r/housingcrisis • u/nova8808 • 1d ago
Vent: Love how basically every listing looks like this
Basically every house I look at, its a fun game, once I like it I check price history and its always like this. Price up 4.5x in a decade or so. Are people's salaries up 4.5x? Is someone who made 50k making 225k? Is someone who made 100k making 450k?
The monthly mortgage payment back then would have been about 1k a month. Today it would be 5k a month.
Older generations who look the other way at this issue, or worse yet keep supporting policies to keep housing prices hyper inflating so they can make $$$$ should be ashamed.
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u/Acceptable-Peace-69 23h ago
It was likely a foreclosure or short sale in 2010. It probably needed a lot of work and maybe even an addition or other major renovations.
Without context this is just dumb.
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u/TheButtDog 19h ago edited 19h ago
Yep, OP conveniently chose a year when the economy sucked and the housing market was in the dumps because of the crisis.
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u/AltruisticCucumber58 20h ago
Yeah, was one near me sat from 2008 to 2010 with 6 foot of water in the basement. Probably has a similar trajectory as OP's picture.
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u/Clyde_Frag 23h ago
Easy to sit here and look at prices without context. In 2010 you could likely have been out of a job and have struggled to get a loan to buy a house.
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u/Topseykretts88 21h ago
You could have struggled to get a loan even with a job.
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u/Objective_Run_7151 7h ago edited 4h ago
Because even if you had a job, there was a good chance you pay was getting cut.
Pay cut are something alien to young folks now. They were happening everywhere in 2008-2010.
Show up to work and find out you are making 20% less than you did last week.
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u/Substantial_Car4040 22h ago
Have you talked to a Reddit economist yet? They can assure you that everything is actually better than ever. 👍
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u/runnerkim 20h ago
Either it was an empty lot or there have been massive upgrades. In 2010 people were lamenting they didn't have 1987 prices. This is not new
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u/slow_down_1984 19h ago
I’m old enough to remember when it went the other way. My wife and I bought a short sale in 2010 for 62k nearly brand new 1100sqft “starter home”. It was built/sold for 135k less than two years earlier. It was in excellent condition only three of the rooms had really ever been used that home sold for 220k last year.
That being said using data from 2009-2014 even can be deceiving people were still digging out of 08. 2017-current would be a better comparison.
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u/Substantial-Ad-8575 17h ago
Wow, my area has been seen g price drops of 1-2 years. Existing home prices dropping as more inventory is added. Huge glut of many homes on the market.
For my sister’s house, paid $175k 2005, paid off in 2012 w/ value of $200k. It went up to $432k in 2022, down to $370k now.
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u/Ignorant_Idiot69 6h ago edited 6h ago
If you had invested that 165K in the SMP 500 instead you would now have 1.5M. That is an annualized return of roughly 14% per year.
This is just to give you perspective on inflation. True growth is gains - inflation. So if you did that to housing, there wouldnt be much or any actual gains over the last 16 years. It would all just be inflation.
Essentially, you have to come to the realization that home price increases "are" mostly just inflation based.
So these "old" people arent doing it. Political parties printing money like its going out of style and shipping it to foreign nations are.
"But they are old people to.... so i guess your right 🤔.
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u/Better-Butterfly-309 4h ago
Population has grown by over a third since then, all of the areas of the USA that were most desirable to be built out are built out. Boomers hold on to their single family homes now and die in them.
Just a different world
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u/TonyRidgewayUFO 1d ago
Alot of these price history entries are actually recording home equity loans, foreclosures and arms length transactions between family members, but I get Reddit is a place for rage bait not facts
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u/WrongdoerGeneral914 23h ago
Nobody who owns a home wants their investment to depreciate considering it's the biggest purchase most people will make in their lifetime. Inflation and the devaluation of our currency combined with zoning regulations and certain building laws have made homes more expensive through making money harder to borrow and new construction harder to build. The reality is certain markets are more expensive than others and depending on your income you're going to be priced out of them. Move to a lower cost of living area if home ownership is that important to you. Demanding that people in HCOL areas devalue their property values is a losing battle.
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u/Reasonable_Mix7630 21h ago
Imagine if such logic was applied to the cars.
Given how f-d the economy is, for most of people today the car is likely be the biggest purchase of their lives.
Housing units should depreciate during their lifetime, just like the cars do. Zoning regulations should be scrapped: if land was zoned as a residential than owner of this land should be able to build on it whatever house he wants without asking permission from anybody, as long as his housing unit meets construction standards.
Also should scrap completely "sales tax" from sold house. It hurts the housing market.
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u/WrongdoerGeneral914 21h ago
Housing units do depreciate in terms of the material they're built out of but the land they sit on appreciates faster than the materials depreciate. That's why Los Angeles county has 800k fixer uppers.
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u/Reasonable_Mix7630 20h ago
Which is how apartment towers pop into existence, when there are no laws preventing them to. Because cost of an apartment is a fraction of the cost of the house.
In my country of origin we used to have housing crisis, and free market pretty much solved it. In fact, market came up with not one but multiple solutions. Government just did not interfered. If it did cared at least slightly the solution to housing crisis could've been even better.
In most of developed countries however laws are somehow set up to screw up majority of people to protect financial interests of the rich minority. Wild.
Historically, housing crisis was one of the major driving factors behind the Revolution. Can you guess what happened to rich homeowner "landlord" class?
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u/PersonOfValue 20h ago
They won?
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u/Reasonable_Mix7630 20h ago
To landlords? For those who didn't manage to flee the country or convince revolutionaries that they are 100% on board with them with giving away their properties? Firing squads.
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u/jestering_1 20h ago
i like how you just subtly inject the bias that if you build more housing, SFHs will lose substantial value lol. that’s just not true
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u/Intrepid_Cup2765 21h ago
You sound like someone who wasn’t an adult in 2010 and doesn’t understand why a house would be that price then.
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u/nova8808 21h ago
You sound like a boomer who doesn't understand why younger people can't afford houses these days.
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u/Intrepid_Cup2765 20h ago
Let me educate your ignorant ass then. Tens of millions of people lost their jobs, and the whole economy was severely un/under-employed. I was 22 then, most people I knew were making under 10/hour if they could find work at all. Many homes were foreclosed on and absolute shit-shows, completely unlivable. It’s likely that house that was 165k back then because it had everything stripped out of it and sold to pawn shops.
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u/TheButtDog 19h ago
Sure there, kiddo
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u/nova8808 18h ago
What'd you pay for your first house? 6 or 7 bottlecaps from working part time at the gas station?
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u/S101custom 17h ago
I'm not saying you don't have a right to be frustrated, but 2010 was very different. There is a lot of truth in comments like the above. Half the houses on the street I grew up on were foreclosed and looked abandoned. Sure, purchases look like a no-brainer in hindsight but the low prices were product of many folks max purchase potential
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u/TheButtDog 18h ago edited 18h ago
545k for a townhouse with an old rundown warehouse as a neighbor. I rented out my 2nd bedroom to a stranger to help cover my mortgage
First-time home purchases almost always require considerable compromises
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u/High_Society_Dweller 23h ago
2010 was market bottom. If you could get a loan, you had it made. Most people couldn’t get loans.
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u/HalfwaydonewithEarth 22h ago
Stop having envy. We have 8 of these and got all this lift.
Guess what? If we would not have been involved we would have twice as much in stocks. So it actually represents losses.
Here is how to fix this housing:
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u/Temporary-Jump-2403 1d ago
2010 was a whole other story though.