4 ms·
I wonder how much of this is due to number of capable buyers dwindling when prices reach a certain point. There is a good number of people willing to buy a junk
by jartelt 8y ago
I wonder how much of this is due to number of capable buyers dwindling when prices reach a certain point. There is a good number of people willing to buy a junky 2 bedroom house on the peninsula for $1M. Make that house $1.5M and raise rates a little bit and maybe people just start to say no thank you.
If you want to buy that $1.5M project, you need like $200K for the down payment and fees. Plus, you need the capital to remodel.
Perhaps salaries simply haven't kept up with the rise in home prices?
- almost_usual 8y agoIf you’re going 20% down with 4% closing costs it’s more like $360k. I honestly think a lot of buyers have paused into a “wait and see” mode.
- nostrademons 8y agoYou also see people moving away because the switching costs become worth it at those prices. "Would you leave all your friends, family, coworkers, and local knowledge behind for $50K?" is a hard sell. For $500K some people would consider it, but lots more wouldn't. For $1M and suddenly people might be like "Y'know, starting over in a new location is a pain in the ass, but a million bucks is a lot of money." Plus a lot of the big tech companies will let you relocate to satellite offices and keep your job if you've had several years tenure with them.