If housing prices correct 25% you won't be buying anything anyways, as you'll be out of a job.
I don't think you people understand the implication of a housing market crash. If you are in a place in your life where you can't afford a house now you are the most vulnerable when the economy crashes.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
People have been saying this since 2012 and prices have at least doubled in most decent areas, if not tripled. So even if prices went down 25% tomorrow, they'd be back at where they were in 2019, and most people were complaining about high housing prices back then as well.
Our population is increasing and housing is not keeping up. This isn't a bubble, it's a legitimate shortage which is driving prices up.
It's insanely expensive to build now between material/labor cost, permits, not to mention hassles with NIMBYs and other special-interest groups. The only construction I've seen in my area in the last 3-4 years has been massive "luxury" apartment complexes. Very few single family homes and townhouses.
Also, 8-10% interest rates were pretty standard in the 1990s and were much higher in the 1970s-1980s.
It's been proven that the best thing you can do is to buy a house when you need it and when you plan to live in it long term. Don't try to time the market. Don't buy a house now in case prices go up later. Don't be a miserable renter because you're gambling that prices will go down in a few years. An extra $20k in price shouldn't be a dealbreaker over a 30-year mortgage. If it is, you're probably not in a position to buy yet. Good luck.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
I'm sorry but this refrain has been repeated for as long as I have been paying attention. That's since 1992. House prices and inflation-adjusted affordability, do go backward, sometimes, and in some places, once and a while almost universally. However, grow old while paying rent at your own risk too.
Ordinary people who don't invest too much otherwise, or people who believe in diversifying, should own real property.
There's a term for people who try to time the housing market: permanent renters.
And, contrary to popular opinion, that's actually okay. Too many people cave in to the peer pressure and buy a house when they really can't afford it.
If you never buy, just realize that your largest monthly budget item will increase every year for the rest of your life. So you better be investing a lot to cover a lifetime of rental increases. In my view, that's the biggest advantage to buying a house: you lock in your largest monthly budget item, with an income that hopefully continues to increase.
Province of BC in Canada just restricted shirt term rentals. Hope it puts downward pressure on rents and/or house prices if those properties used solely for airbnb hit the market.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
Our population is increasing and housing is not keeping up. This isn't a bubble, it's a legitimate shortage which is driving prices up.
The problem is that Wall Street/private equity are paying way over market value to buy single family homes then turning around and renting those homes to families that got outbid.
They are FORCING us into becoming permanent renters so they can profit. They get the appreciation of the property and they collect massive rent payments.
In my area, you have to pay 30-50k over market value. Most people can't do that. The government needs to pass laws to stop this, but they are all owned by Wall Street.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
I'm sorry but this refrain has been repeated for as long as I have been paying attention. That's since 1992. House prices and inflation-adjusted affordability, do go backward, sometimes, and in some places, once and a while almost universally. However, grow old while paying rent at your own risk too.
Ordinary people who don't invest too much otherwise, or people who believe in diversifying, should own real property.
I've been paying attention since about 1982. Your observation is spot on. My guess is somebody will confirm this from 1972, and so on...
The short-term fix for this is to only allow individuals (not corporations or LLCs) to own residential real estate.
It would make all landlords individually liable to their tenants and the housing market would become affordable.
Builders would decide it's not worth building any houses due to low sale price after market correction.
Eventually, demand for livable housing would still skyrocket due to dillapidation causes by homeowners who don't really want to do things like replace their HVACs or roofs.