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We've been in our home for almost a year, 159k @3.5%, 15k down. Put another 15k in the renovations. We bought a house we could afford, with minimal payments as we are both senior citizens.
No plans selling until we either can't take care of it/ourselves or we die.
There are more ranch homes in the Bay Area than millionaires in the us and china
Maybe, but not every single one of those homes is for sale, right? I imagine there are a large number of people that own those homes that either still live in them OR, have moved out to a lower COL area and rent them out for additional income. Also there are large institutional investors, speculators who might buy several properties either to rent out or do a land assemblage in the hopes of eventually tearing down to build new, usually more dense housing in it's place. Plus there might be tech workers who will buy a home and rent out to their tech worker buddies to offset some of the cost. There are all sorts of scenarios that might make it possible for most of those very expensive ranch homes to get bought up even though they are well out of reach of the average worker in the Bay Area.
Prices in a typical DC exurb fell by about 24% between 2007 and 2009, but have rebounded by about 26% since, creating a near break-even situation for the decade. In the background of course has been a dramatic yuppification of the city center alongside development of major tech and other job centers set in the suburbs. There is a lot going on. Things may not be susceptible to simple explanation.
What do you consider as DC exurbs? Also, where did you find this data? I'm curious, not trying to start an argument.
I stood in line to get a discount rate of 10.9%. That was quite a deal. Had several friends who started off with near 18% mortgages the year before.
I remember when I got my 7.85%. I thought I was killing it. My parents hprefied from a 14% to a 7 something. I just recently bought at 3.65%. After deductions it's laughable interest. Never mind in 7-10 years my mortgage will be lower than going rent. Right now my payment is about $200 lower than if I was renting it. And considering you NEED shelter.......
The stagflation period was such a weird times and shattered enough theories that I don't know if it can be held up as anything other than: don't pour money into the economy when you spot a stagflation.
The only theory shattered by the stagflation of the 1970s was the one claiming that journalists could be taught to understand economics.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Our first was at 7.5%, and that was with a discount because my wife worked at a bank, in 1978. Homes were still selling fast in the Bay Area then, we had trouble finding one and like now (here) there were multiple offers and they sometimes went for over asking. Despite the high interest, people wanted to buy, but sellers hesitated because they had lower rates, so inventory was low, and prices continued to go up.
What do you consider as DC exurbs? Also, where did you find this data? I'm curious, not trying to start an argument.
I chose Ashburn VA (Loudoun County) in this case since there are copious ten-year data for it and it's almost prohibitively far away from DC to commute from. The numbers themselves were calculated from MLS data.
Last edited by Pub-911; 12-01-2016 at 06:19 AM..
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