Bingo. These taxes are not the problem. Housing supply and NIMBY regulations and single family house zoning regulations in dense city centers are the problem. And wages being critically low for decades now, people can't save and buy the way they used to, especially with inflation happening.
Check out Washington's home buyer programs, they are amazing, they even list the top mortgage brokers that the state recognizes get people mortgages through government programs. There's even down payment assistance programs where they pay all your closing costs and down payments and roll the cost into your mortgage payment monthly spread out over the term of your mortgage.
WSHFC | Home Buyer Programs
The Washington State Housing Finance Commission is a publicly accountable, self-supporting team, dedicated to increasing housing access and affordability and to expanding the availability of quality community services for the people of Washington.www.wshfc.org
You have to consider: is there a lot of space where you could build new homes? Not in most places where people want to live. Is it cheap to build a new home? Prices have risen and likely won't come down soon. Is there a population reduction making more houses available? No. So barring any bigger economic crash - that will ruin your savings anyway - don't put too much hopes.
Houses are not milk. They do not 'go off'.
Therefore, if the price is not right, the owners of said houses can sit on them for as long as they want until the price does go up to the right amount.
So don't expect to see house prices go down. Level out maybe, but nobody wants to be the person who had to sell their house for less than what they paid for it. That just isn't the done thing.
You're not married to California. Think about moving long term if homeownership is a goal. I say this as someone in another HCOL area.As a Californian, it must be nice to have dreams of home ownership.
You're not married to California. Think about moving long term if homeownership is a goal. I say this as someone in another HCOL area.
It's not like California is watching your back here, either. That said, if you have strong relationship there, I can understand the conundrum.
Heck, homeownership is quickly becoming unattainable in many MCOL areas.
Population reduction is also compensated by more single person households. And lots of developed countries are seeing their growth of population decline, not their actual population, even in 40 years.A population reduction has already begun in most developed countries, not in net due to immigration, but rural areas aren't benefiting from that. If the right has its way immigration to cities will soon start to dry up and with birthrates as low as they are it will only be a matter of time before population declines hit more urban areas.
This is a few decades out and won't happen if immigration rates are steady, but the building blocks for broad population decline are there. That will obviously have a major impact on housing costs.
We need to build more. We also need to bring back better zoning. Mixed use.Saw you edited and glad you did, because like that NYT story I shared I'm seeing MCOL just not be attainable like they once were. I remember stories as a kid of people moving out of NJ/NY to homes 3x the size (land or sq ft) for half and still having jobs. Now, not so much. With tech so widely dispersed and remote really taking hold a lot of those areas are long gone. A lot of it is definitely do to supply (like in Vermont, Montana, Idaho) but it is also competing with folks who have money to burn.
True, though among friends and colleagues, it seems as though not being able to sell for a profit generally means you postpone the move, or rent out the house, (which brings its own hassle, but that isn't quite as apparent to anyone doing it for the first time).This is not entirely true. If you have to move for work at some point you'd rather sell low than carry two mortgages. Same thing if you need to love to a larger house, have a change in finances, etc.
We need to build more. We also need to bring back better zoning. Mixed use.
SFH is extremely expensive, both in building them and maintaining the underlying infrastructure.
2008 will never happen again. I can't imagine a situation where tons of cheap housing comes back on the market and isn't immediately snatched by investors. Surely they must look at 2008 and realize how much money they left on the table. Personally, I think the price increases will slow, but probably just continue to rise. The last 2 years have been insanity, and I can't see that being a new normal.
The townhouse I got a few years ago has already ballooned in price by at least 50% down here in San Diego, but because everything else has too, I can't actually use that to get a better house or anything.
the housing crisis that will show up next isn't prices going down
but lack of homes for people to buy and sky high rents for the existing inventory
Rent is truly outrageous. We were lucky enough to find a townhouse to buy and it's $700-800 less than a 2 bedroom apartment would be in my neighborhood. My house was renting for $600 more than my mortgage and that's before we did a small renovation. It's insanity right now in the rental market.Already here:
National rent prices hit an all-time high, as home prices continue to soar | Fortune
The double-digit escalations come after two years of essentially flat rent rates.fortune.com
We were still in the dip from the crash 10 years ago, or just starting to rise at that point.Gosh I don't know, I've been waiting on a crash for ten years now and it never came. Even early days of covid only lowered prices a little, not a lot. I expect rising interest rates to cool demand but I don't think it'll crash. Hope it doesn't, since I just bought a house.
Why would they come back down? Why wouldn't banks and wealthy people just buy more of them?I don't know if it was crash or not but I have no clue how this is sustainable.
It is expensive to rent and buy. We might not crash this year but something has to give. I think it will slowly come back down to affordable levels.
I don't know if it was crash or not but I have no clue how this is sustainable.
It is expensive to rent and buy. We might not crash this year but something has to give. I think it will slowly come back down to affordable levels.
Lol I wanna buy a house in Houston this summer, but it's not happening, is it?
Already here:
National rent prices hit an all-time high, as home prices continue to soar | Fortune
The double-digit escalations come after two years of essentially flat rent rates.fortune.com
There is no metric or statistical rationale that prices go down right now. Like the last 100 years of property values tell you this.
Buy now, or forever rent is the unfortunate reality. It may stop the meteoric rise, but if anything, things will plateau. There is nothing in the market right now or at least in the next few years that would cause negative values. Inventory is still at record lows. There are simply not enough homes for sale vs people looking to buy. If we hit parity, we will see some improvement.
It's a shitty situation.
The difference is that it happened over time. This happened in 2 years. In the near term yes prices will be up but I think it was gradually go back down to a more affordable price. I am not saying it will go lower than what it was in 2019.
Either government steps in, interest rates or as inventory comes online. This is just what I think.
Hell, in Toronto, I've heard the bubble will burst since the mid 90s. Shit isn't ever going to pop. There is enough money from non residents of a city like this for it to ever pop. Residents of this city will just continue to be priced outPeople have been saying it's around the corner for over a decade. Don't listen to it and get yourself on the ladder if you can.