Posted on 08/29/2022 7:16:57 AM PDT by millenial4freedom
A majority of new American homeowners say they’re “house rich and cash poor,” according to a new U.S. News & World Report survey.
The survey, conducted by the third-party survey platform Pollfish, asked 2,000 new homeowners in the U.S., who purchased their first home between 2021 and 2022, how they currently feel about their financial situation.
More than half of them — 59% — answered that “house rich and cash poor describes my situation.” It’s a sentiment that “reflects both the rising sales prices of homes across the country as well as some of the unexpected costs of homeownership that first-time homebuyers encounter,” according to the U.S. News and World report.
LOL, yeah, but he makes a mean cup of instant cocoa.
I got a call from our middle daughter last month. “Dad, can you make sure I rewired the drier correctly?” We did a video chat and she had done it 100% correct. The drier had the old-style cord and their new house had the new-style 220 volt outlet.
Never saw that coming, LOL.
> Yep, might be time to start looking at snapping up some properties on the cheap.
There is not yet “blood in the streets”. People are still looking to get out of their mistakes somewhat whole. Me, I’m not going to subsidize that kind of poor decision making any more than I have to through my taxes.
Here’s a quick tip for these buyers:
You are House Poor too
I’ll watch. Unfortunately some people I know bought at the top in spite of my suggesting otherwise. I hope they don’t get burned but they are going to have to hold it and make payments for a very long time. They are stuck with it now and I am sorry but I told them so.
I won’t say I never saw such greed but this ranks right up near the top. Property I thought was too high in the summer of ‘21 is now asking and not getting three times the price. They can choke on it, I hope. It is mostly flood prone. Anybody that asks I tell them how many times I have seen almost the entire property under water. I laugh, the water is why I didn’t buy it a year ago. Being close to a development does not make it one.
I have a neighbor just like that today. Constant stream of “handymen” taking care of things and fixing things up. No clue about home ownership. They offered 19% above asking and I thought asking was insanely high.
Wife and I have running bet that house goes back up for sale in less than 18 months.
House prices always cycle up and down. When they go down you bite the bullet because they eventually recover.
Perhaps “Dutch auction” was the term I was looking for.
NWA is being raped and I’m much closer to it than I ever thought I would or wanted to be.
It is not made for such growth. It is just another mess.
Bought my house in 1983. I’m still in it and it’s paid for. It’s a matchbox but it’s mine thank God. my payments were around $280 per month which fluctuated some due to refinancing several years ago. Anyway I look at the market now and am stunned at what is being asked and paid for homes. And everyone seems to want 3000+ SF and newly built. It’s ridiculous imho.
Just for the record, it is called a Dutch Auction.
While I’m seeing some significant price reductions in our area, the reduction is usually the “greed layer” the sellers added in hoping to screw rabid buyers out of extra money. After that reduction, it’ll be awhile before sellers start giving their houses away at fire sale prices. Sellers are usually the last ones to admit the market has completely turned against them. Now, there are some that bought a house contingent on the sale of their current house. Those folks might just fold.
“Constant stream of “handymen” taking care of things and fixing things up”
More money than common sense huh?
I just can’t see paying someone to do things I can do with a little research a few tools and some patience......not to mention the peace of mind in knowing it was done correctly.
Who didn’t see that coming. It’s the perfect set up for a deflationary Depression.
These guys aren’t homeowners, but merely proud owners of a mortgage. If ya really bought the house, there isn’t a concern for the long term. Only a fool would ‘own’ a home now, especially concerning the need to move for work, local tax collectors, etc.
“unexpected costs of homeownership that first-time homebuyers encounter,”
This is the result of your statement regarding buying “AS IS”. You are then on the hook for repairs that can be tens of thousands of dollars.
Not to mention having to become friends with your local hardware store, paint retailer, Home Depot and Lowes. I remember buying things like shovels, garden hoses, wheel barrows when I bought my first house in 1990.
During the great depression, millions of Americans lost houses and farms to THE TAXMAN! Mortgages were far less common.
Today you might lose them due to nonpayment of your mortgage.
Fortunately, we live in Fl with the appraisal capped under market value. We have lived here 25 years and have watched neighbors come and go. Relatively same home across street pays 8K RE tax, we are at 3K. Beyond that, some ninny moved in two months ago and paid 300K over last similar sale in the neighborhood. IOW, that home is at least 100-150K potentially lower if resold now. Since from out of state, their RE Tax based on full value will be close to 10K. So either they won the lotto, got a huge inheritance, or are just well off, so they must be a tad upset. That house never even hit the multiple listing when sold. I don’t get it.
“While I’m seeing some significant price reductions in our area...”
Not where I am....yet anyway.
A house up the street that happens to have the same floor plan as mine sold for only $3500 less than asking.....I guess that’s better than last year when the one across the street sold for $39000 OVER asking......in less than a week.
You can’t fix stupid
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