Quickly googling shows that the median home price in San Francisco is $1.4 million. Median salary for a single person is around $97k. Have to save $280k for a down payment. Single person making $97 pays around $26k in federal and state taxes there. Payment on $1.1 million 30-year loan is around $5,400 per month?? BEFORE taxes and insurance.
Seems hard to make the math work - at least for a single person.
Not sure that the issue is looking for homes within one’s price range. At least not all the time in all locations.
Agree. Depends on where you are, prices, and what you can save. But, not sure parents need to worry that much about a kid’s decision to live in a very high cost of living area . Unless they clearly want to help with that. And that’s all wonderful if they feel they have the resources to help. Some parents can help with high cost options and that is great and hopefully adult kids do not overextend themselves. We will be retiring soon and cost of housing in a new area will be considered.
But, It is wonderful if parents can help substantially! It is an individual family decision with all this.
When DD and SIL are in a position to buy a house, we will help somehow. I don’t think they will need down payment help, but we will give them a nice housewarming gift.
DiL and S2 put in their 4th offer today, but they are frustrated by the hunt. The last property was 75% what they wanted and 100% where they wanted it, and the offer that was accepted was 100K over the ask. Hard to feel like you can compete with that.
Their realtor says many buyers are waiving any kind of inspection, but my son is pretty adamant that they are neither handy nor experienced, and he wants an inspection even if it’s just for information. and I agree.
A neighbor house is for sale and weirdest thing. No sign which I think is crazy. And they said why. Whoever buys will be from NY or CA and pay cash. That said it’s been at least a month. Still shows avail. 1.07 m. Just south of Nashville.
I thought the market took a big pause. I know it did. So it’s frightening to read your blurb.
Update just checked realtracs (our local system). Not listed. Maybe took down.
So sorry. Son lost a house with 8 offers. They were told their offer was second. They did an inspection before their offer and waived the inspection but still lost out.
Good luck to them!
Things are selling very quickly and for at least asking price where DS bought his townhouse…and for $80,000 more than he paid less than two years ago (and this was an under $200,000 purchase).
So no…in some markets, sales are still quite robust.
DS has been looking for a house over a year now. The inventory were he is looking is very limited and some sellers prefer to put houses for leasing in hopes prices will go even higher next year.
DD and her BF were just mentioning today that there’s absolutely nothing they can buy in SF for under a million
Real estate here is still crazy. A neighbor just sold his house in May. Listed on a Saturday, multiple offers the first day. It was under agreement on Monday. They picked a cash offer 50k over ask, no inspection.
They’ve looked at 17 houses so far, all of which sold in a few days. The typical experience is for the seller to set a 24 hr window for offers after the Open House (but strong properties don’t tend to have those, only private showings) and then 24 hrs later one of them is chosen. There’s no chance to go back and visit the property a second time or ask questions you think of later (they were furiously texting about septic systems during our 3 hr drive this weekend)
This is the Philly area, where a modest 1200sq ft 1950’s cape cod tract house that needs paint, carpet, cabinets but has no structural issues and no garage is offered at about 390k and sells at about 450k. I’ve seen properties with missing walls, hole in roof, etc or on highways or backing up to SEPTA tracks offered at 300K.
When the mortgage appraisal doesn’t meet the accepted offer, buyers are to pay the difference in cash. The whole thing is crazy.
Prices are still crazy by me too. Things are taking a tad longer to sell but our neighbor sold last month and got a full cash offer from a young couple with a baby.
My parents on Long Island just sold their house a few days after putting it on the market, $70,000 over listing price, cash. The realtor told them there is no inventory.
This is the issue here. Lack of inventory especially for homes with 4 bedrooms. These are not starter homes. And right now, many families can afford to leave their starter homes and move up…so the whole housing market is askew.
I posted on another thread that our son sold his house about three weeks ago, one day on the market, over asking–in Georgia. We were very pleased for him but very surprised that the market was that active where he lives. He said that it’s PCS (Permanent Change of Station) season for the Army and houses go fast anywhere near military bases.
The issue now, of course, is that he and his new wife go from being sellers to buyers, and they are moving to a more expensive market (Annapolis area). They will rent until they find a house. Fingers crossed.
Yes, it’s wacky.
DD in Arlington, VA lost out on several houses to all cash, over asking, no contingencies. The inventory is low, and lots of developers buying and renovating these older homes or tearing down for new huge builds before reselling, here, so competition is great.
Her agent said come in early with your best offer, waive all contingencies. The agent purchased a 1 year home warranty and post-purchase home ‘maintenance’ inspection on the house she finally got.
