Originally Posted by
Extenda
Yeah. Honestly that kind of have and have not disparity might become a huge issue in America is it hasn’t already. Home ownership has always been the path to the American Dream and I feel that’s not good for societal stability if that’s unattainable for more and more people.
but eventually market forces dictate that people are eventually going to have to lower their asking price when selling a home, and current owners are just going to have to stomach not getting an absurd return on their house when they want to sell it?
Has anyone seen home prices decline the last couple years? I’m toying with the idea of moving north of NYC from where I live south of NYC to be closer to in-laws and it seems prices have at least stabilized and homes are staying on the market longer.
9 month old datapoint, but looking in the entire "short call for NYC on the couch" range December 23-Februrary 24, anything reasonably priced either got into a bidding war, often with private equity firm cash buyers, or other "need place NOW" buyers. Had one under contract and well failed inspection, which is required to close in NJ, and they refused to fix. It then sold to a private equity firm a month later for $89k more than I offered (and I was above listing price by 20k)
I basically had to go north of $900k to stop being in bidding wars with private equity cash buyers. That seems to be where they stopped. I still paid $50k above asking but got into my current house. Sellers refused to fix ANYTHING. And there were many things. Their agent actually paid to fix well treatment just to keep deal rolling.
I haven't seen it shift to a buyers market, but I haven't really looked once I was under contract and out of lawyer review on this house.
Now to the overall picture of how do people afford houses? My brothers kids, 28, 26, 23 all still live at home. One will always live at home, but the other two can't afford to move out with "normal HS Grad" jobs. Nevermind buy a house. Friends kids are college grads in traditionally well paying fields, such as Engineering and Nursing, and still are on the "rent for life" plan because NOTHING that's not a hovel or in a really bad hood they have a prayer of affording.
My older brother, an IT guy for Xerox, even with his $150-200k job, had the market run away from him in Seattle. Housing prices went up faster than he could save down payments. And he's as frugal as they come.
He was able to afford a house moving to BFE Michigan and taking 25% pay cut but able to go 100% remote.