Posted on 06/22/2021 8:52:57 AM PDT by millenial4freedom
Yet another overpriced 'starter-home' in the city I grew up in that recently sold at nearly 20% over the asking price... 830k for 1.8k sf. The house last sold for 300k in 2008.
What's particularly sad is that Melrose was once a blue-collar middle class city in which the children of residents eagerly wished to remain. Prices have been on a tear since 2012, but they, like those everywhere else, have been accelerating rapidly since the plandemic.
I would like to especially thank our clueless, arrogant, obnoxious elites at the Federal Reserve (yes, you JPow), the arrogant, entrenched executives at Blackrock, Blackstone, etc who have turned the real-estate market into a giant casino! Because of you *sshats, young people don't stand a chance of ever owning a home, let alone a small condo!
Using data from the listing, the basic 80% monthly mortgage payment is about $4k per month. Add to that about $800 per month in real estate taxes and say, $250/month in home insurance. So about $5k per month post tax income just for the house and escrow account payment.
At the standard 30% of gross income for the home payment, and you are looking at an annual household income between ... say, $225 to $250k? Not exactly starter home middle class for most of America.
Increase the percentage going out to the home payment and the required household income goes down. At 50%, you are still needing well north of $100k+ annual household income. This is possible for a two earner family (made up of either college graduates or high skill workers (or both)) with each making about $70k (or more) per annum.
With so much of the family income devoted to the home payment (@$59k/year), the question is: Do you own the house or does the house own you?
Interestingly, the Zillow estimated monthly rental for the home makes it a better deal to rent the home than own it. A better deal by well over a thousand dollars per month, I might add. Something’s off.
As a side note, it would be interesting to see the real estate tax assessment history for the property and find out how much the lot and the structure each have been valued at over time.
Whiskey Tucking Fango.
Brooklyn Center?
I might have to try to sell and move to (small town in the middle of nowhere in Wyoming or South Dakota or Maine or Michigan or Wisconsin) after all.
Well that was five years ago.
Yes - starting to realize that homeownership in this country is a tad overrated (especially if we happen to be in bubbles such as the one we are in now).
What’s particularly astounding from your calculation is that the necessary income required to afford this home is almost identical to the home’s last sale price ($300k in October 2007).
I looked it up and Zillow says it would go for 2.4 million now if it was for sale.
Daughter just sold her nice Florida home. Four bidders in a bidding war first day offered. Sold for twice what she paid for it in 2015.
Effing move! What’s the problem? We live in America. Move! I live on cape cod and am leaving for Kentucky in a few months.
The same type of people were complaining about housing costs 25 years ago down here. Now it’s the same type of people, only a different generation. Stop whining and MOVE!
We sold our 2000 SF Orange County CA House two years ago for $785,000. Had a good sized Lot for the area. We bought it for $240,000 in the early 90’s.
The people who purchased it put in another (what I estimate to be) $50,000 to $80,000 to make it the Home they wanted.
We figured they would be underwater for a while. Boy, were we wrong. They can easily get a Million (and probably more) for it now if they decided to sell.
Like everything is Life, timing is everything.
True that about timing !
The same thing as with prepping = It's all about timing !
If you prep in advance of the shortage it's called being smart, wise, or prudent;
but, if you prep during a shortage, it's called "hoarding", and everyone covets your goods and is envious.
The other rule of real estate is :" Location, location, location ..."
Everyone wants temperate climate and temperature, blue skies, and where it only rains at night to refresh the lawn and the town reservoir.
That about eliminates about 47 of the other States.. You have already been Blessed !
Same happened with my 2020 Corvette Convertible.
I owned it for a few Months and sold it for $10,000 over what I paid for it (including Tax and License).
Had I waited a few more Months, I could have made another $10,000. The wait time to buy a new one at MSRP can be 18 Months so People are paying whatever they can for them now.
It is absolutely crazy.
Oh well. I did get a great deal on the 2021 RAM Laramie 1500 Pickup I replaced it with, so no complaints. LOL
So does Blackstone.
Yeah, we were looking at paying $120K cash for something small on property. Listings were on for a day or two before cash offers were made. Nuts.
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