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Houses cost too much!

bumpybumpy Posts: 4,435
I did some poking around in Ye Olde Census, and in 2000 the median home price here was $118,000, and the median income was around $43,000. Real estate has gone up some since then, mostly from retirees and Yankees coming in and bidding up everything.
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Comments

  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,986
    Where's here?

    Back in '75 or so I got my first house in TN for ~$19k. Zillow puts the tax appraisal at $102k today.

    With the rise in the standard deduction, it's barely worth the tax break to carry a mortgage these days.
  • bumpybumpy Posts: 4,435
    Rural eastern Virginia.
  • patpat Posts: 10,421
    Yeah? Like Isle of Wight? Or maybe the eastern shore? Or where? I'm in Norfolk. :)
  • fintailfintail Posts: 32,923
    It's much worse on the west coast...Seattle area and BC Lower Mainland are insane. A house that was 20K 45 years ago can be 600K+ today.
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    You can't even find a house where I live for 600K, and the houses are not very big or elaborate. It's where they are sitting that makes them so expensive. A 1500 square foot, 2 bedroom frame cottage built in the 40s, basically a one-story ranch, can be worth 1.2 million, no problem. It's much smarter to rent.
  • fintailfintail Posts: 32,923
    It's not that bad here - yet. The house across the street from me, a 1050 sq ft 1950-ish cottage with decades of neglect, Zillows at about 650K. No view, no huge lot, nothing. I think the average in my zipcode is approaching 1M. Renting is the only option for most, that's why a block of houses will be torn down for condos or apartments. I still prefer this to a long commute.

    It's funny too, if you drive 2 hours, you can get a decent little house for 100K. But, there's a reason for that.
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    I'm happy with the renting situation as it allows me to live in a house I couldn't possibly otherwise live in. When rent is about 1/5th the mortgage, it's got to be the bargain of the century. The landlord doesn't care, since he didn't put any value into the house since he bought it so many years ago. All that has "gone up" is the price. If a house becomes more valuable without any improvements whatsoever, this isn't an "investment", this is a speculation, like hog bellies or gold futures.
  • jipsterjipster Posts: 5,345
    The Louisville housing market is one of the lowest in the country I believe. The median selling price is around $140,000... nicely loaded.
  • fintailfintail Posts: 32,923
    If my apartment building went condo, the mortgage would be about double my rent as well. This would still be cheap for the area, and not the worst deal - I would be tempted, even though it might strain my finances. I am a little leery of the local condo market though, with many new conversions and new construction, I think a saturation point might be met. It happened for condos where I used to live, they aren't appreciating nearly as fast as houses, as they once did.

    Here, many people are betting their retirement on their house, it's more of a risk than anyone will admit.
  • fintailfintail Posts: 32,923
    I can't even imagine. 140K wouldn't get a garden shed behind a crackhouse here.

    My ca. 600 sq ft apartment would bring about 250K as a condo, with the most modest upgrades.
  • okko1okko1 Posts: 327
    in the area i live 150 is average 200 is movin up if you can commute 4 years ago i was offered a spot that had a modular home 80x32 with 40 acres and a 4.5 acre pond the house setting 1/4 mile from the road for 159 the neigbor spent 350 on his house with the comfort of knowing he will have some privacy for at least the next 20 years
  • fintailfintail Posts: 32,923
    Insane. They say we have higher incomes out here, but it does not make up for the housing cost. I can't imagine anything decent here for 150K...a dumpy 30 year old condo a 45 minute drive from work might hit 150 at the low end.

    One good thing, the house my grandparents paid ca. 20K for around 1960 is worth something like 600K now. Sadly, no other family members live in this area, so no other big appreciation on my side.
  • okko1okko1 Posts: 327
    i live in a small town in kansas where lets say building codes are not so restrictive. about 30 days ago the house behind me was demolished. today they started the grade work it is supposed to be a 3 bedroom bath and a half with two car garage. i will guess about 145-160 for the turn key.
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    That's interesting. The price variations are so radical in this country.

    Interestingly I've read somewhere that historically real estate values have NOT gone up a lot in the past--these last 30 years are quite a glitch in the normal trend of real estate in the USA.
  • fezofezo Posts: 9,195
    I wonder about that with the prices. My grandparents built a very nice house in 1928 for $6K. In 1952 my parents bought a considerably lesser house for $8K.

    Nowadays either house will get at least $400K and they are both still in the family.
  • fintailfintail Posts: 32,923
    It was the same here, too. My great-grandparents bought a house in Seattle in 1950 for something like 8K. It was built in 1925, and cost something like 5K then. Not a special house, just a typical colonial-revival cottage. When my great-grandmother moved to a care home in 1999, the house sold for 250K, and it needed everything, they had never updated anything. Today, with renovations, it it is worth like 750K.
  • okko1okko1 Posts: 327
    it was about 15 years ago when johnson county got the rush from new jersey. people were selling very modest homes back there and buying houses with 3500sqft. of living space and telling me of how they made enough on the house they sold to go about even on the new one back then the house would start at about 250 and depending on finishing options up to 350. lots for these homes were about 40. :shades:
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    Well much of the rise in prices is due of course not to the VALUE of the house going up, but rather to just the PRICE going up....it's the same basic $8K house and certainly it didn't have $392K in value-added improvements.

    Which means that real estate is not an "investment" (value-added entity like a growing corporation's stock) but rather a speculation. This would explain the sudden glitch in real estate prices over the past few decades, and it's quite conceivable therefore, that like any speculation, it could just go POP at any time.
  • okko1okko1 Posts: 327
    plumbing is snubbed and gas line in place grade read for footings. not sure yet of layout but i wish i had a picture of the place they tore down i guess it is poor boy urban renewal.
  • michaellmichaell Posts: 4,300
    I live between Denver and Co. Springs, and my house (7 years old, 3bd/2.5ba, 1600sf on a 5000sf lot) is worth around $210K.

    My folks, on the other hand, live northwest of LA. They bought their house new in 1968 for $23K. It's now worth around $550K. It's 1450sf on a 7200sf lot - 3bd/2ba.

    At the top of the scale is my sister and BIL - they live outside of San Diego. Bought their house (3000sf, 4/5bd, 3ba) 2 or 3 years ago for just under $500K, last time they had it appraised, it was valued at just over $900K.
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