Saved for years, got loan secured and now we can’t find a decent 4 bedroom house under 600k

It's possible that you just live in a densely populated area/rich area. A lot of California is that way and housing prices are way more expensive then they are worth (imo). You can find 4 bed 4 bath houses in places like the midwest for much much cheaper than 600k, but that may not be worth it if you don't want to move your kids to a completely different place.

Alternatively, you can just wait until the inevitable market crash which is bound to be coming soon and buy a house for dirt cheap, then be happy when your house appreciates back up to 600k. Keep in mind you should probably ask a financial advisor instead of taking my advice though, I'm just some idiot on a running forum who's never bought a house.

Yeah, because most ordinary middle class families buy 4 bedroom houses as starter homes... That's it.

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

I don’t feel like we are poor, but all the 4 bedroom houses in our area right now are listed around 600-850k. And getting 30 offers. Our household income is 175k and we’ve always felt like we were a normal middle class family. Saved up a 130k for a down payment and now this market is a slap in the face.

You can’t afford a 475k mortgage on a 175k income? Maybe examine your other monthly expenses.

Why you need a 4 bedroom house?

Go smaller and cheaper.

You should always buy the biggest, most expensive house on the block. No point in owning a home if your neighbors aren't jealous.

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

We feel quite the opposite. Bought our house for $270K in 1999 and today it is worth about $625K.

For every person like you, there is a person like me.

You sound like a person who complains the BMW M5 is out of reach for a middle manager office guy when he’s fully capable of buying an M3. “Middle class” problems!

houses are for the 10% wrote:I don’t feel like we are poor, but all the 4 bedroom houses in our area right now are listed around 600-850k. And getting 30 offers.

It would be great if I could find that same type of house where I live for 600-850K. Everything like that here is 900K and up.

Even in a place like CA your take home pay is probably over 9k a month.

A 30 year fixed with 22% down at ~3.2% is 2k a month. Throw in a few hundred extra per month for taxes and insurance and you're still ~25% of your take home pay.

That's perfectly manageable if home ownership in that area is your dream.

Move to Des Moines, Iowa. Usually if you buy a 4 bedroom/2 bath house in the 400k range here, they throw in an additional 2 bed/1.5 bath house for free. I literally got my house for buying ten sub sandwiches and getting my sub-club card punched.

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

I don’t feel like we are poor, but all the 4 bedroom houses in our area right now are listed around 600-850k. And getting 30 offers. Our household income is 175k and we’ve always felt like we were a normal middle class family. Saved up a 130k for a down payment and now this market is a slap in the face.

If you are making 175k/year you aren't a normal middle class family. You are rich and are deluded about how most middle class people(i.e. all the ones making half as much as you do live). Start living a middle class life and you will have plenty of money

adsfdasfasfsafadfa wrote:

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

I don’t feel like we are poor, but all the 4 bedroom houses in our area right now are listed around 600-850k. And getting 30 offers. Our household income is 175k and we’ve always felt like we were a normal middle class family. Saved up a 130k for a down payment and now this market is a slap in the face.

If you are making 175k/year you aren't a normal middle class family. You are rich and are deluded about how most middle class people(i.e. all the ones making half as much as you do live). Start living a middle class life and you will have plenty of money

No, that’s definitely middle class. They’re not hurting by any stretch, but no one can honestly call that “rich,” particularly if it’s split between two salaries.

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

I don’t feel like we are poor, but all the 4 bedroom houses in our area right now are listed around 600-850k. And getting 30 offers. Our household income is 175k and we’ve always felt like we were a normal middle class family. Saved up a 130k for a down payment and now this market is a slap in the face.

You should have invested for years, not saved. Savings yields what, maybe 1% a year these days. I make a lot less than you (like $110K) and I could pay cash for a $600-850K house.

Bought my house in 2005 for 375k. It was a dump and basically not livable. In a highly desired neighborhood. To the studs update and an addition , now is worth 1.4 million.

Spend more if you have the means to. Even if the sticker shock seems outrageous. You won't regret it.

It’s all relative but they're making excellent money for the housing market they live in.

DanM wrote:

houses are for the 10% wrote:

Does anyone else feel like the housing market has pulled the rug out from under your dreams?

We feel quite the opposite. Bought our house for $270K in 1999 and today it is worth about $625K.

For every person like you, there is a person like me.

^^^ This is my point but we certainly didn't feel like opposites. I thought it was crazy to pay what we did for our 1st house - $300K. Sold it 5 years later for $500K and rolled that into a $650K purchase on a home that is now worth over a million. Stretch, scratch, and overspend if you have to and can make that monthly mortgage payment. You won't regret it.

Big part of the issue is the dried up housing market, thanks to Trump "the builder".

https://www.nytimes.com/2021/02/26/upshot/where-have-all-the-houses-gone.html?action=click&module=Top%20Stories&pgtype=Homepage

Sad to say it, but the housing market is going to cool off once the pandemic relief for rent and mortgage payments is over. There will be a big flood of foreclosures and evictions. That supply will help bring balance to a lot of markets. Of course, the trendy hot neighborhoods will always be the same as they will have very few foreclosures. But the broader market will improve. Home Depot did not provide guidance on their profit outlook because if an anticipated slow down in housing. So, just wait it out until things get to be more rational.