Disconnect between home prices and wages

[Bob Vila]

Didn't you buy w/in the last 6-7 months? I/R haven't been that low in two years...

 

[totalburnout]

I would have much rather bought low with a high interest rate. My rate is 5.7%. That means I can NEVER re-finance. I paid a quarter million for a 3 bedroom (With a 1000+ sqft garage !)

Now in order to make that money back, I'll need to ensure that everything I do adds to that house. I wanted to make it a 2 bedroom, but 2 bedroom places don't sell. Scrap that idea.

If you bought within your means, you never need to re-finance. You already have a great interest rate.

IMO to get your money back, you need to modernize the home and make it appealing to a younger demographic that will be buying starter homes when you're eventually selling yours.

It seems, to myself, that everyone is afraid of the market now because they can't buy a piece of real estate and turn around and sell the property in a few months or a year or two for a huge return. To me this doesn't foretell a market collapse but rather a return to a state of conditions that the housing market should be in rather than inflated conditions were you could buy and sell for a tidy return in a short amount of time.

Homes are meant to be long term investments, in my eyes.

 

[khrisb]

its the flippers who tried to make money and sucked who are screwing up the market. i heard somewhere that 80% of flips in georgia are being foreclosed on.

It's very funny that you should say that. A guy bought my father-in-laws place a year and a half ago in lake park (ga) with promises of turning it into a company retreat/hunting club type place. Bought it for $208,000. Fixed some termite damage in the living room and painted the walls tan and slapped a $450,000 price tag on it...and has been sitting ever since. I think the popularity of the house flipping shows is to blame.
I'm glad it's him thats sitting there with a 5 bedroom house with 39 acres, looking like an ass. Oh and my father-in-law only paid like $83k 16 years ago.

Oh yeah and every 3rd house in the rich white neighborhoods have for sale signs in the yard. Those signs have been there for months. The housing market around here has gone to shit. Thats why we rent (for now)

 

[E_SolSi]

I think the popularity of the house flipping shows is to blame

the funny shit is all the dip shits watching that thinking "hey thats a good idea" are WAYYYYYYY the fuck behind
this was a good idea 4-6 years ago

think about it:
the whole house flipping thing had to be hot for at least a year before the TV stations got in on it (1 year?)
then the idea had to be pitched (6 months?)
then casting calls had to go out for hosts and to get people who were flipping houses that were interested in being on this show (6 months - 1 year?)
they had to get enough houses done and sold to make a season worth of shows (6 months - 1 year?)
then there is the fact that the episodes being shown were likely filmed at least last year (1 year?)

that makes this at least 3.5 - 4.5 years from when this was actually a good idea

 

[Black Widow g2]

I'm too busy watching 'How It's Made'