My son keeps complaining about the same issues as the OP, but the math is not that different when my wife and I bought our first home in 1994.River Bass said:
We just bought because it's the first time in a couple years that you could actually look at homes and negotiate. We got our new home at 6% below lender appraisal.
We had been in our current home long enough to experience significant appreciation and this equity increased our buying power.
I'll refinance if / when rates come down.
Increased wages are going to help some home buyers keep up. New positions at my company are commanding double what they were 5 years ago. I'm baffled at todays salaries for young professionals.
We paid 7.5% interest and combined made less money than he does 2-years out of college.
Until the recent rate increase, he could have afforded a $300k home at 3% with 10% down. The payment relative to income was a little higher than when we bought in 1994, but not killer. The rate increases have for sure made it harder.
