DevoHusker Posted January 9 Share Posted January 9 1 hour ago, Archy1221 said: The median sale price in 2020 was $296,000 an an interest rate of 2.85% on a 30yr for a payment of $1,232..ish. The median sale price in 2023 was $398,000 an interest rate of 7%on a 30yr for a payment of $2,648..ish For roughly the same house, people are paying $1,400 more per month for the median house. This isn’t just the result of local zoning laws. Not sure what's funny about this. Guess you don't have kids that want to buy a house but can't. I am glad I am locked in at 3%. 1 Link to comment
Dr. Strangelove Posted January 9 Share Posted January 9 1 hour ago, Archy1221 said: The median sale price in 2020 was $296,000 an an interest rate of 2.85% on a 30yr for a payment of $1,232..ish. The median sale price in 2023 was $398,000 an interest rate of 7%on a 30yr for a payment of $2,648..ish For roughly the same house, people are paying $1,400 more per month for the median house. This isn’t just the result of local zoning laws. The housing costs rising were the result of a historic plunge in mortgage rates, with simultaneous low inventory post 2008. Simply put: the demand for single family homes is extreme. The number of millennial couples in their prime earning years entering the housing since 2020 numbers in the millions. 1 Link to comment
Archy1221 Posted January 9 Share Posted January 9 41 minutes ago, Dr. Strangelove said: The housing costs rising were the result of a historic plunge in mortgage rates, with simultaneous low inventory post 2008. Simply put: the demand for single family homes is extreme. The number of millennial couples in their prime earning years entering the housing since 2020 numbers in the millions. As we have now both noted, it’s not just local zoning laws like you claimed in an earlier post. 1 Link to comment
Dr. Strangelove Posted January 9 Share Posted January 9 12 minutes ago, Archy1221 said: As we have now both noted, it’s not just local zoning laws like you claimed in an earlier post. While true, local zoning limiting supply is far and away the single biggest driver to housing costs. It's also the main factor that voters can control. Some states have realized the tremendous benefit to making housing cheap and easy to build, like Texas. If there's one thing that Republican's in states like Texas, Florida and North Carolina have done well it's been building houses and doing so in a cost efficient way. That doesn't mean their housing policy is perfect, but compare them to the historical policy of California and what their residents have done to housing... it's insane. 1 1 Link to comment
teachercd Posted January 9 Share Posted January 9 4 hours ago, Archy1221 said: The median sale price in 2020 was $296,000 an an interest rate of 2.85% on a 30yr for a payment of $1,232..ish. The median sale price in 2023 was $398,000 an interest rate of 7%on a 30yr for a payment of $2,648..ish For roughly the same house, people are paying $1,400 more per month for the median house. This isn’t just the result of local zoning laws. Lady I teach with just bought her house over the summer...tiny bit smaller than mine, roughly the same area, she paid 150K more for hers and her payment is almost triple mine. 1 hour ago, Dr. Strangelove said: While true, local zoning limiting supply is far and away the single biggest driver to housing costs. It's also the main factor that voters can control. Some states have realized the tremendous benefit to making housing cheap and easy to build, like Texas. If there's one thing that Republican's in states like Texas, Florida and North Carolina have done well it's been building houses and doing so in a cost efficient way. That doesn't mean their housing policy is perfect, but compare them to the historical policy of California and what their residents have done to housing... it's insane. A lot of the southern states seem to sort of have it figured out. Housing is way cheaper and property taxes are super low. 2 Link to comment
Archy1221 Posted January 9 Share Posted January 9 18 minutes ago, Dr. Strangelove said: While true, local zoning limiting supply is far and away the single biggest driver to housing costs. It's also the main factor that voters can control. Some states have realized the tremendous benefit to making housing cheap and easy to build, like Texas. If there's one thing that Republican's in states like Texas, Florida and North Carolina have done well it's been building houses and doing so in a cost efficient way. That doesn't mean their housing policy is perfect, but compare them to the historical policy of California and what their residents have done to housing... it's insane. I certainly agree with you that zoning laws can drive the cost of entry for housing, I feel you are discounting way too much the rise in interest rates, the rise in material costs, labor costs, etc…combined with the inventory shortage in places where zoning isn’t really an issue. It’s not just the price of the housing, it’s the total cost of the housing that’s preventing first time homebuying or even people with home equity to move onto something else. 1 Link to comment
BigRedBuster Posted January 9 Share Posted January 9 There are a heck of a lot of things that go into the cost of housing. Zoning laws Interest Rates Insurance premiums Building material cost Labor costs Taxes Influence of private equity groups buying up homes Demand Supply chain disruptions And, I'm sure I left some things off the list. The cost of housing isn't going to be fixed by quick answers and sound bites from politicians blaming the other party for the problems. 2 Link to comment
teachercd Posted January 9 Share Posted January 9 Do property taxes ever really come down? Interest rates will come down. Cost of materials won't come down all that much and labor costs are never coming down If you are looking to buy now are in the future it will be rough. Will banks pretty much start going requiring a huge downpayment again? I put 3% down, can you even do that anymore? 1 Link to comment
BigRedBuster Posted January 9 Share Posted January 9 1 hour ago, teachercd said: Do property taxes ever really come down? Interest rates will come down. Cost of materials won't come down all that much and labor costs are never coming down If you are looking to buy now are in the future it will be rough. Will banks pretty much start going requiring a huge downpayment again? I put 3% down, can you even do that anymore? Don’t count on taxes coming down. Construction materials actually have come down a lot. I expect interest rates to come down quite a bit this year. I actually think it should be required that home buyers have more down than what you paid. Take your friend who just bought a house. If home prices drop like the way everyone wants, they will be upside down and banks REALLY don’t like that. That’s a big part of what caused the crash in ‘07. The best thing is for homes to just about stay the same price for several years. Link to comment
BigRedBuster Posted January 9 Share Posted January 9 I really wish I would have voted for this guy twice. Link to comment
Dr. Strangelove Posted January 9 Share Posted January 9 2 hours ago, Archy1221 said: I certainly agree with you that zoning laws can drive the cost of entry for housing, I feel you are discounting way too much the rise in interest rates, the rise in material costs, labor costs, etc…combined with the inventory shortage in places where zoning isn’t really an issue. It’s not just the price of the housing, it’s the total cost of the housing that’s preventing first time homebuying or even people with home equity to move onto something else. Right, it's a total package of scenarios. But I think it's a better illustration to say that low inventory of houses caused by zoning, combined with a demographic shift of millennials entering their 30s is a powder keg. The sudden drop in interest rates was the fuse that set it off. Chances are housing was going to be pushed to extreme levels because of demographics eventually and COVID accelerated it. 1 Link to comment
commando Posted January 9 Share Posted January 9 5 hours ago, DevoHusker said: Not sure what's funny about this. Guess you don't have kids that want to buy a house but can't. I am glad I am locked in at 3%. you don't have to buy a 2700 square foot new house as a starter home. my middle son and his new wife bought a 20 year old, 1700 square foot house. they are both 2 years out of college and teaching in Norfolk. Link to comment
DevoHusker Posted January 9 Share Posted January 9 18 minutes ago, commando said: you don't have to buy a 2700 square foot new house as a starter home. my middle son and his new wife bought a 20 year old, 1700 square foot house. they are both 2 years out of college and teaching in Norfolk. That's great! Did they buy this year? What interest did they get? I do t know anyone that can afford a new 2700 sf house right now...would be in the upper 300s if not 400s in Tri Cities 1 Link to comment
teachercd Posted January 9 Share Posted January 9 29 minutes ago, commando said: you don't have to buy a 2700 square foot new house as a starter home. my middle son and his new wife bought a 20 year old, 1700 square foot house. they are both 2 years out of college and teaching in Norfolk. What about in Ashland, can you even buy in Ashland right now for under 300K? That place has become pretty popular. 1 Link to comment
commando Posted January 9 Share Posted January 9 1 minute ago, teachercd said: What about in Ashland, can you even buy in Ashland right now for under 300K? That place has become pretty popular. lots of new homes in the area. the older homes can easily be bought for under $300k depending on the house of course. 1 Link to comment
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