What if housing never goes down in prices? Eventually we will have another "correction" but how big can that "correction" really be? 10%?
Fact is: there are more people than homes in desirable areas - they'll have to build new or pay market price. Demand will only increase as millenials continue to try and break into the housing market. We won't have another crash until the Zoomers start living in crazy Japanese-esque shared housing practices
Add to that - old people are living longer and staying at home longer, so the current homes are being occupied longer than ever before whereas before people died sooner so there was faster turnover
They won't in desirable areas. Wealthy third worlders love Western real estate as a way to secure their wealth.
Prices for the insanely over-valued markets maybe the only ones to suffer steep declines. Mid-level housing prices will continue to slowly rise. The cost for low-end house will also continue to increase for a number of reasons. Millions of people will be priced out of the middle market. Demand for housing continues to outpace the supply and prices for the cheap homes will continue to slowly increase. Mortgages will not be as widely available as they were in the past, and people will find themselves renting mid/low level homes for longer periods of time.
TL;DR the number of home owners will continue to decline as home values continue to increase. We're witnessing the physical displacement of the dwindling middle class.
Go read Henry George
Its not like housing is that expensive. You can get yourself a very nice house with $5k for a downpayment and ~$500 a month for the mortgage. I was able to get mine working bullshit jobs and getting autistic with my budget for a while. And Im getting ready to sell this house and upgrade a bit to something nicer. I havent held a decent job for longer than 6 months in the past 10 years. If I can do it so can you, get rid of the victim mentality and get shit done.
What makes the land so expensive and who pockets the increase in value?
I will add, in slight contradiction to my previous post, that I have indeed noticed that the types of homes being currently built has changed drastically. I've been in the market for a new house and have been looking into having a custom design built for me. The only for-hire home builders seem to be exclusively catering to people who can afford to have mcmansions that basically amounts to a palacial estate built. And all the other builders are your 'national firms' like d.r. horton and all of them are only building subdivisions on lands that they own, with their "low end" homes selling for around $175k.
It is odd that I can't seem to find any actual 'low end' home builders for hire.
People/corporations buying chunks of land and just sitting on them
>What if housing never goes down in prices?
my salary has reach $300k+ the last few years, I hope housing never goes down t b h f a m
what do you work as
We don't have a land shortage. The problem is that demand for the same land in coastal cities is outpacing construction of higher-density housing.
java monkey
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It's not space, it's density. Majority of people want to live around things to do. You could go to the midwest right now and find a cheap plot to build a house in the middle of nowhere.
Millennials don't want to live in the middle of nowhere.
Margins are too slim for low end builders. This is another reason why housing is unaffordable for so many people. The only real difference between a low income house and a 175k+ house is the finishing. Upgrading the countertops and throwing a fireplace in a tract home can bump the price up to 175k+.
That's not the main reason. The main reason why you can't just move in the middle of nowhere is because there's no fucking jobs. Everyone has to live very close to a major metro area now.
But the guy you bought it from wanted his money then. You were willing to not use your $3600, he wasn't. You were paid to not use the money, and for the risk of the lot being worth less in the future.
>5k downpayment
>500 a month mortgage
if youre not trollin you live in fucking middle of nowhere mississippi lol
A $500 mortgage works out to a 120k mortgage, assuming a reasonable interest rate...
I know the secret but I dont want to tell you all.
I'd like to know what the consider average and where they get those numbers. Obviously certain areas will drive up averages so it seems silly to lump it all together.
I can get an acre in NC for around 10k or less if it doesn't matter where it is and I'm assuming that's more than they are using as an average.
Housing will never go down in prices until the next financial crisis, why do you think Trump demands QE and lower interest rates? to keep asset prices for the rich elevated. Wallstreet and banks are making record profits right now.
Did you look into modular homes or just built on site? It has come a long way.
A correction right now would be about 25-35% depending on where you are. In a full on recession or crash you are looking at close to 50% possible.
Prices have already started dropping a bit since the rates went up, they will go back up starting now until end of summer unless they keep raising rates before then. If Trump gets impeached, we are looking at a crash.
Trump is putting his Presidency in the hands of the FED, he will do anything to prop up the stock market no matter how damaging it is to the middle class and poor. But I can't be too harsh, it's not like he has any options. Either maintain the bubble to new astronomical levels or this entire house of cards falls. The central banks of the world have us all in their hands and they will keep exacerbating this wealth disparity until we all beg for socialism..which is most likely by design. I really wish Jow Forums were more awake on this subject, most people think Trump is fighting the FED and he's playing 3D chess, it's the complete opposite, he's begging them to maintain this bubble and piling on debt just to keep this ponzi system chugging along. Ultimately it's going to destroy us all anyways.