It's the Worst Time to Buy a Home in a Generation for Americans, US Survey Shows
bloomberg.com
bloomberg.com
Good luck getting a bank loan for around half a million dollars to buy a three bedroom apartment in a country where the average income before taxes is well below €50k/year.
Something happened to the world economy after mid-2010s where demand for real estate grew like crazy as a kind of store of value/hoarding investment. The scapegoat keeps on shifting, from Airbnb to work-from-home to whatever lame excuse, but it's the same phenomenon everywhere.
r > g and low interest rates.
The tax regime is configured to allow wealth to grow faster than the real economy.
The "obvious" answer of "housing bubble rollover" is so much more boring, though...
How about that people are not handy anymore? The alternative to expensive professional construction have always been "I'll build it my self with my father's or brother's help". Most people can't do that anymore. The same thing with fixing cars.
There is a shortage of handy people is my take.
So don't tell me I'm not handy enough. It's simply not 1952 anymore.
However houses are still pieces of wood nailed together. Maintenance of cars are still mainly mechanical parts you can replace yourself.
> who-needs-leisure-time-work-until-you-die mentality
Everyone I knew or know in the older generation that built their own homes took time off or quit to build for some months. Maybe that is harder today.
My point is that houses are not like electronics were ICs have become like unsolderable for DIY due too small size SMDs.
I could do what a carpenter does, if I just were competent. Which I am not.
And the foundation you need excavators and trucks with filler material and maybe concrete so you need external help with that.
It’s about choosing how you spend your time after work…Netflix vs. adding equity. Moreover, the physical nature of the work nicely offset the sedentary nature of working in tech.
Small victory.
I don't think that. The housing prices are so high due "network effects". The land costs more than the house and everyone wants the same land parcel. I would definitely buy a land parcel and build a nice house but that parcel's almost 4 times more expensive than 2 bedroom flat so I stick to the overpriced 2 bedroom for now.
Harder to get away with if you’re building a whole house, but if you’re just DIY’ing something boring no one can see… you should consider your options.
So on top of learning how to do the work, you also have to learn how to do the paperwork, and know what will and will not pass inspection. At which point, many people decide they might as well hire a professional.
> now would be a great time to buy
> might as well buy now
Don't you have to say that?
For you it's always a perfect time to buy (or sell if you're a seller's agent).
Try to understand their business. Every agent should be able to explain their niche within a market and their unique value proposition. This is a straightforward way to separate the professional agent from the “accidental” agent. Speaking candidly, there are a lot of people who fall into the business chasing dollars who have a very limited range of skills. Unfortunately, you can make it in a lot of markets on personality, even if your clients are getting utterly screwed on all the things that actually count, IE: pricing, overall market analysis, negotiating, understanding local regulations (zoning, water, environmental, etc).
Listen to how they describe their market. I was talking to a “top performer” in my market the other day who was still regurgitating the same story from a year ago about “low inventory” when in fact there’s more inventory at every price point than at any time in the past three years. I’m certainly if I had decided to challenge their statements that they would have had no idea how many properties are on the market and that have taken price cuts in the past 30 days. A lot of those top performers are really good at churning deals rather than actually serving their clients. And, they may do a lot of business because they are willing to work for a low commission: if they won’t even fight for their own commission, why should you believe they are going to work hard at the negotiating table for you?
Finally, find someone who communicates with you in the way and at the pace you want. If you find it difficult to talk with them and to express what you need / get the info you need, it’s only going to get worse when you are in the middle of a transaction.
Hope that’s useful!