Are home prices too $$$$ to buy in your area?

[Queasy]

Heh, there was actually a quote from a San Fran city councilman during the recall election complaining that all the jobs in the area were causing the housing problem. Claimed that a ratio of like 16 jobs to one house were causing the problems. Sounds like someone needs encourage housing development a little more instead of complaining about <too> many jobs.

 

[huesmann]

Prices are not dropping anytime soon. If there's demand, houses will continue to be bought at insane prices. As long as interest rates are reasonable (and they still are) people will still spend their hard-earned cash on houses. When interest rates climb too high, they will stop and just rent instead.

 

[anno]

it depends on the house and the neighborhood, of course.. there's some new posh neighborhoods where a 3bedroom 2 bath house might conceivably cost 300K.. but they'd be big rooms. I don't honestly know what new houses cost around here.. new ordinary houses.. but I expect you could buy my 25yo 3-4 bedroom 2.5 bath 2300sqft house for around 135k. (columbia sc)

 

[Jinny]

I'm from SAn Francisco, the house a block down, brand new is selling for about 1mil EACH half of the house

so almost around 2 MIL for a goddamn 3 story house. I'm guessing 3000 sq feet.

 

[T2T III]

Originally posted by: rutchtkim
Northern Jersey: 600+

No doubt. My mother-in-law sold her 3 BR, "1" Bath home for $350K about 13 years ago in Morristown. I can only imagine that the prices of late have only gotten much higher.

 

[Thegonagle]

Depends on the neighborhood. Many hoods are way over-valued, and some are quite reasonable for a good/quiet/clean area.

I'm in Minneapolis. All the trendroids want the south-side right now, while reasonable people are settling in north-east. North is still ghetto-class in too large an area for many people to invest much in most of the neighborhoods.

 

[DrPizza]

Southwestern NY: 3 bedroom, 2 bath for as little as 40K (that includes a garage, big yard, etc.)

I did a quick search on realtor.com.... amazing what's available. smaller home, 3 acres (3 bedroom 2 bath, built in 1948) Bargain at $32,500

 

[JulesMaximus]

North San Diego County-coastal and the cheapest you'll find is $400k. Carlsbad and south though you can't find anything for under $600k except maybe a condo.

My wife held an open house a few weeks ago at a condo in Solana Beach, 2BD 2BTH 1200 sq ft with ocean view listed at $1.2 million. No garage, no yard only 2 subterranian parking spots.

 

[Joemonkey]

in Danville KY (about 40 miles southwest of Lexington) I live behind a school in a really good neighborhood, got a 3br 2bath house, full basement that is half furnished (the other half split into a workshop and a laundry room), most of a 2nd story as well (it's a furnished attic, runs the length of the house). Paid $70k for this house. Of course, i'm on 0.14 acres, but i hate to mow the grass and being across the street from the playground of an elementary school is fine too!

 

[PanzerIV]

Originally posted by: Skoorb
Birmingham suburbs you can get a new 4 bedroom for under $200k. Not much under 200k, but under. 3 bedrooms new start around $130k for a small one. $150k will get you a nice 3 bedroom garden home not tooo far out of the city with 2 bath, two car garage, yard, etc. We did that. Houses prices are not bad at all

Pretty much the same thing over here in the Jackson, MS area. For the prices Leejai is quoting you can damn near get a mansion around here. Mmmmm mansion.......

 

[conjur]

Here, one can get a 2000sq. ft., 4BR, 2 1/2 bath, 2-car garage, basement and in a very nice part of town for just under $200k

 

[cyclistca]

In Vancouver it cost 450K cdn and up to get an ok 2 br house. I'm in IT with a good paycheck and I can't even think about buying a house. Right now I'm looking at condos and even they are priced close to 300K.

 

[Alternex]

How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

 

[conjur]

Originally posted by: Alternex
How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

According to an online mortgage calculator:

Monthly Gross Income: $15,000 (or $180,000/yr)
Down payment: $150,000
Interest rate: 8%
Term length: 360 mos.
Homeowner's Ins.: $1000/yr
Property Taxes: $7500/yr

Affordable home amount: $790,000
Affordable mortgage: $4,200

And, that assumes NO OTHER DEBT such as car payment, credit cards, etc.

 

[DT4K]

Originally posted by: DrPizza
Southwestern NY: 3 bedroom, 2 bath for as little as 40K (that includes a garage, big yard, etc.)

I did a quick search on realtor.com.... amazing what's available. smaller home, 3 acres (3 bedroom 2 bath, built in 1948) Bargain at $32,500

link?
I find those quotes extremely hard to believe.
Unless they are sitting on ex-nuclear waste dumps.

 

[sxr7171]

Originally posted by: conjur

Originally posted by: Alternex How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

According to an online mortgage calculator: Monthly Gross Income: $15,000 (or $180,000/yr) Down payment: $150,000 Interest rate: 8% Term length: 360 mos. Homeowner's Ins.: $1000/yr Property Taxes: $7500/yr Affordable home amount: $790,000 Affordable mortgage: $4,200 And, that assumes NO OTHER DEBT such as car payment, credit cards, etc.

Back in the day they used to tell us that 2.5 times gross income was a comfortable mortgage. I realize that interest rates are lower than they were in the 80s, but still 4.5 times gross is insane (but commonly done these days).

 

[CrazyDe1]

Originally posted by: sxr7171

Originally posted by: conjur

Originally posted by: Alternex How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

According to an online mortgage calculator: Monthly Gross Income: $15,000 (or $180,000/yr) Down payment: $150,000 Interest rate: 8% Term length: 360 mos. Homeowner's Ins.: $1000/yr Property Taxes: $7500/yr Affordable home amount: $790,000 Affordable mortgage: $4,200 And, that assumes NO OTHER DEBT such as car payment, credit cards, etc.

Back in the day they used to tell us that 2.5 times gross income was a comfortable mortgage. I realize that interest rates are lower than they were in the 80s, but still 4.5 times gross is insane (but commonly done these days).

I'm doin it...but I have no debts and nothing really to lose. In the worst case scenario my parents agreed to sell their house at which point I'd just pay off my house and they'd live with me until I got off my feet again because I know in a golf course community and in a highly developing area with the parade of homes coming next year, the house is going to continue to appreciate. So to me, my house is an investment. I know my job is secure for 2 years and I won't have to buy another car hopefully for another 5 years so in 2 years time if something happens I can still probably sell the house at a decent profit 3 years down the line.

I'm very lucky...I have very supportive parents. Hell, they were willing to take out money out of their retirement funds at a 20% penalty so that I could have a 20% downpayment so I wouldn't have to pay mortgage insurance and have reasonable payments.

 

[T2T III]

Originally posted by: Shanti

Originally posted by: DrPizza
Southwestern NY: 3 bedroom, 2 bath for as little as 40K (that includes a garage, big yard, etc.)

I did a quick search on realtor.com.... amazing what's available. smaller home, 3 acres (3 bedroom 2 bath, built in 1948) Bargain at $32,500

link?
I find those quotes extremely hard to believe.
Unless they are sitting on ex-nuclear waste dumps.

Actually, it's not that unrealistic. It's an area that gets dumped on by a fair amount of snow in the winter, too.

 

[DT4K]

Originally posted by: sxr7171

Originally posted by: conjur

Originally posted by: Alternex How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

According to an online mortgage calculator: Monthly Gross Income: $15,000 (or $180,000/yr) Down payment: $150,000 Interest rate: 8% Term length: 360 mos. Homeowner's Ins.: $1000/yr Property Taxes: $7500/yr Affordable home amount: $790,000 Affordable mortgage: $4,200 And, that assumes NO OTHER DEBT such as car payment, credit cards, etc.

Back in the day they used to tell us that 2.5 times gross income was a comfortable mortgage. I realize that interest rates are lower than they were in the 80s, but still 4.5 times gross is insane (but commonly done these days).

It really depends on what your income is.
If I made 15k a month, I could probably afford even a 7 k payment because most of my other expenses wouldn't go up that much.

 

[Leejai]

Originally posted by: Alternex
How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

I heard your mortgage can be no more than 45% of your gross adjusted income.

 

[SammyBoy]

The average price for any house on my street or the next 3 streets over in any direction is ~900 grand I'd think. My parent's house would probably sell for 1.4mil or so. Too bad we dont own much of it.

 

[CrazyDe1]

Originally posted by: Leejai

Originally posted by: Alternex
How much combined home income should you guys make to afford a 800K house in the bay area? My wife has a friend there that makes around 80K and was considering buying a 600K condo - i have no idea how she could afford that on her income!

I heard your mortgage can be no more than 45% of your gross adjusted income.

Mine's about 55% of it. The payment with insurance and homers fees and property tax is about 1600 a month. I make about 3000 a month after taxes, this does not include my deduction though. 3750 if you count my roommate paying rent. I have enough to save about 500 each month.

The only reason why I qualified is my mom cosigned and she has a credit score above 750 with no debt. My 2 monthes work history didn't quite do it

 

[Scouzer]

Dad's house...2 bath 3 bedrooms up 2 down 1200sqft w/ 2 car garage built in '79...$75k USD 5 years ago...

Mom's house 1.5 bath 3 bedroom 950 sqft built in '95 $100k USD 2 years ago

House prices are considered high around here now...suburb of Edmonton, Canada.

 

[MrPickins]

I just bought a 1500 SqFt 3/2 here in Austin for $128,000. Most of the ones we looked at were $150-160,000, though...

I'm glad I'm not scared of a few home repairs, so we got a good deal on a home in a nice neighborhood.

I should mention that the lots we looked at all had nice trees. You can find newly built houses with tiny yards and saplings for 100,000+

 

[IGBT]

When you factor in the cost of homeowners insurance prop tax and maintance and in some cases CC&R fees..how does the average hacker make it?? Legacy loans that will take generations to pay off like in Japan and Hong Kong?? We're almost at that point.