Posted on 07/22/2021 10:04:53 AM PDT by ChicagoConservative27
The median sale price of an existing home rose to a record high of $363,300 in June as purchases broke a four-month streak of declines, according to data released Thursday by the National Association of Realtors (NAR).
As home sales rose 1.4 percent last month, the median sale price of an existing home soared 23.4 percent in the year since June 2020 — just 0.2 percentage points below May’s record-setting annual increase. The median sale price of an existing home one year ago was $294,000.
A small increase in the housing supply helped sales increase for the first time since February, said NAR chief economist Lawrence Yun, but did little to cool the staggering rise in prices that suppressed sales earlier this year.
(Excerpt) Read more at thehill.com ...
Using traditional mortgage qualifying criteria, such as rules of thumb that you can afford a house costing 2 1/2 times your income, very few can afford a house anymore.
Houses are so expensive nobody is buying them anymore
State bureaucrats in states with property taxes are rubbing their hands with glee...
That you, Yogi?
I own acreage with two houses and a shop in Hawaii.
My property taxes doubled last year.
I have no plans to sell. Who is getting rich off this bubble? Government.
The cure for high prices is...high prices.
In between sell and purchase, invest what you made from your sale across many asset classes, maybe 1/4th to 1/3rd in safer asset classes (i.e. mutual funds of treasuries and bonds of different time durations) and the rest in high growth asset classes. If the stock market has crashed when you're buying, if you're in enough asset classes at least some of your investments will be up and you can use that money as a down payment on the new house. (Selling high, not selling low). You can let money in the other asset classes take time to recover and start making money. But that's only if the stock market crashed at all.
If only the real estate market crashes before you buy (remember, the point is to buy the new house only after housing prices go back down), but most of your stocks are up, you made money in between house ownerships.
With interest rates as low as they are, when you buy your new house you may not want to pay it all off. You may decide to make minimum payments on a mortgage for years while your money stays invested and makes a lot to more than compensate for your mortgage interest.
“My property taxes doubled last year.”
I’m being nibby. What are property taxes in HI for an average size home?
I don’t know anything about AZ, but the real estate market here in South Florida is on fire. Plan accordingly.
I don’t think it will crash. This is inflation in action, and input costs for new builds are massively higher as well so limited supply to offset. I think the pace of growth will slow but crash? Unlikely. Very unlikely.
The House we sold in Orange County CA two years ago is now worth over $250,000 more than we listed it for.
Timing is everything.
Pfff.. only transitory.
Because of homeowners and old age exemptions they are pretty low. The increase was expressed in percentage to demonstrate the magnitude of government tax increases. Non-resident younger property owners pay way more than I do.
My property taxes are almost $2000 per year. If you could afford my place and bought is as a VRBO. It would be about
$15,000 per year.
“I don’t think it will crash”
67% of millenials who purchased a home in the last few years regret doing so. Upkeep gets into their fun time.
Gen X who were polled said they have zero interest in purchasing a home.
The younger generations are a rent/leasing bunch of folk. They grew up on subscibing and renting and change jobs and move around often. Car buying is going to be a thing of the past in a few more years.
Going to be interesting when us old geezers die off what happens to the home prices.
I’ve had people here in Charlotte, NC tell me their houses were bought the day they put them on the marker sight unseen. It is people fleeing northern red states desperate for a home in the south.
How many of these new home sales are to first-time buyers (newly weds, young kids just starting out, etc.)? How can they suddenly earn $145K per year, and pay a $36,000 down payment?
Either first-time jobs really pay well, or there are "black market" mortgages. The mortgage bubble resembles the derivatives bubble of 2007.
We intend to help our young adult children as much as we can. It is no longer shameful to live in your parent’s basement; it is necessary.
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