to sell.

My place is worth 40K more than what I paid for it right now. That's awesome.

Yeah….no one can afford to buy….…you dope.

 

[CrusaderFrank]

It's just amazing how much power Biden yields in this country, this type of power over the cost of almost everything might be unprecedented in American history.

That’s the intentional side effect of Trillions in new spending, normalizing Covid spending then adding Trillions more on top of that

 

[JoeB131]

Where you going to move to after you sell?

Wherever I feel like but it's unlikely I will sell. I'm locked into a 3% mortgage rate and my wife finally has the place decorated the way she wants.

 

[JoeB131]

Yeah….no one can afford to buy….…you dope.

Who is "no one"? I have realtors desperately trying to get me to sell my place. That means - they must have buyers.

 

[sparky]

Realtors are literally running out of inventory Joe

~S~

 

[JoeB131]

Realtors are literally running out of inventory Joe

~S~

Yes, they are...

Which means they will build more inventory.

Of course, we have been short on housing ever since the 2008 housing crisis. No one wants to stick their necks out to build more. They don't want what we had after 2009, where half-finished McMansions sat on their lots for years.

That really has nothing to do with Biden, and more to do with the market.

Frankly, if you can't afford a 7% mortgage, maybe you shouldn't be buying a house to start with.

They recently bought out my last condo association because they converted them to rentals. Understandable, half of them were already being sublet to renters because that association never passed an owner-occupancy rule. So I was gleeful when they made us an offer.

 

[sparky]

It all works out....

I was sold on the devil's details assuming my first mortgage when he was in office>>

The inflation rate, 13.5% in 1980, fell to 4.1% in 1988, in part because the Federal Reserve increased interest rates (prime rate peaking at 20.5% in August 1981). The latter contributed to a recession from July 1981 to November 1982 during which unemployment rose to 9.7% and GDP fell by 1.9%.

That fed shell game led us to>>>

Reagan blamed that crash on Carter ,blind partisans being tools for their machinations lauded him as their savoir
The stats factoring in the top 1% (assuming the GNP profit) portraying us all living economically prosperity, yet not so w/out said disingenuous math
This essentially, is Fed speak

~S~

 

[sparky]

Which means they will build more inventory.

i'm on it Joe, along with the usual contingent of short brown non english speaking unskilled labor wearing out one friggin' broom after the next....... ~S~

 

[Harpy Eagle]

It's just amazing how much power Biden yields in this country, this type of power over the cost of almost everything might be unprecedented in American history.

not only that, but he has made the prices higher all around the world.

 

[Harpy Eagle]

An interesting side note, maybe specific to California, if you do buy a house, getting insurance is next to impossible. I currently have State Farm, if I sell, I cannot buy another and have State Farm Insurance. State Farm, Allstate, Farmers, USAA, Travelers, Nationwide and Chubb have discontinued new policies and/or are cutting back on new policies.

same thing is happening in Florida.

 

[JoeB131]

i'm on it Joe, along with the usual contingent of short brown non english speaking unskilled labor wearing out one friggin' broom after the next....... ~S~

You know, it's kind of hard to have a conversation with you when you are all over the map on your comments.

So bottom line, what do you think should be done to fix the problem?

 

[Vastator]

When incomes increase double, nearly triple, there will be an equal increase in everything else. I live in an area that has experienced an unprecedented price increase and the real victims are the kids who were born and raised in this area and cannot afford the costs that have been prompted by out of state money that is driving up the prices.

Who's incomes are doubling, and tripling?

 

[Chillicothe]

Wow, that Bidenomics, just working its magic. I know, it must be that evil Putin, maybe even Trump's fault.

It's just amazing how much power Biden yields in this country, this type of power over the cost of almost everything might be unprecedented in American history.

------------------------------------------------------
Not only here in America with our 2024 inflation rate of 3.1%, but he's also responsible for Canada (3.1%);

• South Korea (3.2%);
• Ireland & the UK (3.9%);
• Mexico & the UA Emirates (4.3%);
• Australia (5.4%);
• Sweden (5.8%)
  
  THAT....surely, is a POTUS with reach & clout!