Housing market

[ghyland7]

I know. I’m very jealous that people I graduated with in 2010 engaged to their spouse, with a job in their career field, were able to buy great houses at discount prices and refinance. Me, on the other hand, have bought a house in 2021, sold it in 2022, then bought another last month that while is fine, still needs some updating. I fear that I’m going to struggle financially and not be able to provide a similar upbringing as my parents did to me to a future child (not expecting yet).

yeah, it's definitely frustrating.

I'm hoping that if we can get a decent deal on something today, even if there's a recession or crash soon, within 5-10 years we would more than make up with the raise in value.

We are fortunate to be able to comfortable afford a mortgage like that, but it just would be so much more expensive compared to what my parents had.

Hopefully we can refinance if/when rates drop down again.

 

[Agclone91]

Blessed to have a very affordable home and a 2.5% 30-year mortgage... However, due to the rate, I feel stuck here

Same. We bought a house well within our means with the thought that we would be there 5 to 8 years building additional equity and then move into what would be our forever home. Been here going on 4 years now and we feel stuck. Had we known what things would look like today we would have bought our forever home then and made it work.

 

[KnappShack]

Same. We bought a house well within our means with the thought that we would be there 5 to 8 years building additional equity and then move into what would be our forever home. Been here going on 4 years now and we feel stuck. Had we known what things would look like today we would have bought our forever home then and made it work.

Locked in

We would've never bought this house if we knew where life was going to take us.

But it's a gilded cage and we're blessed

 

[mynameisjonas]

If the seller has an assumable mortgage you can keep whatever their low interest rates are. The problem is not many people have assumable mortgages, but they are out there. Also, if you’re thinking about selling your own home, you might want to check if your mortgage is assumable as that could definitely help you sell your house for a good price. The downside is you’re probably looking at a massive down payment.

 

[BCClone]

As gullible as I was (am?), I'm honestly surprised I didn't buy his $3000 warranty for a $100 bill.

Side note: I did fall for a typical car salesman trick. I test drove on a Thursday. Then I called on Friday to let the salesman know I was going to buy. He said "That's great! But gosh darnit...the one you test drove just rolled off the lot. I do have that same color available, but it includes a $2000 tech upgrade."

Of course, I felt I HAD to have the black one. So I bought the one with the upgrade.

If it was a 3k warranty, his commission was way more than $100. Way back when, when oversaw a dealership, the markup was 100%. So the company for 1500 and the dealer got 1500. Guessing he got 20-25% of 1500.

 

[throwittoblythe]

If it was a 3k warranty, his commission was way more than $100. Way back when, when oversaw a dealership, the markup was 100%. So the company for 1500 and the dealer got 1500. Guessing he got 20-25% of 1500.

Oh yes, I don’t doubt that for a second. It was a bribe AND a lie. You’re not “giving” me your full commission out of the goodness of your heart.

 

[ClonesFTW]

When I got my first job offer coming out of ISU, I went right out and bought a brand new car. I got a brand new Altima from Willis in DSM. The salesman took me back to his office to "finalize the contract." I was 23, this was my first time buying a car, and I did not bring any backup.

He tried to sell me on extended warranties and I kept saying no. Finally, he said "Look, I get $100 in commission to sell you the extended warranty." He then pulls out a $100 bill from his wallet. He said "I'll give you this right now if you'll buy the warranty, that's just how much I believe in it."

In addition to being incredibly unethical, I'm pretty sure that was illegal.

Compared to other financial industries the auto business is extremely unregulated and borderline predatory.

 

[8bitnes]

When I got my first job offer coming out of ISU, I went right out and bought a brand new car. I got a brand new Altima from Willis in DSM. The salesman took me back to his office to "finalize the contract." I was 23, this was my first time buying a car, and I did not bring any backup.

He tried to sell me on extended warranties and I kept saying no. Finally, he said "Look, I get $100 in commission to sell you the extended warranty." He then pulls out a $100 bill from his wallet. He said "I'll give you this right now if you'll buy the warranty, that's just how much I believe in it."

In addition to being incredibly unethical, I'm pretty sure that was illegal.

My go to response when the dealership tries to sell me an extended warranty is something along the lines of: "are you saying this vehicle isn't built to last and that's why I need this warranty? Or, do we have a quality vehicle here and we can skip this?"

 

[cyfan92]

Same. We bought a house well within our means with the thought that we would be there 5 to 8 years building additional equity and then move into what would be our forever home. Been here going on 4 years now and we feel stuck. Had we known what things would look like today we would have bought our forever home then and made it work.

Yep, not complaining as we are housed and have added somewhere around 150% to our purchase price in equity.

I got laid off this summer and in my job search, I'd need a huge increase in compensation to afford a move and keep our lifestyle.

 

[BryceC]

Yep, not complaining as we are housed and have added somewhere around 150% to our purchase price in equity.

I got laid off this summer and in my job search, I'd need a huge increase in compensation to afford a move and keep our lifestyle.

I am probably in the same boat, we probably have way more equity in the house than what we paid for it.

I've been contacted by several different realtors about potentially selling my house, but the problem is I'd need to move somewhere else and everything is jacked up. It's not like I'm going to make money on the deal.

I hate moving, it's not on my radar, but at some point there needs to be a correction here and I just don't know what it will take to make that happen.

 

[TrailCy]

I’m confused, you’re mad you bought a house you can afford to keep? If you’d have bought one you couldn’t afford you could potentially sell for more than you paid but then would have to buy something else at a higher price so it’s a wash. Don’t get sucked into keeping up with the Joneses bs.

That's not what I'm saying. We were approved for $850,000 house and we bought one for $500,000. We could have made the payments on the more expensive house but chose to go the less expensive route. If we would have bought the $850,000 house we could still afford it but the 20% market gain would have been $170,000 increase. The 20% market gain for the house we bought has been about $100,000.

I am saying (knowing we could afford both payments), buying the less expensive house eliminated a $70,000 incerase in equity for us. We could have always sold the more expensive house and traded down, but now its *even more * expensive to trade up.

Just curious why you think you now needed the more expensive house?

I have a client who has a nice house in Ankeny (husband, wife, 1 kid) 2 bedrooms upstairs, a full finished basement with 2 bed rooms and a bar/entertainment area, probably like a $300k house. He has it in his head that he needs to buy this $800K house with 6 bedrooms for some reason. He's the type who feels like he has "to show" he can afford something like that. Seems stupid to me.

I don't need/want a big house. I'm talking from a financial investment perspective only. Where I live the more expensive houses aren't neccessarility bigger, just better locations and upgraded kitchens.

 

[TrailCy]

Some of this problem would be solved if banks would let you transfer loans to new houses. If your job and income are the same I'm sure there's a way to do this.

 

[SCNCY]

Just thinking out loud a little bit, and I've said this before. But I think we may be in this type of housing market for a while, or at least until the baby boomer generation starts to pass away/move in to retirement homes. That's a glut of houses that will then show up on the market. Now, do I think it's going to cause a drop in housing prices, no. But I think the supply/demand issue we are experiencing now will be corrected at that point; unless housing construction drastically increases.

I have wondered for a while what would happen once baby boomer last homes go on the market. I initially thought they'd cause a decrease in housing prices. But with demand so high, I think it'll level out the increases. But this would still be several years away as they are not passing away at a large rate yet, at least that I know of.

 

[Gunnerclone]

This thread has me thinking back to the late 90’s/early 2000’s. Seems like at one specific time window everyone I knew was leaving their homes we all grew up going to in Indian Hills, Western Hills, Stonebridge, etc and then building a new custom, moving to Glen Oaks, or moving to big houses in the non cookie cutter areas of WDM/Clive like the Country Club area.

Reading this thread with a lot of people in the “we just have to wait it out” situation made me think of this andI think I was just too young to know what was going on.

 

[Beernuts]

My go to response when the dealership tries to sell me an extended warranty is something along the lines of: "are you saying this vehicle isn't built to last and that's why I need this warranty? Or, do we have a quality vehicle here and we can skip this?"

Mine is "I think I believe in your vehicle more than you do".

 

[kirk89gt]

Just thinking out loud a little bit, and I've said this before. But I think we may be in this type of housing market for a while, or at least until the baby boomer generation starts to pass away/move in to retirement homes. That's a glut of houses that will then show up on the market. Now, do I think it's going to cause a drop in housing prices, no. But I think the supply/demand issue we are experiencing now will be corrected at that point; unless housing construction drastically increases.

I have wondered for a while what would happen once baby boomer last homes go on the market. I initially thought they'd cause a decrease in housing prices. But with demand so high, I think it'll level out the increases. But this would still be several years away as they are not passing away at a large rate yet, at least that I know of.

I think we will see a leveling out, but I would think that we have a lot of Millennials that are “under housed” or will be looking to upgrade, not to mention Z’s that will be looking to get into an early / mid house. Two huge demographics that are going to impact this. Honestly don’t see this problem (low housing supply / high home pricing) going away anytime soon. Interest rates I think are the key here. The longer they stay high, the bigger the issue gets. Probably a fair amount of pent up demand for housing, but financially it doesn’t make sense with where interest rates are and the cost to build - which is the boat I am in.

 

[SCNCY]

I think we will see a leveling out, but I would think that we have a lot of Millennials that are “under housed” or will be looking to upgrade, not to mention Z’s that will be looking to get into an early / mid house. Two huge demographics that are going to impact this. Honestly don’t see this problem (low housing supply / high home pricing) going away anytime soon. Interest rates I think are the key here. The longer they stay high, the bigger the issue gets. Probably a fair amount of pent up demand for housing, but financially it doesn’t make sense with where interest rates are and the cost to build - which is the boat I am in.

Also, because if a decade of lower interest rates, your going to get less people upgrading from a starter house to the next level due to no one wanting to give up their low rate mortgage at that next level house.

 

[Pat]

Some of this problem would be solved if banks would let you transfer loans to new houses. If your job and income are the same I'm sure there's a way to do this.

A bank has no incentive to let you keep a 4% loan right now.

 

[mynameisjonas]

Some of this problem would be solved if banks would let you transfer loans to new houses. If your job and income are the same I'm sure there's a way to do this.

Lol no

 

[Gunnerclone]

Some of this problem would be solved if banks would let you transfer loans to new houses. If your job and income are the same I'm sure there's a way to do this.

That would be an enticing product for a Bank/Lender to offer. Something like have a checking/savings/car loan/mortgage with us for 24 months and we will guarantee you your mortgage rate for your next home purchase.