I hate this housing market. Why are homes so unaffordable? Am I really that poor? A house listed at 520K somehow got three offers over 600K, while my agent thinks it’s only worth 560K — and it still needs renovations.
Someone in Alabama would tell you heck no you’re rich
Someone in coastal ca is begging you to tell them where you found a $600k house so they can offer another $500k over asking on it
SomeRandomRealtor on
Completely depends on where you live. Even within my city, 500,000 could be a 5 bed behemoth in one area, and a 2 bed bungalow and another. Housing prices keep going up primarily because people keep flocking to high density areas and boomers keep holding onto properties as rentals and vacation homes.
VeryStab1eGenius on
This is all market dependent and the listing price in some markets is not intended to be the closing price. If you can’t afford a house listed for $520 in your market you’re going to start looking at houses listed at $450k.
regaphysics on
You might not be that poor but you also clearly aren’t rich enough to afford the home you were looking at…
Crowlady77 on
You’re not poor, the housing market is inaccessible for all but the upper percentiles in some areas. It’s not your fault!
mrtoomba on
It’s a blessing.
that-TX-girl on
All of this is market dependent.
First question is have you been pre-approved? And if so are you looking within your budget?
You may need to start looking under budget just in case.
But also realize you may have to temper your expectations from what you *want* to what you can *afford*.
russeljones123 on
I’ve ran into this same disappointment recently too. Went into house hunting thinking $120k saved for a down payment and closing would be a ton of money. Many news flashes later, it feels like literally nothing.
guajalotes on
Average age of a first time homebuyer in USA is 38 now. The market is quite unaffordable for many people. That being said, location dictates a lot. My house in NE OH is beautiful, in a great area with excellent schools and it cost half what the same house in NJ would cost. Taxes are less than half, too.
Hit me up if you want to live in a free state with low taxes and cost of living! Bring your own job, though…
Stevegatesrealestate.kw.com
Old_Confidence3290 on
In my area, fixer uppers are readily found under 50k.
Few_Whereas5206 on
Supply and demand. Supply is low in many markets. When demand exceeds Supply, price goes up.
Snakend on
A house ir worth what someone is willing to pay for it. Your realtor was clearly wrong about how much it was worth.
HereToParty125 on
Your agent needs to gauge the market better. Remember, a property is only worth what someone is willing to pay for it, in light of the competition. In my area it’s common for homes to be listed low to get multiple offers and get a bidding war going. If you want less competition then hit the market in the late fall or winter time, it’s just getting hot right about now.
PhillConners on
I think this means you are placed squarely in the bulk of buyers. Which is unfortunate as it’s the most competitive
bengineer423 on
Depends on the market, I can buy a house everyday of the week for less than 100k
Neat-Relationship345 on
I’m looking in middle GA. They’re looking for any offer. Near zero will be at full asking price in the current market. 90% of the homes I’m looking at have had price reductions. Some over 10%. Still sitting. I am looking at the high end. Either lakefront or on a private stocked fishing pond. Mostly all brick and 3-6 covered parking spots. Most have pools. So, 700K to 1M. That’s on 2 to 10 acres. Good value in my book. Similar prices in SC where I currently reside. There’s lots of sellers and not many buyers in my area. 3 homes for sale on my street currently. 4 sided brick homes around 2500-3000 sq ft. I paid 230K 12 years ago and they’re trying to get 380K for them now. 3 years ago they would sell in a week. These have been sitting 3 months already. Markets is moving down in my area. Rates are moving up. Where in the heck do you live? I’m sorry for your plight but if it’s cheaper to rent then just do it unti you move to a better spot.
Admirable-Oil-1285 on
Without knowing anything about your income, I’d assume you are not poor if you are looking at buying a house!
Unfortunately, prices will likely never go back to what they were before covid, which makes homeownership inaccessible for a majority of first-time buyers. Basically, you’re left with three options: keep saving and save as aggressively as you possibly can, lower your expectations, or search in a lower cost of living area.
Of course there’s always a fourth option: marry into a wealthy family and hope that you get a good wedding gift.
But try to not get discouraged: you’re not poor, things are just rigged against you 🫠
ChatBot42 on
Well apparently your agent is wrong about what that house is worth… I mean de facto based on what people are willing to pay for it. 🤷
MinimumDiligent7478 on
Because we allow faux creditors to launder all the principal, of ETERNITY, into their unwarranted possession for merely publishing the evidence(or, further representations) of the peoples debt obligations to retire principal from circualtion. Allowing them then to impose “interest” on these falsified debts, **only as if** the further representations of the same promissory obligations of the actual fiduciary issuers had represented the legitimate prior possession of the pretend creditor “banking” system.
So we are all paying principal, and unwarranted “interest”, **to a thief,** over a fraction of a “financed”(or, monetized) properties liefspan… ?
The unwarranted “interest”, imposed on all our falsified debts to faux creditor “banks”, as well as the artificial escalations of the principal(via “bankings” purposed obfuscation of our promissory obligations) is why homes are so unaffordable.
JackieDaytona77 on
This isn’t a “your poor” issue. You got outbid and sometimes that’s a win. You didn’t seem interested in buying it considering you believed it needed work. That’s perfectly fine!
Brett-_-_ on
Unaffordable due to the fact that there is no law that says everyone shall own a property and here it is – all yours. It is cruel competition for resources. The homes cost that much simply because people plus banks can come up with the money. You can print more dollars, but you can’t print more real estate.
Available-Gas8740 on
People are buying property for area and the land not the house. My house according to Zillow increased 120,000 in 30 days if you ask me a 1,300 sq ft house built in 1954 with tiny back yard is only work 350 k but the area makes it worth 2.5 million. Every house that hits the market lists for 1.5 and is sold for 600-800k over asking. It’s mind boggling and Monopoly money for me because I’m not selling but I keep saying if and when it hits 3 million I’m pulling the plug. We paid 33 k way back when.
spudleego on
Renters will have the last laugh when the economy goes over a cliff. You’ll be thankful you didn’t sink whatever money you had into an asset you can’t sell bc the country is in crisis.
PatientlyNew on
My concern exactly. I’m in middle class but I cannot afford a house.
Shot_Percentage_1996 on
**Market pain is real and it is local**
You are not poor. You are shopping in a market that has outrun local incomes and that can make anyone feel behind. After 30 years in this business, what I have found is that price point strategy matters more than emotion. If homes are closing far above list, start below your ceiling so you still have room to compete when offers stack up. If that math still does not work, the hard question is whether this location fits your next five years or just your current preference.
Any_Competition6448 on
The housing market ain’t crap . We had a similar situation went above ask even though we knew the house need work and wasn’t even at ask quality . Welp we got outbid by someone who went way above. As much as I loved the house I was ok with not bidding more .
26 Comments
Someone in Alabama would tell you heck no you’re rich
Someone in coastal ca is begging you to tell them where you found a $600k house so they can offer another $500k over asking on it
Completely depends on where you live. Even within my city, 500,000 could be a 5 bed behemoth in one area, and a 2 bed bungalow and another. Housing prices keep going up primarily because people keep flocking to high density areas and boomers keep holding onto properties as rentals and vacation homes.
This is all market dependent and the listing price in some markets is not intended to be the closing price. If you can’t afford a house listed for $520 in your market you’re going to start looking at houses listed at $450k.
You might not be that poor but you also clearly aren’t rich enough to afford the home you were looking at…
You’re not poor, the housing market is inaccessible for all but the upper percentiles in some areas. It’s not your fault!
It’s a blessing.
All of this is market dependent.
First question is have you been pre-approved? And if so are you looking within your budget?
You may need to start looking under budget just in case.
But also realize you may have to temper your expectations from what you *want* to what you can *afford*.
I’ve ran into this same disappointment recently too. Went into house hunting thinking $120k saved for a down payment and closing would be a ton of money. Many news flashes later, it feels like literally nothing.
Average age of a first time homebuyer in USA is 38 now. The market is quite unaffordable for many people. That being said, location dictates a lot. My house in NE OH is beautiful, in a great area with excellent schools and it cost half what the same house in NJ would cost. Taxes are less than half, too.
Hit me up if you want to live in a free state with low taxes and cost of living! Bring your own job, though…
Stevegatesrealestate.kw.com
In my area, fixer uppers are readily found under 50k.
Supply and demand. Supply is low in many markets. When demand exceeds Supply, price goes up.
A house ir worth what someone is willing to pay for it. Your realtor was clearly wrong about how much it was worth.
Your agent needs to gauge the market better. Remember, a property is only worth what someone is willing to pay for it, in light of the competition. In my area it’s common for homes to be listed low to get multiple offers and get a bidding war going. If you want less competition then hit the market in the late fall or winter time, it’s just getting hot right about now.
I think this means you are placed squarely in the bulk of buyers. Which is unfortunate as it’s the most competitive
Depends on the market, I can buy a house everyday of the week for less than 100k
I’m looking in middle GA. They’re looking for any offer. Near zero will be at full asking price in the current market. 90% of the homes I’m looking at have had price reductions. Some over 10%. Still sitting. I am looking at the high end. Either lakefront or on a private stocked fishing pond. Mostly all brick and 3-6 covered parking spots. Most have pools. So, 700K to 1M. That’s on 2 to 10 acres. Good value in my book. Similar prices in SC where I currently reside. There’s lots of sellers and not many buyers in my area. 3 homes for sale on my street currently. 4 sided brick homes around 2500-3000 sq ft. I paid 230K 12 years ago and they’re trying to get 380K for them now. 3 years ago they would sell in a week. These have been sitting 3 months already. Markets is moving down in my area. Rates are moving up. Where in the heck do you live? I’m sorry for your plight but if it’s cheaper to rent then just do it unti you move to a better spot.
Without knowing anything about your income, I’d assume you are not poor if you are looking at buying a house!
Unfortunately, prices will likely never go back to what they were before covid, which makes homeownership inaccessible for a majority of first-time buyers. Basically, you’re left with three options: keep saving and save as aggressively as you possibly can, lower your expectations, or search in a lower cost of living area.
Of course there’s always a fourth option: marry into a wealthy family and hope that you get a good wedding gift.
But try to not get discouraged: you’re not poor, things are just rigged against you 🫠
Well apparently your agent is wrong about what that house is worth… I mean de facto based on what people are willing to pay for it. 🤷
Because we allow faux creditors to launder all the principal, of ETERNITY, into their unwarranted possession for merely publishing the evidence(or, further representations) of the peoples debt obligations to retire principal from circualtion. Allowing them then to impose “interest” on these falsified debts, **only as if** the further representations of the same promissory obligations of the actual fiduciary issuers had represented the legitimate prior possession of the pretend creditor “banking” system.
So we are all paying principal, and unwarranted “interest”, **to a thief,** over a fraction of a “financed”(or, monetized) properties liefspan… ?
The unwarranted “interest”, imposed on all our falsified debts to faux creditor “banks”, as well as the artificial escalations of the principal(via “bankings” purposed obfuscation of our promissory obligations) is why homes are so unaffordable.
This isn’t a “your poor” issue. You got outbid and sometimes that’s a win. You didn’t seem interested in buying it considering you believed it needed work. That’s perfectly fine!
Unaffordable due to the fact that there is no law that says everyone shall own a property and here it is – all yours. It is cruel competition for resources. The homes cost that much simply because people plus banks can come up with the money. You can print more dollars, but you can’t print more real estate.
People are buying property for area and the land not the house. My house according to Zillow increased 120,000 in 30 days if you ask me a 1,300 sq ft house built in 1954 with tiny back yard is only work 350 k but the area makes it worth 2.5 million. Every house that hits the market lists for 1.5 and is sold for 600-800k over asking. It’s mind boggling and Monopoly money for me because I’m not selling but I keep saying if and when it hits 3 million I’m pulling the plug. We paid 33 k way back when.
Renters will have the last laugh when the economy goes over a cliff. You’ll be thankful you didn’t sink whatever money you had into an asset you can’t sell bc the country is in crisis.
My concern exactly. I’m in middle class but I cannot afford a house.
**Market pain is real and it is local**
You are not poor. You are shopping in a market that has outrun local incomes and that can make anyone feel behind. After 30 years in this business, what I have found is that price point strategy matters more than emotion. If homes are closing far above list, start below your ceiling so you still have room to compete when offers stack up. If that math still does not work, the hard question is whether this location fits your next five years or just your current preference.
The housing market ain’t crap . We had a similar situation went above ask even though we knew the house need work and wasn’t even at ask quality . Welp we got outbid by someone who went way above. As much as I loved the house I was ok with not bidding more .