Annual Home Price Growth Picks Up First Time In Eight Months

Homes. They're expensive! Half a million dollars worth of expensive if you want something half-decent in the US. That's what it means to be "average" in America: You can afford to finance a wooden box that costs as much as a well-appointed Rolls Royce. Like a Rolls Royce, if you don't go broke trying to buy a home, you'll go broke trying to keep one up. As discussed here last week in a kind of cautionary tale for younger readers who might still be on the fence about the merits of investing in

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2 thoughts on “Annual Home Price Growth Picks Up First Time In Eight Months

  1. Future price growth will likely lag nominal incomes. Also my guess is mortgage rates will fall some. Expect to see 5% or less within the next 1-2 years. Affordability probably slowly improves.

  2. People who are set to buy houses just don’t factor in what the total cost is. I bought a brand new 3000sq’. 4BR, 3.5BA house for $360k in 2009. In the first three years to make it livable for me I had to spend $7k replacing various appliances, fixtures, and carpeting; $12k to upgrade landscaping and lot drainage, and repair the roof for $13k. I also upgraded the HVAC system and water heater for $16k, installed a whole house standby generator for $10k. So my house actually cost me ~ $420k or so. Then there are taxes ($6k/yr); insurance $3k/yr; and upkeep (mostly lawn and garden) $15k/year. I’m 80, have no debt, and live off life annuities so this wasn’t/isn’t a hardship for me, though I do have some looming issues in my fully furnished basement. Houses ain’t cheap. And plan on steady maintenance of at least 3-5% of the home’s value annually (cash money) plus taxes and insurance (both will be rising).