Originally Posted by GailC
I hope in some housing markets the bubble bursts. My sister would like to buy the house in central Virginia that she is renting but has been checking out the housing market and the prices are awful.
There is a really big subdivison building on several hundred acres and they are putting up 1600 homes!!! But now they are building the patio homes aka McMansions. I agree
with Yosemite there are going to be alot of people stuck living in these places that they cannot afford the mrtge payment. I know a few people who own them and they can't afford to furnish them-what are they going to do this winter with the increase of heating these hugh houses.
It's funny you mention "McMansions." If you ever spoke to my BF or I in person, this is one thing that can keep a conversation going for hours!!!
NJ may be home of the toll booth but it is increasingly becoming the home of the McMansion. These boxes basically going up overnight costing a MINIMUM of $600K -- and this is for a "small" home! Mind you, not everyone in NJ is a millionaire (though by housing costs, it is certainly a deduction of thought).
IMO, I believe all these McMansions do is make smaller communities more enticing, therefore more expensive. And also, does anyone notice how cheaply these homes are made. Heating costs for instance, I think it what is going to be a BIG blow to these McMansion owners. What a buyer fails to realize is with escalating fuel costs, it's not going to be cheap or economical for that matter to be WARM this winter!
Furthermore, what about prop taxes? I know property taxes are just a nightmare in NJ...in my hometown, which was by no means a "rich" area, just your normal working middle class area...a "cheap" house is $400K...but property taxes will be a minimum $4K. I am not kidding! It's unreal.
My boyfriend and I would like to buy something, but it's just so ridiculous that we are yet getting into another rental situation till we can sort things out when we want to buy something.
Median incomes in NJ are $37K...median house prices are $330K. Mind you, back in the baby boom era and even in the early 1980s, house prices were about 2x's or 3x's what an annual salary was.
The only places I could afford to live comfortably now are areas that are 2.5 to 3 hours away from where I work. So tack on a car costs, commuting costs, insurance for car (not cheap in NJ either)...so look at added expenses just for that.
OK so you got me to rant LOL. I just don't understand how people can afford to buy anything. I guess if you were like my aunt and bought a house for $150K back in 2000, and can now turn around and sell it for $500K...I guess you're ok! But not everyone is like my aunt and not everyone has that luck...but hey, I know the bubble is going to burst. IMO, I think it's going to be bad.