We were lucky enough to buy our home just before things got out of control, but man, if we were ever looking to trade up (not likely, since we're hardly going to grow our family), it would be nearly impossible, especially after reading what these folks have tried.
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52 sats \ 2 replies \ @k00b 2 Jun
I’ve been impressed by how unaware/forgetful we are wrt interest rates. The financial crevice the first family is caught in is entirely the result of interest rates. A $1m home is a doable upgrade when you’ve just sold a $700k home, but going from a 30 year mortgage at 2.25% to 7% even on the same home would make it unaffordable.
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121 sats \ 1 reply \ @Undisciplined 2 Jun
Assuming the same home stays at the same price, of course.
It seems like prices are adjusting really slowly to the higher interest rates, but that's mostly because the price change (demand shift) is manifesting in reduced sales volume.
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52 sats \ 0 replies \ @k00b 2 Jun
That's helpful. Sometimes I forget banks have to deal with supply/demand too.
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0 sats \ 0 replies \ @SatsMate 2 Jun
It is hard where I am at. The average home in my area varies between $625,000 & $750,000.
Unless I want to be a debt slave, I need to keep renting. I've been renting for 6 years saving up money now, and it feels like things are getting out of reach as prices keep itching higher.
See what all this central bank manipulation does? It creates a few winners, a few doing well, and many "losers".
I am hopeful we see either home prices fall, or interest rates fall. In the end there is so much inventory that is sitting vacant right now, and myself who is trying to start a family is trying to pencil out the numbers and it just doesn't make any sense at this time.
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0 sats \ 0 replies \ @flat24 2 Jun
wow it is incredible to see this, I can say that these people are stagnant but it is simply because they do not know how the world, the economy, and all the derivatives really work!! At least they are among those who still have a house even if their children have to share a bedroom, they are clearly unaware that it is no longer possible for the normal working class to rise in society, it is almost impossible!! have so degraded the purchasing power of the average person that the fact that they have been able to buy at least their first home is a great achievement, which I am sure not many people will be able to emulate even if they have the necessary will, if they do not have the skills or knowledge. necessary to preserve value over the years.
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0 sats \ 0 replies \ @grayruby 2 Jun
A major challenge. Here in Canada the PM was asked about the housing crisis and it's impact on young people and he pretty much said "houses are way too expensive but we would have a retirement crisis if they dropped too much". Oh the fiat games.
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0 sats \ 2 replies \ @Satosora 2 Jun
At least you are in a starter home.
They dont even build starter homes anymore.
Starter homes are being bought out by big companies to demolish and put in 3 story monstrosities.
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10 sats \ 1 reply \ @Signal312 2 Jun
You know, I've noticed that as well - so many (most?) of the new houses you see are pretty large homes, not starter homes at all.
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0 sats \ 0 replies \ @Satosora 3 Jun
Yeah, they are becoming extinct.
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