Posted on 12/14/2021 2:31:02 PM PST by RomanSoldier19
Homes aren't as affordable or available for six-figure earners as they were two years ago, per NAR. Home prices are up, inventory is down, and the share of houses affordable on a $100,000 salary keeps shrinking. A $100,000 paycheck is now considered middle class in a housing crisis era. A six-figure salary is no longer enough to buy a home. Not really.
Availability and affordability for households earning $100,000 has dropped since 2019, the National Association of Realtors (NAR) reported. Home prices shot up by 13% year-over-year in October while housing inventory fell by 12% in the same time frame.
"Due to weaker affordability and lower inventory, there are 503,000 fewer homes available for sale that this household can currently afford to buy compared to two years ago," Nadia Evangelou, NAR's senior economist and director of forecasting, wrote in a blog post. That's a huge drop, as the number was 348,800 as of October 2021. That means more than half the houses that $100,000 earner could afford are off the market.
Home prices have been going up for years, at a steeper rate than they did ahead of the Great Recession. By 2018, first-time buyers were paying 39% more than first-time buyers did at the same age nearly 40 years ago. The pandemic housing crisis, marked by a historic housing shortage, only exacerbated the situation.
There have been 20 times fewer homes built in the past decade than in any decade as far back as the 1960s, Daryl Fairweather, chief economist at Redfin, told Insider back in April. It was no match for pandemic demand: as citygoers flocked to the suburbs in hopes of buying more space during the pandemic, America began running out of houses.
(Excerpt) Read more at msn.com ...
You will own nothing and you will be happy!
Rising home prices.
Rising utility costs.
Rising real estate taxes.
Rising maintenance costs.
Rent cost rising too.
Brandon’s economy is destroying what little disposable income people had.
Next year, seven figures will not be enough.
My house has been paid off for twelve years (I’M DEBT FREE!!!), but I foresee increases in property taxes/government school blackmail eventually driving homeowners into the streets.
Government-school teechers must never do without.
Article says:
“as citygoers flocked to the suburbs in hopes of buying more space during the pandemic”
Reality is:
“As citygoers flocked to the suburbs in hope of avoiding high crime and pfascist vaccine requirements of the insane urban Democratic party rulers”
Rising food costs . . .
This article did a good job on collecting facts pointing to Biden’s inflation, but just could not close the loop.
Mr. Potter was the adult.
George Bailey was a precious snowflake.
Anyone who shops for their own food (the elites obviously don’t) have to notice the steadily rising prices. A wicked combo of inflation and shrinkflation is jacking up the weekly food bills.
>>My house has been paid off for twelve years (I’M DEBT FREE!!!), but I foresee increases in property taxes/government school blackmail eventually driving homeowners into the streets.
Same here - been paid off for about 20 years; property taxes aren’t cheap where i am (about $7K) in New England but I know any of the places I would like to move they will be higher (i.e. by the ocean in FL), add to that the flood insurance and hurricane insurance (neither of which I need where I am), and I may just have to retire where I am - either that or sell it all, y an RV and be a nomad.
I can’t believe the property taxes, hoa fees and insurance rates I see on some of the nice (but not outrageous) homes I look at some times.
No way am I moving someplace where my property taxes, hoa fees and flood insurance cost more than my mortgage used to be per month.
This article did a good job on collecting facts pointing to Biden’s inflation, but just could not close the loop.
*************
I think polls are showing that people are noticing, and they know who is to blame.
Many with original bathrooms, most with original electrical panel and wiring.
Amazing watching the boom all over again. The left has not had time to screw his up completely yet, but I have faith in them.
Go to older neighborhoods that were built in the 50’s and 60’s. Ranch style homes that are well maintained can be bought for $130-140 in my area.
Live there for a few years then sell for a profit and move up.
The problem is everyone wants to start off with a $350 starter home in a designer gated neighborhood.
My Wife is a RE Broker/Owner (a very GOOD one).
She just recently did ‘the numbers’ for the 2021 market which she inserts into her Christmas cards for clients in our Montana area (BZN)...
Home prices have increased 27% this year with the average days on the market dropping from 25 to six days. There is a two week inventory available, down from two months.
Vacant land has increased 200% with average number of days on the market of 25, down from four months.
Total sales of houses have decreased 9% (lack of inventory) and land 23% (same reason) in 2021.
I guess as long as dead between the ears politicians from blue states keep up their idiocy the prices will continue to rage here in the red state west.
Thanks to the escalating costs you list, I fear Brandonflation is also killing young family formation.
The rats are well on the way to their goal: destruction of the middleclass followed by grinding poverty in a police state.
I had friends in education (retired several years ago). At that time the staff hadn't gotten a raise, not even a cost of living raise, in 3 years. Of course our taxes kept getting adjusted up. The school system even tried a bond measure - not to build, just to cover nominal expenses. Still don't know where the money went.
Let's Go Brandon.
I own my land and two houses in Hawaii with ocean and mountain views, debt free. I’m used to seeing outrageous prices. Thankfully our property taxes can only be increased 3% per year max.
The High prices are solely due to Democrat government policy.
You mainland guys will catch on eventually. Hawaiians haven’t yet. Democrats are the problem.
This is also happening here in Australia. The housing market has gone bonkers over a number of years (but even worse in the last 18 months or so). Houses for a million or more just about the average in a number of cities. Even a family on $100,000 find it hard to rent (30+ applicants to each house and the rents are skyrocketing).
To save for a 20% deposit on an average home here, a family on an average wage is looking at over 10 years to save and to be honest, prices are going up faster than people can save. In the last 12 months, you would have to save nearly every dollar you earned (before taxes, food, superannuation, etc...) just to not loose ground.
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