I refuse to play the house bubble game! Wont buy overpriced house!

[JPrzybylski07]

Maybe this is the beginning of hyperinflation. Stagnant wages, high costs for everything. As much as I want this market to crash I can easily see it getting much more inflated simply because our money is worth so much less now and it’s competing for finite services and goods.

[GeoffD]

Originally Posted by JPrzybylski07

Maybe this is the beginning of hyperinflation. Stagnant wages, high costs for everything. As much as I want this market to crash I can easily see it getting much more inflated simply because our money is worth so much less now and it’s competing for finite services and goods.

Everyone I know is seeing big raises.

[mathjak107]

Same , big raises and insane salaries being paid to attract talent.

I work one day a week in retirement and got the equal to more than a 20k raise based on full time employment hours

[JPrzybylski07]

Originally Posted by GeoffD

Everyone I know is seeing big raises.

I should have said stagnant wages relative to inflation, and especially relative to housing appreciation the past few years. No one is getting 40-50% salary raises (I know it’s not literally no one).

[mathjak107]

Originally Posted by JPrzybylski07

I should have said stagnant wages relative to inflation, and especially relative to housing appreciation the past few years. No one is getting 40-50% salary raises (I know it’s not literally no one).

The issue with stagnant wages relative to inflation is they should be stagnant and the same amount over time for doing the same job , except for some inflation adjusting .

There is nothing that makes the same position more valuable over time .

Most of us who saw growth , saw it by taking on more responsibility and climbing the ladder . We didn’t sit in one job position and think overtime , relative to inflation , this job will pay more .

In fact many jobs are worth less today .

At one time a good phone receptionist was worth a lot of money .

She was the voice and face of a company .

Today that job function isn’t even needed and if it is there is usually some clerk doing it ,in between some clerical function

[JPrzybylski07]

Originally Posted by mathjak107

The issue with stagnant wages relative to inflation is they should be stagnant and the same amount over time for doing the same job , except for some inflation adjusting .

There is nothing that makes the same position more valuable over time .

Most of us who saw growth , saw it by taking on more responsibility and climbing the ladder . We didn’t sit in one job position and think overtime , relative to inflation , this job will pay more .

In fact many jobs are worth less today .

At one time a good phone receptionist was worth a lot of money .

She was the voice and face of a company .

Today that job function isn’t even needed and if it is there is usually some clerk doing it ,in between some clerical function

I get what you’re saying. Makes sense. Unless a raise is greater then inflation then it’s not really a raise is my point. Same thing with the Feds, how can they curb inflation in the double digits by raising interest rates maybe a percent? Idk I’m definitely not the smartest guy in this room hence I read these things to try and learn.

[prospectheightsresident]

Originally Posted by GeoffD

Everyone I know is seeing big raises.

I've seen mixed things on that front. Many folks I know in certain fields are getting big raises. Other folks, not so much.

[City Guy997S]

Originally Posted by Strannik33

Everyone has that pipe dream: The bubble will burst soon, and we'll buy a nice house much cheaper. Keep dreaming. Barring the deep dive of 2008 and another in 1990s, the RE prices tend to stabilize after a steel runup rather than decline.

It's the same thing as imagining that you will buy stocks at the bottom -- good luck with that, too.

This^^^^^

Local paper (local for the OP) had an article a few months back about "people that waited for lower prices!"
Well they got screwed 3x over on that fantasy:

1. Prices kept going
2. Interest rates rose (Making their buying power less)
3. They had less savings due to rising rents!

So now instead of buying 3/2 home before they can only afford a 2/2 townhouse now

[City Guy997S]

I know a recent college graduate buying her first home. Its small, house is mostly remodeled and its just under 500K. She has a decent downpayment and a solid job. My first home was 92K, I made more than her and my interest rate was 8% yet I still struggled at $908 a month all in (taxes, ins. pmi included).

[TarHeelNick]

Originally Posted by City Guy997S

This^^^^^

Local paper (local for the OP) had an article a few months back about "people that waited for lower prices!"
Well they got screwed 3x over on that fantasy:

1. Prices kept going
2. Interest rates rose (Making their buying power less)
3. They had less savings due to rising rents!

So now instead of buying 3/2 home before they can only afford a 2/2 townhouse now

Yes sadly I have several clients who bought into that mindset last year who are scrambling now in the same situation you've used as an example; to no avail. One of them is my sister and her fiance and they are the only ones with home I've more bluntly have had the "told ya so!" conversation.