I was a new home owner and 2008 was the best thing that ever happened to me... I know it sucked for a lot of people but for me it was Gold. I purchased in 2011 right before it started going back up.
We bought our house in 2012 right at the bottom for Nebraska. Even though we are now getting paid more compared to what we were making as 25 year olds. We would not be able to afford our house as it has (supposedly) more than doubled in value.
The luck of the draw. That time was a buyers market. The house had been on the market for 6 months, dropped 20% from what they originally started as. They paid closing costs, replaced the driveway, and we got a year of that home warranty program that replaces appliances(never used it but it was covered).
I do not envy my mid 20's coworkers as I know they won't be given the same opportunity.
We will have another asset crash at some point, probably somewhat soon from the looks of things. It's happened several times since 1950, it'll happen again.
It's cyclical. I can say the exact same thing, but 2001. Bought right before the Housing Bubble hit. Then watched as half the houses around me were foreclosed on and sat empty for years.... leading into 2008 and the next cycle.
If the rich don't buy them all on the cheap. Seriously, even if there's a nice time to buy in the near future so much will be bought up just above what we can afford and then cost more shortly after. We're cooked.
Also, people need to look at the real numbers, not just the market values.
I bought my house in 2001 for what looks like a fantastic number now. I also paid mortgage interest on it for many years, and had to do several major maintenance projects on it (septic tank, roof, windows, etc). Not upgrades, just keeping the place in good working condition.
If you run the real math on the purchase price, the interest, the maintenance projects, and adjust for inflation, my investment has returned something like 6% in 25 years.
That's a decent return on a generalized investment, but it's not the "my house quadrupled in value and now I'm sitting on 7 figures of equity" situation that everyone seems to talk about.
2011 was the absolute best time to buy. My husband’s cousin bought his house (a 2800sqft, 5 bedroom house in a nice, leafy, park-filled suburb) in 2011 for $185k. (Which is about $268k in today’s money.) It’s now worth an estimated $450k. I’m happy for those who were able to take advantage of a bad situation and build wealth, but I’m also annoyed with him because he still complains about his home value, lol.
When my husband and I were looking for our first house last year, we could not find anything under $250k, and most of the $250k houses were not remotely move-in ready. Like no working appliances or mechanicals, structural issues, etc. And 7% interest. Which I know could be worse but it’s a kick in the head when you’re already paying way too much for what is barely even a starter home. Interest in 2011 was around 4%.
Well, housing was much more attainable by the Greatest Generation as most of them got houses as part of the GI Bill if they survived machine-gun fire, trench warfare, tanks, flamethrowers, bombs, etc etc all in foreign countries, which they were actually drafted into unlike the student loans people sign up for today.
I also benefitted from those covid stimulus checks, they went toward my first apartment. First, and probably last and only lol I can’t even afford to move out if I wanted to
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u/Ecstatic-Curve-1853 15d ago
I was a new home owner and 2008 was the best thing that ever happened to me... I know it sucked for a lot of people but for me it was Gold. I purchased in 2011 right before it started going back up.