OT-What are you buying right now?

TEXASBGE2018 said:

Lit said:

TEXASBGE2018 said:

ColtsFan said:

ColbyLang said:

Lit said:

The market is changing for sure. Houses that were selling in 2 days a year ago are sitting on the market and they are priced $10-15k less. The only bad thing about waiting is the bottom doesn’t just fall out it takes years to hit the bottom. I wouldn’t buy a house right now. 

Here (and I’m sure elsewhere)the problem is that millennials, in general, aren’t buying starter homes in the 100k price range. They’re buying anything from 275-425. Therefore there’s a huge lack of inventory in that price range and houses are selling for above asking (which is crazy). 

Literally just had this conversation with a co-worker. He's young, right out of college (2-3 years) and making 50-60K. He's currently house shopping and says "Can you believe the bank will loan me 320k?" I replied with you should buy a house for 175k and pay it off in 15 years.... He said "You can do that?"

Kid's/young adults are clueless when it comes to personal finances and how to manage such....Crazy

I’m in Dallas and here most millennials want to live in apartments. The ones that don’t arent buying $100k houses. (Which here you wouldn’t want to live in anyways) They are buying $300k-$500k houses because they understand that when the market does tank those price ranges won’t be as impacted here locally. The other problem we have is a bunch of California folks are moving here and don’t understand that you can get a very nice  house here for about $300k and they are plentiful. So they come in and out bid each other on the 1st one they find and pretty soon the houses are overvalued. 

What do you mean the $300-500k houses won’t be impacted? Everything will be impacted even California was severely impacted last time and they thought the same thing. 

What I mean by that is that locally the people buying those houses are not buying them for an investment or to flip, and therefore are more likely to be living in and planning on staying in their houses long term. So a temporary market fluctuation wont impact them as much. People living here in 300k-500k houses would be considered upper middle class. A 500k house is the current barometer to upper class income earners here. They are also in general probably better prepared to handle an economic downturn than folks living in a 100k house making 20k a year.

TEXASBGE2018 said:

Lit said:

TEXASBGE2018 said:

Lit said:

TEXASBGE2018 said:

ColtsFan said:

ColbyLang said:

Lit said:

The market is changing for sure. Houses that were selling in 2 days a year ago are sitting on the market and they are priced $10-15k less. The only bad thing about waiting is the bottom doesn’t just fall out it takes years to hit the bottom. I wouldn’t buy a house right now. 

Here (and I’m sure elsewhere)the problem is that millennials, in general, aren’t buying starter homes in the 100k price range. They’re buying anything from 275-425. Therefore there’s a huge lack of inventory in that price range and houses are selling for above asking (which is crazy). 

Literally just had this conversation with a co-worker. He's young, right out of college (2-3 years) and making 50-60K. He's currently house shopping and says "Can you believe the bank will loan me 320k?" I replied with you should buy a house for 175k and pay it off in 15 years.... He said "You can do that?"

Kid's/young adults are clueless when it comes to personal finances and how to manage such....Crazy

I’m in Dallas and here most millennials want to live in apartments. The ones that don’t arent buying $100k houses. (Which here you wouldn’t want to live in anyways) They are buying $300k-$500k houses because they understand that when the market does tank those price ranges won’t be as impacted here locally. The other problem we have is a bunch of California folks are moving here and don’t understand that you can get a very nice  house here for about $300k and they are plentiful. So they come in and out bid each other on the 1st one they find and pretty soon the houses are overvalued. 

What do you mean the $300-500k houses won’t be impacted? Everything will be impacted even California was severely impacted last time and they thought the same thing. 

What I mean by that is that locally the people buying those houses are not buying them for an investment or to flip, and therefore are more likely to be living in and planning on staying in their houses long term. So a temporary market fluctuation wont impact them as much. People living here in 300k-500k houses would be considered upper middle class. A 500k house is the current barometer to upper class income earners here. They are also in general probably better prepared to handle an economic downturn than folks living in a 100k house making 20k a year.

When jobs go away the people with a $2700 a month mortgage payment get foreclosed on quickly and there aren’t jobs in the same salary range readily available. Plenty of $20k jobs people can do to pay their bills. I did mortgages for 5 years out of college right before the crash fully hit I got out. Everyone was affected especially the people that had 35% DTI rations like I’m guessing a lot of the people buying half million dollar homes have. There are only so many 6 figure jobs around they can’t all have them. 

Ya that’s true to an extent. Locally we weren’t impacted nearly as much as the rest of the country in the last downturn. Of course it hit everyone but people making 100k+ a year seemed to do a bit better here. Our areas unemployment rates were among the lowest in the country at that time. Again our biggest issue here is not so much fear of a housing crash as it is out of state people moving here and artificially inflating the housing market.