Or your neighborhood is more desirable because of the location. There our neighborhoods in the Chicagoland area that have doubled or even tripled over the last 20 years and others that haven’t gone up 10%. Has the whole state of Kansas seen home prices almost double since 2010?
The neighborhood KC lives in has always been desirable, that didn’t just happen.
price is all about location. If you move further out there are plenty of reasonably priced homes. In my area, you can buy plenty of homes for less than $150K. You can also buy some decent homes that need TLC for $75K. The location is far from any major city so if you want a high priced job, you will need to commute or find a remote job.
Location is a big factor along with schools, crime, livability and partly low interest rates. If interest rates were a major factor all homes would see the same percentage increase over the same period.
There are affordable homes almost everywhere but some people would rather pay rent in a more desirable area, that’s their choice.
And that’s a bigger reason for the higher price than interest rates being low, it’s supply and demand. In far out rural areas and the ghetto prices have remained stagnant.
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I stand corrected. The impact of artificially low interest rates on home prices is negligible.
In some areas home prices doubled and in others they’ve dropped over the last decade, if low interest rates were a major contributor to increased home prices they’d be up across the board.
Jesus H Christ…I said “I stand corrected”. And yet you argue.
It is like you two are married!
Lol …not arguing, but I know in the future you’ll say that home prices are high because of low interest rates and we’ll have the same argument again.
And you will blame an entitlement mentality as to why young people can’t afford a home.
Like drinking coffee with a fork. 
My dad’s neighbor just sold their house last week. It was the highest sales price per sqft in the neighborhood. It appears that sales are still strong in desirable neighborhoods with low crime and good schools.
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What would you call it if someone believes they are entitled to something they haven’t earned?
I would say that they didn’t have the breaks you’ve had. How much was your first house and approximately how much was your income. My first house was $95000 in 1991. Using an inflation calculator, That house should be worth 208k…an increase of 119%. But that house is valued at $335k. My pay kept pace with inflation. But that house has an actual increase of 250%…more than twice the inflation rate. So if salaries aren’t going up at the same pace, a person just like me today couldn’t buy that house.
I know…those entitled little pukes should look for something further out. But that house is already 40 minutes from downtown. And gas costs more than it did back then, so I suppose they could move 50+ miles further away, heck…maybe even Oklahoma. But the cost of gas might make THOSE homes unaffordable. Once you have something, it’s easier to pat yourself on the back about how financially superior you are. I tend to recognize that some of it was luck.
Obviously you were lucky, for most other people it has more to do with personal responsibility and hard work. I’ve been to a dozen weddings over the last 4-5 years and all the couples were able to buy a home. Some had great jobs that pay a lot, but most work regular jobs like construction, nurse, school teacher, fireman or a $60,000 a year office job. Two people earning $50,000 each qualify for a $300,000 home. There are also homes a lot less expensive but not up to your standards.
You can make all the excuses you want but others are buying their first home everyday and building wealth with the equity in that home. People who blame everything but themselves and think it takes luck to buy a home can rent forever, like I’ve said I don’t care.
How much did you pay for your first house and what is it worth today? You should be able to find that on the tax rolls.
Paid $180,000 and according to Redfin it’s worth $303,000 today. A married couple each earning $50,000 a year could afford that house, don’t believe me check
the mortgage affordability calculator of your choice.
I would argue that would be a bad purchase
PITA would be a little over $2,000 a month on a 30 fixed rate mortgage at today’s rate, a little over 7% with 20% down. A 2 bed 2 bath in a decent apartment in that area would be at least $1,800 a month. When we bought that home we were making over $80,000 a year, put $40,000 down and the price $180,000.
If I was making $100,000 today I’d buy a less expensive home and go with a 15 year fixed rate and then move up when I could afford to. Or stay in that home if we decided to have kids and one of us was going to stay home with them.