These prices, in my opinion, represent the new normal. A 10% correction would likely be short-lived since it would be quickly consumed.
I have heard that builders are encouraged to construct “upscale starter houses,” or really expensive homes.
Enormous Reits are purchasing homes merely to rent them out.
In a similar vein, business owners are increasingly refinancing their houses in order to purchase other properties for rental income.
Since I obviously only know what the news headlines tell me and do not know much about the market, I am hoping someone might instill some renewed hope in me. Said, I do not see it getting any easier to afford a home.
Perhaps being single is my problem. I work in a low-income neighborhood and have trouble finding a house that fits my budget. Especially considering how much rent costs for a single individual.
Do any of you know of any places where single folks are building homes?
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To make a successful purchase, you need to gather the right information. First, determine if the area you’re interested in has a high “capacity” for new residents. For example, California is considered crowded, while Alaska is seen as underpopulated. If your goal is to buy a house, achieving it is relatively straightforward. However, buying in a high-demand area can be challenging. Be prepared for a tough journey and consider either relocating or finding a less competitive market. No offense intended; sometimes, taking the less conventional route is the way to go.
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To me, it seems quite grim. While legislation aimed at limiting the number of rental properties a company or individual can own might appear helpful, people will find ways to circumvent it. For instance, someone might say, “I own 10 rentals; my wife owns 10; my mother-in-law owns 10,” and so on. I’m finding it hard to envision a solution to this problem without substantial government intervention, and I doubt that the general public and wealthy individuals would allow such measures. Something drastic, like 90% of people refusing to buy McMansions, could potentially make a difference, but that scenario seems unlikely as long as buyers continue to risk financial trouble by overextending themselves and relying on substantial financial gifts from relatives.