35% Down (128k) needed to buy average home in today's market

[850credit]

That's why I push downpayment assistance programs but ya know...pearls before swine on here.

Say goodbye to the 20% down payment. Zillow says you’ll need to put down roughly 35%, or almost $128,000, to afford a typical home

In Los Angeles, a median-income household would need to put roughly 80% down to afford a typical home and its monthly payments in the city, according to Zillow.

finance.yahoo.com

A median-income household in Seattle—making around $116,000—would need about $462,000 to lower the debt enough to comfortably afford the monthly payment on the typical home, worth almost $753,500,” Olsen wrote. “It would take almost 24 years to build up that kind of savings if that household saved 10% of their income every month into a cash account earning a guaranteed 4% return.”

Olsen continued with another example: “In a more affordable market like Atlanta, a median-income household would need more than $118,000 saved for 30.5% down on the typical home in that market, currently valued at almost $387,500. That would take more than 10 years,” she wrote.

 

[doe moe]

Crazy financial times we live in.

Allowing corporate companies to enter housing market fucked everything up.

 

[nativeneworleanian06]

Multi generations living under one roof may be the only way to help our kids have a chance to own a home.

 

[DragonXJC]

I’ma go ahead sell drugs brb

 

[easy_b]

People the housing market is starting to cool off in some places. Florida for example the housing market is starting to cool off, but there is a few caveats with that.

 

[mrcmd187]

Crazy financial times we live in.

Allowing corporate companies to enter housing market fucked everything up.

Unfortunately they have always been in the market they work behind the scenes and just keep changing up their game with new schemes. Unlike last time they hide behind bankers and financial institutions this time their upfront not giving a fuck cause they can hide behind that to big to fail protection.

 

[easy_b]

Crazy financial times we live in.

Allowing corporate companies to enter housing market fucked everything up.

https://www.congress.gov/bill/118th-congress/senate-bill/2224/titles?s=1&r=92

The Republicans are slowed this up in the Senate so for this to move faster, you know what you may have to do in November

 

[DC_Dude]

New home mortgage applications increase amid FHA borrower growth​

MBA data shows continued strength in new construction​

Candyd Mendoza

14 Jun 2024
Applications for new home purchases continued to climb in May, signaling a growing strength in the new home market, according to data from the Mortgage Bankers Association (MBA).
MBA's Builder Application Survey (BAS) showed new home purchase applications grew 13.8% compared to a year ago and rose 1% from April 2024, not adjusted for seasonal patterns.
“There continues to be strength in the new home purchase market, as purchase applications increased in May compared to both the prior month and from a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist.
MBA estimated that new single-family home sales reached a seasonally adjusted annual rate of 702,000 units in May, the strongest pace since October 2023.
A key driver of this growth is an increasing share of borrowers using Federal Housing Administration (FHA) loans.
“With existing-home inventory still lagging in many markets, many homebuyers have turned their interest toward newly built homes, particularly FHA borrowers,” Kan noted. “The FHA share of applications was 26.5%, the highest share since the survey high of 27.1% in November 2023.”
Read next: These are the metro areas most vulnerable to housing market downturns
Conventional loans remained the most common type of loan used, accounting for 63.4% of applications. FHA loans followed at 26.5%, with VA loans (9.8%) and RHS/USDA loans (0.3%) making up the remainder.
The average loan size for new homes decreased slightly in May, dropping from $405,490 in April to $400,150.
MBA's survey tracks mortgage application volume from home builders. With this data, the MBA can estimate national, state, and metro-level sales figures. It also reveals trends in loan types used by new homebuyers. While the Census Bureau provides official new home sales data, the MBA's BAS offers a timely preliminary picture of market activity.

 

[easy_b]

New home mortgage applications increase amid FHA borrower growth​

MBA data shows continued strength in new construction​

Candyd Mendoza

14 Jun 2024
Applications for new home purchases continued to climb in May, signaling a growing strength in the new home market, according to data from the Mortgage Bankers Association (MBA).
MBA's Builder Application Survey (BAS) showed new home purchase applications grew 13.8% compared to a year ago and rose 1% from April 2024, not adjusted for seasonal patterns.
“There continues to be strength in the new home purchase market, as purchase applications increased in May compared to both the prior month and from a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist.
MBA estimated that new single-family home sales reached a seasonally adjusted annual rate of 702,000 units in May, the strongest pace since October 2023.
A key driver of this growth is an increasing share of borrowers using Federal Housing Administration (FHA) loans.
“With existing-home inventory still lagging in many markets, many homebuyers have turned their interest toward newly built homes, particularly FHA borrowers,” Kan noted. “The FHA share of applications was 26.5%, the highest share since the survey high of 27.1% in November 2023.”
Read next: These are the metro areas most vulnerable to housing market downturns
Conventional loans remained the most common type of loan used, accounting for 63.4% of applications. FHA loans followed at 26.5%, with VA loans (9.8%) and RHS/USDA loans (0.3%) making up the remainder.
The average loan size for new homes decreased slightly in May, dropping from $405,490 in April to $400,150.
MBA's survey tracks mortgage application volume from home builders. With this data, the MBA can estimate national, state, and metro-level sales figures. It also reveals trends in loan types used by new homebuyers. While the Census Bureau provides official new home sales data, the MBA's BAS offers a timely preliminary picture of market activity.

I wonder about the story also most of the new construction of so-called middle-class houses have been crappy lately. I follow a few home inspectors on TikTok and some of the shit they are finding is asinine.

 

[Chiyo]

People the housing market is starting to cool off in some places. Florida for example the housing market is starting to cool off, but there is a few caveats with that.

Not in the parts of florida where you want to live.

 

[dtownsfinest]

Not in the parts of florida where you want to live.

Gonna fuck around and have you living in Opa Locka.

 

[easy_b]

Not in the parts of florida where you want to live.

Well, that depends because there’s a ton of condos on sale but like I said, there’s strong caveats with that. I hate to say it, but to really not most of Florida back down to where it needs to be they need to experience a severe hurricane Ian sort of open that door two years ago because there is places along Ian path that still didn’t recover.

 

[easy_b]

 

[BATMAN]

What parts of FL! I’m in Jax and wanna get a home or townhome but… damn!

 

[doe moe]

 

[jawnswoop]

Smdh, but the houses overseas are cheaper though.

 

[doe moe]

Interesting piece of info

 

[bgbtylvr]

People are panicking for two reasons: you don’t earn or have enough to buy a home, or you refuse to out of shit like Cali & NYC. AFFORDABLE houses are everywhere if you don’t live in 5 or 6 cities.

 

[850credit]

People are panicking for two reasons: you don’t earn or have enough to buy a home, or you refuse to out of shit like Cali & NYC. AFFORDABLE houses are everywhere if you don’t live in 5 or 6 cities.

Kinda agree but not all the way.

Regular ass old 80s and 90s subdivision houses that were 135k not long ago are 325k now. Using ATL for example you gotta go way out of the Metro Atlanta area almost to get something affordable. Even then it may be a war zone or redneck alley, take your pick.

I mean I almost bought 2 homes for 90k total in Macon and found 6 unit apartment building in Columbus for 270K. But those were investments...who wanna live out there if you have choices?

 

[Mt. Yukon]

People are panicking for two reasons: you don’t earn or have enough to buy a home, or you refuse to out of shit like Cali & NYC. AFFORDABLE houses are everywhere if you don’t live in 5 or 6 cities.

I meannnnnnnn. It's still some jewels out there, but I wouldn't go as far as to say they're affordable for the avg person. Finding a 250k house in most metros are gonna be fixer uppers, or in the hood. Even then at 250k... The avg person gonna have a hard time not being house poor with the current rates.

 

[850credit]

I meannnnnnnn. It's still some jewels out there, but I wouldn't go as far as to say they're affordable for the avg person. Finding a 250k house in most metros are gonna be fixer uppers, or in the hood. Even then at 250k... The avg person gonna have a hard time not being house poor with the current rates.

I'm just glad I bought when I did. And you had clowns on here were telling folks not to buy, renting is better. Well now you don't hardly have a choice.


I have a fixed rate. I'm paying 650 a month for my mortgage. Now my HOA has gone up to about 400 from like 240 when I bought. But still less than renting. I could rent this place out for 1800 or more easy.

Told fools on here to just buy SOMETHING. Stop waiting for the perfect deal. This was years ago. Better to own in a "bad" deal that you can rent out rooms or will be more affordable as you make more money over the years.

 

[Hey Julian!]

When it’s all said and done. It ain’t the down payment requirement or the rates. It’s simply the price. Home prices are over inflated still, but that’s about to change. Fed need to keep the rate exactly where it’s at. Let the correction happen. Sellers are being stubborn. Home inventory is spiking especially in the regions that saw the pandemic price spikes. Airbnb investors are gonna lead this price drop for a number of reasons. Other sellers are gonna follow suit and to take that bath.

No different than people buying $50k V6 Chargers during pandemic. All them shits getting repoed now and those fuck face gouging ass car dealers ain’t got no customers now. Let the market correct and this lesson sink in.

 

[yaBoi]

I’ma go ahead sell drugs brb

 

[Non-StopJFK2TAB]

Crazy financial times we live in.

Allowing corporate companies to enter housing market fucked everything up.

It’s either corporations or the government fucking folks over. Which do you prefer?

 

[Hey Julian!]

I'm just glad I bought when I did. And you had clowns on here were telling folks not to buy, renting is better. Well now you don't hardly have a choice.


I have a fixed rate. I'm paying 650 a month for my mortgage. Now my HOA has gone up to about 400 from like 240 when I bought. But still less than renting. I could rent this place out for 1800 or more easy.

Told fools on here to just buy SOMETHING. Stop waiting for the perfect deal. This was years ago. Better to own in a "bad" deal that you can rent out rooms or will be more affordable as you make more money over the years.

I kinda disagree here. You’re in a fortunate spot(myself included) where your area’s rents can keep you good, but for these metros that were way over priced, those that paid over asking price are kinda screwed. Taxes and insurance is whooping everybody’s ass. I say unless it’s your dream home buy like an investor always. I bought in ‘21, but I told my realtor I need something with equity. He flips houses so he understood exactly what I wanted. Bought my house for $188k in a $240k neighborhood . Cosmetic remodel cost me $25k. My mortgage was $1300 now $1600. I can rent in this neighborhood hood for $2k and sell $290k. If had to do it again, I’d follow the same methodology and go at minimum for a duplex. That might be the only way to buy when overpriced. At least then you have built in rental income.

 

[bgbtylvr]

I meannnnnnnn. It's still some jewels out there, but I wouldn't go as far as to say they're affordable for the avg person. Finding a 250k house in most metros are gonna be fixer uppers, or in the hood. Even then at 250k... The avg person gonna have a hard time not being house poor with the current rates.

Folks wanna live where they can’t. Downtown and the burbs will cost. Outskirts are much cheaper. My home state you can get a nice crib for 200k or less. Most of the east coast and Midwest. Folks want more house than their pockets allow. I see cribs all around atlanta for 200k or less.

 

[Non-StopJFK2TAB]

Folks wanna live where they can’t. Downtown and the burbs will cost. Outskirts are much cheaper. My home state you can get a nice crib for 200k or less. Most of the east coast and Midwest. Folks want more house than their pockets allow. I see cribs all around atlanta for 200k or less.

How did they develop that appetite and who benefits from it?

 

[850credit]

Folks wanna live where they can’t. Downtown and the burbs will cost. Outskirts are much cheaper. My home state you can get a nice crib for 200k or less. Most of the east coast and Midwest. Folks want more house than their pockets allow. I see cribs all around atlanta for 200k or less.

I agree with all but your last sentence...please tell me what app or site you're finding 200k Atlanta area cribs on.

I just did a quick Zillow search and there were 18 on there in the entire State of Georgia.

Not saying you're wrong...shit I want to use your sources!

 

[Coldchi]

Multi generations living under one roof may be the only way to help our kids have a chance to own a home.

Mexicans been doing that shit since the 80s

 

[Mt. Yukon]

Folks wanna live where they can’t. Downtown and the burbs will cost. Outskirts are much cheaper. My home state you can get a nice crib for 200k or less. Most of the east coast and Midwest. Folks want more house than their pockets allow. I see cribs all around atlanta for 200k or less.

Can you find something??? Sure. Location, location, location... We understand this, we've always understood this. But it wasn't that long ago when an avg person could afford a home in most metros. NYC, LA, the Bay not withstanding. The house my ex wife and I bought in 2016 was 205k... That basic ass, new build with a few options and upgrades sold for 418k last spring. Bruh... That shit is crazy, but indicative of the issue. Yes it was in Charlotte and Charlotte is growing. But avg people, scratch that. Avg couples can't get approved for that mortgage. Where they supposed to go if their job is in the city??? Everyone can't work from home and people still gotta live where the jobs are. This ain't simply folks having champagne taste and malt liquor money wanting to live in the thick of it. That house. Was barley inside 485 on Albemarle road. Not a bad area, but it wasn't trendy. We got an issue in the US from a housing pov and we can't be out here with them old talking points as to why people can't buy a home nowadays.

 

[Helico-pterFunk]

Back in the late-2000s / early-2010s ... used to watch lots of the property shows on HGTV while going to plenty of open houses of my own on weekends.


Here and there on the TV shows you'd see the young working professional couples with no kids. They were in that 28 - 33yo range or so.


They'd say stuff about how it was a struggle to come up with a 5% downpayment with their combined savings. Mind you, these are real estate prices from nearly 15 years ago.


Couldn't help but think ... "you aren't ready to enter the market ..."

And I would see red when realtors would joke that “money is cheap” and buying was easy.

Fuck outta here.

 

[praetor]

Crazy financial times we live in.

Allowing corporate companies to enter housing market fucked everything up.

Wall Street isn't the problem, it's grandma and grandpa.

 

[DC_Dude]

Folks wanna live where they can’t. Downtown and the burbs will cost. Outskirts are much cheaper. My home state you can get a nice crib for 200k or less. Most of the east coast and Midwest. Folks want more house than their pockets allow. I see cribs all around atlanta for 200k or less.

Right. I think the problem is people want the 5 bed 6 bath room home and can’t afford that.

If it’s your first home, get a starter home, stay in it for 5 years, and build up that equity. Then you can sell it or rent it out while you have also been saving up during that time.

FYI - FHA applications have been increasing so there are people buying homes.

 

[Hey Julian!]

 

[850credit]

LARGE investors are the problem