Housing Prices hit a new record, but fewer owners benefit (1 Viewer)

Saint_Ward

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https://finance.yahoo.com/news/a-ne...es-but-fewer-owners-to-benefit-160802244.html

The housing bust is officially over, 10 years after it started. But like much else in the economy, the real-estate recovery has benefitted the wealthy more than others, with many ordinary folks still falling behind.

A prominent gauge of home prices, the S&P Corelogic Case-Shiller index, set a new record high in September, surpassing the previous high, from July 2006. Home prices on average have risen 5.5% during the last 12 months. “This indicates a completed recovery of US home prices since the Great Recession,” S&P Global said in a release. Here’s the home price index since 1988, with the solid line representing the national average:

Great news, right? Well, sure, if you’re a homeowner enjoying an ongoing boost in wealth. But the portion of Americans owning a home has been dropping since 2005, with the homeownership rate now at levels of the mid-1960s. In late 2004, the homeownership rate peaked at 69.2% of all households. Today, it’s just 63.5%.

The homeownership rate went too high during the housing boom, fueled by gimmicky mortgages, bogus underwriting standards and bad purchase decisions by consumers. But it may have overshot to the low side as millions endured foreclosure and banks severely tightened lending standards.
Lenders have loosened up a bit since then, but affordability has worsened as prices have rebounded, with a typical mortgage payment now costing about 15% of income. And that will likely rise into 2017, since interest rates have been going up since Donald Trump was elected president. There’s also a shortage of starter homes in many markets, since gun-shy builders burned during the bust are cautious about committing to new projects. And since they make bigger profits on costlier homes, that’s where builders tend to focus.
I personally feel like most decent neighborhoods are being priced out. There is a massive shortage of starter homes, unless you're in the worst parts of town. I don't see where even a family making over $100k can easily enter the housing market. I've seen a vast expansion in pricing in middle class neighborhoods shoot up from the $200's to the mid $400's, or up. All of the new construction I'm seeing are $200-300k condos or $450k - 600k housing.

Will we ever see new home construction for starter homes?

Can the economy really sustain this rapid growth? It's not as high as it was pre bubble, but the last two years have shot up fast here.
 

SuperQuincy

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Its a big concern of mine at this point in my life. I'd say buying a home has turned into my top priority right now.

I have actually started looking down south to relocate. Massachusetts is just to expensive! The condo facility where I work in Brookline has units selling for 550k! 645 sq ft. plus monthly condo fees, parking fees. Its ridiculous. There used to be some low income areas around Boston, Parts of Brockton, Dorchester are still kinda bad, and no place i'd want to live. But Jamaica plain, Summerville have been almost completely gentrified and are extremely pricey now. Watertown, and Waltham (where I live) have skyrocketed because of the people pushed out of the city by the rising costs.

I have been looking at Texas. Austin is really booming and can still get in there for a reasonable price. San Antonio has 2000 Sq Ft houses for 150k that would easily go for 400k in Massachusetts.

A relocation could definitely be in my future. I really need to see what the job market is like down there.
 

superchuck500

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Its a big concern of mine at this point in my life. I'd say buying a home has turned into my top priority right now.

I have actually started looking down south to relocate. Massachusetts is just to expensive! The condo facility where I work in Brookline has units selling for 550k! 645 sq ft. plus monthly condo fees, parking fees. Its ridiculous. There used to be some low income areas around Boston, Parts of Brockton, Dorchester are still kinda bad, and no place i'd want to live. But Jamaica plain, Summerville have been almost completely gentrified and are extremely pricey now. Watertown, and Waltham (where I live) have skyrocketed because of the people pushed out of the city by the rising costs.

I have been looking at Texas. Austin is really booming and can still get in there for a reasonable price. San Antonio has 2000 Sq Ft houses for 150k that would easily go for 400k in Massachusetts.

A relocation could definitely be in my future. I really need to see what the job market is like down there.

The suburbs of smaller but growing cities in the South and Midwest are probably the best bets for housing value at this point.
 
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Saint_Ward

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Its a big concern of mine at this point in my life. I'd say buying a home has turned into my top priority right now.

I have actually started looking down south to relocate. Massachusetts is just to expensive! The condo facility where I work in Brookline has units selling for 550k! 645 sq ft. plus monthly condo fees, parking fees. Its ridiculous. There used to be some low income areas around Boston, Parts of Brockton, Dorchester are still kinda bad, and no place i'd want to live. But Jamaica plain, Summerville have been almost completely gentrified and are extremely pricey now. Watertown, and Waltham (where I live) have skyrocketed because of the people pushed out of the city by the rising costs.

I have been looking at Texas. Austin is really booming and can still get in there for a reasonable price. San Antonio has 2000 Sq Ft houses for 150k that would easily go for 400k in Massachusetts.

A relocation could definitely be in my future. I really need to see what the job market is like down there.
I'd have to find a new job, same for my wife, uproot the kids, who were uprooted 2 years ago to live with us....

I think starting in the Spring our goal will be towards prepping for a house (aka saving up a lot).
 

Det. Brees

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we are closing on a our home tomorrow. I cant wait to finally have this over with.....1900sqft granite counters and hardwood floors, stone fireplace, whirlpool tub. they were asking 160 we got it for 151. housing market here is very competitive with lots of homes on the market. We do have a huge market for large home that have no luxury items and many people are buying these 2800sqft homes for about 180k. Id rather have smaller with nicer finishing.
 

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My neighbor across the street bought his house for roughly $300K about three years ago. I put it on the market a couple of weeks ago for $450K. Not to shabby.

Miyako and I have been talking about moving to Denver. My job allows me to live pretty much anywhere that is near a major airport. We might pull the trigger this summer. I bought this house for $210K and many of the realtors I've spoken with think I can get $300K for it. We're in one of the more desirable neighborhoods in Denton, TX.

We'll need as much of that profit as we can get if we do move to Denver. Most decent homes are in the $400-$500K range and there is no way I'll get a heavily treed acre like I currently have. We're thinking of renting for a couple of years and buying a property west of Denver so we can build a dream house with a mountain view.
 
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we are closing on a our home tomorrow. I cant wait to finally have this over with.....1900sqft granite counters and hardwood floors, stone fireplace, whirlpool tub. they were asking 160 we got it for 151. housing market here is very competitive with lots of homes on the market. We do have a huge market for large home that have no luxury items and many people are buying these 2800sqft homes for about 180k. Id rather have smaller with nicer finishing.
I want to hurl expletives at you..haha.

Where abouts?

The only times houses sniffed that price was 2009/2010. I really missed a good window there.
 

Denzien

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Bought my ~2200sqft house north of Austin for $160k in 2011. Appraised last summer at $195.

I desperately need more space and land. Problem with moving on though, is that every other place around here has gone up in value too. If by the same %, then it would be a net loss.

Only worth it if moving to a completely new area.
 

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We bought a house in June and we still aren't in it. After looking for months and actually trying to buy three other houses, we came back around to this house . . . it had a great floorplan and nice property, but all of the aesthetics were awful. It was owned by this older couple with four kids in college and they were from Long Island - the style of the cabinets, countertops, bathrooms, light fixtures, etc. was just awful (and the finishes were builder grade at best).

After getting tired of looking, we decided to buy this one and redo the kitchen cabinets, countertops, and re-tile the bathrooms and put in new vanities. We also have to re-paint the entire interior (the existing color palate was atrocious).

We were hoping to be in by the end of November but some labor issues and the hurricane delayed us several weeks. I'm hoping it all works out but renovations are nowhere near as easy as they make them seem on TV! And with two little kids, it has been pretty stressful - we probably won't do this again.
 
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Saint_Ward

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We bought a house in June and we still aren't in it. After looking for months and actually trying to buy three other houses, we came back around to this house . . . it had a great floorplan and nice property, but all of the aesthetics were awful. It was owned by this older couple with four kids in college and they were from Long Island - the style of the cabinets, countertops, bathrooms, light fixtures, etc. was just awful (and the finishes were builder grade at best).

After getting tired of looking, we decided to buy this one and redo the kitchen cabinets, countertops, and re-tile the bathrooms and put in new vanities. We also have to re-paint the entire interior (the existing color palate was atrocious).

We were hoping to be in by the end of November but some labor issues and the hurricane delayed us several weeks. I'm hoping it all works out but renovations are nowhere near as easy as they make them seem on TV! And with two little kids, it has been pretty stressful - we probably won't do this again.
ouch.

My personal preference, is if a house I want needs some work done, it has to have at least the Kitchen done in a way I like, or all the bathrooms. I'd rather renovate a bathroom vs a kitchen any day of the week. And paint fine.. anything more; nope.
 

guidomerkinsrules

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my wife talks about getting a house, but i just can't see it happening for awhile
add to it the paranoia i now feel over the possibility of being fired even with excellent evaluations and just don't know why i would eat that kind of anxiety right now
 

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my wife talks about getting a house, but i just can't see it happening for awhile
add to it the paranoia i now feel over the possibility of being fired even with excellent evaluations and just don't know why i would eat that kind of anxiety right now
I get what you're saying. I think everyone experiences that anxiety to some degree. Some more than others of course. You have to get past it an have confidence in yourself and your abilities. I was in somewhat of the same boat when I bought my first house. In fact, I DID get laid off only three months afterwards. However, with good money management and multiple contractor jobs, we never missed a payment up until I found a permanent gig. It's funny because now I make 5x times the money I did in that old job and I still get the same anxiety every once in a while. It's just part of life.
 

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We bought five years ago in a sketchy, but about to boom, neighborhood in NOLA. It was financially a stretch at the time. But I'm glad we did it. A recent appraisal/refinance put us at about 53% increase in value.
 

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We sold our 1700 sq ft home for $185k just a few months ago and are looking at stuff between 2500 sq ft and 3500 sq ft in the $250k-350k range. Lots of options out there big older houses that need updates, newer, smaller houses, with high end finishing. it is definitely a buyers market in Shreveport. Lots of people moving from Shreveport to new developments in North Bossier, leave some nice bargains out there.
 

Jackavelli

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These appraisals, are they someone actually coming out to houses and walking inside or these drive down your block (never leave the car) and throw out a number?
 

Det. Brees

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I want to hurl expletives at you..haha.

Where abouts?

The only times houses sniffed that price was 2009/2010. I really missed a good window there.
I'm in Columbus GA. Moving across the river to phenix city al. The people that we are buying it from are taking a huge hit. They bought it brand new for around 200. They are military and having to move to colorado. We are very lucky we locked in at a 2.61 rate on the mortgage. I retire in 8 years. And we will have in paid off in 10.
 

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