Did you see those interest rates. 12-18% during those years. One of the reasons houses were so cheap. In 1988, interest rates were about 10%. A 70,000 home was about 700.00 a month. Today, same home is about 250,000 and payment is about 1,000 a month. Give or take a couple hundred So, they increased the cost of the homes and lowered the interest rates. Therefore, pricing so many out of the homeowner's game with those pricetags.
@@TheEconomicsArchives thanks. been following the real estate market since 87 when I bought my first home. I watched the prices soar to unbelievable amounts while the interest rates going down. I saw it as a scam and an illusion to obtain the American dream. Little did the average home buyer know about the costs to maintain those 6 figure homes. Hence, people were living in poverty but they could say they were a home owner. Eventually, the proverbial bubble burst.
In 1971, the interest rate for a mortgage was 7.33%. If you waited for interest rates to go gown, you wouldn't have purchased a home until 1993. You would have rented for 22 years waiting for rates to go down, meanwhile the value of real estate quadrupled. Don't wait to buy real estate. Buy real estate and wait. Marry the house, date the rate.
Builder buy downs are happening again. Absolutely crazy at 66k for mortgage for a 3 bed with a yard. That's equivalent to 232k in 2023. Get ready for a repeat of the 80s, except it's going feel a lot worse because its not just the real estate that's in a bubble, it's literally everything.
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It’s amazing how modern the suburbs of 40 years ago look. Things have not changed.
im years away from being a homeowner. but it is a goal of mine.
Did you see those interest rates. 12-18% during those years. One of the reasons houses were so cheap.
In 1988, interest rates were about 10%.
A 70,000 home was about 700.00 a month.
Today, same home is about 250,000 and payment is about 1,000 a month. Give or take a couple hundred
So, they increased the cost of the homes and lowered the interest rates. Therefore, pricing so many out of the homeowner's game with those pricetags.
Very well put
@@TheEconomicsArchives thanks. been following the real estate market since 87 when I bought my first home. I watched the prices soar to unbelievable amounts while the interest rates going down. I saw it as a scam and an illusion to obtain the American dream. Little did the average home buyer know about the costs to maintain those 6 figure homes. Hence, people were living in poverty but they could say they were a home owner. Eventually, the proverbial bubble burst.
In 1971, the interest rate for a mortgage was 7.33%. If you waited for interest rates to go gown, you wouldn't have purchased a home until 1993. You would have rented for 22 years waiting for rates to go down, meanwhile the value of real estate quadrupled. Don't wait to buy real estate. Buy real estate and wait.
Marry the house, date the rate.
Builder buy downs are happening again. Absolutely crazy at 66k for mortgage for a 3 bed with a yard. That's equivalent to 232k in 2023. Get ready for a repeat of the 80s, except it's going feel a lot worse because its not just the real estate that's in a bubble, it's literally everything.
My house was 70k in 1986. Bros house was 92k in 1982. My house is $320k now. Bros house is $750k. Dang. He won
66k for a house. Was I hearing that right?
Yeah that's correct
it depends where you live.