In my area you’ll need 250k in cash for a down payment on a decent condo/townhouse, which will include 6k/monthly in PITI. I think our HHI is barely over 6k/month net. I started working when the recession hit, so naturally I’m scared to over leverage myself, so it’s unlikely we’ll ever buy if prices are where they are.
I can’t help but see all these people buying up houses though. Do people really have 500k-1M just sitting around to buy a place? I know there’s a bunch of folks making big bucks in tech, some folks living off generational wealth (their residences were purchased 30 years ago), but what about the commoner? How does a family of 4 with two people making 100k/year each afford to buy a house?
I don’t think people are getting loans they shouldn’t, as the recession has taught lenders to be more strict and reject evidence like photos of company vehicles as proof of business ownership. But are people still over-leveraging themselves and not know/care? Or am I just too poor to understand what’s going on?