re: Can someone help me explain how people are affording a house in today's market?

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When we were buying a house, we were able to make cash offers and closing in 21 days because we were already guaranteed the loan amount through pre-approvals.

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So maybe I am just an idiot, but are you saying that you were able to make a "cash" offer just because you were pre-approved for a loan?

If so, that explains why so many houses are getting "cash" offers. Previously I considered a cash offer one that did not include financing,, i.e. the seller bought the house with their own liquid cash.

Houses here is Little Rock have been popping up between 750,000 to 1.2 and are selling in a week. It's baffling to me. I can't put my finger on it. In my gut something feels off though.

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but the housing market is just dumb right now in BR.

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It's dumb everywhere.

Anything south of $250k still needs work done and is in a below average neighborhood. Between the mortgage rate, insurance, repairs and property taxes, it's waaaay cheaper to rent where I'm at right now.

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but are you saying that you were able to make a "cash" offer just because you were pre-approved for a loan?

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Yes. I even joked with my mortgage broker if they were going to give us a duffel bag to bring to closing.

He told me that since we already went through the lending process, as long as I put an offer within xx days, I would be able to make a "cash offer" because all of the underwriting would be done. I essentially "have the cash" in an account to be withdrawn once we closed.

Was 8+ years ago but I recall a conversation about a cashier's check that should have been sent to the closing attorney's office the morning of the closing. It had not arrived before closing, so there were conversations about having to reschedule. After a bunch of phone calls from the closing attorney and my broker; we ended up proceeding with the paperwork, and the check was couriered over during the process.

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What I don’t get is how so many people are getting new houses, new cars, and taking family vacations.

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My wife keeps wondering when her Denali is coming because every other mom drives around in one.

I’ve explained to her where we land in the income distribution and tell her they are doing without something that we have, most likely just actually saving money.

It’s hard man. Just trying to do the right thing and get ahead and not live for the debt I owe. Might as well have a big home loan, I don’t see them decreasing with all other costs increasing

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He told me that since we already went through the lending process, as long as I put an offer within xx days, I would be able to make a "cash offer" because all of the underwriting would be done. I essentially "have the cash" in an account to be withdrawn once we closed.

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That explains all of the cash offers I hear about then. Not going to lie, I feel a little better about myself now.

I just assume people are in massive amounts of debt. No thanks.

There is a massive transfer of wealth taking place from older boomers to their offspring… purchasing their homes is a huge part of that.

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I'm seeing people sell their houses in California or New York for $1,000,000+ and then buy twice as much house for $750,000 in Georgia.

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My 53 yr old cousin (originally from Georgia) has lived in San Diego for 25+ yrs. He sold his 40 yr old house, 3BR/2BA 1,100SF for $1.8MM and moved back to Georgia. Paid $850,000 cash for a 3,000sf + 10 acres and plans to work as a military contractor until retirement in a couple of years.

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then you'll forever be in that 2,000 sqft house.

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Nothing wrong with a 2000 sqft house.