The only thing that fluctuates is mortgage rates and people got used to them being INSANELY low compared to historical averages. They aren't even *bad* now they just aren't the stupidly low rates that were only a couple percent.The difference being that 18% of 50k is a lot less than 7% of 400k, and that's before even talking about the ratio of the average income vs those prices at each time period.
I knew a lot of people who were buying in the 80's where rates were up to like 18%. Like seriously I knew a handful of people who bought when rates were 14 to 16% then.
It honestly won't get better. I have seen houses increase in pricing my entire life and I'm 48. They legitimately don't go down. They creep up year after year after year steadily.
The difference being that 18% of 50k is a lot less than 7% of 400k, and that's before even talking about the ratio of the average income vs those prices at each time period.
Sure, I'm just saying houses will never go down in price, they consistently rise over time. The only thing you can expect to fluctuate is mortgage rates. That is all I'm getting at. Houses are just going to keep going up and up and up and up. They won't be cheaper in 2030 or 2035, or 2040. Historically they have shown this.Houses increase in value relative to inflation makes sense.
They certainly did in 2008 & 2009. Sure, it was due to the financial system nearly collapsing due to corporate greed through monetizing bad mortgages, but it still happened.
I saw this posted recently. Seems relevent.Ok, for the house to increase over 4x in price in just 10 years is fucking insane, even in the hottest housing markets.
https://gamefaqs.gamespot.com/a/forum/5/5e266937.jpg
Ok, for the house to increase over 4x in price in just 10 years is fucking insane, even in the hottest housing markets.
Must be the absolute most sought-after fast-growing area in the entire country (which couldn't have been high value before 2014 b/c it was only $185K back then). Like, even Sunbelt areas don't fit that bill (fast growing before then and didn't spike that much in a decade).
Something is missing or they're lying. Maybe the house was significantly renovated and such. Like the basement got finished, added a pool in the backyard, etc...
My wife and I literally put an offer on a house today and were outbid
I have no more details about that pic than you. Just saw someone post it and I saved it. No idea if it's even true, but I thought I'd post it and see what y'all think.I agree with the other user that it seems like there's something missing that would explain the price jump like that, or it's just BS
It honestly won't get better. I have seen houses increase in pricing my entire life and I'm 48. They legitimately don't go down. They creep up year after year after year steadily.Average house back then was like 3-4 years worth of your salary without a college degree though. It aint the same
The only thing that fluctuates is mortgage rates and people got used to them being INSANELY low compared to historical averages. They aren't even *bad* now they just aren't the stupidly low rates that were only a couple percent.
I knew a lot of people who were buying in the 80's where rates were up to like 18%. Like seriously I knew a handful of people who bought when rates were 14 to 16% then.
So don't expect houses to get cheaper. They will keep going up. I suppose it is possible mortgage rates could eventually fall to low levels again but I wouldn't count on it for a long while.