this post was submitted on 15 Aug 2024
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Housing Bubble 2: Return of the Ugly
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Here's the thing though: $25k ain't nothing when every house around me is a million dollars.
25k in assistance could mean the down payment on a $250k house. And there are some places going up that are in that range. It might not be perfect, but it's an adequate start.
Ah yes, because we all buy houses on credit, because we absolutely must be beholden to a bank until the end of time.
All of these things are band aids, not solutions.
Edit: and I don't know where you live, but a $250k house simply does not exist here.
https://i.imgur.com/V6jySjE.png
I mean, Florida is a pretty fucking expensive place....and I picked right smack dab in the middle of a decent sized city.
And yes, a majority of people buy their homes on credit. Only something like 1/3rd of home buys are cash; and it's usually investors/foreign entities in those cases.
They have brand new block homes; not wood construction -- going up about 5 miles away for $230k; 2br 2ba, about 1400sq ft. There's a waiting list, sure - but if you want a 250k house, you can find it.
It is important to follow data as opposed to anecdotes.
https://fred.stlouisfed.org/series/ASPUS
It's important to follow data. It's also important to realize that it's possible to buy houses below the average. Your first house doesn't have to be an "average" house. You're competing with boomers who have multi-million dollar houses which drive that average way up. The average price of houses doesn't give you ANY data about the floor of that value.
There can be, (and are) houses which are in the 250k range, and houses in the 750k range, which would still allow your "average" data to shine through, and for 250k houses to still be available. Your rebuttal is weak.
You are missing the point. $250k houses exist. I bet you could even find a $100k house. Maybe even a free house.
None of that means jack regarding the experience the average person will have looking for and affording a house. Edge cases are not the norm.
Those are not edge cases. My mother is a real estate agent and they are fucking everywhere. EVERYWHERE across the USA.
It's not an edge case whatsoever. You're cherrypicking data points that aren't even the right datapoints, and going "AH HAH! GOTCHA!". Go ask a real-estate agent to check MLS for you. There's plenty. There's also plenty of multi-million dollar houses too; which drives up the average. This is pretty high-school maths level stuff my guy. You know what the word "average" means. You know there are tops and bottoms to those averages, and in order to have those - there can't just be 1 house at 250k and 10m at 1M because then the average wouldn't be the 500k you're posting "proof" of. I'm sorry that reality doesn't match your preconceived notions, but that's how the chips fall. If you wanted to buy a house, you could -- but you're making excuses why you can't, and then going "I've tried nothing and I'm all out of ideas!!!"
Have you even talked to a real estate agent? -- ever? Like EVER EVER? Sure, you're not gonna get a 200k house in the middle of San Fran; you couldn't before this mess started anyways. THAT is an edge case. But literally look 25 miles outside of any major city and you'll find them everywhere.
If one wants to buy a hous with cash, they need to save up for it while being beholden to a landlord. Might as well use that money to pay off a mortage.