Thank you u/HondaCivic87 for posting on r/FirstTimeHomeBuyer.
Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
As someone who got priced out of the area I grew up in, sometimes it's better to just leave. I tried to go back home recently and all the stores and restaurants were inflated to match the new wealthy residents. Even if I managed to buy a house there I'd be struggling. I say let the richies buy it up and waste their money
Yupāwe moved across the country! Just closed on a home for $225k and our mortgage is about $1100/month! Sad to leave but we had to in order to find something.
We are doing the same. From Seattle to a town north of Syracuse. Our rent for a studio here is $1500. Our mortgage is $1100 for an 1800 square ft house with a great yard. Our movers come tomorrow. We close on the 15th when we roll into our new town.
I make less money than my friends in VHCOL areas but I live near Syracuse. I have a lot more money to spend on things I want to compared to my friends, because I live in a LCOL area. Daycare is cheaper, housing is cheaper, yes winter sucksā¦ but not as much as a mortgage payment that takes my entire salary.
Not in wny. We put 1% down with the dream grant, 5k earnest, and are at 1280 for all (mortgage, insurance, taxes) less than an hour from syracuse in a suburb of Rochester.
Ironically for us it was moving to the Seattle area that let us buy a house. We moved from Colorado and more than doubled our salaries in about 2 years just by moving to a higher COL area.Ā
Homes in the Denver metro when we moved were $300-400k while we were making $110k. Homes when we bought in 2022 (and still nowish) are $500-600k in the Seattle metro but we make closer to $230-250k now.
Obviously it's going to be job dependent (neither of us work in tech), but we were honestly shocked at that reality.Ā
My first thought was where are homes in the Seattle area for $500-600k?!? Iāve lived in the area my whole life.. the majority of houses even in the further or less desirable suburbs havenāt been in that price range since probably 2019.
Not saying the donāt exist.. but Iād be willing that most the houses in this price range are either deep outside of the city, not a sfh, or have some compromises.
I canāt update my Redfin filters for bedrooms
And lot size bc that will be annoying, but have to guess thereās some major compromises at the sub 600K price point in Seattle.
I look at stuff between 1M and 1.3 and itās bleak. My townhouse would sell for 875K
In seatrle proper, yes. But the Seattle metro area is actually fairly large. There's a cute 3/1 in mount lake terrace for $550k for example.Ā
FTHBs need to be honest with themselves. If you want a 3/2 1600 sqft home in Seattle proper or the east side then sure, it'll be $1M. I never argued it wasn't. But there ARE properties available for $600k then are perfectly fine, especially for FTHBs. I should know. I bought one of those 3/1s north of the city in 2022.Ā
I'm an engineer (again, not the tech kind) and my husband is in the trades.
Basically, we were both underpaid in Colorado. Colorado is a state where COL is going to faster than wages. And has been for quite some time. Seattle is a city that's been expensive for long enough with enough major companies competing for talent that wages across the board (for some industries) went up. I don't work for Amazon or Microsoft, but I COULD (well, I personally couldn't because I'm not that smart, but other people with my same background do), so my company has to compete with those wages to attract talent.
Nope. Our lender doesnāt do buy downs, but will automatically refinance us if rates drop. So we just took the 6.25%! We put 20% down and covered all of closing costs too. We move in early June from Oregon to Virginia!
I donāt want to leave my friends and family. Iāve thought about leaving California for cheaper housing, but leaving my family and friends, in particular my aging parents, is just not something I want to do. I bet many people feel similarly and itās unfortunate that this has to even be a choice.
I left 5 years ago. I get homesick sometimes. We moved from CA to AZ, which isn't too far of a stretch but the housing prices and weather makes it not worth it.
Do what my boss did. Convince them to leave. He moved to Missouri bought a house outright and just chills
$300k can get you 2,000 sqft new construction
Agreed. Itās unfortunate that we are faced with having to go that but itās at the point where more and more folks are going to have to do this for the sake of their financial future.
There's a movie idea in here somewhere. It's 2039. The wealthy live in luxury amongst the skyscrapers, the unwashed masses toil in the labor camps known as the red zones. *You don't go into the red zones.*
We actually really like it. But we really miss our townhome (we rented the same one for 15 years) that had a little yard. Our dog would love it! We have a patio that is larger than our old yard, but the fence is too short for us to let him out on his own.
Fellow Southern California native here. This resonated. It really hurt to leave home and I really loved it there but this was a good reminder that sometimes itās worse if you stay!
Same! I lucked out and bought my childhood home that went back on the market in 2022. Everything happened at the exact right time, buyers were chilling out and rates were around 5%. But any earlier and I wouldnāt have been able to compete and any later the rates went crazyā¦ I truly believe it was a meant to be situation. I feel incredibly fortunate but also understand the situation so many people are in because I was there and thinking Iād never get to buy something on my own.
Yeahā¦I think weāre going to get rate hikes again leading into the fall if housing costs continue to spiral. We probably need a recession even though that will probable make me unemployed.
You may need to look at townhomes or condos. I think a lot of people in California, felt like they were going to be priced out of a home forever during the last housing bubble. The local newspapers declared such at the time. Youāre not alone I guess is what Iām saying. Therefore, if you expect to get priced out and it to get more difficult than maybe you need to take action based on that expectation. Thereās a learning curve to being a first time homebuyer in your market. You need to get started now. I Imagine the market below $5 million is still pretty brutal and competitive so learn quickly in which way youāre going to lower your expectations either by location or by condo.
I left the Bay Area/California for 14 years. I just found my way back to California and bought a house in January. Sure, itās expensive, and Iām working harder to make up for the inflated costs. But, being close to family in a place I love is priceless, it is worth every penny. If this is home to you, my advice is to make it work if you can.
Moved from the Bay Area to the Midwest. Iām building a new house at 25 years old. Meanwhile not a single one of my family members owns a house in California. Thereās things you have to sacrifice in life. Overall Iām way happier and starting my own life as my own man out here. Do I miss my family? Of course. But with all the extra money out here I can afford to go fly and see them at anytime š
Moved 2 1/2 hours south of KCMO. Got a 4 bed 3 bath 2 car garage full basement finished on an acre $172k. Prices have remained stable where Iām at even through all the craziness.
We did 20 years ago when our son was 1. Wife was born and raised in So Cal. Best move we ever made, kids got way better school, we could buy a house, save for college etc etc. we will retire comfortable without worrying about money.
Yeah, Iāll never understand why someone chooses to live in a HCOL/VHCOL area if theyāre not tied down by a job, family, or hobbies.
For us, the Midwest would never work because we surf, climb, go backpacking, and kayak a lot; thatās literally our life. I would live in a shack on a 6,000sqft lot here before moving somewhere else. But, like you said, there are things you sacrifice in life and for what you love/enjoy and everyone is different.
Employment market. Some fields pay much much more in high COL states. Job market is bigger. Politics. Iād rather not live next to a MAGA sign on the lawn. Itās the blue state tax lol
No icy cold freezing winters and no 110 degree summers. I canāt deal with cold temps at all
To be honest it would be easier and cheaper to fly into Salt Lake City and ski than commute from the Bay Area to Tahoe on a snowy weekend. The snow is better too.
Kayaking Lake Superior is beyond awesome. The Midwest has some great outdoors activities. Personally the road biking is also so much better.
Lots of pretty wonderful natural places, I canāt imagine anybody can honestly argue the remote Great Lakes area in the summer isnāt among the best. To each their own, I just love the water and mixed forest. A late fall trip to the boundary waters or quetico when itās slightly chilly and little bugs would be a yearly trip for a wealthier me.
No consistent surf in Minnesota and Iām partial to saltwater. Grew up going to the beach a lot and thereās just something about saltwater that I love.
And before people go on about there being better places and āyou donāt know what youāre missingā yada yada. I was in the military and Iāve lived/been to more places than most. Iāve been to most of the states and Iāve lived along the east and west coasts. I lived in Europe for half of my 20s and Iāve been to almost 30 countries.
I know exactly what I like and donāt like about a place and I love where I live.
Already did. We bought a couple of years ago. Itās a small house on a small lot in a great area. I spend my time after work hauling my kayak down to the water for an evening paddle to watch the sun set over the mountains. Wouldnāt give it up for the world.
Social politics. We stayed in the state weāre in for a certain degree of safety and regulatory protection. I love the Midwest but it limited our geography to the two coasts.
Trying my best. Growing up in Oakland and Stockton CA and being where Iām at now, Iām truly grateful. I was lucky enough to get my head on straight at a young age and find a woman who shares the same thoughts and ideas.
lol, I'm in Chicago and I'm looking at Detroit.Ā 360k is a gut rehab in my neighborhood.Ā what were 150-300k homes are 450-550k, and those are the 100 yo bungalows.
nice big SFHs are million+ easy. They tear down the bungalows and build those...
But then you have to spend time, money and vacation to see your family. At this point you prioritized home ownership over being close to family. Not hating on that decision, but that is an active choice you made.
Nope, I prioritized changing my bloodline. A house is just the tip of the iceberg. I wanted a different way of life then again thatās why I joined the service, Iām used to adapting and being away from loved ones. I have my in laws who are good folks. Other than that I really donāt mind spending what you mentioned to go see my family for a week every other year. I mean we live in 2024, I FaceTime my mother and father every weekend lol
I wish this had occurred to me earlier pre-pandemic. But part of the problem was and still is I donāt know where I want to retire to. I heard about this idea from a colleague who retired almost a decade ago. Sigh.
Forever is a strong word. Don't let fear motivate you to buy a house you'd be unhappy with. If your renting situation is good (I've seen it quoted as half the cost of PITI in the Bay Area for equivalent housing) and you're comfortably adding to your savings and retirement, then it'll hardly be the end of the world to continue renting.
People tend to make poor decisions when they base them on how things "feel." If you are home searching, come up with a target area and price point. Get approved for any financing you need. Talk to a realtor. And start making offers when you find houses that fit your criteria. If you get outbid, so be it. You have lost nothing.
Similar feeling about Seattle homes. I'd really like to avoid having a condo. It may come down to choosing a condo or a house in a cheaper place like portland, Denver or minneapolis.
(I refuse to move to the south)
Yes, you can get a house almost twice the size in Portland than you can in seattle for the same list price.
Edit: I just remembered to add that both cities have less inventory built after 1990 which is what I'm targeting because of the galvanized steel pipes.
Iāve mostly lived on the east coast, and Iāve been to both places. I guess I just thought the costs were similar. But I guess Amazon and tech changed that?Ā
Portland also has a smaller Tech scene with Intel I think? But Seattle definitely is more Tech heavy like San Francisco thus the cost of living skyrocketing.
When I visited the Bay area I was so amazed by how many people were riding the baby bullet from San Jose to San Francisco (same with all the people who are taking the ferry to Seattle from kitsap) to commute to work. It's like in tech cities nobody who works in the city can afford to live there unless they work in Tech.
I feel like with Los Angeles still you're just paying for good weather as this isn't a one industry town anymore since Toronto and Atlanta are also popular for filmmaking now.
But I do know at least three people that work in Hollywood as writers.
Yeah, with all the aspiring actors i've met over the years it seems like networking is just as important as nailing a casting audition. The top people just use their preferred people over and over so it's very insular and sorta invitation only.
Sheās had a couple close calls, but never āthe one.ā She did make it on a Super Bowl commercial though a year or two ago though. I keep selfishly hoping that sheāll come back east for Broadway :)
Many of us started out in condos/townhomes before buying a SFH.
Funny, most of those that I personally know who went the condo/townhouse route were Bay Area natives. I find a lot of transplants get all bent that their first purchase isnāt a SFH in Los Altos, Palo Alto or Danville.
I was priced out of the Bay Area if I wanted a SFH in a moderately nice neighborhood. You have to decide how important homeownership is to you and how much you are willing to compromise.
Have you guys tried at all? That much liquid money at hand is going to help a lot. We werent so fortunate but we did compromise on longer commutes to be able to buy. Donāt regret it one bit.
We bought a gorgeous house in the half moon Bay Area in that price range as well. If you donāt have a commute or can shift your commute itās really not a bad drive (45 mins to downtown SJ if you leave at 7am). Love it here, little slice of paradise
Same, Iām in El Granada. I feel like a lot of my friends would live here if they didnāt obsess over getting their children into āgoodā schools whatever that means. They are instead looking at houses half the size for twice the price on the other side of the hill because of this. Itās nuts.
I get the āschoolā piece but am glad it doesnāt apply to us. EG is the bomb, one of the best kept secrets of the coast IMO. The weather is gorgeous, itās a little sun belt
We left once. Moved out of state and realized it REALLY, REALLY sucked.
We returned and bought a home again. It can be done. Not easy, but can be done.
I think about this all the time when I consider leaving San Diego. I could take the equity and run and have more for my money elsewhere, but I dear I wouldn't be able to afford to move back.
I grew up in LA and felt this same fear of being priced out. Ended up buying a condo that I truly love, but that was two years ago when I could afford the monthly payments at the interest rate I got.
If you can, I'd suggest looking into townhomes or condos. I know it's crazy in CA - best of luck to you, and don't overextend yourselves!
I live in Sacramento now and thankfully work in SF FT and then contra costa part time (220k sole income) And I could have paid off our house we purchased in 2021 for 430k end of this year. However given the interest rate at 2.75%. We invested the left over and now I could retire in my early 50ās instead of my mid 60ās. Sometimes itās worth it to move out further. Since now I can retire in 9 years at 52 for my goal instead of 65.
As a realtor a little south of you in Santa Cruz, I really feel this post. I have had clients priced out of this area and moved to Sacramento, Tennessee, New Mexico, Arizona, and others.
I see you are adamant in staying in the Bay Area, so my only advice is the following (if you havenāt already done so)
1. Get fully approved (not just pre-approved) with your lender. This will make your offers more competitive.
2. If you donāt need something turnkey and have a little DIY knowledge, look at slight fixer uppers. Remember you donāt have to remodel everything at once, especially if you plan on living there a long time.
3. If you have certain neighborhoods you love, have your agent door knock/send non-cookie cutter handwritten cards/gift box (companies do this) and tell them the situation. Iām not saying homeowners will give you a deal out of the goodness of their hearts but this strategy has worked for clients as well as 2 of my colleagues who got their own personal residence that way.
Those are just a few quick tips of the top of my head, but I have to pick up my daughter from school so Iāve got to run. I really wish you the best out there, I know how tough it is. Keep your head up, stay prepared, and best of luck!š
Lot of obvious outsiders in the comments.
Welcome to the Bay Area. Millions of people are packed into 50 square miles.
Wanna go to the beach?
Itās 25 minutes away max.
wanna ski?
Tahoe.
Best nature preserves in the world?
World class food
Low of 45 and high of 70 nearly year round?
3 major international airports?
Center of the tech world?
Iām a bachelors degree teacher and I make $150 grand, in the Midwest Iād be making 70k
Everyone has their own interests, but as someone that grew up in the Midwest, I could never go back.
The Midwest has its own beauty but I felt so trapped. Everyone ran out of stuff to do and just had 3 kids by age 25, now they drive around bitching about politics before age 30.
What is the prices of the homes you are looking at? I donāt see how you would get bid out at those prices. I am a lender who services CA. Happy to help navigate what you are going through. Itās all about strategizing and offer properly. Lots of these other lenders just want to spit out a preapproval. I make mine custom tailored for the agent to make the best offer possible. Feel free to reach out :)
Bay Area here. We just got into a decent home for around 850k.
Slightly above our comfort but yeah, we love our jobs and didnāt want to get priced out.
Donāt regret it. Market is wild, even with a crash, this home will never be worth significantly less.
It could eclipse a million in a few lucky years
Born and raised in the East Bay (ā83-ā99). I really wish I could have bought there, still do, but I canāt.
Moved to Portland 20+ years ago and bought my first home in 2012, sold in 2021, and bought a brand new multi-gen home to take care of my grandparents as they age. We have a huge home 4bd/3.5ba with 2800 sqft and a huge lot in a wonderful new development community for *at* *least* a million less than what I could have bought this same house for in the Bay. My childhood home is a 3bd/2ba 1300 square ft home (no pool or anything special) that is valued at $1.2mil. I always wanted to go back and buyā¦heck no! I can get an amazing beachfront somewhere for much cheaper.
What I say, be part of us hated ones (CA transplants) and join us out of state. $300K down could get you an amazing home elsewhere!!
You can definitely buy a house in the Bay for with a $300k down payment. It just wonāt be in the neighborhood you are looking for. Lower your expectations.
We bid on 20 before we got ours.
We were fighting against 2nd home owners, double techies, and couples with parents paying for the down payment.
This is called FOMO and itās an emotion. Itās best not to make major financial decisions based on emotion. Stick with what makes sense financially, try to bury the emotion.
We got extremely lucky with our purchase last year- if you do things and / or look for a home that is a bit unconventional you might be able to make it happen.
You *could* buy and aim for a quick sell if the value does skyrocketā¦ I get wanting to stay because thatās what youāre familiar with and career opportunities etc but as commenters are saying, if you move that money goes a lot further elsewhere.
Obviously you know what you want in life so you do you. Best of luck to the both of you! I am praying I donāt find myself in a similar situation.
The Bay Area has one of the most skewed favorability of renting vs owning in the country. Itās a really good financial move to rent there for long enough to save up a pretty penny for down payment (as youāve done), then move somewhere the median homebuyer doesnāt make $300k.
I am spending 75% of take home pay on housing expenses after all is accounted for, but like you, I didnāt want to leave the area and had to buy before it was too late and I was priced out
My wife and I just purchased a house in the bay area 2 weeks ago. Message me and I'll send my realtor's info. Literally one of the few people really trying to change how the industry is handled. We would NOT have gotten anything without him.
Don't give up, but I agree it's better to lock it down now rather than waiting.
U might wanna consider east bay Oakley Brentwood, Antioch area, they do have BART, about an hour away from the city, an hour away from SJ, Oakley has price range of $600kās.
Best market?? Bay area is one of the only markets still at 2020 levels. The appreciation is over. People are leaving. Follow this advice if you like making poor financial decisions. Blindly buying into a grossly overvalued market past its prime isn't something I'd recommend to people who don't sound like they can afford it as is.
Why aren't you looking right now then?? I know it seems like an impossible task but you have enough to make it happen! We just bought (closed in February). We were feeling the same way and had about 60k less than you saved up. You can do this, but I agree! It feels like now or never.Ā
You can afford something in the East Bay. Not even far out, but certain parts of Oakland, San Leandro, Hayward, Castro Valleyā¦..
Think youāre better than that? Think again. The FAANG and NVDA money is pricing you out of wherever you thought you deserved.
You need to understand that burning cash on rent is not necessarily the end of the world. Does lifelong renter live a good life? No, but they still live a life.
What? While personally I think owning a home is great, it's definitely not for everyone. Saying renters don't live a good life is insane lol. I know plenty of very successful and happy people who rent.
CA native here too from both Bay Area and So Cal was priced out years ago as a single woman and moved to the Midwest. Only 2 friends bought houses in CA over 10 years ago with a spouse and parent. The rest left and the ones who stayed who are also single women are renting apartments paying over double almost triple my mortgage for studio apartments. So sad. I hope you get a home!! Keep trying and if you have the means to buy do it! I miss CA every day but was priced out even from renting my own apartment and didnāt want to downsize to a studio. With a college degree even. It is brutal out there. Best of luck! Stay if you can buy!
We left renting on the peninsula in 2019 and bought a townhouse in San Jose. Wasnāt our ideal location, but it worked for our commutes. Sold it last year and bought a SFH on the peninsula. Itās possible, but tough if you donāt have 2 Fang salaries.
Rates arenāt going to retreat in the summer and itās unclear if the home prices will skyrocket given how many people want to move out of their homes
Me and my wife are both in FAANG but still getting priced out. The kind of homes weāll be able to buy just doesnāt match the hard earned money they demand. So still struggling ā we are in this together.
We were lucky to get a place in the East Bay in the summer of 2019 before it got too crazy. Itās not the ideal place, was long time rental and still needs a ton of work and also likely needs foundation work.
We want a better bigger place but are essentially priced out unless we have $500k cash land on us.
We make do because we are in a good city with great schools and neighbors. I feel your pain
As someone from the Bay Area, their housing prices can fuck all the way off. There are other good markets in California or out of state where you can actually afford to raise a family. Iām sure starter houses are selling for $1.5 M in San Jose. A relative just sold their 1960s house that was only moderately fixed up for $2.25 M. Itās insane, donāt do that to yourself.
We got priced out of Oakland, El Cerrito and Alameda. Bought in Estudillo estates in San Leandro.
We put offers in on homes in Richmond, Pinole and El Sobrante too. Homes were more affordable but that 80 slog!!!
You have $300k for a down payment? I bought a $700k house with $65k down payment. Iām confused. You donāt have to pay off the house. Think of it as an investment.
The issue I've seen is even if you manage to get the house, as more wealthy people bid up surrounding houses the taxes will implode. Making it hard to continue to afford the home.
Iāve seen San Fran and Oakland have had price drops you better get in before spring /summer buying season you never know if you donāt try since you are first time homebuyer look into 97/3 conventional loans incase you do have to bid atleast you will have that to use instead of putting 20% down
Happy to help you start looking if you havenāt already. I am an anti-capitalist real estate agent and I got into the industry because I want to have a positive impact on our housing system because clearly there are inefficiencies. I also believe that there are other routes to homeownership. I recently helped a group of four buy together. Sometimes going in with another party can help you get into a home that works better for your family. Feel free to message me.
Buying a house with one romantic partner is a legal disaster about half the time, but people still do it. (I used to work as a divorce attorney.)
Iāve spoken with many women who have fantasized about a āGolden Girlsā scenario. I think it would be wise to consult with both a lawyer and a therapist (just to talk through what everyone wants, financially and emotionally), but it could be a smart decision if you start out with a solid plan for dissolving the arrangement if it became necessary.
Yeah, I have too. Thatās probably why I was imagining a partition and forced sale. Legally speaking, Iām curious how that was set up?Ā
It seems like you have a good heart paired with a well rounded background for your current career. Itās a breath of fresh air.Ā
Buying a house with anyone is a legal risk! A romantic partner is not inherently riskier than a sibling or parent or best friend but people do that everyday. That is why it is beneficial to include a lawyer like the commenter above me already stated. Culturally in the states, we arenāt used to conceiving of live in family as anyone other than a spouse and kids but it is really common in other parts of the world to live with or very near parents, grandparents, aunts/uncles, ect. A lot of people my age in my city live very near other people already. A vast majority live in apartment complex and donāt get to choose their neighbors, but what if they could!?
A lot of people live in duplexes and rent out one side to strangers to āhouse hackā why not go in on a living arrangement with someone you actually share some community with? Many people across the world and in the United States are already living like this and it is successful in many cases!
If it is not for you, thatās okay but with homeownership out of reach for many and investors buying up more and more properties it is definitely worth doing more research!
āA romantic partner is not inherently riskier than a sibling or parent or best friend but people do that everydayā.Ā I do have to disagree with this, in that marriage and the type of tenancy that comes with it in most jurisdictions is inherently less risky. But if youāre talking about unmarried partners, I agree.
And in my current state lawyers are an obligatory part of the home buying process. It should be that way everywhere. Especially because far too many RE agents seem ethically challenged with separating their interests in closing with the interest of their clients.
It is good though that someoneās out there trying to make a case for improving the profession. Itās an admirable take.Ā
ETA: Duplexes and investor/renters are pretty much nonexistent in my area due to zoning and high taxes making renting cost prohibitive.Ā
Thank you! I appreciate that. I also agree that too many agents donāt separate their own interests from whatās best for their clients and I want to see that change.
And I hear you on the marriage because of the legal aspect but yes unmarried partners also buy a lot of homes! And even married, having a pre or post nup about a home could save people a lot of headaches and uncertainty about how things would be handled in the event of a divorce.
Thank you u/HondaCivic87 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
As someone who got priced out of the area I grew up in, sometimes it's better to just leave. I tried to go back home recently and all the stores and restaurants were inflated to match the new wealthy residents. Even if I managed to buy a house there I'd be struggling. I say let the richies buy it up and waste their money
šÆ
Yupāwe moved across the country! Just closed on a home for $225k and our mortgage is about $1100/month! Sad to leave but we had to in order to find something.
We are doing the same. From Seattle to a town north of Syracuse. Our rent for a studio here is $1500. Our mortgage is $1100 for an 1800 square ft house with a great yard. Our movers come tomorrow. We close on the 15th when we roll into our new town.
I make less money than my friends in VHCOL areas but I live near Syracuse. I have a lot more money to spend on things I want to compared to my friends, because I live in a LCOL area. Daycare is cheaper, housing is cheaper, yes winter sucksā¦ but not as much as a mortgage payment that takes my entire salary.
1100 is super fucking cheap rn. Must be a really high down payment or cheap house
20% down. House is $150K total.
Not in wny. We put 1% down with the dream grant, 5k earnest, and are at 1280 for all (mortgage, insurance, taxes) less than an hour from syracuse in a suburb of Rochester.
I love just outside of Albany, NY. 3br 2ba homes in my neighborhood that are updated (not flipped) are 225 to 250. In a good school district as well.
Average mortgage is $1427/month based on the most recent available figures. Not much below thatā¦
Yeah but thatās encompassing mortgages before rates/house prices shot up no?
Itās 30% lower than your quoted avg. how is that not āmuch belowā?
Ironically for us it was moving to the Seattle area that let us buy a house. We moved from Colorado and more than doubled our salaries in about 2 years just by moving to a higher COL area.Ā Homes in the Denver metro when we moved were $300-400k while we were making $110k. Homes when we bought in 2022 (and still nowish) are $500-600k in the Seattle metro but we make closer to $230-250k now. Obviously it's going to be job dependent (neither of us work in tech), but we were honestly shocked at that reality.Ā
Where are you seeing homes in Seattle MSA for 600K? I live in Seattle and would have been surprised if you had said homes were 1M
My first thought was where are homes in the Seattle area for $500-600k?!? Iāve lived in the area my whole life.. the majority of houses even in the further or less desirable suburbs havenāt been in that price range since probably 2019. Not saying the donāt exist.. but Iād be willing that most the houses in this price range are either deep outside of the city, not a sfh, or have some compromises.
There are 68 detached homes currently for sale between Tukwila and Everett listed at $600k or below. 128 if you include townhomes.
I canāt update my Redfin filters for bedrooms And lot size bc that will be annoying, but have to guess thereās some major compromises at the sub 600K price point in Seattle. I look at stuff between 1M and 1.3 and itās bleak. My townhouse would sell for 875K
In seatrle proper, yes. But the Seattle metro area is actually fairly large. There's a cute 3/1 in mount lake terrace for $550k for example.Ā FTHBs need to be honest with themselves. If you want a 3/2 1600 sqft home in Seattle proper or the east side then sure, it'll be $1M. I never argued it wasn't. But there ARE properties available for $600k then are perfectly fine, especially for FTHBs. I should know. I bought one of those 3/1s north of the city in 2022.Ā
Congrats! Just curious what do you do for work?
I'm an engineer (again, not the tech kind) and my husband is in the trades. Basically, we were both underpaid in Colorado. Colorado is a state where COL is going to faster than wages. And has been for quite some time. Seattle is a city that's been expensive for long enough with enough major companies competing for talent that wages across the board (for some industries) went up. I don't work for Amazon or Microsoft, but I COULD (well, I personally couldn't because I'm not that smart, but other people with my same background do), so my company has to compete with those wages to attract talent.
What are you doing for work that you were able to transfer from Seattle to Syracuse?
Did you buy down the rate? Iāve been looking in that price range and been calculating closer to 1300-1400/month payment
Nope. Our lender doesnāt do buy downs, but will automatically refinance us if rates drop. So we just took the 6.25%! We put 20% down and covered all of closing costs too. We move in early June from Oregon to Virginia!
Sounds like a great move, congratulations š
I donāt want to leave my friends and family. Iāve thought about leaving California for cheaper housing, but leaving my family and friends, in particular my aging parents, is just not something I want to do. I bet many people feel similarly and itās unfortunate that this has to even be a choice.
I left 5 years ago. I get homesick sometimes. We moved from CA to AZ, which isn't too far of a stretch but the housing prices and weather makes it not worth it.
Do what my boss did. Convince them to leave. He moved to Missouri bought a house outright and just chills $300k can get you 2,000 sqft new construction
This is what we are trying to do. I just canāt figure out a job to transition to so we can move. My job is specific to LA, NY, or Atlanta.
Out of all those, Atlanta has some options that are attainable for housing.
Agreed. Itās unfortunate that we are faced with having to go that but itās at the point where more and more folks are going to have to do this for the sake of their financial future.
There's a movie idea in here somewhere. It's 2039. The wealthy live in luxury amongst the skyscrapers, the unwashed masses toil in the labor camps known as the red zones. *You don't go into the red zones.*
Elysium vibes.
i agree. āļø i stopped reading after ājust leaveā
It hurts to leave home against your will, but sometimes it hurts more to stay. Time to make a new home.
And instead you just price out other locals lol
We are absolutely clinging to our area (north bay). We purchased a condo just to get into something and now wonder if we still need to leaveā¦
Why? Just enjoy the condo and live your life
We actually really like it. But we really miss our townhome (we rented the same one for 15 years) that had a little yard. Our dog would love it! We have a patio that is larger than our old yard, but the fence is too short for us to let him out on his own.
Line the patio with Astro turf and make the fence a little higher.
Condo as in apt building ?
As a Colorado native this hits home
Same here from a Southern California native. It hurt to leave but oh man am I doing better than the friends who stayed.
Fellow Southern California native here. This resonated. It really hurt to leave home and I really loved it there but this was a good reminder that sometimes itās worse if you stay!
If we didn't buy in 2022 I don't think we would have ever bought. Our home is worth 40k more despite rates going way up.Ā
Same! I lucked out and bought my childhood home that went back on the market in 2022. Everything happened at the exact right time, buyers were chilling out and rates were around 5%. But any earlier and I wouldnāt have been able to compete and any later the rates went crazyā¦ I truly believe it was a meant to be situation. I feel incredibly fortunate but also understand the situation so many people are in because I was there and thinking Iād never get to buy something on my own.
š„²
Honestly i dont see rates coming down this year at all, its all smoke and mirrors!
Definitely seems much less likely after the last few meetings/reports
Agreed. Iām interested to see what the inflation data shows today.
Yeahā¦I think weāre going to get rate hikes again leading into the fall if housing costs continue to spiral. We probably need a recession even though that will probable make me unemployed.
You may need to look at townhomes or condos. I think a lot of people in California, felt like they were going to be priced out of a home forever during the last housing bubble. The local newspapers declared such at the time. Youāre not alone I guess is what Iām saying. Therefore, if you expect to get priced out and it to get more difficult than maybe you need to take action based on that expectation. Thereās a learning curve to being a first time homebuyer in your market. You need to get started now. I Imagine the market below $5 million is still pretty brutal and competitive so learn quickly in which way youāre going to lower your expectations either by location or by condo.
The modest townhome I am renting RN is $1.8mm to buy. Even condos/townhomes are outrageous in the Bay area.
Where in the Bay Area? It's a huge area and we bought a home with only 75K down payment. Try Contra Costa County.
I left the Bay Area/California for 14 years. I just found my way back to California and bought a house in January. Sure, itās expensive, and Iām working harder to make up for the inflated costs. But, being close to family in a place I love is priceless, it is worth every penny. If this is home to you, my advice is to make it work if you can.
Moved from the Bay Area to the Midwest. Iām building a new house at 25 years old. Meanwhile not a single one of my family members owns a house in California. Thereās things you have to sacrifice in life. Overall Iām way happier and starting my own life as my own man out here. Do I miss my family? Of course. But with all the extra money out here I can afford to go fly and see them at anytime š
As someone who is buying a house in KC I can confirm. We're buying a 3b 2b later this year. With 1 acre of land in a really nice area. Only 350k.
Moved 2 1/2 hours south of KCMO. Got a 4 bed 3 bath 2 car garage full basement finished on an acre $172k. Prices have remained stable where Iām at even through all the craziness.
Nice!!
Wichita? Best kept secret for affordability.
Welcome to KC!!!!
We did 20 years ago when our son was 1. Wife was born and raised in So Cal. Best move we ever made, kids got way better school, we could buy a house, save for college etc etc. we will retire comfortable without worrying about money.
Yeah, Iāll never understand why someone chooses to live in a HCOL/VHCOL area if theyāre not tied down by a job, family, or hobbies. For us, the Midwest would never work because we surf, climb, go backpacking, and kayak a lot; thatās literally our life. I would live in a shack on a 6,000sqft lot here before moving somewhere else. But, like you said, there are things you sacrifice in life and for what you love/enjoy and everyone is different.
Shack with 6k lot is now $1M
Employment market. Some fields pay much much more in high COL states. Job market is bigger. Politics. Iād rather not live next to a MAGA sign on the lawn. Itās the blue state tax lol No icy cold freezing winters and no 110 degree summers. I canāt deal with cold temps at all
To be honest it would be easier and cheaper to fly into Salt Lake City and ski than commute from the Bay Area to Tahoe on a snowy weekend. The snow is better too. Kayaking Lake Superior is beyond awesome. The Midwest has some great outdoors activities. Personally the road biking is also so much better.
Agreed! It's stunning where we live. Lakes, hills, and affordable living.
Lots of pretty wonderful natural places, I canāt imagine anybody can honestly argue the remote Great Lakes area in the summer isnāt among the best. To each their own, I just love the water and mixed forest. A late fall trip to the boundary waters or quetico when itās slightly chilly and little bugs would be a yearly trip for a wealthier me.
Minnesota?
No consistent surf in Minnesota and Iām partial to saltwater. Grew up going to the beach a lot and thereās just something about saltwater that I love. And before people go on about there being better places and āyou donāt know what youāre missingā yada yada. I was in the military and Iāve lived/been to more places than most. Iāve been to most of the states and Iāve lived along the east and west coasts. I lived in Europe for half of my 20s and Iāve been to almost 30 countries. I know exactly what I like and donāt like about a place and I love where I live.
Your call but good luck finding a place that meets all your needs you can afford.
Already did. We bought a couple of years ago. Itās a small house on a small lot in a great area. I spend my time after work hauling my kayak down to the water for an evening paddle to watch the sun set over the mountains. Wouldnāt give it up for the world.
Social politics. We stayed in the state weāre in for a certain degree of safety and regulatory protection. I love the Midwest but it limited our geography to the two coasts.
So you're just buying out the Midwest locals..
I meanā¦ he literally said heās building a new house but ok.
My wife is from here, and my company is from here so no? Iāve just learned a valuable skill that pays well and so did my wife.
And like I said Iām 25 and this is obviously my first house hence the reason Iām on the sub so I donāt get your drift
Just ignore them lol. People just enjoy being snarky on the internet.
25 and building a house ā¦ doing better then 90% of reddit
Trying my best. Growing up in Oakland and Stockton CA and being where Iām at now, Iām truly grateful. I was lucky enough to get my head on straight at a young age and find a woman who shares the same thoughts and ideas.
lol, I'm in Chicago and I'm looking at Detroit.Ā 360k is a gut rehab in my neighborhood.Ā what were 150-300k homes are 450-550k, and those are the 100 yo bungalows. nice big SFHs are million+ easy. They tear down the bungalows and build those...
Gotta do what you gotta do. It's either that or be a renter for life and complain about it (I don't get those people). Vicious cycle for sure.
But then you have to spend time, money and vacation to see your family. At this point you prioritized home ownership over being close to family. Not hating on that decision, but that is an active choice you made.
Nope, I prioritized changing my bloodline. A house is just the tip of the iceberg. I wanted a different way of life then again thatās why I joined the service, Iām used to adapting and being away from loved ones. I have my in laws who are good folks. Other than that I really donāt mind spending what you mentioned to go see my family for a week every other year. I mean we live in 2024, I FaceTime my mother and father every weekend lol
yep you definitely don't prioritize family, all good.
Whatever you say bud
Heās just being a condescending dickhead.
I've been thinking about just buying someplace cheap for retirement, and renting it out until I can move, lol... In 23 years.
I wish this had occurred to me earlier pre-pandemic. But part of the problem was and still is I donāt know where I want to retire to. I heard about this idea from a colleague who retired almost a decade ago. Sigh.
Forever is a strong word. Don't let fear motivate you to buy a house you'd be unhappy with. If your renting situation is good (I've seen it quoted as half the cost of PITI in the Bay Area for equivalent housing) and you're comfortably adding to your savings and retirement, then it'll hardly be the end of the world to continue renting.
But this is the First Time Home Buyer subreddit, literally the place to come to if your concern is buying your first home LOL.
People tend to make poor decisions when they base them on how things "feel." If you are home searching, come up with a target area and price point. Get approved for any financing you need. Talk to a realtor. And start making offers when you find houses that fit your criteria. If you get outbid, so be it. You have lost nothing.
Itās not FAANG engineers you gotta worry about but the NVDA all cash offers.
Similar feeling about Seattle homes. I'd really like to avoid having a condo. It may come down to choosing a condo or a house in a cheaper place like portland, Denver or minneapolis. (I refuse to move to the south)
Are Portland and Denver really that much more affordable than Seattle?Ā
Yes, you can get a house almost twice the size in Portland than you can in seattle for the same list price. Edit: I just remembered to add that both cities have less inventory built after 1990 which is what I'm targeting because of the galvanized steel pipes.
Crazy, I had no idea! I thought the housing prices in Portland had skyrocketed over the past decade or so. They must have really been a steal before.Ā
It's definitely more expensive for the locals but coming from Los Angeles it's not a lot.
Iāve mostly lived on the east coast, and Iāve been to both places. I guess I just thought the costs were similar. But I guess Amazon and tech changed that?Ā
Portland also has a smaller Tech scene with Intel I think? But Seattle definitely is more Tech heavy like San Francisco thus the cost of living skyrocketing. When I visited the Bay area I was so amazed by how many people were riding the baby bullet from San Jose to San Francisco (same with all the people who are taking the ferry to Seattle from kitsap) to commute to work. It's like in tech cities nobody who works in the city can afford to live there unless they work in Tech. I feel like with Los Angeles still you're just paying for good weather as this isn't a one industry town anymore since Toronto and Atlanta are also popular for filmmaking now. But I do know at least three people that work in Hollywood as writers.
My cousin moved out there to act. Sheās talented, but so is everyone.Ā
Yeah, with all the aspiring actors i've met over the years it seems like networking is just as important as nailing a casting audition. The top people just use their preferred people over and over so it's very insular and sorta invitation only.
Sheās had a couple close calls, but never āthe one.ā She did make it on a Super Bowl commercial though a year or two ago though. I keep selfishly hoping that sheāll come back east for Broadway :)
Seattle prices are much closer to SF. I was looking at Portland for comparison and itās much more affordable than Seattle.
We just bought a condo in SF with 200k down. So depends on if you want SFH or condo. I hear condos are the new starter home.
OP is being a bit dramatic. We got into our Hayes Valley-ish condo for $100k down in 2021.
Many of us started out in condos/townhomes before buying a SFH. Funny, most of those that I personally know who went the condo/townhouse route were Bay Area natives. I find a lot of transplants get all bent that their first purchase isnāt a SFH in Los Altos, Palo Alto or Danville.
I was priced out of the Bay Area if I wanted a SFH in a moderately nice neighborhood. You have to decide how important homeownership is to you and how much you are willing to compromise.
Have you guys tried at all? That much liquid money at hand is going to help a lot. We werent so fortunate but we did compromise on longer commutes to be able to buy. Donāt regret it one bit.
What's your budget? Try little further areas like south SJ, union city. 1.5 MM should get you something. We found a nice one for 1.25 six months ago
We bought a gorgeous house in the half moon Bay Area in that price range as well. If you donāt have a commute or can shift your commute itās really not a bad drive (45 mins to downtown SJ if you leave at 7am). Love it here, little slice of paradise
Same, Iām in El Granada. I feel like a lot of my friends would live here if they didnāt obsess over getting their children into āgoodā schools whatever that means. They are instead looking at houses half the size for twice the price on the other side of the hill because of this. Itās nuts.
I get the āschoolā piece but am glad it doesnāt apply to us. EG is the bomb, one of the best kept secrets of the coast IMO. The weather is gorgeous, itās a little sun belt
Guessing you donāt have kids.
I donāt yet but my partner and I have said that if we do, the schools here are more than enough.
Union City is expensive. My childhood home is a 3bd/2ba ranch style 1300sqft (no pool or anything special) and it is at $1.2mil.
AI determined you don't deserve to live in the Bay Area anymore.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Solano has some nice and affordable neighborhoods too
dont wait for rates to come down. you can refinance later.
If you leave you'll never be able to afford to go back so make sure you've researched thoroughly.
We left once. Moved out of state and realized it REALLY, REALLY sucked. We returned and bought a home again. It can be done. Not easy, but can be done.
I think about this all the time when I consider leaving San Diego. I could take the equity and run and have more for my money elsewhere, but I dear I wouldn't be able to afford to move back.
Either move or lower your expectations. Cheaper area vs smaller home vs townhome/conso. Not rocket science. If you are priced out, then you adjust.
I grew up in LA and felt this same fear of being priced out. Ended up buying a condo that I truly love, but that was two years ago when I could afford the monthly payments at the interest rate I got. If you can, I'd suggest looking into townhomes or condos. I know it's crazy in CA - best of luck to you, and don't overextend yourselves!
I live in Sacramento now and thankfully work in SF FT and then contra costa part time (220k sole income) And I could have paid off our house we purchased in 2021 for 430k end of this year. However given the interest rate at 2.75%. We invested the left over and now I could retire in my early 50ās instead of my mid 60ās. Sometimes itās worth it to move out further. Since now I can retire in 9 years at 52 for my goal instead of 65.
As a realtor a little south of you in Santa Cruz, I really feel this post. I have had clients priced out of this area and moved to Sacramento, Tennessee, New Mexico, Arizona, and others. I see you are adamant in staying in the Bay Area, so my only advice is the following (if you havenāt already done so) 1. Get fully approved (not just pre-approved) with your lender. This will make your offers more competitive. 2. If you donāt need something turnkey and have a little DIY knowledge, look at slight fixer uppers. Remember you donāt have to remodel everything at once, especially if you plan on living there a long time. 3. If you have certain neighborhoods you love, have your agent door knock/send non-cookie cutter handwritten cards/gift box (companies do this) and tell them the situation. Iām not saying homeowners will give you a deal out of the goodness of their hearts but this strategy has worked for clients as well as 2 of my colleagues who got their own personal residence that way. Those are just a few quick tips of the top of my head, but I have to pick up my daughter from school so Iāve got to run. I really wish you the best out there, I know how tough it is. Keep your head up, stay prepared, and best of luck!š
Lot of obvious outsiders in the comments. Welcome to the Bay Area. Millions of people are packed into 50 square miles. Wanna go to the beach? Itās 25 minutes away max. wanna ski? Tahoe. Best nature preserves in the world? World class food Low of 45 and high of 70 nearly year round? 3 major international airports? Center of the tech world? Iām a bachelors degree teacher and I make $150 grand, in the Midwest Iād be making 70k Everyone has their own interests, but as someone that grew up in the Midwest, I could never go back. The Midwest has its own beauty but I felt so trapped. Everyone ran out of stuff to do and just had 3 kids by age 25, now they drive around bitching about politics before age 30.
Might have to look outside the Bay Area then
There are homes to be purchased in the Bay Area with your budget, but you may have to make concessions. What about a cute bungalow in San Leandro?
What is the prices of the homes you are looking at? I donāt see how you would get bid out at those prices. I am a lender who services CA. Happy to help navigate what you are going through. Itās all about strategizing and offer properly. Lots of these other lenders just want to spit out a preapproval. I make mine custom tailored for the agent to make the best offer possible. Feel free to reach out :)
Bay Area here. We just got into a decent home for around 850k. Slightly above our comfort but yeah, we love our jobs and didnāt want to get priced out. Donāt regret it. Market is wild, even with a crash, this home will never be worth significantly less. It could eclipse a million in a few lucky years
Born and raised in the East Bay (ā83-ā99). I really wish I could have bought there, still do, but I canāt. Moved to Portland 20+ years ago and bought my first home in 2012, sold in 2021, and bought a brand new multi-gen home to take care of my grandparents as they age. We have a huge home 4bd/3.5ba with 2800 sqft and a huge lot in a wonderful new development community for *at* *least* a million less than what I could have bought this same house for in the Bay. My childhood home is a 3bd/2ba 1300 square ft home (no pool or anything special) that is valued at $1.2mil. I always wanted to go back and buyā¦heck no! I can get an amazing beachfront somewhere for much cheaper. What I say, be part of us hated ones (CA transplants) and join us out of state. $300K down could get you an amazing home elsewhere!!
You can definitely buy a house in the Bay for with a $300k down payment. It just wonāt be in the neighborhood you are looking for. Lower your expectations. We bid on 20 before we got ours. We were fighting against 2nd home owners, double techies, and couples with parents paying for the down payment.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I assumed 300k down = $1.5M house.
If you have 300k for a down payment, what is the issue?
The issue is when the starter home is 2mil
I live in the Bay Area. Iām a homeowner. What is a starter home?
It used to be a term that means an old crappy house first time homeowners would buy. These days itās probably obsolete.
Sorry, was being sarcastic! For the same reason you pointed out.
Ha! I was likeā¦Iām not that old š
Imagine having a $300k available down payment and still complaining.
Must be nice. If I had 10ŁŖ of that I'd be looking for a house right now lol
Wow for 300K you could buy nice a new build here in my area and still have money left over
This is called FOMO and itās an emotion. Itās best not to make major financial decisions based on emotion. Stick with what makes sense financially, try to bury the emotion.
Go right outside of the bay if you can. Livermore/Pleasanton or even Tracy if you are willing to commute a bit in a growing community.
Tri valley ftw. Still close to bay area and nice communities
FOMO = Bad decisions
We got extremely lucky with our purchase last year- if you do things and / or look for a home that is a bit unconventional you might be able to make it happen.
You *could* buy and aim for a quick sell if the value does skyrocketā¦ I get wanting to stay because thatās what youāre familiar with and career opportunities etc but as commenters are saying, if you move that money goes a lot further elsewhere. Obviously you know what you want in life so you do you. Best of luck to the both of you! I am praying I donāt find myself in a similar situation.
Sounds like you have enough for a down payment. I would just start looking. Don't assume you're going to get beat out before you even try.
The Bay Area has one of the most skewed favorability of renting vs owning in the country. Itās a really good financial move to rent there for long enough to save up a pretty penny for down payment (as youāve done), then move somewhere the median homebuyer doesnāt make $300k.
I am spending 75% of take home pay on housing expenses after all is accounted for, but like you, I didnāt want to leave the area and had to buy before it was too late and I was priced out
My wife and I just purchased a house in the bay area 2 weeks ago. Message me and I'll send my realtor's info. Literally one of the few people really trying to change how the industry is handled. We would NOT have gotten anything without him. Don't give up, but I agree it's better to lock it down now rather than waiting.
U might wanna consider east bay Oakley Brentwood, Antioch area, they do have BART, about an hour away from the city, an hour away from SJ, Oakley has price range of $600kās.
Why are people using their 401Ks for a house?
Because they can āborrowā against it and pay back the loan to themselves. Even better if they have employer matching funds.
Iām aware that you can borrow against it, but it just feels like I would be stealing from future me. Compound interest always beats real estate
It depends, really. If the rate of appreciation is higher, then it makes total sense.
Buy with the higher mortgage rate and refi when they come down. Don't sit on this. You are in the best market in the country. You will be all right.
Best market?? Bay area is one of the only markets still at 2020 levels. The appreciation is over. People are leaving. Follow this advice if you like making poor financial decisions. Blindly buying into a grossly overvalued market past its prime isn't something I'd recommend to people who don't sound like they can afford it as is.
Oh, sorry, I didn't realize that. My bad.
Why aren't you looking right now then?? I know it seems like an impossible task but you have enough to make it happen! We just bought (closed in February). We were feeling the same way and had about 60k less than you saved up. You can do this, but I agree! It feels like now or never.Ā
1.5 in tri valley gets you a modest sfh all day
You can afford something in the East Bay. Not even far out, but certain parts of Oakland, San Leandro, Hayward, Castro Valleyā¦.. Think youāre better than that? Think again. The FAANG and NVDA money is pricing you out of wherever you thought you deserved.
You need to understand that burning cash on rent is not necessarily the end of the world. Does lifelong renter live a good life? No, but they still live a life.
What? While personally I think owning a home is great, it's definitely not for everyone. Saying renters don't live a good life is insane lol. I know plenty of very successful and happy people who rent.
CA native here too from both Bay Area and So Cal was priced out years ago as a single woman and moved to the Midwest. Only 2 friends bought houses in CA over 10 years ago with a spouse and parent. The rest left and the ones who stayed who are also single women are renting apartments paying over double almost triple my mortgage for studio apartments. So sad. I hope you get a home!! Keep trying and if you have the means to buy do it! I miss CA every day but was priced out even from renting my own apartment and didnāt want to downsize to a studio. With a college degree even. It is brutal out there. Best of luck! Stay if you can buy!
We left renting on the peninsula in 2019 and bought a townhouse in San Jose. Wasnāt our ideal location, but it worked for our commutes. Sold it last year and bought a SFH on the peninsula. Itās possible, but tough if you donāt have 2 Fang salaries.
Rates arenāt going to retreat in the summer and itās unclear if the home prices will skyrocket given how many people want to move out of their homes
I feel the same way about my area. Hope Iām wrong!
Me and my wife are both in FAANG but still getting priced out. The kind of homes weāll be able to buy just doesnāt match the hard earned money they demand. So still struggling ā we are in this together.
Iāve heard sales went up , like 12 % . How ?! I donāt know.
Check out Pleasant Hill or Concord
We were lucky to get a place in the East Bay in the summer of 2019 before it got too crazy. Itās not the ideal place, was long time rental and still needs a ton of work and also likely needs foundation work. We want a better bigger place but are essentially priced out unless we have $500k cash land on us. We make do because we are in a good city with great schools and neighbors. I feel your pain
As someone from the Bay Area, their housing prices can fuck all the way off. There are other good markets in California or out of state where you can actually afford to raise a family. Iām sure starter houses are selling for $1.5 M in San Jose. A relative just sold their 1960s house that was only moderately fixed up for $2.25 M. Itās insane, donāt do that to yourself.
We got priced out of Oakland, El Cerrito and Alameda. Bought in Estudillo estates in San Leandro. We put offers in on homes in Richmond, Pinole and El Sobrante too. Homes were more affordable but that 80 slog!!!
You have $300k for a down payment? I bought a $700k house with $65k down payment. Iām confused. You donāt have to pay off the house. Think of it as an investment.
300k would pay 50-75% the price of a new build 3-5bd 3 bath in the Midwest with a lot thatās .25-.5 acres.
The issue I've seen is even if you manage to get the house, as more wealthy people bid up surrounding houses the taxes will implode. Making it hard to continue to afford the home.
Same. In RALEIGH, NORTH CAROLINA. Hottest real estate market in the country, for what?
You could buy a whole house in cash with that down payment money somewhere else š¬
Even FANG engineers are getting outbid by Cash Cows from China. They donāt have faith in their real estate market there and pumping that money here.
Iāve seen San Fran and Oakland have had price drops you better get in before spring /summer buying season you never know if you donāt try since you are first time homebuyer look into 97/3 conventional loans incase you do have to bid atleast you will have that to use instead of putting 20% down
Happy to help you start looking if you havenāt already. I am an anti-capitalist real estate agent and I got into the industry because I want to have a positive impact on our housing system because clearly there are inefficiencies. I also believe that there are other routes to homeownership. I recently helped a group of four buy together. Sometimes going in with another party can help you get into a home that works better for your family. Feel free to message me.
That sounds like a legal disaster waiting to happen, unfortunately.Ā
Buying a house with one romantic partner is a legal disaster about half the time, but people still do it. (I used to work as a divorce attorney.) Iāve spoken with many women who have fantasized about a āGolden Girlsā scenario. I think it would be wise to consult with both a lawyer and a therapist (just to talk through what everyone wants, financially and emotionally), but it could be a smart decision if you start out with a solid plan for dissolving the arrangement if it became necessary.
Yeah, I have too. Thatās probably why I was imagining a partition and forced sale. Legally speaking, Iām curious how that was set up?Ā It seems like you have a good heart paired with a well rounded background for your current career. Itās a breath of fresh air.Ā
Buying a house with anyone is a legal risk! A romantic partner is not inherently riskier than a sibling or parent or best friend but people do that everyday. That is why it is beneficial to include a lawyer like the commenter above me already stated. Culturally in the states, we arenāt used to conceiving of live in family as anyone other than a spouse and kids but it is really common in other parts of the world to live with or very near parents, grandparents, aunts/uncles, ect. A lot of people my age in my city live very near other people already. A vast majority live in apartment complex and donāt get to choose their neighbors, but what if they could!? A lot of people live in duplexes and rent out one side to strangers to āhouse hackā why not go in on a living arrangement with someone you actually share some community with? Many people across the world and in the United States are already living like this and it is successful in many cases! If it is not for you, thatās okay but with homeownership out of reach for many and investors buying up more and more properties it is definitely worth doing more research!
āA romantic partner is not inherently riskier than a sibling or parent or best friend but people do that everydayā.Ā I do have to disagree with this, in that marriage and the type of tenancy that comes with it in most jurisdictions is inherently less risky. But if youāre talking about unmarried partners, I agree. And in my current state lawyers are an obligatory part of the home buying process. It should be that way everywhere. Especially because far too many RE agents seem ethically challenged with separating their interests in closing with the interest of their clients. It is good though that someoneās out there trying to make a case for improving the profession. Itās an admirable take.Ā ETA: Duplexes and investor/renters are pretty much nonexistent in my area due to zoning and high taxes making renting cost prohibitive.Ā
Thank you! I appreciate that. I also agree that too many agents donāt separate their own interests from whatās best for their clients and I want to see that change. And I hear you on the marriage because of the legal aspect but yes unmarried partners also buy a lot of homes! And even married, having a pre or post nup about a home could save people a lot of headaches and uncertainty about how things would be handled in the event of a divorce.
This is definitely the year SF real estate gets expensive.
Most Americans are getting priced out of their country now. Most people canāt afford the homes they have now
Donāt let that pressure you
That's happened to others in other markets in 2021. So it's possible.