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Because the market is absurdly distorted and priced out a ton of people. If you didn't have a previously inflated house it's hopeless to buy in at these prices. Yeah I hope it crashes HARD and all these equity refugees and companies go straight to hell. My prior house made more money than I did for 3 years.
With you it's always the individual that's at fault. I'm saying there is something fundamentally wrong when I could buy a house easily at 20% of my net earnings 8 years ago, and now I make 60% more salary and have quintuple as much savings as the 2014 me. I don't know what I could do to be MORE frugal or successful in the career I'm in. But I can't even come close to getting my PITI to 20% of net with prices where they're at. This wasn't caused by me or irresponsibility on my part.
I saved far more than most people do. It happened around me and now every metro I've been looking at is in the same doubling scenario. I can't move to rural Ohio where I could pay cash for a house but there are no jobs in my field.
At some point I don't understand how this is sustainable. This is apparently not just a problem in my area, given that I HAVE thought about leaving the area. I've interviewed now for several jobs where the prior candidates have rejected them due to not being able to afford housing and I am prepared to reject them if they are not going to pay 25k more than I make because that's the differential to keep my lifestyle similar. And it's not just my area, this is in 3 different states in complete different regions of the country - (Washington, Texas, Florida). And I'm far from a basic worker.
How can people working service jobs survive at these rates? At my work we've got lower end staff who commute in are now spending so much in gas it's not worth it to come in to work & they're going to quit. There either has to be a wage-price spiral or a collapse of housing prices.
I househunted in Tyler & Houston, TX, and southwest La a few yrs ago. Housing prices were ridiculous then, and got even higher.
The housing prices seem to have leveled off, and I think will go down as rates go up, if the owners want to sell. Each rate increase raises the note more than one would think.
Everything seems to have gotten out of control before. Houses overpriced, stocks overvalued. The S&P is now close to be correctly valued, if not correctly valued, I read (that is, supported by the financial data of the businesses). Fingers crossed.
I've started househunting again. What I'm finding in the areas I'm looking in is that there are not many houses on the market at all. A few years ago, you couldn't spit without finding a house for sale. What's more, the prices are higher, in some cases a lot higher.
I don't know if that's good or bad. On the one hand, I'll get more for my house (important since I bought only 5 yrs ago and went thru hurricane damage), but on the other hand, that makes the houses I could've bought a few years ago out of reach for me now.
I've started househunting again. What I'm finding in the areas I'm looking in is that there are not many houses on the market at all. A few years ago, you couldn't spit without finding a house for sale. What's more, the prices are higher, in some cases a lot higher.
I don't know if that's good or bad. On the one hand, I'll get more for my house (important since I bought only 5 yrs ago and went thru hurricane damage), but on the other hand, that makes the houses I could've bought a few years ago out of reach for me now.
We have daughter who married and moved to FL—in 2008 when we were visiting her there were plenty of houses for sale—signs up on boards down the middle of her local mall which was still in business then (not now)…and plenty of people who lived in the area (Sarasota) walking around saying “I am not going to sell my house at a lossâ€â€¦.
And if they weren’t forced to, of course they didn’t
Now the shoe is on the other foot—
Unless you can move to a house or location where you can keep your profit you don’t want to move either
Homes being listed have slowed in my area here in Nokomis
And yes—I do think some on the market are priced too high
But perspective is in the eye of the buyer
We sold our TX house last May at what we thought was a premium—but the price per sq ft has gone up since then in our area
The DFW TX market has been hot for some years because of new arrivals from out of state who may or may not get a bargain depending on their own perspective
Summer the market listings usually slow down and then pick up before school because people want to get moved in and start where they will be not move during middle of the year
Housing starts were slowed by supply issues and land is always a problem in popular areas
Business hiring/firings will prove to be a telling point in whether we enter a recession
Laying off people even if other jobs are open/hiring is never a good sign for the economy
Losing a 70K job as a medical sales person and having to take a pharmacy clerk job is not a good trade
We've been avoiding recession for the past decade +, through central bank "magic" and government "stimulus." We are simply not "allowed" to have recessions anymore. But still, something has got to give. So no, we will not have a 'recession,' but something far more severe- we will experience what the Austrian school of economics calls a 'Crack-up Boom.'
We've been avoiding recession for the past decade +, through central bank "magic" and government "stimulus." We are simply not "allowed" to have recessions anymore. But still, something has got to give. So no, we will not have a 'recession,' but something far more severe- we will experience what the Austrian school of economics calls a 'Crack-up Boom.'
We had a CoVid inspired recession in 2020
2011 was not a great year either
We are simply not "allowed" to have recessions anymore. But still, something has got to give. So no, we will not have a 'recession,' but something far more severe- we will experience what the Austrian school of economics calls a 'Crack-up Boom.'
If we have a recession that isn't far more severe are you prepared to explain to the forum why you were wrong (again) and what you learned from it?
It is not just the lower class folks who cant afford food and gas,the middle class suffers stock market loss,crypto loss,real estate flipping loss,higher fuel cost,and companies are laying off salaried workers,IT workers,these guys make good money.
Cant recall which employer,they have asked the newly hired not to report to work
The only way most folks get those percentage of raises is through promotions or switching employers. I've never seen anywhere grant an 8%-10% COLA.
I remember getting a 9.1% COLA as a federal employee in the early 80's. 1980?...1981?
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