Home Prices in the USA are Getting Insane (apartment, foreclosures) - General U.S. - City-Data Forum

the_pines · 03-18-2007, 09:05 AM

Anyone else agree? Im not sure if there will be a middle class left pretty soon that will actually be able to own property. I see 200k houses all over that are tiny little boxes with nothing special about them. Very small crappy yards, closet sized bedrooms, tiny kitchens, and usually very average schools and views. 200k is a fortune. That couple with all the other bills is easily a lot of people's lifetimes worth of work. I cant believe the way prices are. You really have to have both people working full time(good luck with daycare if you have kids it costs a fortune too) or atleast one person has to have a really good education to own a home. Not to long ago people who were willing to work anything could own a home. The standards here have really dropped off quite a bit. I just wanted to see if anyone else thinks home prices are insane now days. It's more than discouraging.

tallrick · 03-18-2007, 09:34 AM

I have been saying this for many years, but people always tell me I am crazy. In my opinion I thought my parents had a good deal, buy a home for 3 times gross family income. Yet I have been told that times are different, and evidently you do not need income to own a home. Homes should be 150K and they are over 400K, this is just a total rip off and an assault against the working public!

dlh891 · 03-18-2007, 09:42 AM

In my area I see many affordable houses that can be paid from one salary. You may have to put a little work into it as the houses are older but it can be done. My husband and I started out in a fixer upper 10 years ago and kept trading up to the awesome house we have now. But, we worked day and night and weekends to make the most of what we could afford at the time.

Some places, like Florida where we just moved from, do have affordability issues, but there are still great places in the country where you can get a house.

Good luck, I hope you find something, it's the best feeling to own a home!

j33 · 03-18-2007, 10:00 AM

I agree. I know that there are some places left with inexpensive houses. But most houses here require two salaries to maintain (or at least one pretty good salary), and that is usually for a smaller (2 bedrooms or less) apartment.

I know that some people just say 'move' when they hear this, but that isn't always a feasible option. Especially for those who work in city services or a field of work that ties them to the city (I have a friend who is a cop and his wife is a teacher, they managed to scrape together enough money to buy a one bedroom + den bedroom apartment, and are planning on having a child soon. So I guess the child will go in the den as they can barely afford the mortgage on their place with their two salaries, let alone moving to a larger apartment (they've been looking at houses, and those are completely out of reach ... there jobs require them to live in the city, so moving out to the burbs isn't an option either).

Bhaalspawn · 03-18-2007, 03:50 PM

As things stand right now, housing prices are completely disconnected from reality. Consequently, they will come back down to earth. We're already seeing a contraction in the sub-prime loans which means that fewer people will be able to buy starter houses and fewer people will be able to sell their starter houses and move into bigger houses. Consequently, homeowners will be forced to either accept losses on their houses (if they purchased during the boom) or to hold onto them indefinitely. Also, we're going to see a whole bunch of foreclosures, but whether or not the banks will be willing to part with properties for a loss, I don't know.

So, yes, housing prices will fall. It's just a matter of how quickly and by how much. It might be a "feather" type of drop since many people will be reluctant to sell their houses for a loss. I'm hoping that the prices return to where they were in the mid-nineties relative to the middle class's income.

Need_affordable_home · 03-18-2007, 04:05 PM

Quote:

Originally Posted by the_pines

Anyone else agree? Im not sure if there will be a middle class left pretty soon that will actually be able to own property. I see 200k houses all over that are tiny little boxes with nothing special about them. Very small crappy yards, closet sized bedrooms, tiny kitchens, and usually very average schools and views. 200k is a fortune. That couple with all the other bills is easily a lot of people's lifetimes worth of work. I cant believe the way prices are. You really have to have both people working full time(good luck with daycare if you have kids it costs a fortune too) or atleast one person has to have a really good education to own a home. Not to long ago people who were willing to work anything could own a home. The standards here have really dropped off quite a bit. I just wanted to see if anyone else thinks home prices are insane now days. It's more than discouraging.

Are we talking just Florida or all of USA? Lots of affordable houses in the northeast and midwest. Theres always mobile homes if you want to live in an expensive city or state. Yes $200k is alot, I cant afford that and neither can most middle class people.

mystree · 03-18-2007, 06:54 PM

I agree most areas are out of control.

JenM · 03-18-2007, 09:14 PM

I must agree! My husband and I are (crossing fingers) in the process of getting our first mortgage and my goodness there are like 2 houses in our area that fit our price range. If you are lower income, like us, it's definately a challenge to find a decent home for a family of 5, with enough bedrooms and more than one bath!!!

Crew Chief · 03-19-2007, 04:58 AM

Maybe I'm off base here, but I think buying a home is doable as long as you're making above minimum wage. Maybe not as soon as you'd like. But with careful budgeting and a firm handle on your spennding priorities, it can be done. (Bought our first house when I was 50 but I was in the military and and I didn't want to buy a house then get transferred.) But with a good savings plan and putting aside money for a good down payment will make it a lot easier (and, yes, I know that might take awhile...) I do believe wages have stagnated over the last 15 years or so, so it's getting harder. But I do think that can be eventually overcome...

the_pines · 03-19-2007, 05:17 AM

Thanks for the optimism Crew_Chief. Its getting crazy out there. It makes me think of endentured servants and peasents in the medieval times. With lordships holding the quality land and everyone else ending up in all the crappy spots. Oklahoma will probably grow ten fold if prices keep up. Maybe its my reality that is messed up. But I hear my uncles and grandpas stories about buying a home and a new car while doing what would be considered mundane jobs today. None of them were college graduates. But they worked hard and were good people. Thye wouldnt take advantage of others. They usually gave lots away. Its like that isnt enough now. None of them house flipped either to get a nice home. That just seems like it makes it even harder for the next generation. More wealthly people are buying up land now more than ever. Its become the hottest commodity and it has the most control over people's lives anything. There are plenty of areas that arent heavily populated but the trend has been to set prices in those areas now due to their desirability. So entire areas of the country are being cut off. The truth is I will work any ob that pays enough for me to make a living for my family. Somebody has to do those jobs. College graduates have their place but not without the others. They are one in the same and go hand in hand. You cant have one without the other. Those ways are obsolete. There is already so much time cut out of family relationships thats why the quality of family life has deteriorated so much. That and prices rising has had a huge impact on family stability.