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Are you priced out of where you like to live too?
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bugelrex



Joined: 24 Feb 2009
Posts: 16

PostPosted: Tue Jan 17, 2017 7:45 pm GMT    Post subject: Re: Feels like the boom will never end Reply with quote

victorgbishop wrote:

I am really glad that you wrote this because....it touches on what is completely wrong with this freaking market. If you have a school loan, have kids, married and are paying rent in the GB area - you have NO WAY of putting down 20% or getting into communities like Newton, Wellesley, etc. I have great credit have worked for close to 20 years and still don't have enough for a 20% down payment in these area. Prices in the area are out of control for housing AND rents. Family of 3, professionals, 19 m/o boy and 21 weeks preg, hoping to buy in these towns is impossible. What you need is more help for the middle class to buy in these areas. We barely make over the threshold for Mass housing - which offers a no PMI loan. so we live pay check to paycheck hoping for some assistance.
Even with our parents who gifted us 10-15K, still don't make it....


This is what the current generation have to look forward to, work hard in school, pay high loans to attend such schools, get a decent job raise a family AND you still can't get ahead. I don't think American generation has lost access to the "American Dream" like this before (except for the great depression)

It easy to see why the economy "looks like its going great", while half the population revolted by voting to "blow up" the current political system.
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PostPosted: Tue Jan 17, 2017 8:28 pm GMT    Post subject: Reply with quote

Quote:
I am really glad that you wrote this because....it touches on what is completely wrong with this freaking market. If you have a school loan, have kids, married and are paying rent in the GB area - you have NO WAY of putting down 20% or getting into communities like Newton, Wellesley, etc. I have great credit have worked for close to 20 years and still don't have enough for a 20% down payment in these area. Prices in the area are out of control for housing AND rents. Family of 3, professionals, 19 m/o boy and 21 weeks preg, hoping to buy in these towns is impossible. What you need is more help for the middle class to buy in these areas. We barely make over the threshold for Mass housing - which offers a no PMI loan. so we live pay check to paycheck hoping for some assistance.
Even with our parents who gifted us 10-15K, still don't make it....


Yes, the first time home buyers is the tier got hurt the most, when salary is stagnating, yet home price pretty much double in GB area since 2011. I know folks who have existing property, they at least have the option sell high and buy high, to upgrade their living condition in recent couple of years, and their existing equity becomes a very powerful weapon for them to in the next house hunt.

Try to put salt in the wound, if you were a responsible person who take no risk and try to save money for the 20% down payment to get your first home, you got punished the most with your saving got beaten by inflation, due to QE and prolong ultra low interest rate environment.

There are going to be A LOT of newly build properties flooding the GB market in the coming few years, due to the current high rent and high home price in current market. When there is no major population boom to disgust all these newly built units, one day, all it takes is someone say 'flock it', I am moving somewhere close by, where yet the rent is much cheaper, that will be the beginning of the end. The pendent will sing the other way with all the public anger and hate and frustration as momentum that built up for the last few years.

We all know how this is going to turn out eventually, but we don't know when and where that first 'someone' will say the 'flocking' word. We should pay attention to inventory level and empty condo amount, ultimately the rent to mortgage ratio.
Politicians will try all they could, to prolong the housing boom, as it benefits the statistic that prove their worthiness. It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.
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bugelrex



Joined: 24 Feb 2009
Posts: 16

PostPosted: Tue Jan 17, 2017 9:27 pm GMT    Post subject: Reply with quote

Anonymous wrote:


Politicians will try all they could, to prolong the housing boom, as it benefits the statistic that prove their worthiness. It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.


Due to past bailouts by the FED, it can be assured that any crash will be followed by zero % rates and QE on steriods!

Its interesting that Trump 'looks' like he could be the one to 'stop' this FED nonsense but I doubt the average American public would agree.
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PostPosted: Tue Jan 17, 2017 11:58 pm GMT    Post subject: Reply with quote

Quote:
Its interesting that Trump 'looks' like he could be the one to 'stop' this FED nonsense but I doubt the average American public would agree.


Well, just can not agree on thing that doesn't make sense. Trump can't wait to kick yellen out, because she is not on his side for sure. But that doesn't mean Trump would do things that could hurt home price. He will try whatever it takes to make sure high home price remains from my point of view, as it helps his vision of massive infrastructure boom, as well as helps his family business.
The FED nonsense was in placed to pump up economy, and later to help ensure donkey get another term. But when Trump won by surprise, it force Yellen to try to raise rate as much as possible in panic mode, try to set trap for elephant before she got booted.
It is interesting to see how 2017 turn out. Let's see who is the dump one that get the wrong move in, that might trigger the unexpected.
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PostPosted: Tue Jan 17, 2017 11:58 pm GMT    Post subject: Reply with quote

Quote:
Its interesting that Trump 'looks' like he could be the one to 'stop' this FED nonsense but I doubt the average American public would agree.


Well, just can not agree on thing that doesn't make sense. Trump can't wait to kick yellen out, because she is not on his side for sure. But that doesn't mean Trump would do things that could hurt home price. He will try whatever it takes to make sure high home price remains from my point of view, as it helps his vision of massive infrastructure boom, as well as helps his family business.
The FED nonsense was in placed to pump up economy, and later to help ensure donkey get another term. But when Trump won by surprise, it force Yellen to try to raise rate as much as possible in panic mode, try to set trap for elephant before she got booted.
It is interesting to see how 2017 turn out. Let's see who is the dump one that get the wrong move in, that might trigger the unexpected.
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guest
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PostPosted: Wed Jan 18, 2017 2:13 am GMT    Post subject: Reply with quote

[quote="Anonymous"]
Quote:
It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.


The problem is that every time the matrix reloads, it crushes the average working family who can barely get by. The wealthy people end up better off every time. Instead of wishing for the great pumpkin to bring affordable houses in nice neighborhoods to all the good boys and girls, people need to support politicians who will reform some zoning restrictions and force developers to build more middle class housing instead of just building housing for the rich.
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PostPosted: Wed Jan 18, 2017 3:13 am GMT    Post subject: Reply with quote

[quote="guest"]
Anonymous wrote:
Quote:
It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.


The problem is that every time the matrix reloads, it crushes the average working family who can barely get by. The wealthy people end up better off every time. Instead of wishing for the great pumpkin to bring affordable houses in nice neighborhoods to all the good boys and girls, people need to support politicians who will reform some zoning restrictions and force developers to build more middle class housing instead of just building housing for the rich.


well, MA does have the 40b law, but that only help low income.. does nothing for the middle class. In a liberal state such as MA, the low income always come first and always will.
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unclemat



Joined: 25 Nov 2013
Posts: 18

PostPosted: Wed Jan 18, 2017 3:39 pm GMT    Post subject: Reply with quote

[quote="Anonymous"]
guest wrote:
Anonymous wrote:
Quote:
It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.


The problem is that every time the matrix reloads, it crushes the average working family who can barely get by. The wealthy people end up better off every time. Instead of wishing for the great pumpkin to bring affordable houses in nice neighborhoods to all the good boys and girls, people need to support politicians who will reform some zoning restrictions and force developers to build more middle class housing instead of just building housing for the rich.


well, MA does have the 40b law, but that only help low income.. does nothing for the middle class. In a liberal state such as MA, the low income always come first and always will.


[quote="Anonymous"]
guest wrote:
Anonymous wrote:
Quote:
It doesn't matter if it is a elephant or a donkey. But sometime all it takes was a black swan to reload the matrix.


The problem is that every time the matrix reloads, it crushes the average working family who can barely get by. The wealthy people end up better off every time. Instead of wishing for the great pumpkin to bring affordable houses in nice neighborhoods to all the good boys and girls, people need to support politicians who will reform some zoning restrictions and force developers to build more middle class housing instead of just building housing for the rich.


well, MA does have the 40b law, but that only help low income.. does nothing for the middle class. In a liberal state such as MA, the low income always come first and always will.


Well, aside from that 40b is really designed to help developers make big bucks (its primary goal, like most these kinds of bullshit laws), it actually "helps" middle class. The "affordable" units are meant for people under 80% percentile income for given area. So not really low income.

Might be worthwhile to read some how 40B actually works.
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PostPosted: Thu Jan 19, 2017 2:32 am GMT    Post subject: Reply with quote

I don't know if it's part of 40b, but in Boston (and maybe elsewhere), there is affordable housing opportunities for median income and 120% times median income.
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PostPosted: Fri Jan 20, 2017 1:08 pm GMT    Post subject: Reply with quote

Guest wrote:
I don't know if it's part of 40b, but in Boston (and maybe elsewhere), there is affordable housing opportunities for median income and 120% times median income.


The only "affordable housing" are tiny capes in the bad neighborhoods, gut rehabs and condo apts in 100yr+ old triple deckers in the bad neighborhoods. We need newer lead free housing in the working class areas that are affordable for the working class.
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Former Arlingtonian



Joined: 23 Oct 2013
Posts: 141

PostPosted: Fri Jan 20, 2017 1:32 pm GMT    Post subject: Affordable housing - makes things worse Reply with quote

All of Government affordable housing efforts have contributed to a worse housing affordable housing situation.

When ever there are more buyers for real estate - whether good intention or not - it forces prices higher.

Fannie Mae was originally launched to make home loans more available and real estate attainable - how did that work out??

https://news.google.com/newspapers?nid=2131&dat=19441221&id=x6xkAAAAIBAJ&sjid=wYQNAAAAIBAJ&pg=533,213739
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PostPosted: Fri Jan 20, 2017 10:13 pm GMT    Post subject: Re: Affordable housing - makes things worse Reply with quote

Former Arlingtonian wrote:
All of Government affordable housing efforts have contributed to a worse housing affordable housing situation.

When ever there are more buyers for real estate - whether good intention or not - it forces prices higher.

Fannie Mae was originally launched to make home loans more available and real estate attainable - how did that work out??

https://news.google.com/newspapers?nid=2131&dat=19441221&id=x6xkAAAAIBAJ&sjid=wYQNAAAAIBAJ&pg=533,213739


It works very well in 90% of the US where you can get a nice house for under 200k
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Real Estate Guy
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PostPosted: Tue Jan 24, 2017 3:34 pm GMT    Post subject: interest rates Reply with quote

It looks like the plan for the Fed is to raise rates approx. 3 times per year at about 1/4 point each time with a target of hitting a Fed Fund Rate of 3% by the end of 2019 ,......over another 3 years! This will prolong the agony by avoiding a massive correction, but letting air come out of the bubble they created slowly. As inflation raises(and they continue to lie about how high it really is), their goal is to have salaries come up enough to meet a soft pull back in prices. Basically, this continues to punish the people who did the right thing by saving money by rewarding those that over extended in 2002 -2008. Most "savers" wealth has(and will continue) to take the hit via inflation and low rates by the over stepping Fed to save the reckless buyers and the Wall Street bankers that funded them. Now, over the next 3 years, buying real estate will be like trying to catch a falling knife as prices stubbornly hold on and SLOWLY retreat. No one know how much they will correct(15%, 20%, 30%), but they WILL correct. My advice would be to stay patient, don't over pay or leave your financial principals or intuition. Now is the time to use caution more than ever. I am a developer, investor and have been in real estate for over 25 years. The Fed has destroyed the market not only by inflating the biggest bubble in history, but their efforts have also created a "top heavy" market in Boston where inventory(for builders and new buyers) is non existent. Their policies have created a wealth divide in this country and our area that is nothing short of criminal in my opinion. The faster the rates come up the better. Be an advocate by boycotting realtors and seller's and let's hope Trump's policies do force rates up higher whether that's the intended consequence or not. It's time to take our country back.
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PostPosted: Tue Jan 24, 2017 8:07 pm GMT    Post subject: Reply with quote

Ugh. Punished saver here. Unfortunately I can't wait until 2019. I witnessed a bidding war in Malden in the fall that gave me great pause. I guess we can expect more of the same.
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