I have a great income, a credit score over 800, decent savings, and almost zero debt, yet I can't afford to buy a house in Colorado Springs. I'm shocked at the cost of houses. I'm single, so there is only my income but I'll be drowning in a mortgage payment for whatever I buy, At this point it might have to be an insulated TUFF SHED. Very Frustrated.
Home ownership doesn't appear to be a part of my American Dream.. at least not In Colorado
With all due respect, I don’t necessarily agree with the “now’s not the right time” mentality. Prices have gone up everywhere, and it sucks. But I see people saving and saying it’s a bad time to buy and they’ll wait out the market, I don’t think the markets going to come down, maybe a small correction, but certainly not a crash. Everyone’s personal financial situation is going to be different obviously, so it will vary.
But for the people that save for another 2,3,4 years and get another 20-30k to put towards a house, now they’re looking at houses that just went up in value by 20-30k over that same time frame. I don’t know that there is much gained in that situation. Basically prices are going up as fast as people can reasonably save for them, so waiting a couple years isn’t necessarily getting ahead.
Not necessarily, here in Colorado homes increased at the rates of over 20% in 2020 thru 2023. In late 2023 home prices here leveled off and so far this year have seen a slight decline, last I looked it was -1 1/2%. We tried to buy here for over a year, put contracts on four houses all for more than asking price, investors out bid us everything. We had to wait til interest rates went up to buy and unfortunately was in Dec. 2022. House prices had peaked and has not yet gotten back to that value.
It’s also important to note that while prices have stabilized somewhat, cost to buy has continued to rise because of higher interest rates. So “affordability” has continued to march ever higher. The buyer who paid a little more but got a 5% interest rate is still doing better than the buyer who paid a little less and is at 7%+. Along a longer timeline it’s possible that rates return to a 5%ish and the second buyer ends up ahead but of course that could be years away.
Also housing prices are economically some the most sticky/elastic and with the current ytd, 5 year and 10 year trends the price will only go up. Holding your breath for another 2008 isn't realistic. If we have a repeat more than likely potential buyers will have their income jeopardized.
If housing prices declined in any meaningful way, the US would have a lot more to worry about than being able to buy a house. The Fed will defend the law of appreciable housing assets until it’s dying breath.
I didn't recall the Fed defending the "law of appreciable housing assets" in 2008...
Then you obviously weren't paying attention. Bank bailouts. Houses should have been going for pennies on the dollar during that time. The bailouts kept the banks afloat so that they could slowly liquidate the properties they foreclosed on at prices above the $30k-$60k they should have been going for during that time.
Take a simple look at everything that happened after 2008 then as a refresher.
2020 through 2023 have been odd years, with people from either coast migrating to Colorado and an uptick in space and cyber industries.
I would think demand will drop quite a bit as employers require employees return to work in their coastal offices and some of tge new housing completes. The last time I saw this the building boom lagged the demand market so we had a mini-crash. I don't think we'll get to that point but it's not hard to foresee (or hope for) stability in the near future.
I’m in MT (not sure why this post even showed up in my feed tbh), and things definitely haven’t peaked here. It’s just been a steady increase every year. The house we just built and moved in to in Oct 22’ for $525k is worth closer to $565k now less than 2 years later. And it doesn’t appear to be leveling off anytime soon.
From what I can tell, MT is the next CO. Used to be a hidden gem but the secret's out and the influx of people has just begun
This is the reality. I know several families who could have bought a few years ago but it would've been uncomfortable so they opted to wait and improve their finances. They improved but nowhere near how much the market changed, the fear of a few uncomfortable years probably cost them any chance at homeownership unless they want to move to the Midwest.
If they had purchased a house they could barely afford, things could also have gone sideways for them. Lost job. Health issues. Etc.
I suggest looking at rent vs buy calculators (NY Times has a nice one).
That would've put them back into the situation they're in now, at least they would've had a shot.
I don't quite follow. The situation they're in now is that they still have their down payment fund which has been growing in the meantime due to interest/ investing and further contributions. Had things gone sideways, they would have lost all that.
It's not a "down payment fund" if you can't actually use it to make a down payment.
If the house had been foreclosed on they would've lost the money they put down and any equity, but that's not happening in this market. Worst case would be a short sale, for less than the house would've sold got normally but still more than they paid for it a few years ago. They'd have recovered their equity/down payment.
Interest rates are forecasted to go down to 5-6% while the average value of a home increases ~ 20% in the next five years. Now is certainly not a bad time to buy.
Unfortunately, I know you’re right. But the real estate market was allowed to be over inflated and we have no real way of controlling those prices without regulation.
Private owners are selling high because new builds are being sold as extremely inflated prices. Which these new build price increases were caused by lumber price increases and supply chain issues of Covid, but even after lumber came down, and the supply chain was solved they kept their prices high. Much like many other industries.
Unless we see regulation on new builds to help regulate the market and the prevention of artificial price increases due to companies/Wall Street purchasing “investment homes” over asking price we will continue to see high prices.
Regulation, nimby in particular, is a major problem. The answer, even liberal leaning moderates like myself and the super liberal governor seem to agree, is to tackle regulations aimed purely at keeping out more housing. You see it all over the news here. Every anti-housing petition creates a problem. Those mega-apartments are a major reason for last years decline. They stablized rent and helped it decrease yoy. They are helpiny convince people to rent over owning which is further helping the inventory of homes skyrocket and prices stabilize. Next time someone complains about more homes in any form, kick them in the privates.
Can I kick them in the privates just for the hell of it though
I agree with this. I wanted to buy in 2018 but I wanted to live in a neighborhood that was just out of my reach down payment wise because I didn't want to have PMI and wanted a lower monthly payment. So I said I will give it two years and then covid happened...everything halted, yeah priced sunk but so did my fear of having of job so I put everything on hold. Bought in 2023 in an okay neighborhood with a mortgage payment and interest rate I hate.
Date the rate, marry the house.
That state being Colorado. Seems like the only way to buy a house is to move away or be house poor.
It's shit everywhere. Property managers everywhere since COVID expect you to have a remote middle/project management job.
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lol no thanks, you couldn’t pay me to live in Texas
People say this like prices or rates will eventually go down, but will they ever?
No. The hope is that they might plateau long enough for earnings to catch up a bit.
Edit: with the caveat that there might be a crash like 2008, but that isn’t great either.
In the mortgage industry, this is completely different than what happened in 2008. I need to sell in Southern CO to move back to Springs to just be close enough if I need to make an occasional trip to one of our brick and motar locations. Getting ready to list my current home. We're hoping to see rate decreaes around Oct, just per the last MBA Conferences.
Ugh .. I just started making "really good" money... Or so I thought. I have friends that make 25-50% less than I do and they can't believe that I can't afford a mortgage. They bought their's a few years ago. Their mortgages are in the 1700-2000 range, which would be perfectly comfortable for me. But If I look at the same houses now, it's 3000 and up. That's more than 50% of my monthly take home. They keep telling me to bite the bullet and refinance later, but what if rates never go down? I just don't think having a mortgage over 50% of my income is a good idea.
It sucks because I feel like I came into this money at just the right time to think it was a lot, but also just in time for it to transition into not being alot bc post-covid, inflation, etc...
Invested or put it in high yield savings or something like that but your situation is different than everybody else’s and don’t let other people try to act like they know what’s good for you if you don’t feel like it’s a good time to buy which I personally agree with then don’t You don’t wanna be upside down with a house
The issue here in the Springs is not the "Market" it's all the people moving here. Even if real estate crashes in the rest of the country it will not effect the market here. The last crash in 2007 saw a market drop in the springs of .5 percent the national average for that same time was 30 percent. So even if there is a market crash and it's only half as bad as the last one it will barely be felt here. Even with all the homes and apartments being built there are more people moving here. It's simple supply and demand.
The "current state were in" has been getting worse and worse. My parents bought their (sizable) home 30 years ago for (adjusted for inflation) about 220k......it's market value is 800k now
People said it wasn’t a good time to buy last year and my house has some serious gains as I bought at a relative low in the market. Don’t try to time it. You aren’t smart enough (neither am I). Just buy what you can afford if you plan on living somewhere for a decent amount of time. Historically, you will be happy you did.
Now is the exact time to buy honestly. If interest rates drop, guess what happens to that house price you were looking at. If you buy now you get the lower price and then can refinance when they drop.
Although I don't really expect them to drop too much in the short term. But I also don't think they are going to go up either.
Can you look into a condo? I felt similarly to you, I settled on a townhouse on an fha loan. My plan is wait two years, sell it, and use it as leverage to get into a single family home. It would be better to buy something small and pay your own mortgage than to keep paying someone else’s. Have you considered what your monthly payment would be if you rented out one of the rooms?
We looked at townhomes and they were all more expensive than a small home for two (in Ivywild) after hoa dues. We were a bit shocked but, wh, our dog has a big yard now.
I would be careful with a condo. You have the HOA fees that you maybe can afford today with the mortgage but the HOA fees can increase enormously. Some people in our area had their HOA fees doubled from last year and they had to pay more than $5000, that the HOA only gave them 1 month to pay.
Yeah screw HOA's. Its just an excuse for somebody to get rich.
Should be illegal to profit off an hoa. Provide community residents with an itemized receipt outlining exactly where the money went and show me your efforts in doing cost analysis to get the community the best price on services provided and maybe I'd entertain the thought.
It's exactly for nimby types who want to be in charge of something just to stomp their feet and get paid for it.
Housing in general is just parasites from top to bottom soaking up everyone elses money.
I couldn't agree more with your assessment!! Esp the part about nimby types--spot on!!
That is not how it is anymore. Townhomes are just as expensive and sometimes more expensive right now. At this point they have all been flipped and renovated to increase value
Yea they are building townhomes by us. They have a sign for $2560/ month. That’s over $1k more than our mortgage. Insane.
This is what happens when we let corporations and foreigners buy up our land and real estate. The entire country is one big investment opportunity to those who have more money than you and I can ever imagine.
It’s a shame really we need to make it less convenient for the wealthy to own multiple homes
Looking at Blackrock real hard here
Personal private investment is a much larger problem.
Boomers buying up 3 to 4 homes as investment properties outpaces corporate investment 3:1.
Does it really?
No. This is an enormous myth. There might me some, but most don't want to take on more work at this point.
Lol every landlord I’ve had in Denver is some past due boomer with 4 other properties they bought in the 80’s for an apple and a firm handshake.
That's not the same thing as them doing it now. Not even close.
Some of it is just pure inflation. You can’t let the money printer run wild without hard assets like real estate going up in value. You gotta park that money somewhere.
What foreigners are buying up Colorado Springs real estate? Maybe an argument if you were talking about Aspen, or like, San Francisco. I doubt it’s even a major issue in Denver.
Bigger issue is corps buying portfolios of starter homes to operate as rentals and the biggest issue with affordability in this particular market is interest rates.
Corporation just bought my friend's parents home. Investor buyer paid $465k in cash.
This is part of the problem (economic inequality is definitely a large factor), but I think another large problem is that essentially every US metropolitan area is reactive about regulations that restrict real estate development.
The downtown area is barely densifying. Large parts of it are still parking lots despite being prime real estate for apartments, condos, and commercial real estate. Other parts of it are old low-rise buildings that could easily be redeveloped.
Why aren't there "Main Streets" (micro-urban areas) being zoned for out in the sprawl?
Why is basically all of the sprawl detached single-family homes? The areas around downtown could be rezoned to develop like Montreal with "middle missing" midrise townhouses, condos, and commercial spaces mixed in.
Land use is absurdly inefficient throughout the entire US, and a lot of it is due to ridiculous regulations that prevent the real estate market from functioning freely and efficiently.
What do you consider great income?
Exactly. This could be a 20 year old making $50k
I was thinking the same. We make 100k and will need to buy a fixer upper but it’s on the forefront of the mind soon.
Same
This is crazy but hear me out, what if, you could work a job AND be able to afford a place to sleep… “good/great” money shouldn’t enter the equation of, if I can live or not.
Hey hey, don’t go that far. Here in Colorado Springs that could be considered socialism
20 year olds are well aware that 50k is not enough to buy a house. We can do simple algebra, it’s a bit condescending to really imply otherwise.
What do you consider great income?
Have you talked to a lender? You won't know how much you qualify for until you do. It could be 300K or it could be 500K. You may also qualify for govt grants that give you free down payment assistance.
It's doable, especially if you look a little bit further out of town where housing is significantly cheaper. Don't listen to the naysayers with "impossible" comments. Sellers also offer incentives like rate buy downs and/or covering closing costs.
Big warning here though, don't trust the lenders here's what you can afford thing. They want to make as much money on you as possible which means as high as possible without being a foreclosure risk. That doesn't make it the optimal affordable house for yourself.
Of course, every individual had to assess their own comfort level with risk.
For example, my lender said I could borrow up to 680,000. That would be too expensive for me, so I bought a place that cost 500,000 instead.
Buy what you can afford, a townhouse or condo isnt a bad place to start. I started there, made 100k due to our glorious property values, wrapped that into the next one, did the same thing, and now im getting ready for the next one.
this
My wife and I bought our house last year... it's absolutely possible. We even have a lower FICO score than you. You might have to just adjust what you're looking for or take a low down payment (or FHA down payment assistance) with PMI loan. It'll suck for a few years, but it makes buying your next house a ton easier because you can use the equity from that house. Generally (especially these days) your first house isn't meant to be your forever home.
Define "great income" and tell us your current debts. A person with "great income" can certainly "afford" to buy a house here. Homeownership isn't cheap, so of course it's going to take a chunk of your income in the end.
I thought the same. I've seen several houses in the $300-$350k range that are in safe neighborhoods recently.
Harsh reality, but this is one of the highest demand housing markets in the nation. Colorado Springs ranks in the top 2-3 best places to live, every year, for about a decade now.
Sadly that means breaking into the housing market here, currently, is a challenge.
As others have said, right now is not the time to be getting into the housing market, especially not in one of the highest demand locals in the nation. Either wait it out or look at a cheaper market to get a foot in.
Everyone is always saying to wait it out but I believe that the market is just different now and its prob best to buy property/housing and pay the cost to start building equity
That's what we did. Bit the bullet.
Us too. Almost a 2k mortgage for a small house with a big yard, BUT that's what a nice ish apartment costs in rent anyways.
It's that or find another location to get started in. This is a rough town for first time buyers.
All this advice to wait is terrible advice, IMO. The best time to buy a house was yesterday and that will be true for some time if not ever. When the rates come down the prices will go up and you can refinance. Also, sadly, CO Springs is one of the cheapest nice cities to buy a house in the country. All factors considered like: weather, job market, accessible air ports, etc I think you'll find that while it's increased it hasn't increased like other parts of the country. Get in as soon as you can or you may never, it may also be the last house you can afford. The days of bouncing from starter home to bigger home may be behind us. If you wait you may never get to buy in unless there are drastic changes in gov't policy.
Definitely not a good time to buy!
Strong disagree on this one. If rates ever drop, the prices of homes will surge again due to high demand. Better to buy now, get something you can afford, and refinance when rates do eventually drop. That might be years, might be months.
It may not be your dream home, but you are at least generating equity.
Depends. The rates could conceivably go even higher. Now could be a good time, as the rates may not lower for years. It's kind of a crapshoot.
Yeah it's a dawned if you do dammed if you don't only because prices are going to get even higher. I'm just hoping for rates to lower so I can refinance.
All fingers crossed in hopes of refi-worthy rates
I am in the same boat. I keep trying to find a friend who would like to own with me because single income isn't happening in Colorado.
It shouldn't be this hard but it is.
Fuckin shit box houses built in the 60’s are going for 400-500k here it’s such a joke lmfao
The issue I have with Colorado Springs are just how UGLY most of the houses are for $500k and up. Like ugh, what happened? It’s like there is no charm or value.
You could always move to Pueblo.
Even Pueblo is expensive these days…
This is what happened to me. I was priced out of Denver so I moved to the Springs, which was ok since most of my family lives here. I bought my home in 2017 as a single gal, and there is no way I could afford my neighborhood today. Even married people can’t afford my neighborhood, which is such a shame, because it was intended to be a working class neighborhood.
These things are cyclical. I remember a time in the 80’s when interest rates were ridiculous and prices had also gone up. Things will get better but you may have to wait 2 or 3 years.
People have been saying that for a decade. Mortgage costs aren't going down significantly until we build a lot of new housing, which will take years at a minimum and may never happen at all.
The current market situation in the whole US is very different than two years ago. What do you mean “for a decade”? 2014 was a fine time to buy a house.
Okay now but what about all the time betwix? You know, the actual years of the decade?
Housing prices were already spiking in 2013 due to all of the lost homes in the 2008 crash being gobbled up by banks and investment corporations.
That's why prices never came down either, and never will.
As long as we allow banks/mortage companies to sell extreme risk mortages, AND allow them to consume the house when it fails, you're always going to see housing shortages and increasing prices. It's literally impossible not to.
Yeah man shits fucked. Not sure what we can do to help.
The messed up thing that will happen. And I’m sorry this is going to happen for you and other young ppl in the future. When those interest rates go down again.
Let’s say 3-4-5. Those houses that are 450k will be 650-700k. Because people want that most out of their homes. If someone could buy it at 450k with a 7% interest rate. Then that someone can afford it at 775k with a 4%. You see what I’m saying.
Inflation, greed, and lowering interest rates may destroy you.
Might want to think about being house broke now. Getting in. And just refinancing when they do go down. Now may be a good time to buy.
Lock in the price: marry it and Date the interest rate.
And get roommates!
A people love it when the value is so high because they borrow against it when doing renovations.
I'm in the same boat (although my credit score is just UNDER 800). All we can do is continue to save and be ready when it turns back around.
This is poasibly the turn around time though. If interest rates drop, housing prices skyrocket.
To buy an average home in Colorado Springs how much savings and income do you need?
I own a 3 bedroom, 2 bath house in Colorado Springs which I will be selling soon. I refuse to sell to an investment company (they call all the time) because they are creating this housing situation where people are priced out of the housing market. So I've been thinking about selling without a realtor and reducing the price of the house by the amount I would be paying the realtor. I'm also willing to give a $10,000 allowance because the furnace (which still works) is old and there is no air conditioner. If I can sell without a realtor, the price of the house will likely be $340,000 and that's before the $10,000 allowance. Let me know if anyone is interested.
Have you considered moving a bit further out?
Never been worse, and prices won't be coming down anytime time soon as long as big investment groups keep buying them.
Come on down to Pueblo my friend
Are you providing the security escort and bulletproof vests?
300-400k for a teardown with a freah coat of paint isn't any better than what houses in the Springs are going for. Spent 4-5 months looking for something affordable in Pueblo that didn't suck. Factored in with some of the stats Pueblo has and it's not exactly a great deal.
Right now is a bad time to buy nationwide, not just your local area. Just have to ride it out. I'm old enough to assure you this goes in a cycle and right now is the bad part if the cycle. Hang in there 5 years and it will come back around to being good for buyers.
I'm shocked at the prices in my neighborhood. I cried a little paying my property tax this year
When I bought my house, everyone gawked at the price I paid. That was 2019, now everyone has almost moved, and there are all new people, and they paid way more. Don’t get caught up over having a couple beers pondering 2009 home prices.. it’s not realistic. Buy the house if it can be managed. I have been in construction for 17 years. I promise the prices wont go down until the population goes down.
Keep saving. A larger down payment will reduce your overall costs and result in lower payments.
Humble yourself and network. I’m in a much worse position than you financially and I bought a property in a small mountain town in January. It’s not easy but it is possible. Listen to bigger pockets podcast
Yup, this is good advice. Some people want their forever home as their first home, and sometimes that's just not realistic. I bought a two bedroom condo as my first home then sold that to make my down payment for my 4 bedroom 3000 sq. ft. house that I'm in now.
It’ll swing the other way. My brother is a loan officer in California and when I was buying he told me an 800 credit score is more valuable than your down payment to the lender.
Keep saving and wait for rates to go down. With that credit score and a decent down payment you’ll be sitting like a fat rat when rates go back down to 3%.
You’ll get your home. I don’t know your age but I bought my first home at 40 years old. I know that feeling of hopelessness. Good luck to you
Id be surprised if it gets to 3% any time for years
I was 38 before I was finally able to get a home, and even then it only worked out due to 3% rates right at the beginning of the lock downs for COVID and also finding an actual good deal. The home was chain smoked in for 13 years, so that took some work to remedy. It's not fancy, and it's not in a fancy neighborhood, but it's a house and I'm grateful.
My brother is a loan officer in California and when I was buying he told me an 800 credit score is more valuable than your down payment to the lender.
This is true down payments just take away from the amount the lender can earn back and minimize liability, at 800 that liability is nearly non existent though.
Rates will never go back to 3% in our lifetimes. 4% would be pushing it.
It will probably take 5 years to get back to 3% though
Yea but that doesn’t mean anything if the alternative is moving out of the springs to a lot of people. Some would opt to wait, others wouldn’t.
If that. Just look at historical averages for mortgages. 3% is way outside the norm
If rates drop that low, prices will surge. You won't save a dime.
Better to buy something cheaper now and refinance later.
Condos, or maybe mobile homes may be the solution
The problem with mobile homes is you’re usually also renting the lot you’re on
Try going through a local credit union you might get a better rate
Sokka-Haiku by realjimmyjuice000:
Try going through a
Local credit union you
Might get a better rate
Remember that one time Sokka accidentally used an extra syllable in that Haiku Battle in Ba Sing Se? That was a Sokka Haiku and you just made one.
At least you aren’t house poor.
Buying a first home is hard! Payoff all consumer debt and get on a budget. First time homebuyers need 5% down. You will also want to save an emergency fund and money for furnishings. Consider a townhouse too.
It's not even 5% even more. We did 3% with our first house back in 2018. First step is really talking with a lender and see what your situation would allow.
If you haven't had a home purchase or fefi in the last 3 years, I suggest a First Time Homebuyers Program, that helps, also CHFA is a dwonoayment assistance program you can use. Most financial institutions will let you buy the rate down, also the new build market a lot of builders work with lenders to give you incentives and it's a different rate structure than the standard FNMA Maxtrices used for points and fee. As long as your lowest credit score of the 3 credit agencies is above 740 the matrix doesn't apply points and fees.
If you do buy, get a roommate or 2 until rates fall. Once they do, refinance & consider discontinuing your tenants rent at the end of their lease depending on the affordability of the new payment.
I bought my first house on a program specifically geared towards first time home owners. You should research if you qualify for a program like that, they waived my down payment
There are good times to buy and bad times, and this is a horrible time to buy. Interests rates are double or more than just 5 years ago and the market is bananas. Embrace the joy of renting for now and wait for the bubble to burst. Keep building savings so you can swoop in when things even out. The economy is bonkers and it will balance and make homeownership a possibility soon enough.
Looking on Zillow….. you can easily afford a house in Jackson, MS or Youngstown, OH.
If it makes you feel any better you are not alone. My financial background is similar to yours and everything feels pretty out of reach for me as well. Am just hoping that the market improves because home ownership should be something everyone can achieve and not relegated to a fortunate few.
Well how much house are you looking to buy.
If you're single, you can buy a house and get roommates or rent rooms on Airbnb. You'll also be able to save on income taxes if you go the Airbnb route
I'm sorry to hear that you're priced out of single family homes. I would start with a small 2bd condo, build equity, and then parlay that into a house in the future. It's how my wife and I eventually were able to get our first home.
We’re visiting Fort Collins and the prices we saw for what looked like a tear down were ridiculous.
Even a few miles down the highway in the middle of nowhere they wanted 400k.
No thanks.
I’ll be totally honest - if I wasn’t married, I don’t think I’d ever have been able to afford a home here. We make it with a dual income, but I don’t see how it’s reasonable or feasible to buy a house on a single income.
Went under contract yesterday after looking for 8 months. Keep grinding and it'll happen
I feel you dude , at this point being able to rent a 3 bedroom house for me nad my kids on my own is my new american dream.
Tell me about it. I’ve been a homeowner for a decade in Louisiana. I came to Fort Collins in late 2022 and shortly after had my $100k in equity in hand from the sale of my Baton Rouge home, but due to interest rates home ownership makes no sense for the time being. No idea when or even if the rates will come back down, but this doesn’t seem sustainable. Something has got to give.
Half the city are military or veterans who have access to 0% down VA loans. Anyone who does not is at a disadvantage in Colorado Springs as those who do can put more into savings and need less for large purchases.
Things are pretty bonkers in our society right now with well and income inequality and the inflated housing costs-
But it is worth noting that you’re trying to make it work not only in an extremely difficult time, but also in an extremely difficulty location. May want to marinade on that.
Have you considered Fountain?
Call the Colorado mortgage team. Talk to John Travis. He has helped me and my family get into their first homes. Including just this week with my nephew. Let him show you what your situation means as far as affordability. Neither of my nephews thought they could afford a home and both of them got one.
What about appartment?
Great income is subjective. What’s your income?
It IS a part of the American Dream. The problem is most Americans dream too damn big without doing anything to fix their fucked up country.
What is great income? I bought back in 2015 when I made $50k/year and it was an easy buy. Now that I make $170k/year it is a much harder market to buy in at. But there are some nice $300-350k houses out there, which should be achievable on a “decent income”.
In Arizona too!
If you have all that you should easily be able to buy a home in the springs. $400k Springs home is $800k in California. Just buy a smaller home or move somewhere cheap.
I'm in a similar spot, but I think that now is a harder time to buy. Rates went up a lot as the fed tried to combat inflation, and the housing market hasn't responded yet, at least not in a sustainable way. Some part of this is the fact that markets take time to respond, some part is rooted in the hope that rates will come down soon and some part is due to the tons of people 'trapped' in their 2% mortgage on houses they're upside down on. The result has been a deadlock, with not many houses changing ownership.
My take has been to keep saving until I can afford my target neighborhood and that will give time for rates and prices to equalize. I'm guessing there will be a rate cut before the election because politics, and depending on how the market responds we'll see some kind of long term direction coming into view by the new year.
There are also some macro actors at play, like the population boom of the springs leading to a shortage of housing and the so called rocky mountain tax where we tolerate a worse ratio of pay to cost of living in exchange for living in paradise.
The only reason I "bought" was I assumed someone's loan with a 3% rate. Maybe try filtering on zillow by assumable loans. Unfortunately a lot of times it's right time right place.
My family is moving to Wisconsin and we could literally buy a house and support ourselves on one income there. We could buy up to a 200k home, and some of these places have 4-5 beds for that price. I love it here but lordy it's expensive.
Zillow search fo a house under 300K turns up 302 results, 212 under 250K.
luckily i have family in realty and the lender that was recommended was awesome. please feel free to send me a message if you want any contacts!
Unfortunately owning a home is quickly becoming something that isn’t of reach for many people.
I’m sorry you’re going through this n
Still plenty out there. Check out some of the new construction, better rates through builders are available too.
I don’t know what you’ve been looking for but I do know how it has gone with me (late 40’s). You don’t get your dream house in the first go, and most likely you don’t get your dream house. You get what you can reasonably afford and isn’t a shithole of course. You make payments for a few years as you make improvements along the way. When your life situation has changed (income or family grows,etc) you sell and use the money for a down payment on the next one. Do what you can now and accept it won’t be everything you want.
I'd love it if somebody could first explain why China owns so much land in America.
I jokingly said to my partner yesterday that if the resurrected actual Hitler and him being elected meant I could participate in the American dream I would vote for him in a heart beat.
I hear you.
Have you looked in Fountain or Pueblo West?
I had a bad dream last night about moving out of my parents house and having a $2k rent payment for 1 bedroom no bath or anything
I have a family member who makes 30 or 40 grand a year that bought a small house, really for one person for 200K, not a great neighborhood but ok enough.
The American dream is dead. Only corporate America lives here now
How much are you paying in rent? I just saw several purchasing options that would be less than $2000/mo including all estimated fees (property insurance, taxes, etc.)
I feel for you. I was trying to buy in the Springs in 2020 and it was difficult, especially when so many people are offering over asking price. It’s like a battle putting in an offer on something. Multiple offers on one place. Prices are inflated and the APR is high right now. I ended up buying in Teller County. Best decision I ever made.
Just a real life number- we bought a house for $500k(shit hole fixer upper), 5% down, 2.9% - we pay $2740 mortgage, insurance, taxes. It’s gone up $300 in 3 years. Renting is the better deal.
If you don't mind commuting, there are some places in Teller County where you can get a home in the 200k - 300k range.
Find a seller who has an assumable house loan...
I do think a saving grave might come in the form of this commercial real estate crisis that is unfolding but only time will tell
Who needs a house? I mean seriously, why even bother buying a house? There is nothing wrong with renting.
We moved here because it was affordable. Try and go anywhere on the west coast. That is getting to be unaffordable.
There are homes but it may take a bit of trading up to get what you want
Gonna have to compromise everything i stand for and move to that shithole Texas
I can afford a house there, and my company is starting a new plant down there.
I hate it so much but Colorado is a lost cause in a lot of ways that really matter to some folks
Real estate around here is ridiculous
Have you considered roomies to help for a while? One or two steady income roommates can greatly offset your entry into home ownership. Sucks to have roommates but it could def work.
Have you thought about a land contract? I’m buying a house on a land contract it will be paid off in 4 years.
Yeah, you definitely will need to look outside the springs
American Dream in 2024 is be house poor or live in a van. Go for the van
Owning a home in the US has, in all economic truth, been such a high-risk long-term investment, therefore arguably pointless, since the dustbowl. You are much better off buying a plot of land with the mineral deed included (or buy the mineral deed separately). Then, make a trip to your presiding courthouse and/or library to make sure a lien, or liens, have not been filed on your prospective real property investment within the last 6 years for near total security, then build that Tuff Shed Starter home on it, so all you ever need to worry about is your local government claiming imminent domain (This normally occurs via a single, or multiple, court filed claims of plight.) Which, in the State of Colorado, for the most part, takes a reasonablely high amount of noticable filth in public purview with a realistic amount of concern of risk in regard to public sanitation/public health and/or imminent risk to life and/or limb (if you think I'm kidding, for real, go read up on Jim Bishop, of Bishop's Castle notarity, and the hellscape of a legal war he fought for what became most of his life, lasting up to his last breath). The American dream of home ownership pretty much became the Fed's most diabolically well schemed legal hustle to ensure your continued, self-contracted participation in mass consumerism. Most deeds in the United States do not include land rights and/or mineral rights, and said deeds are still the bank's until every last penny of compound interest and principle are paid off until the passing of that tax year. OH, yes, most importantly, as we speak of taxes, make certain you continue to pay those property taxes, county fees, etc., which are only projected to continue to rise ahead of the inflation curve, even at an exponential rate growth in some areas, for the remainder of your lifetime! America: Obey and Consume...or else!!!
That's because republicans want corporations to own all the houses so they can rent them back to us. If the hedge funds and private equity firms have their way no one will ever own a house again. It's all about corporate profits, shareholder dividends, and political donations.
Look to build. I did in 18 and my house added another almost 175k in value. I built a challenger home for 311k now valued at 485k interest rate 4.85 from a refi during COVID. There are also incentives to build. Especially 1st time buyers in Colorado. A part of the affordable housing bill. Also if living or looking in Colorado springs, don't. Stay out of city limits. Build in the county areas like falcon and Peyton. Still very close to the city but less taxes.
How much do you think you should have to spend to buy a home?
There are reasonable houses east of Colorado Springs in Peyton. My nephew bought a house there a couple years ago.
Yep. We set up an economy where people can get rich by acquiring an asset, (house) then manipulating policy to create artificial scarcity to inflate the value of the asset, (NIMBY) all while producing nothing. The story ends with only those who produce nothing having anything, and infinite inflation.
It’s horrible right now. If my husband wasn’t in the military, we would be homeless right now.
This is a national problem. It is not the time to buy wait another year or two or five the day will come and it will happen.
You can go to the very top of what you can afford and then rent out one of the rooms to help make it happen.
Keep saving. It’s definitely not the time to buy. Don’t beat yourself up- it’s not you, it’s just the current state we’re in.