"Housing affordability has worsened over the past year, with the average 30-year mortgage rate hitting 6.96% last week, according to Freddie Mac data." LOL.... When I tried to buy my first house in San Diego , in 1982 the interests rates were 18%. In 1995 when I bought a house in CA I got a VA loan for 7% and everyone told me what a great rate I got.
It's all just numbers on some bankers spreadsheet. Why does a house in one part of the country 'cost' 5-10 times more than the same size house in another part of the country? It takes the same amount of material and labor to build.
It's like buying a car, most people don't care what the MSRP is, they just want to know how much the monthly payment is going to be. It used to be you could only get a car loan for 3 years, now they stretch them out for 5-7 years.
Yeah but in 1995 when you got a 7% mortgage the cost of the house was probably 1/10th of what it costs now. Artificially holding down rates to near 0 for so long caused the house prices to fucking explode. Little dumps that should be going for $75-100k are now $175k for no fucking reason. You can't find a good starter home in most places for under $250k.
>Why does a house in one part of the country 'cost' 5-10 times more than the same size house in another part of the country?
Precisely because of location of course and it's normal, the quality of life in west baltimore isn't exactly the same as in martha's fucken vineyard
Why does a house in one part of the country 'cost' 5-10 times more than the same size house in another part of the country?
Supply and demand. Do you want to live in a scorching hot piece of land with terrible soil, no water, and nothing around you or do you want to live in a wooded area next to a stream with amazing soil/grazing land and a community of people?
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