When will these prices slow down??!!

[Anonymous]

We want to buy a SFH but can't do so realistically for about two more years which is when a significant chunk of our monthly expenses will disappear (daycare and child support).

The SFH in our area are around 625-650k. We can't really afford to finance more than about 480k and we could probably put about 120k down (100k from equity in our current townhome plus 20k in savings). That puts us at a maximum home price of 600k. In my mind, I think "okay, we can scrounge up another 25k through some serious saving these next two years" but then I realize that in two years, those home prices will now be more like 650k - 675k. They seem like they will constantly be JUST out of our reach. It's so frustrating. I just don't see how we're ever going to be able to save enough to finally be able to buy up in the area we live in.

A house came on the market by us that we really like for 615k and when I looked at the tax records, I saw it sold for 537k in 2012. Just four years ago it was 85k less! We couldn't afford to buy a SFH back then when prices were that low b/c we were at the peak of our daycare and child support expenses. But as time marches on, it makes me realize that we're never going to be able to get there.

I feel like we're stuck.

[Anonymous]

Look at an 80/10/10. Stretching for a few years on budget isn't a terrible thing.

[Anonymous]

So find a cheaper area. Unstick yourself.

[Anonymous]

Anonymous wrote:We want to buy a SFH but can't do so realistically for about two more years which is when a significant chunk of our monthly expenses will disappear (daycare and child support).

The SFH in our area are around 625-650k. We can't really afford to finance more than about 480k and we could probably put about 120k down (100k from equity in our current townhome plus 20k in savings). That puts us at a maximum home price of 600k. In my mind, I think "okay, we can scrounge up another 25k through some serious saving these next two years" but then I realize that in two years, those home prices will now be more like 650k - 675k. They seem like they will constantly be JUST out of our reach. It's so frustrating. I just don't see how we're ever going to be able to save enough to finally be able to buy up in the area we live in.

A house came on the market by us that we really like for 615k and when I looked at the tax records, I saw it sold for 537k in 2012. Just four years ago it was 85k less! We couldn't afford to buy a SFH back then when prices were that low b/c we were at the peak of our daycare and child support expenses. But as time marches on, it makes me realize that we're never going to be able to get there.

I feel like we're stuck.

Put down less, rates are very low, your made up 480k number has no bearing on the market.

[Anonymous]

Put 5% down and get in the house you want now.

[Anonymous]

Just saw a 3 bed, 2 bath in Petworth/Columbia Heights listed for 599k.

[Anonymous]

But your equity in the townhome will also increase. You are psyching yourself out.

[Anonymous]

Anonymous wrote:But your equity in the townhome will also increase. You are psyching yourself out.

+1

You're already on the home ownership "ladder." Sounds like your townhome is in the area that you want to live in, so it should be appreciating, too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:But your equity in the townhome will also increase. You are psyching yourself out.

+1

You're already on the home ownership "ladder." Sounds like your townhome is in the area that you want to live in, so it should be appreciating, too.

This is what I originally thought but the townhouses do not seem to be appreciating at the same rate. The 100k that we'll have in equity is what I believe we'll be able to get in two years. If we're lucky, maybe it'll be 110k.

[Anonymous]

Anonymous wrote:Just saw a 3 bed, 2 bath in Petworth/Columbia Heights listed for 599k.

We're in the burbs out in the Burke/Fairfax area.

[Anonymous]

Anonymous wrote:Put 5% down and get in the house you want now.

I could never afford the mortgage with only 5% down.

[Anonymous]

Where do you want to live?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We want to buy a SFH but can't do so realistically for about two more years which is when a significant chunk of our monthly expenses will disappear (daycare and child support).

The SFH in our area are around 625-650k. We can't really afford to finance more than about 480k and we could probably put about 120k down (100k from equity in our current townhome plus 20k in savings). That puts us at a maximum home price of 600k. In my mind, I think "okay, we can scrounge up another 25k through some serious saving these next two years" but then I realize that in two years, those home prices will now be more like 650k - 675k. They seem like they will constantly be JUST out of our reach. It's so frustrating. I just don't see how we're ever going to be able to save enough to finally be able to buy up in the area we live in.

A house came on the market by us that we really like for 615k and when I looked at the tax records, I saw it sold for 537k in 2012. Just four years ago it was 85k less! We couldn't afford to buy a SFH back then when prices were that low b/c we were at the peak of our daycare and child support expenses. But as time marches on, it makes me realize that we're never going to be able to get there.

I feel like we're stuck.

Put down less, rates are very low, your made up 480k number has no bearing on the market.

I don't understand this comment. I can't put down less b/c I can't afford a mortgage for more than the monthly payment of a 480k loan. How is 480k a made up number? That's the amount we can afford to finance.

[Anonymous]

Anonymous wrote:Look at an 80/10/10. Stretching for a few years on budget isn't a terrible thing.

Stretching is difficult for us since we don't always get regular pay raises and our income barely increases each year. We're teachers and with the payscale being frozen and the changes they've made to our healthcare plans, we spent a couple of years with our income actually going down until recently. We are supposed to get a payraise this year but I think it might be the last one we see for awhile.

I guess my thought is that it really doesn't matter HOW we finance it...whether the down payment comes from actually cash on hand or a piggy back loan, the fact of the matter is we can't afford the monthly payment on a loan that's any higher than around 480k. So an 80/10/10 doesn't work if we have to finance 90% of the cost of the home if the home is 600k b/c then we're paying mortgage on a 540k loan which is too much for us.

[Anonymous]

Anonymous wrote:Put 5% down and get in the house you want now.

You will need to put down way more than just 5%. If you don't know how to save, buying a home is not your priority. Because you will be stretched too thin with the monthly mortgage, taxes & ins. On top of that, if you lose your job, you will be out on the sidewalk. People still have not learned from recent recession.