are house prices to high?

Question

the cost of houses are too high the first time buyers can't afford to buy

Answer 1

They are too high for anybody. We have a serious asset bubble, brought about by a seemingly endless supply of cheap money.
Added to the fact, that many people today are not afraid of debt, don't care whether they are getting value for money, as long as they think that they can make the repayments in the short/medium term. In fact, the economy has been running on the back of house price increases, and the money borrowed against them, to feed the consumer boom.

A collapse in prices would be so devastating for the world economy, that we are in a state of denial. Almost everyone has a vested interest in talking them up, the government, the lending agencies, estate agents, architects and house owners. It is a fools paradise: Against all historical measures, they are far too high, and this, against a backdrop of several years of low inflation and modest wage rises. Also, it should be remembered, that houses, whilst soaking up enormous amounts of savers money, produce no economic returns. This money, therefore, is not available for investment in industry. The west has been borrowing money from savers in the east.

Answer 2

Are you in California? If so, that's very true. What happens though in todays market, these houses will be on the market for quite some time because buyers wont pay that much for them. Selling agents are now taking offers under the listed price just to get the sale done. Don't shy away from high prices, contact a real estate agent and under bid on a house. There's a good chance that your offer will be accepted. Or what you can do is contact me, if you're in California.

Answer 3

There is no "too high or too low". housing prices are set be supply and demand, as it should be. There is no God goiven right to buy a home. Years ago a very small percentage of the population actually owned homes while the majority were renters. These days people believe that they have a right to own a home and that the government must do something about home prices. If you can afford, you buy. If you cannot, you rent.

Answer 4

If you cannot afford to buy, maybe you are looking nito the wrong area. Being a first time buyer, at times you can get a lower interest rate purchasing a new home than going with Pre-existing. The builder finances the home through their company and can normally give you a great interest rate if your credit is good. Keep looking you will find something.

Answer 5

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Answer 6

It many areas they are, but in a lot they aren't. For example, unless you're very wealthy you're never going to be able to afford a home in Santa Monica, CA or a sprawiling apartment in Midtown Manhattan, but if you go to other areas of the country you can afford the home with a small down payment and a 30 year loan. Give it 2-4 more years and the bottom will drop out and prices will start to go down again.

Answer 7

House prices are great. That's Bush's answer.

Don't worry about an 800 sq ft house costing 850K...soon it will be worth 1.3 million. That's California's answer.

Someone will be on the hook for that money when it all falls in...look at what happened in Asia more than 10 years ago. This is not some made up phenomenon that will never happen.

People have lost their freaking minds.

Answer 8

The housing market goes in 4 year intervals of high and low and we are just entering the down swing so in about 2 years housing is going to be super cheap again and everyone will want to start jumping on all the available houses.

Answer 9

Yes I think they are. We bought our house four years ago in the UK and struggled to buy even then. WE bought our house with Annington Homes. They sell ex military properties to anyone and have a good incentive package. The houses are basic but solid. One incentive that they have is they pay your 5% deposit for a £99 move in fee. There are a lot more too. Have a look at their website if you live in the UK.

Answer 10

YES YES YES. My yardstick- how easy is it to find profitable real estate for renting purposes? In the UK it's getting more difficult so you have to really know what you are doing to make a profit. It is dangerous to rely on a rising market to rescue you so if the rental yields are not good & investors are barely covering their expenses (mortage etc.) then prices are too high.