I was so close and now I’m shut out

[Anonymous]

but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

This. There definitely will not be equity gains like there have been. People looking at the appreciation are looking at 15 years of decreasing interest rates. For thirty+ years the interest rate on a 30y fixed was 7-7.5%, with a period of double digits in there. Could go that way again. OP might be compounding her losses by buying now when rates are going up and staying up for “some time,” specifically to address the housing crisis.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

Moral of the story: buy at $900K when interest rates are 3%, even if you’re dreaming to get into the $1.2m house.

But what you can afford as soon as possible. The equity gains will compound any increases in your salary. Trying to save income alone isn’t enough because prices generally are also going up and it’s difficult to stay ahead of the price increases.

but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

DP here, of course it's the top of the market right now. Most neighborhoods will see price declines.

It has been the top of the market for 3 years.

[Anonymous]

My friend back when he was 28 bought a huge beautiful home in a super nice area with award winning schools as a single person with average income. His secret live at home 21-27 to save up downpayment. He picked a home on a corner with side entrance to basement. He carved out a little 200 SF apt for himself. Rented whole upstairs and rented other 3/4/ of basement. He lived there till married at 36. Eventually by 44 they took over whole house.

Most people won’t do that. But that is how a middle class person owns a home now worth 2 million.

Most people want it HGTV turnkey

[Anonymous]

Anonymous wrote:

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

This must be quite the unicorn area that you're looking in that saw a 40%+ rise in real estate value between 2021 and 2023. The stats don't back you up on this.

It depends on the home/location. Anecdotally, a few months ago we sold our NWDC home for about 43-44% increase from what it was worth just before the pandemic.

[Anonymous]

Look at the graph in this article:

https://fortune.com/2023/03/02/dallas-fed-housing-market-modest-correction-monetary-policy-severe-price-drop/

[Anonymous]

Anonymous wrote:but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

This. There definitely will not be equity gains like there have been. People looking at the appreciation are looking at 15 years of decreasing interest rates. For thirty+ years the interest rate on a 30y fixed was 7-7.5%, with a period of double digits in there. Could go that way again. OP might be compounding her losses by buying now when rates are going up and staying up for “some time,” specifically to address the housing crisis.

+1 The worst thing to do right now is assume home prices will keep going nowhere but up and panic buy. Wait and see how the next 6-12 months shake out.

[Anonymous]

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

I'm supposed to feel sorry for someone who was in $1.2 million home budget? Get the F out of here

[Anonymous]

Anonymous wrote:Look at the graph in this article:

https://fortune.com/2023/03/02/dallas-fed-housing-market-modest-correction-monetary-policy-severe-price-drop/

This is behind a paywall. Any way to copy & paste the graph?

[Anonymous]

Anonymous wrote:I get it, OP. We have been trying to move from our downtown row home where we've raised two kids and owned for 20 years. Even with significant equity and a windfall from a parent who passed away, a new house may not be attainable. I am trying to practice gratitude for what we have. I say that realizing I have done a bad job of that, every week dragging kids to open houses we can't afford, the grass is always greener, etc.

this am my 13 year old casually mentioned when she grows up she wants to make more money so her family can have nicer things. It broke my heart. My parents were immigrants and sacrificed all for me and my brother. We had excellent educations. But my values drew me to journalism and now nonprofits. Same for my husband, except for the immigrant background. I feel like I have taught them to value the wrong things. Like telling them not to obsess about body weight while complaining about my weight. I vowed this am to do a better job. There is a difference between wants and needs. If we always insist on more, bigger, more expensive and prestigious, we will never win.

Your 13 year old sounds like a little brat. She has a roof over her head in a first world country and she is complaining.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Lower you expectations or make more, maybe get married

No one wants to marry me I’m 50.

They may want to be your roommate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

Moral of the story: buy at $900K when interest rates are 3%, even if you’re dreaming to get into the $1.2m house.

But what you can afford as soon as possible. The equity gains will compound any increases in your salary. Trying to save income alone isn’t enough because prices generally are also going up and it’s difficult to stay ahead of the price increases.

but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

DP here, of course it's the top of the market right now. Most neighborhoods will see price declines.

I hope you can now see the OP is hopeless. She wants to live the UMC life without taking any risks like the rest of up. OP got what she deserves.

[Anonymous]

Anonymous wrote:

Anonymous wrote:but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

This. There definitely will not be equity gains like there have been. People looking at the appreciation are looking at 15 years of decreasing interest rates. For thirty+ years the interest rate on a 30y fixed was 7-7.5%, with a period of double digits in there. Could go that way again. OP might be compounding her losses by buying now when rates are going up and staying up for “some time,” specifically to address the housing crisis.

+1 The worst thing to do right now is assume home prices will keep going nowhere but up and panic buy. Wait and see how the next 6-12 months shake out.

I don’t know what to say because this same advice was given last year and the year before. Without a crystal ball I don’t know you could be so sure

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Was so close to buying in 2020 and 2021 and now those properties I could afford at 1.2 and 3% are at 1.7 and 6.8% and I am locked out of the UMC for the rest of my life. No equity here.

Moral of the story: buy at $900K when interest rates are 3%, even if you’re dreaming to get into the $1.2m house.

But what you can afford as soon as possible. The equity gains will compound any increases in your salary. Trying to save income alone isn’t enough because prices generally are also going up and it’s difficult to stay ahead of the price increases.

but will there be equity gains now that are as significant as the last few years? If I buy now - I feel like I'm buying at the top of the market - which may not go down but I doubt will go up as significantly as it has.

its easy to look back and say yeah - should've bought that 900k home a couple years ago - but what do we do right now.

Here's a different way to look at things, we bought our first house in the exurbs in 2008 (market downturn) for 500k, we sold it in 2019 for only 60k appreciation. However, we went from 30yr on a 15 yr mortgage during our stay ended by net 200k profit when we sold and bought in Bethesda. Sure, our price appreciation was only 60k but we managed to save 140k by simply paying our mortgage. This time around our house has appreciated 300k in 4 years but it's very hard to time the market.

Paying down your mortgage is an equity gain compared to renting.

[Anonymous]

OP is easy to figure out. I guarantee she’s been making excuses of some sort for at least 20 years. It’s just a way to keep not doing something and justifying it subconsciously.

[Anonymous]

Anonymous wrote:I get it, OP. We have been trying to move from our downtown row home where we've raised two kids and owned for 20 years. Even with significant equity and a windfall from a parent who passed away, a new house may not be attainable. I am trying to practice gratitude for what we have. I say that realizing I have done a bad job of that, every week dragging kids to open houses we can't afford, the grass is always greener, etc.

this am my 13 year old casually mentioned when she grows up she wants to make more money so her family can have nicer things. It broke my heart. My parents were immigrants and sacrificed all for me and my brother. We had excellent educations. But my values drew me to journalism and now nonprofits. Same for my husband, except for the immigrant background. I feel like I have taught them to value the wrong things. Like telling them not to obsess about body weight while complaining about my weight. I vowed this am to do a better job. There is a difference between wants and needs. If we always insist on more, bigger, more expensive and prestigious, we will never win.

There's nothing wrong with wanting to earn a good income to support yourself. Stop with the virtue signaling/political identity BS. Journalism, nonprofit work, and other low-paying SJW professions are for trust fund kids. You got your inheritance and bought at very low prices yet you're still not able to afford a better lifestyle.