3 ms·

Nope, buying a home has not gotten more expensive. Financing a home purchase has. Few understand this.

pnut 5y ago
Pretty sure house prices are at all time highs also?
brutus1213 5y ago
You are right but they are linked. The proportion of people who don't take a mortgage as a fraction of buyers isn't that high I think? (myth of the all-cash foreign buyer)
- anonymouse008 5y ago
  That is exactly the point. Though a relationship exists, the mindset that believes “it’s now more expensive” is the mindset that creates financial instability through decisions and behaviors made over time in more markets than just housing.
- JKCalhoun 5y ago
  I don't think it's a myth — well the "foreign buyer" part is probably in the noise. Talk to a realtor in any U.S. locality (I happen to be working with a realtor in a mid-west state) and ask them how many homes are seeing all-cash offers. I suspect it is also institutional/corporate buyers and people who cashed out of their home-in-expensive-region and are moving to less expensive communities. I don't think there's any myth there.
hotpotamus 5y ago
Housing affordability is obviously multifactorial and mortgage rate is one of those factors. https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index
TrackerFF 5y ago
Building a home as definitely become more expensive, supplies have become more expensive all over the line. But financing has also become more expensive, and will probably continue if/when the fed raises the interest rate.
distantsounds 5y ago
This is not true, there are a multitude of resources out there to assist in purchasing a home with little to no equity or down payment. This does not help though, when the base cost of housing itself is on the rise. If you had paid literally any amount of attention to the housing market in the past 2 years you would have noticed this trend.

pnut 5y ago

Pretty sure house prices are at all time highs also?

You are right but they are linked. The proportion of people who don't take a mortgage as a fraction of buyers isn't that high I think? (myth of the all-cash foreign buyer)

anonymouse008 5y ago
That is exactly the point. Though a relationship exists, the mindset that believes “it’s now more expensive” is the mindset that creates financial instability through decisions and behaviors made over time in more markets than just housing.
JKCalhoun 5y ago
I don't think it's a myth — well the "foreign buyer" part is probably in the noise. Talk to a realtor in any U.S. locality (I happen to be working with a realtor in a mid-west state) and ask them how many homes are seeing all-cash offers. I suspect it is also institutional/corporate buyers and people who cashed out of their home-in-expensive-region and are moving to less expensive communities. I don't think there's any myth there.

hotpotamus 5y ago

Housing affordability is obviously multifactorial and mortgage rate is one of those factors. https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index https://en.wikipedia.org/wiki/Case%E2%80%93Shiller_index

TrackerFF 5y ago

Building a home as definitely become more expensive, supplies have become more expensive all over the line. But financing has also become more expensive, and will probably continue if/when the fed raises the interest rate.

distantsounds 5y ago

This is not true, there are a multitude of resources out there to assist in purchasing a home with little to no equity or down payment. This does not help though, when the base cost of housing itself is on the rise. If you had paid literally any amount of attention to the housing market in the past 2 years you would have noticed this trend.