"$500,000 - $725,000 homes are not expensive homes....in certain urban areas."

[in_cog_ni_to]

Dean Baker from The Center for Economics and Policy Research was on C-SPAN's Washington Journal this morning. Greta read one of the items from the stimulus package which gave Fannie Mae and Freddie Mac the right to give higher mortgage loans to people. That are $500,000 up to $725,000. Mr. Baker said that $500,000-$725,000 homes are NOT high priced real estate in certain large urban areas. :wow:

Now that I have picked my jaw up off the floor, I can see how freakin' FORTUNATE we are to have purchased our condo in 1988 and stayed here! Guess what we paid for our 3 bedroom, 2 bath, finished basement, 1800 sq.ft home? $87,000!!!! We're looking at just 20 years ago when home prices were reasonable. 20 years! We have a 20 year mortgage which will be paid off in October and I cannot tell you how happy I am that we stayed here and didn't buy a bigger more expensive house.....which we actually thought about doing. I will die here. I'm not going anywhere....EVER. Besides that, this is a perfect place to live for older people. The grass is mowed, landscape is kept up, the swimming pool is maintained by the association and the snow is plowed in the winter.

There's no way in hell we could ever afford to buy a $725,000 home and how are our children expected to be able to afford that after they graduate college with a debt? It seems impossible to me! How could they ever achieve that "American Dream?" I feel so sorry for my son and all our children. Life is not going to easy for them, that's all there is to it.

Are $500,000 - $725,000 homes the norm where you live? I know we have certain areas here where mini-mansions have gone up, but that's where all the doctors and lawyers live....not your average working Joe. What's going to happen to our children? It worries the hell out of me.:(

[Demeter]

1. They Are NOW! And The Price Is Dropping Like Newton's Apple

It's called a bubble because it bursts.

[jlake]

2. Fortunately not where I live.

But my mom and sister live in CA and they both had to spend closer to $1 million for VERY Modest homes..... nothing like my $250K house here.
It is scary and sad.

[MonkeyFunk]

3. Very true

I'm in the San Francisco Bay Area. You couldn't find much of anything for <$500,000

[midnight]

4. That's were the 1% live. Those are the crowd that are

letting us think our vote counts, and keep us busy with nonsense like terrorsim.

[MonkeyFunk]

64. No it isn't

In my neighborhood, we have a nurse, a single teacher, a couple professionals. Very middle-class neighborhood. It's just in a very very expensive place.

[Jeffro40]

94. That's not true. Ever been to California, or Boston? or Atlanta?

People there put 60% of their incomes to housing, compared to us in MI, where 25% is the norm.

I always find it distressing when people dump on other who have high-cost items as if there is something wrong with them.

[hobbit709]

5. "Not expensive" by who's definition?

I'll bet this Baker clown is NOT living on $25k/yr.

[AlCzervik]

6. San Francisco is really expensive, south bay, north bay all cost a lot, Manhattan

my bil is looking for a one bedroom because of his job, starting prices at 500k and thats not over looking central park and it's also nothing to write home about. The houseing prices have dropped where i live as well but there are plenty of homes that are upwards of 500K as well.

[Vektor]

47. I'm in the East Bay - pricey here too...

Walnut Creek, Danville, Lafayette, Moraga, Orinda etc...725,000 will get you a little fixer/starter home that likely needs some work.

[Gormy Cuss]

71. 500-725K will get you an older house in the next tier north-- Concord,

Pleasant Hill, Clayton, Martinez, and even in older sections of Walnut Creek. But even in those areas it's a challenge to find move-in condition houses in that price range.

[Vektor]

79. Yeah, true.

Sometimes homes that "need work" end up having foundation problems, too. Very common here. I looked at a house in Lafayette that was in the mid to upper 700,000's, and it showed great, but upon closer inspection - the floors were uneven! Some of the doors and windows wouldn't close properly.

Once you have to start shoring up foundations, you're talking MAJOR repairs...lots of foundation issues in earthquake prone, hilly areas like this.

I do like the older parts of Walnut Creek, great mature landscaping, interesting architecture, and the Rancho San Miguel neighborhood is all mid-century Eichlers.

Finding the right house around here takes about 3-6 months of looking. So many overpriced duds!

[Gormy Cuss]

86. I'd love to buy a well maintained Eichler in that neighborhood.

And you're right, there are lots of duds on the market at prices that would make people from most of the country scratch their heads in wonder.

[Arugula Latte]

81. My family bought a 4-br, 2 bath ranch in the Contra Costa 'Burbs in the early 70s for $41,000

That sucker is probably worth about one million by now. :wow:

[Vektor]

82. You are probably right!

Man alive, I've heard a lot of similar stories. Right now prices ARE coming down and may continue to do so for a couple more years before they plateau for a while.

(Or that's the guess in real estate circles - one never can REALLY know.)

It will always be expensive here, but the boom we saw a few years ago simply could not sustain.

[snooper2]

76. $350,000

San Francisco, around the corner from India Basin Shoreline Park - with a Bay view per listing

$350,000
3 Bed, 1 Bath
1,036 Sq. Ft.



1068 Innes
San Francisco, CA 94124
MLS ID# 329591

[Vektor]

80. Yeesh!

I can't imagine what condition it's in.

[supernova]

7. Typical homes here around 350K- 500K

are typical anymore.

Somewhat less for condos and townhomes.

My house is paid for and did not cost that by any means. Though it has appreciated about 5x in value since my parents built it. :crazy: I could make a killing if I ever sold, which I doubt I will.

edit: We do have a few high-end homes even in my part of the county. It makes for an interesting tax base. :silly:

[rolleitreks]

8. In my town (NY metro) those prices are called "entry level." Average price is $1.2M

Luckily we bought (entry level) some time ago at less than half the lower price. The prices, by the way, are holding pretty steady hereabouts.

[in_cog_ni_to]

13. AVERAGE price of a home is $1.2 MILLION???*&^%$# Holy crap.

:wow:

[alittlelark]

35. Here in Los Altos the average price is about 1.3-1.7 mil.

Sunnyvale, the least expensive city near us is 800,000.

[Dorian Gray]

84. Welcome to NYC....

It's insane here.... I bought a number of years ago, and I thought that I buying at the high. But.... our place is worth a LOT more than it was then... and the prices in my neck of the woods in Brooklyn are holding strong. It's weird.

[Stephanie]

15. You couldn't get a studio apt in Manhattan for $500,000

And I am surrounded by "LUXURY" condos going up all over the neighborhood (Chelsea). It's sickening.

[snooper2]

78. $250,000 834 Riverside Drive

$250,000
2 Bed, 1 Bath
700 Sq. Ft.



834 Riverside Drive Unit 4-C
New York, NY 10032
MLS ID# 472291

[Stephanie]

92. Technically Manhattan but really Harlem/Inwood

That's at 158th Street. Maybe I'll check it out!

[beberocks]

9. The median price in Sonoma County reached about $625K in 2005

But prices are dropping like a rock. So many people couldn't afford the mortgage they would just go by your credit score (no checking if you earned enough to make the payment). The last published estimate of the median home value was in the $400K range, but in looking at the for sale ads it will be $300K before long. If the greedy lenders had actually required a sizable down payment and made sure that people earned enough to pay for the mortgage, prices never would have gotten so high.

P.S. Lots of foreclosures here, and the average outstanding loan amount is about $400K. Lots of people walking away from their homes.

[JackintheGreen]

10. Here in suburban Philadelphia

I live in an area where, 6 months ago (when my wife and I were looking), 500k is certainly the high side of normal, but it *is* normal. We lucked out and found a beaut of a home for half that (and almost 2500 sq. ft. to boot) and still get to stay in the school district that commands those prices.

Literally right across the street the homes can be 25% cheaper.

[LibDemAlways]

11. I bought my house in a Southern Cal suburb in 1979.

It was in a new tract and cost $101,000. I have 3 bedrooms and 1700 sq. feet on a small lot. Today my 29-year-old house would sell for over 600K. It's insane. Prices here have come down some, but not a lot and people are holding pretty firm.

My house would be considered cheap in this area. Homes built in the last ten years are all over a million.

It is scary. And aren't big mortgages that people couldn't afford a main reason for the current housing crisis? Upping the amount people can borrow doesn't sound like that swift of an idea to me.

[Kittycat]

22. How do you manage property taxes?

Are you grandfathered, or do you pay the full adjusted rate? I'm always curious about that. Here it's city by city. In some areas, you hear about elderly not being able to afford their homes due to the taxes (chicago burbs), despite owning them.

[LibDemAlways]

25. Back in the 1970's California voters approved

Proposition 13 which severely limits increases on property taxes. Property is not reassessed unless the house is sold or added on to. Otherwise property taxes can be raised only a modest amount each year. There can also be local assessments for schools. After 29 years, I'm only paying $2400 a year in taxes. As a senior, if I sell and buy a less expensive house in the same county or a few others in Calif., I can take my property tax rate with me.

The lowered taxes have been a boon for long time homeowners, but have wrecked havoc with the schools in this state which are now horribly underfunded.

[El Pinko]

56. They also represent a huge redistribution of $ from the young to the old...

...and are an extremely unjust burden on anyone who has to move (IE the work force, who have to follow jobs - retired and rich folks can just stay put.)

It makes people reluctant to move, thus further pinching housing supply and driving prices higher than in comparable income areas in other states.

It amazes me that Prop 13 passes constitutional muster. More proof of how direct democracy cia ballot initiative often SUCKS.

[danalytical]

12. Those are richer areas

Look at CT, where I live. If I moved to Greenwich or Avon it would easily cost 700,000 for a home. But then again I'm nota rich lawyer with a Dr wife. So we live in a suburban town outside Hartford. We can't afford to own a home so we rent. If I wanted to own I would have to move to a city like New Britain or Hartford. And trust me, if you have kids uou do not want them going to school there. Not to mention the property taxes and crime.

[LizW]

14. I was watching HGTV this weekend

There was a show about people fixing up their houses to sell them. A young couple was trying to sell a little two bedroom 1960's starter home. It wasn't even a cute little bungalow or anything. It was just a tiny, blah house on a blah street. I missed the beginning when they told where it was, but they got $475,000 for it. :wow:

[EmperorHasNoClothes]

16. I have seen those shows too

One was about a little 600 sq. ft. run-down shack in a bad neighborhood in L.A., and they bought it for $450k! I doubt it would sell for anything near that now, after the bubble has deflated so much.

[Virginia Dare]

20. Location, location location...n/t

[El Pinko]

17. In SF & Silicon Valley a million$ for an old house is still typical, but I don't expect that to last

Look for median home price in these markets to drop by 30% by 2010...

[ordinaryaveragegirl]

18. $500K buys a very nice house here in Wichita.

Typically a custom, 4 bed/3 bath/3-4 car garage, 4000+ sf, stone and brick exterior, walkout lower level, with all the bells and whistles, often a decent chunk of land, in a very upscale neighborhood (possibly gated).

I moved from Chicago in 2003, and there were many areas with a ton of houses in the $500K+ range. The market was just insane. Our house there was a raised ranch, 3/1.5, city lot, and very cramped. For $25K less than we sold the Chicago house for, we got a 5/4/3 here, with a finished lower level, 3300 sf, .33 acre cul-de-sac lot in a really nice area. It's amazing how the housing market can vary from place to place.

[Virginia Dare]

19. That's very true for the D.C. suburbs...

at least it was.

[MindPilot]

21. In my neighborhood a half million dollar house is cheap!

And it is not a new development of McMansions. It is an old neighborhood near downtown with houses built in the 20s and 30s. Most definitely working class.

I bought my place in '96 for $195,000; last year it flirted with a million but it's dropped to about 675 now.

[SammyWinstonJack]

23. That would buy a lot of house in San Antonio. We paid $109,000 for our 4bd2ba 1800 sq ft house

w/pool in '97. It's worth about $70,000 more than we paid for it, 10 years ago. We refinanced in '02, took it from a 30 yr fixed to a 15 yr fixed and pay bi-monthly. The property taxes have doubled, about $400/mo.,on top the mortgage pymt, plus a $100/mo. for insurance. x(

[Blue_Tires]

24. he is right, depending on the location, of course

see what $500,000 gets you in D.C. or Boston....

[MindPilot]

27. And the tax structure

Here in Cali part of what allows home values to skyrocket is that property tax doesn't go up with the value--it only increases at the time of sale. Of course if you are pulling a PITI mortgage, property tax starts to become a substantial chunk of the payment.

[La Lioness Priyanka]

26. even in brooklyn you cant get anything for less than half a million

atleast not anything near public transportation, no more than an hour to manhattan

[Dorian Gray]

85. I'm not the only Brooklynite seeing this trend

It's really ridiculous.

[pitohui]

28. your children won't be able to own homes

no $500K homes are not the "norm," people don't earn such salaries in new orleans, that is the very top tier of homes around here

the peasants who are not doctors, lawyers, and ceos won't be able to own homes in areas where homes cost so much, wages simply aren't high enough to allow it

i suppose when you pass away your kids can fight over who owns your home, it's like we've returned to some dickens novel, isn't it?

[in_cog_ni_to]

37. It really is like a Dickens novel. :( Hell, I'm even thinking about how the kid will be able

to afford rent after college! Maybe he'll live at home for the rest of his life. :( As his mother, I wouldn't mind that ;), but I'm sure that's not the future HE wants for himself. Maybe they'll have to go back to communal living to share expenses? Multi-families living in one home? His future looks very bleak and it really does break my heart. I'm glad we will at least have this home to leave him. Maybe he can sell it and then afford his own home, but we're looking at 8-10 years down the road. Heaven only knows what things will look like then.(

[JBoy]

29. Average house prices in Canadian cities -

Average price for detached bungalow (Dec 2007):

Vancouver $795,250
Victoria $425,000
Calgary $429,889
Edmonton $336,786
Saskatoon $292,500
Regina $229,200
Winnipeg $214,494
Toronto $413,375
Ottawa $308,583
Montreal $229,314
Moncton, N.B. $151,000
Fredericton $155,000
Saint John, N.B. $196,500
St. John's, N.L $157,667
Charlottetown $152,000
Canada $337,555

[dysfunctional press]

30. Lincoln Park in Chicago, and any of the northern suburbs from Evanston to Lake Forest...

those prices would be about right...pretty low even, for some of the areas and depending on the house, of course.

in many large urban areas, $500,000-$750,000 are NOT high home prices, just like the man said.

[LSK]

49. those are expensive neighborhoods and not the only places to live in Chicago

Come to Des Plaines, Mount Prospect or Schaumburg.

[dysfunctional press]

55. no thanks.

i'm already a little farther west than that. we sold our place in the city and bought a nice little place on a little more than an acre- and i don't plan on going back to less space than we have now.

and yes, they may be expensive areas, but those prices are not at all high for the areas, and in fact fairly to very low for many of them. and there are plenty more suburban chicago areas just like them- hinsdale, barrington hills, inverness to name a few.

[LSK]

58. yes but you are pointing to the most expensive suburbs in the area

And there are countless others that are affordable.

Des Plaines, Elk Grove, Schaumburg, Streamwood, Itasca, Mt Prospect, Bloomingdale, Lombard, Elmhurst, Naperville, etc etc etc. I live in a 30 year old townhome in Roselle that I paid 180k for 4 years ago.

There is nothing wrong with any of these places and you can find homes for under 300k there.

You do not have to live in the very best suburb to have a nice home. You do not need a new McMansion to have a nice home.

PS Is Hinsdale that expensive?

[dysfunctional press]

63. i never said that you have to live in a nice suburb to have a nice home.

the article said that in "certain urban areas" $500,000 to $750,000 are NOT expensive homes- i'm merely pointing out those "certain urban areas" where that holds true. OF COURSE they're the most expensive suburbs in the area...:crazy:

and yes, hinsdale is that expensive:

http://www.realtor.com/search/searchresults.aspx?pg=1&cmid=1095642&typ=1

[mconvente]

31. That range is BELOW the avg. in my area.

I live in Bergen County, NJ, one of the wealthiest counties in the country. There is a sharp divide on the demographics, though. You have areas like Hackensack and Teaneck which are pretty much urban cities, and super expensive areas such as Alpine (name the richest town in America recently) where the avg. house price is $3 million. Also, areas like Franklin Lakes and Upper Saddle River consistently have homes in the $2-$5 million dollar range.

http://www.homes.com/Real_Estate/NJ/City/FRANKLIN%20LAKES

Just look at that list - $5.5 million, $3.45 million, $3.3 million, $3 million, etc...
Out of 50 houses for sale (some of the listings are land), the cheapest is $400,000, and the first 36 of 50 houses are at least $1 million.

My town of Midland Park is more modest, but overall it's still upper middle class. My house is two bedrooms (technically could be made into three with one downstairs), two bathrooms, newly remodeled kitchen - overall, it's maybe 1500 sq. feet, which is definitely adequate but still small compared to other houses. The electric and heating system is old, as the house was built in the 1930s. And even in this down market, we could still get $350,000 for it, maybe more with the new kitchen.

I know this must be insane to hear if you live in the midwest or other rural areas, but getting a house in my area for $500,000 is a steal.

[gollygee]

32. $500k would buy really nice lakefront property here

[endarkenment]

33. They were.

I have no idea what the market is right now, but in the Greater Boston Metro Region before the crash 500,000 got you a nice average house in most locations, and in the inner suburbs it is more like 725,000. California is insane. 725,000 is probably low for anything near either SF or LA. People commute 100s of miles to work because of housing prices.

[Johonny]

34. 700 K in LA

gets you a terrible home in a so so location. If you want a nice house in a god location you're talking over 1 million. I don't think I will ever own a home:(

[Muttocracy]

36. check out realtor.com

most houses for sale are on http://realtor.com

Location can make a huge difference even on a small scale. There's no way I could afford to buy a house in the college town where I work. But 15 miles out looks more like the rest of depressed upstate NY so housing is cheaper out there. Rent is expensive because it's a college town (high population turnover, high rental demand, wealthy college students' parents) - when I buy a house (soon I hope) the mortgage and taxes on a 2/3 BR house a bit out of town will be comparable to what I pay for rent on a small 1BR apt in town (paying half my landlord's mortgage).

I'd love to live near my sister who lives outside of Boston. But even if I got a higher-paying job out there, the cost-of-living adjustment would never be enough. I'd be resigning myself to renting forever. So at least in upstate NY I may eventually be able to buy a house, and it's a big factor in staying here.

[Muttocracy]

38. more on the news you heard

http://www.realtor.org/rmodaily.nsf/pages/News2008012501

[Le Taz Hot]

39. Nope. Not in my neighborhood.

I live in a typical working-class neighborhood with houses built in the 1950's. I paid $92,900 in 1999. It went up to $235,000 at the height of the market boom. It's now sitting around $215,000 which STILL isn't a bad deal. Unfortunately, I've got 17-1/2 more years to pay on my mortgage, though I'll do some wheeling & dealing when the loan gets around $50,000. I'm with you. As much as I'd love to have more space (1444 sq. ft.) I doubt I'll be going anywhere.

[Tierra_y_Libertad]

40. Close to $500k in this semi-rural part of SW Washington state.

We paid $189k in 1993 for a house on 3 acres. Now worth, according to Zillow.com, $402k. Houses around here range from about $350-$750k.

I'm baffled how younger people can afford to buy a decent house.

[sakabatou]

41. Those prices in my area would be CHEAP!

[Muttocracy]

42. just after I read this turned on c-span 2 and they're talking about it n/t

[LeftCoast]

43. In SF you might be able to find a 1 bed/1 bath condo for $500k

You could probably buy a small fixer-upper single-family home for $725k if you weren't picky about neighborhood.

[Vektor]

44. I live in the San Francisco Bay area - and yeah, $500,000 will get you a very small condo.

$725,000, a small "starter home" 3/2 likely needs a little work, smallish lot, about 1,400 - 1,800 square feet, in the surrounding towns.

The wages are much higher here, and do make up for some of that. But yeah - it's steep - definitely compared to most of the country.

[azmouse]

45. Average price in Phoenix is $250,000 but that doesn't really buy much.

[Blue_In_AK]

46. Home prices are ridiculous now.

I bought my duplex -- approximately 2000 square feet on our side, 900 square feet for the apartment -- in 1990 for $117,000. It's appraised at over $300,000 now, which is still reasonable compared to the prices you quoted ... but like you, I'm so glad I'm here. It's ironic that I was forced to buy back then because my landlady got foreclosed on, and I got an eviction notice. It was kind of traumatic for me at the time, but in retrospect, it was a blessing.

[LSK]

48. you can buy a suburban Chicago house for under 300k

And you do not have to go way out in the boondocks or live in a slum. Thats your average suburb such as Des Plaines, Elk Grove, Mt Prospect.

Also, whatever happened to moving into a USED house? Theres nothing wrong with a 30 year old home.

[DaveJ]

52. Spend an extra 5-10 hours a week driving or be homeless... tough choice...

I'm renting and absolutely hate not being able to afford a home in the city, but at the same time I love being close to work and not needing to drive. It is less stressful and more ecological. So, maybe I'll never own the American dream, and I admit I'm upset that the financial systems punish people for making this decision, but I still think it's the right thing to do.

[LSK]

54. Metra and the EL

Des Plaines is near O'hare. We are talking close suburbs here, not Woodstock.

[DaveJ]

59. What about shopping?

I'm within a couple blocks of our neighborhood grocer, lots of other stores, a park, places to eat, etc. If that's not enough I hop on a bus that passes by every 5 minutes. My wife has a car and I have a license, but I truly do not like driving, especially when there is a better way. I drive maybe an average of 10 minutes a week. Think how nice and uncrowded the highways would be if everyone lived like that. I'm not trying to be self-righteous... actually I'm more of a freak in today's world, where people will do anything so their kids have a back yard and a swing set, which is understandable.

[LSK]

61. well you need a car to tool around the suburbs no doubt

But how many miles do you drive if you just use it around the town on evenings and weekends while taking the train downtown to work?

[DaveJ]

69. It's more my wife that does all the driving...

If I were single I would probably only walk and eventually forget how to drive. Together we drive mostly to the movies or a club on the weekends, Whole Foods, Trader Joes, and that's about it. Plus an occasional road trip outside the city.

[WilmywoodNCparalegal]

50. Here in Wilmington NC

that range buys you a very nice home, but even so the average prices for a decent not-too-big non McMansion are in the $250K range. But my question is.. how do these people qualify for a mortgage? Not everyone has stellar credit, nor everyone is making over $100K in salaries, especially in this area. So, my question still stands... how do average people afford these types of mortgage?

[Muttocracy]

51. I think the rules for "jumbo" mortgages are different?

I think they have different qualification rules and different interest rates - and the really high ones don't get the same sort of federal backing.

Normal rules vary with the mortgage program, but have something like a 30% max for housing costs and 40% for total debt. So to qualify for the highest mortgages, I would think people must either have very high income or the rules must be different.

[CRF450]

88. My house is $220k, 3bed/2bath 1800sq.ft sitting on 2 acres. (northeastern NC)

I make around $45k/year, my credits about average. But I have no problems with monthly payments since my two vehicles are paid for, in fact, I'm putting in as much money as I can to pay it off fast. Not to mention I may have a friend or two move in for rent, that'll help alot.

[Muttocracy]

53. anyone know of a comparison of property taxes?

Where I'm looking (upstate NY), combo of school and municipal taxes runs $30-$40/$1000 value of the house. (That's 3-4% in non-real-estate-speak). Some of the better school districts actually have lower tax rates because the home values are higher in those districts.

There's always the refrain that high property taxes plus other taxes drive business and homeowners out of upstate NY, but I've never known if that's true. Real estate is certainly cheaper here than many parts of the country. Sales tax is 4-8% depending on what it is and which county I buy it in.

[Muttocracy]

57. another thread on this:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2776951

[electron_blue]

60. Not the norm where I live. Your kids can always move to the midwest. ;)

You can get 2000 sq footage of house in my city for $200,000. Heck, you could even do it for $150,000 or less if act fast.

[OPERATIONMINDCRIME]

62. In My Area, For A Standard House That Would Be Large Enough For Me And My Kids, I'd Say $450,000 Min

The house I'm living in now I bought at $218,000, and can probably sell it for $370,000. It is small, a hundred years old, and is already too small (ideally, anyway) for my two sons and I. If I were to upgrade to something more suited for us, I'd have to find a house probably at least at $450,000. 500,000 would also not really be an 'expensive' home.

[mondo joe]

65. When I tell the folks back home what my tiny Seattle fixer upper cost, they think I was swindled.

I'm pretty sure they do.

[GreenPartyVoter]

66. $300k is "cheap" for a decent house in our area of coastal Maine, which is why we live in a trailer.

[MiniMe]

67. Pretty standard in my area

I bought my townhouse in 1998 for $105,000. When I got it appraised 2 years ago, it was at $320.000. The question is, how much could you sell your condo for now? It is worth more than $87,000.

[Yavin4]

68. $500K to $750K Are Not The Norm In NYC

The norm here is $1.4 million. I wish it was $500K to $750K.

[taught_me_patience]

70. Pretty cheap where I live

I live in one of the most overpriced parts of Los Angeles, Westside Culver City. What are younger people to do? Well, I'm renting a room in a house with two other roommates. The house we live in would probably sell for 750k. We are constantly battling graffiti in the back alley, but, thankfully, our house has not been broken into yet. When I get married later this year, I will probably move to a cheaper area such as Long Beach and buy a home in the 700k range. I'm very grateful that my fiance is a doctor and our combined income is very good. Many younger couples will be leaving LA soon. Anecdotally, I've had many friends get married and move to cheaper cities in Texas, Arizona, and Las Vegas. I believe that the Los Angeles economy will suffer as a result of this "brain drain". I place much of the blame on anti-development advocates that do not realize that their policies are making it almost intolerable to live in this great city.

Every one of my friends have expressed a desire to move to other cities that are encouraging development and where it is reasonable to buy a home! These friends are not actors, waiters, retail, or blue collar people. They are young, energetic and affluent (80-120k salary) guys.

disclosure:
I'm a 30 yo male.

[crispini]

72. My friend in San Diego had to pay $300k

for a modest, three BR 2 bath condo (no yard) in Santee, which is about half an hour to an hour away from San Diego proper. :(

[kwassa]

73. ours is worth about $500, 000, and is 25 miles from downtown DC.

closer in suburbs would make the same house worth almost twice as much.

Many million dollar homes in this region, and you'd be surprised how small some of them are.

[WinkyDink]

74. They are still "expensive". What they are NOT is enough for the money.

[snooper2]

75. Plano TX

$175,000
3 Bed, 2.5 Bath
2,095 Sq. Ft.



3917 Shumard Oak Drive
Plano, TX 75074
MLS ID# 10859566

[Muttocracy]

77. so obviously location matters - will the rules be by location?

$500,000 is not ridiculous in coastal cities. It would be a bit extravagant where I live (most home range $150-$400K here). So are the federal rules applied the same all across the country? Seems like they should vary by location, or be linked to median income or something....

[Dorian Gray]

83. They are the norms in NYC

The apt. complex going up a block for me begins at ONE bedrooms for $750,000. That's in Brooklyn, not Manhattan. (Of course, it's a multi-lux building, misplaced on my block in Prospect Heights. And it's extremely expensive.) But, one bedrooms often sell for $300,00 - $500,000 in our neighborhood, and if you can find one for that lower end of the spectrum, you've found a good deal!

[Fresh_Start]

87. average price in my and neighboring communities

median home price just over $1 million after the year over year decline
It would be higher but there are a fair number of "affordable" condos

[Rex]

89. That is true - certain urban areas on hill sides that overlook large cities

cost millions. Location location location. I, OTOH, will never know that kind of price. To rich for my blood. To those that can afford a half million/million dollar house - more power to ya, large waste but sure. You can do it. Why not.

Hey, jacuzzis in every bathroom!

[nonconformist]

90. Which is why we're having a housing crisis, because those prices cannot be maintained

They keep going up and up and up, but salaries are going down. In some areas, the only people that could afford a home are the ones that took out piggy back ARM loans... and we see how that is turning out.

It's one of the reasons I moved to a rural area. We lose a lot, insofar as culture and, yes, job opportunities, but the cost of living is still reasonable. We bought a 3 bed, 2 bath 1800 square foot brick house with a finished basement and attached garage for $110,000 two and half years ago. Living in a major city didn't significantly increase our income, but living in a rural area certainly increased how far that income will go... so for us, at this point in our lives, it was a no-brainer.

[edhopper]

91. "Which is why we're having a housing crisis, because those prices cannot be maintained"

You hit the nail. For the last 150 years (Shiller/Yale) Median home prices have been about 3x median income. We now have areas where it is 10x median income and more. This is unsustainable. That is why prices will fall 30% nationwide and over 50% in the more bubbled areas over the next few years.

[XemaSab]

93. The cheapest house in my zip code is 600,000

:(