re: Housing prices are alarming

quote:

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a lot of people on here deny this. I really don’t get it.

If you look at all the new developments in places like dfw, atl, etc., the prices of the homes just don’t match with the average incomes. Something’s gotta give.

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Just like pre 2008 people stretch to afford it and put themselves in an unstable position.

If people were truly smart they would buy a fixer upper and work some sweat equity into a house. Sure you might not get the big McMansion like your friends but at least you won't struggle to make the monthly mortgage, insurance, and tax payments.

Then in a few years cash in that sweat equity and move into something else, rinse and repeat until you have your final house, but too many people want it now because their friends have the big McMansion and they have to keep up.

I also blame a lot of the current debt picture on social media. Social media has made the "Keeping up with the Joneses" disease even worse. They see Suzy and Bob enjoying a vacation in the Bahamas so even if they can't afford it Barbara and Mark now feel like they have to keep up and finance a vacation to Hawaii.

You might not think it's true but it happens.