I was so close and now I’m shut out

[Anonymous]

Anonymous wrote: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.

+2

[Anonymous]

Anonymous wrote:Lanham is reasonably priced, closed neighborhood

Lanham is a crime-ridden s***hole.

[Anonymous]

Anonymous wrote: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

Not everyone can live with their parents until they’re 27.

If I had only lived in my mother’s one bedroom condo or with my dad in a depressed, rural small town with no income potential, I would be as smart as your friend. SMH You guys have zero imagination about how different everyone’s lives are.

[Anonymous]

Anonymous wrote:

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.

This. And really hard to even compete if you’re not paying cash. I don’t think everyone here is in the DMV. It’s a different animal.

[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.

Search most of Fairfax county.

[Anonymous]

Anonymous wrote:

Anonymous wrote: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

Not everyone can live with their parents until they’re 27.

If I had only lived in my mother’s one bedroom condo or with my dad in a depressed, rural small town with no income potential, I would be as smart as your friend. SMH You guys have zero imagination about how different everyone’s lives are.

My cousin moved to NYC from crapsville and had a net worth $3,000. He rented a small two bedroom five story walk up rent stabilized apt he got by bribing the super with $1,500 cash. He then got a roommate and charge roommate 100 percent of rent bill
And lived rent free. After a few years he bought a house rented that out.

Ethics aside man was ahead of his time. He paid zero rent for 12 years!!

[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.

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.

true if you intend to live in the house a while.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

It's true: "Americans need to be richer than ever to buy their first home"
https://www.bloomberg.com/news/articles/2023-03-02/will-home-prices-fall-first-time-buyers-face-a-costly-housing-market

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

It’s an excellent example.

[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.

People said this 24 and 12 months ago and look where we are now. Do you want people to just stop buying? Everyone needs a place to live.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

I get it, I really do. It feels like the housing market is moving faster than “normal” buyers can keep up with.

I think the negative reaction to this thread is that OP had $1.2m to spend on a house while rates are low and yet … didn’t. Why? Clearly she could have bought a home but was unwilling to jump in. Or was picky about what was on the market?

She is 50. I am 38. I graduated into a recession. Many of my kids’ friends’ parents are 40s to even 50. They bought houses while I was still in HS or college! OP had SO much more opportunity than me to be an adult when the housing market was more affordable, but never bought anything. I now live in a house that is valued less than $1.2 even following the COVID price run up. We paid 800k back in 2018, but I’m sure she’d thumb her nose at my house. So I’m just having a hard time feeling sorry for her. And with a 300k HHI I know I’m part of the UMC, but OP thinks not being able to afford the $1.7m house makes her MC. Just not a very sympathetic poster.

If OP were a 30 year old who had just finally scrounged together a DP and they were bummed a 500-700k house is now close to 900k+, I would feel bad for them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

I get it, I really do. It feels like the housing market is moving faster than “normal” buyers can keep up with.

I think the negative reaction to this thread is that OP had $1.2m to spend on a house while rates are low and yet … didn’t. Why? Clearly she could have bought a home but was unwilling to jump in. Or was picky about what was on the market?

She is 50. I am 38. I graduated into a recession. Many of my kids’ friends’ parents are 40s to even 50. They bought houses while I was still in HS or college! OP had SO much more opportunity than me to be an adult when the housing market was more affordable, but never bought anything. I now live in a house that is valued less than $1.2 even following the COVID price run up. We paid 800k back in 2018, but I’m sure she’d thumb her nose at my house. So I’m just having a hard time feeling sorry for her. And with a 300k HHI I know I’m part of the UMC, but OP thinks not being able to afford the $1.7m house makes her MC. Just not a very sympathetic poster.

If OP were a 30 year old who had just finally scrounged together a DP and they were bummed a 500-700k house is now close to 900k+, I would feel bad for them.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP is correct. Houses in my neighborhood that would have been $1.2 a few years ago are now going for $1.6 or more. It is depressing for those of us who were looking and could have bought but didn't do it quickly enough and now find that we missed the boat. But it really doesn't help to dwell on it! You can only move forward from where you are and who knows what the future will bring.

Same. We’re now priced out of a neighborhood we love and hoped to buy in.

It’s pathetic that so many of the people on this forum can’t have compassion for people priced out by a ridiculous and unimaginable sharp increase in such a short time. Just confirms my suspicions that half of you are corporate slumlords, brokers, and builders greedy for cash.

Same here. We were looking and could have bought but thought we would be patient for the right fit. Now we are having to look at much lower quality houses at a higher price. I don't really understand why people on this forum can't understand how that would be disappointing. Imagine you wanted to book an airline ticket, you wait a day to confirm your travel dates and all the sudden the ticket price jumped by 40 percent. Wouldn't you be regretful and disappointed? Now instead of your holiday to Rome, you are looking at spending even more money to go to Atlantic City. And no, I am not trying to start a debate on the merits of Atlantic City vis a vis Rome - it is just an example!

I get it, I really do. It feels like the housing market is moving faster than “normal” buyers can keep up with.

I think the negative reaction to this thread is that OP had $1.2m to spend on a house while rates are low and yet … didn’t. Why? Clearly she could have bought a home but was unwilling to jump in. Or was picky about what was on the market?

She is 50. I am 38. I graduated into a recession. Many of my kids’ friends’ parents are 40s to even 50. They bought houses while I was still in HS or college! OP had SO much more opportunity than me to be an adult when the housing market was more affordable, but never bought anything. I now live in a house that is valued less than $1.2 even following the COVID price run up. We paid 800k back in 2018, but I’m sure she’d thumb her nose at my house. So I’m just having a hard time feeling sorry for her. And with a 300k HHI I know I’m part of the UMC, but OP thinks not being able to afford the $1.7m house makes her MC. Just not a very sympathetic poster.

If OP were a 30 year old who had just finally scrounged together a DP and they were bummed a 500-700k house is now close to 900k+, I would feel bad for them.

DP here. I agree with everything you said except I do have some sympathy for OP because it sounds like there may have been a divorce (I know I'm just guessing here). It's different from being the annoying type of "buyer" who just browses for 10 years and never pulls the trigger, complaining that they can't get 5K sq ft in McLean for $650K.

[Anonymous]

Your original budget of $1.2 @ 3% works out to around $5,000/mo, which with today's interest rates would mean you could afford about $800,000.

There are currently 120 homes for sale in DC proper for $800,000 or less, and 897 homes for sale at that price point in the general commuting area.

Sorry you waited too long and can't get the exact house in the exact neighborhood you think you deserve, but there are plenty of houses you can afford. Quit whining and pick one.