Went from a 3% 400k mortgage to a 6.2% 900k mortgage (put 220k down). That was the hardest part to swallow.. But my insurance on a $1.1M house is 1/4 of what it was in VA (Flood and Hurricane driven rates). And my property tax is about the same. Granted the house in $20k a year in tax, but in VA I was paying $6k a year on a 1400sqft 3/2, $5000 a year on my new-ish pickup with no carpet and cloth seats, $3k on my wifes' Expedition, $1500 on my camper, $1200 on my 25 year old airport truck, $300 on a 40 year old motorcycle and so forth. I basically doubled my housing costs (including property tax) but went from a 1400sqft on .25 acre and a neighbor that called the cops on me weekly, to 6200+sqft 6/5 on 9 acres. (3 are the "yard" 6 are an attached conservation lot)

No HOA. Can't see the nieghbors unless I walk on the deck, and lean over the side and then I can see Mike's house.. And he also brews beer, and rides motorcycles, and restores old British cars. We like Mike and his wife. At night I can look over at the next hill and see some lights from houses, but can't actually see any of them. I'm literally the last house before the end of the road.

 

What on earth was the neighbor calling the cops on you for? I had a friend with something similar and a injunction put a end to the issue.

 

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.

 

This is absolutely false. In many places it is true, but not most places.

 

You left out a key part of the ownership cost matrix. What would be your cost to rent over that 10 year period? Unless of course you plan to live in your airport car. In most areas anything you might want to put your family in will be 3000 a month. That will of course likely go up yearly. Call it a 3500 dollar average over the 10 years. Thats 420,000 in rent. Changes your costs dramatically.
Also omitted was the fact you can refinance to capture a lower interest rate. I have yet to own a home I did not refi. 1 week ago I got a 5.9% quote from chase bank on a 30 year fixed. Rates are always moving. I suspect I can find 5.5% on a 15. I refinanced one house 7 times in 10 years. Had a broker with me on speed dial. Told him anytime you can lower my cost 1/4% on a no cost refi call me!

 

"Places within 2 hours in normal traffic of Delta pilot base"

Detroit is the only place where you have a prayer of hitting that cost point on places people actually want to live.

 

unless you want to go to Mississippi or BFE, it’s pretty accurate. Not sharing walls in any major metro area that’s desirable.

 

Around DTW, if a 2-hour radius is the standard, the options are quite widespread, particularly due north and west of the airport. Throwing this info out there as an FYI in case anyone is interested.

 

This is also an important rebuttal to anyone who says "the bank owns the house" so long as one has a mortgage. The bank has a lien on the house but does not own it except after a foreclosure, which will only occur if one stops paying the loan. The ability to change loans when rates drop, or to simply pay the minimum, or to make extra payments and pay the house off, or even to take out a HELOC for a legitimate investment purpose are all benefits to home ownership that go beyond what has already been discussed.

 

with 6-7% interest rates today, how much are you actually paying down your mortgage vs paying in interest the first 10 years of ownership?

450k, 30yr mortgage at 7% you pay $65k to the principle and $300k to interest over the first 10 years.