1 - Common Sense
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The salary you must earn to buy a home in 27 metros
The salary you must earn to buy a home in 27 metros
How much salary do you need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in your metro area?
Last edited by Common Sense (3/10/2015 9:48 am)
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Re: The salary you must earn to buy a home in 27 metros
I have always thought it absurd that it usually takes 30 years to pay off a home, and these "median" prices are absurd as well. I thought that maybe the prices would reset to a lower base price overall, after the recession and the part the housing industry played in it, but it didn't really. I guess it's inevitable that it didn't becuase people payed too much earlier on, and now they can't or don't want to lose money, so everything stays artificially inflated. Deadlocked. Sigh.
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Re: The salary you must earn to buy a home in 27 metros
BYOB wrote:
I have always thought it absurd that it usually takes 30 years to pay off a home, and these "median" prices are absurd as well. I thought that maybe the prices would reset to a lower base price overall, after the recession and the part the housing industry played in it, but it didn't really. I guess it's inevitable that it didn't becuase people payed too much earlier on, and now they can't or don't want to lose money, so everything stays artificially inflated. Deadlocked. Sigh.
Overall property values DID come down dramatically after the 2008 crash. The flood of short sales and foreclosures kind of attests to that fact. Some areas really got nailed more than others with plummeting home prices.
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Re: The salary you must earn to buy a home in 27 metros
Around York, I saw plummeting values, but not really plummeting sale prices overall. That is more what I was referring to. Do you think that's accurate?
Last edited by BYOB (3/10/2015 10:13 am)
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Re: The salary you must earn to buy a home in 27 metros
Around York, I saw plummeting values, but not really plummeting sale prices overall. That is more what I was referring to. Do you think that's accurate?
What you are saying at least on the surface seems a little contradictory. If values have plummeted, then if prices have not, people are overpaying greatly to acquire a new house. I do believe prices have come down quite a bit in this area and are now starting to recover slightly. It is not, however, the dramatic price drops that we have seen in some specific areas such as Las Vegas, Florida, etc.
P.S. I don't know if the urban price changes have been as dramatic as some of the changes I have seen in suburban sales prices.
Last edited by tennyson (3/10/2015 12:01 pm)
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Re: The salary you must earn to buy a home in 27 metros
I know it sounds contradictory, that's the problem I have with it. If values came down, then, in a logical world, prices should follow suit. I'm not saying that it's true in every case, but it's out there. In the last handful of years, around here, I haven't seen much movement on house prices overall when I would have thought they'd drop, what with lower interest rates and a sluggish housing market.
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Re: The salary you must earn to buy a home in 27 metros
I have always thought it absurd that it usually takes 30 years to pay off a home, and these "median" prices are absurd as well. I thought that maybe the prices would reset to a lower base price overall, after the recession and the part the housing industry played in it, but it didn't really. I guess it's inevitable that it didn't becuase people payed too much earlier on, and now they can't or don't want to lose money, so everything stays artificially inflated. Deadlocked. Sigh.
I was floored when I started looking in to buying a home.
After paying off a 30 year mortgage, you've bought the house twice.
That's just plain greed.
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Re: The salary you must earn to buy a home in 27 metros
I have always thought it absurd that it usually takes 30 years to pay off a home, and these "median" prices are absurd as well. I thought that maybe the prices would reset to a lower base price overall, after the recession and the part the housing industry played in it, but it didn't really. I guess it's inevitable that it didn't becuase people payed too much earlier on, and now they can't or don't want to lose money, so everything stays artificially inflated. Deadlocked. Sigh.
I was floored when I started looking in to buying a home.
After paying off a 30 year mortgage, you've bought the house twice.
That's just plain greed.
The interest you pay on a mortgage is NOTHING in comparison to what people pay on credit cards. At least in 30 years your home should have appreciated well in most cases and in addition you got to live in it all those years. Wherea all those things you put on the CC and pay those very high interest rates on usually are no where in sight or are worthless in 30 years. Don't know I would call the interest rates people pay on home loans (BTW people CHOOSE to take a 30 year loan but you certainly can take a shorter one and pay more or follow Dave Ramsey and pay extra), but I DO call the predatory practices and interest rates on credit cards just plain greed for sure.
Last edited by tennyson (3/22/2015 8:17 pm)
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Re: The salary you must earn to buy a home in 27 metros
If one only looks at the financial aspect of home ownership, CT, you could be right. But for me at least homeownership goes far beyond the just paying out monthly payments. Call it the nesting instinct if you will, but building one's own "nest" in ways renting someone else's property would never be allowed is so very satisfying. From furnishing the interior to planting and caring for the exterior ownersip is a labor of love for many. Except for a brief period in the late 60s I've always lived in my own home and although the day will come that I am unable to maintain my own home as I want to and will have to sell and move into a residential facility, that time will be a sad one. In the meantime, I will enjoy every moment in my home and although I now have to pay someone to do the mowing and some other outdoor chores I still enjoy working in my gardens.
Fortunately, in my small development home prices have remained very stable throughout the rough financial times and homes generally do not sit on the market but for a few months.
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Re: The salary you must earn to buy a home in 27 metros
I have always thought it absurd that it usually takes 30 years to pay off a home, and these "median" prices are absurd as well. I thought that maybe the prices would reset to a lower base price overall, after the recession and the part the housing industry played in it, but it didn't really. I guess it's inevitable that it didn't becuase people payed too much earlier on, and now they can't or don't want to lose money, so everything stays artificially inflated. Deadlocked. Sigh.
I was floored when I started looking in to buying a home.
After paying off a 30 year mortgage, you've bought the house twice.
That's just plain greed.The interest you pay on a mortgage is NOTHING in comparison to what people pay on credit cards. At least in 30 years your home should have appreciated well in most cases and in addition you got to live in it all those years. Wherea all those things you put on the CC and pay those very high interest rates on usually are no where in sight or are worthless in 30 years. Don't know I would call the interest rates people pay on home loans (BTW people CHOOSE to take a 30 year loan but you certainly can take a shorter one and pay more or follow Dave Ramsey and pay extra), but I DO call the predatory practices and interest rates on credit cards just plain greed for sure.
I agree about the credit cards.
But, CT, I would not call my 3.72% mortgage "greed". You aren't going to get 30 year's use of someone elses money for nothing. That's just not realistic.
As Tennyson pointed out, there are 15 year mortgages, even 10 year mortgages available. Most people, it seems chose the longer term just to keep the monthly payment low. They are either buying more house than they could otherwise afford, or freeing up money to buy other things.
A slight detour. When I lived in York, falling rates caused a re-financing craze (late 90's, early 00", ?). Anyway, I had a coworker who must have refinanced 3-4 times in a few years. She was totally focused her monthly payment. She even took the refinacing costs and put them into the loan rather than paying them up front. So, after each refi, she actually owed more money. But her monthly payment was lower, so she was happy. That ain't the bank's fault.
We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists.