Is it just me or are houses now priced out of even middle class reach these days?

Answer 1

credit is cheap and the money supply is not an issue, you can probably afford a house right now but you just don't know it... certainly any realtor would tell you that

Answer 2

No- it's houses too, but maybe you shouldn't drop your prices. Do you really want the middle class to afford you??

Kidding.

It does suck for the middle class, I know. The only way for it to work is if you buy the land and build yourself- except that the middle class cannot typically drop 50 grand or more on a lot so that they can, as finance companies typically won't finance you to build until you have the land on which to build. Catch 22. Here's the kicker-

A few years ago, I, a middle class "peasant" was looking to buy a house. One that I could afford, of course- which really only could've been in one of the shittiest neighborhoods in all of Vegas for what I needed for my family. I found one selling for 150k. And since I couldn't afford much of a down payment on top of closing costs, necessary repairs, moving expenses, etc- I would've had to finance for more than the house was worth. And the only way I could do that, is if the house appraised for what I were to finance. (and my letter of approval assumed this stipulation) Appraisals, of course, largely depended on the comps. And at that time, they weren't helping any. So my agent insisted that I put my earnest money down, lock in on the seller's price, and wait for the comps to go up as others were actually financing their closing costs- hence reflecting on the comp prices. I myself saw no other way. It only took 2 weeks! So my prospective purchase went from 150k to 154k in that time (noting that my finance price was actually the listed selling price)- which equates to a 66% annual market increase!

I speculate that this may be one of the biggest reasons the housing market is as unattainable as it is. I could not have been the only one doing it this way.

Answer 3

The method is the same with cars. Make them more expensive but make the financing more affordable. They now have 40 and 50 year mortgages which are basically interest only payments.

I love real estate. They take a $10k property, build a house for 40k. Sell it to you for 120k and you finance it for 30 years. By the time you pay for it, you have paid over 400k in interest and numerous taxes. The fun part is you sell the house for 150k and think you made 30k.

Answer 4

It's nuts here in New Orleans. Any unflooded property is marked up to outrageous amounts. Even the flooded out properties are costing more, especially if there is a second floor. Single story homes that got flooded are cheap cheap cheap, though. You can buy a gutted home for 20,000 and rebuild it to suit your own taste.

Answer 5

Yes, I agree. The catch is that there are so few jobs, people buy houses with terrible mortgages at insane interest rates. Putting them further in debt. And rents keep going up so you can't save money for a proper downpayment to get a decent mortgage rate.

Answer 6

There have been more instances of foreclosure in recent years than ever. This is due to people buying houses from crooked mortgage companies trying to cash in on a hot CA housing market.

Answer 7

heck for awhile there a gallon of gas was priced out of the middle class' reach.

Answer 8

It isn't just you. The recent selling price of the last house I owned is even out of my range.

Answer 9

Yes they are. And some of these homes that are overpriced in some areas are just a joke, Like a two bedroom one bath and 900 sq ft for $99,000.

Answer 10

The median price of houses has indeed gone up. Good for the Sellers but not so great for buyers. :)