Hi Everyone:
ABC News reported today that the average price of a home in the US is now at $205,000. Speculators are cashing in on the housing boom....and housing prices have risen 15% in the last year.....
As I recall, this figure was for a 2 bedroom home, and it was fairly uniform around the country, the exception being in the lower mid-west, where that figure will get you 3 bedrooms........no doubt there will be exceptions, but if you accept these figures, it makes more of a case for owner-builders than ever before..........
ebass
In NE Texas where I am, you can buy a new 3-2-2 for $120,000 or so (and up). But next to the housing boom article is another one saying that foreclosures for next month are at a record high - because people bought more house than they could afford.
While I can sympathize with someone's wanting a "nice house" in a "nice neighborhood" there is definitely something to be said for substandard housing, especially in the city.
Although by now, some of that in the Nashville area is well over $150k.
The only question is, is that a bubble about to burst? There are some horrible scenarios out there.
Sometimes I'm glad that while I usually buy into the worst of them, I'm never ever right.
Is the bubble about to burst? No way. There is still massive demand and supply is strained. Until there is a glut of housing prices will continue to rise. The rate of change might slow but definitely prices won't burst.
I'm very happy I purchased by 40 acres when I did. I probably couldn't afford it today. And the cool thing is I paid it off 4 weeks ago!
The demand isn't because the people who are buying $200,000 homes are homeless.
I bought a house that was about 1 1/2 times my yearly income. And almost immediately got laid off. It got a little rough. A roof that should have been replaced leaked for almost two years.
I'd think that people buying houses right now could be in worse shape.
Hey Neil, congrats. A big accomplishment ;D