28 year old millennial reporting in. I wasn’t in a position to buy during the the bulk of the prices increases over the last few years. I could have conceivably purchased in 2015 but thought that prices couldn’t go much higher. Clearly I was dead wrong! I’m looking in the Talmadge area and prices are absolutely skyrocketing. I’m talking $100k+ increases in a single year between very similar properties.
The money is flowing everywhere here and i’m unsure how people are doing it. Looking at the average downpayment for the area over the last few months people are putting down under 7% and prices are $675k+. So somehow they are managing $4000 or more payments for these places. That requires two hefty incomes. I’ve saved enough to put well over 20% down but am getting hammered by people offering above asking almost immediately after places are listed.
Looking further east even to Santee places are going for over $500k. These are starter homes that need work. I dont see how any first time buyer can afford these prices without either seriously stretching or help from mom and dad. I feel fortunate to have saved so much but at the same time like a fool for missing out on the massive price increases. Savers are apparently losers!
I don’t see how things can normalize at this rate. To me it’s people with equity from price increases trading with others with equity. I doubt there are many organic first time buyers at these prices. Things will keep going higher and higher and either it flattens out or violently crashes again.
