I see a lot of expensive houses being built in my area. A LOT. And the weird thing is that they’re being bought pretty quickly. Are these people just making more money than me? If so, what are they doing for a living? Or are they just living house poor? How exactly are they affording these places?
Edit: For reference, my neighborhood is starting to become popular (because the other popular neighborhoods have priced most people out of affording places there). The normal price of newer homes here is $700k. My home, built in 1965, which is 2500sq ft on a quarter acre of land, is $500k.
price does have alot to do with seller. the real estate market is determine by BOTH buyer and seller.
but in our current real estate market, investment corporations, like Blackrock, are chokehoking the housing market when it comes to ownership and affordability. Esp. since for the average first time home buyer affordability is becoming more and more distance from them its not because that are not a reliable or not a competent buyer (FICO is one determinate but also what lenders consider a risk factor in this RE market). its because the market is being chokeholded by corporations with a lot of fucking purchasing power.
If the first time buyer cannot afford a house, it means another buyer showed up with a higher offer. It doesn’t really matter who owns the house.