Are housing prices ever going to go back to normal?

[Anonymous]

[WindAtMyBack]

I hope so, the prices are driving my property taxes up.

It's obviously supply and demand, but there are a heck of a lot of things that make up supply and demand. I know where I live there is a very low vacancy rate which will increase prices, but that's not the whole story.

I used to work in the building industry and I know building materials have skyrocketed in price. The cost of labor is going up also. Society keeps pushing college, so too many people are going to college. It's causing shortages in other areas including building trades.

The cost of related things like tools have also skyrocketed. Some of the tools I looked at recently more than doubled in price. Trucks have gone up in price also. If tradesmen are paying more for things, they are going to raise their prices.

Where I live there is an overall shortage of houses for sale. Not enough are being built to keep up with increases in population. Plus there are fewer people per home than there used to be, which means more homes are needed for the same population.

Interest rates are still pretty low. Plus people make tons of money and have lots to spend. The prices I'm seeing around me are so high that in the past very few people could even afford them. But people have a lot more money now. The boomers still have a lot of money and a lot are downsizing houses, moving to condos etc. Even with downsizing they are still spending which drives prices. A large younger generation is entering their prime earning years. They have a lot of money also.

[Asker]

I do not make much so I definitely am not one of the rich people who can afford anything these days. But your explanation helps to put things into perspective. Thank you.

[WindAtMyBack]

You need to find a cheaper starter home in a nice area. There are usually plenty of good neighborhoods with cheaper houses.

For much of my life I didn't even want to own a house. I worked in the trades and didn't want to do the same thing when I got off work. I knew how much work it was to keep up a house and would rather rent. I did end up buying a house when I got older but only because a good situation came up and I went for it. I don't regret it, but I wish I would have bought a smaller house.

[Asker]

Yeah I am totally with you. My top priority has always been safety. So my goal is to just find a safe area and however small the house is when the time comes as long as it doesn't put me under I'm good lol

[DrewJay]

Does anything really go down once people get a taste of greed? Other than a few things in life that always fluctuates up and down always I dont think most get to charge more for the same thing and then bring it down again. Its sad housing prices are ridiculous right now and landlords are finding ways to add more than just rent like watet or air filter. Things that aren't much but add up to a good amount each year on top of the higher rent. What is a person to do other than pay because of they dont good luck finding a new apartment especially in Utah where I am at.

[Asker]

Yeah I just feel that it’s pricing people out of being able to afford anything and now so many people are going to be forced to rent permanently, if they can even do that

[Slartybartfast]

Actually they are normal. Housing prices have been depressed since the housing market collapse of 2007 so builders haven't been building. Prices went back to normal then a little higher then they should be, but now interest rates are up which has slowed demand which is causing housing prices to level off.
Materials cost is way up and won't be dropping, same for labor so I can't see prices dropping just stabilizing.

[Drumlin2001]

Depends. Not sure where in the world you are, in UK, particularly south east, house prices have climbed steeply in past couple of decades. combination of rising demand and interest rates at record lows so banks lending more.
Rising interest rates will surpress the market, and if there's more planning and massive building programme to increase housing stock then it would help bring prices down.

[BCA6010]

Not when the most powerful companies in the world are the ones buying them at inflated rates in order to create a permanent renter class.

[Asker]

Yeah that right there is the truth

[Jamesshinobi]

Normal, no. The US Economy is a ponzi scheme. They just inflate to fix bad fiscal policy. they create boom and bust cycles so they can buy low and sell high. we are at the high. when they can't sell anymore, they will crash the market and buy all of the forclosures real cheap and start the cycle new

[exitseven]

I have never seen normal housing prices. There might be a little bit of a correction because of higher interest rates but cheap housing is a myth.

[jahaims]

They are either going to crash like back in 08 or the real estate companies that having been buying up all the property to have a monopoly on rent will continue down that path

[ChrisMaster69]

For the UK, they just keep rising.

anyone living down south and is 18, might never own a house.

[Asker]

That’s how I feel right now

[ChrisMaster69]

Yeah even the deposit is totally out of reach for some people.

[OddBeMe]

It is a bubble. But the Fed raising interest rates is a good thing that will help. Not for future mortgage owners :)

[Rizwan_khan]

No it cannot be happen because prize of house and good will always be increasing.

[Guy13]

Nooo. Not until China and India finish up buying USA immersed in her greed and desire for money

[888theGreat]

No, $600,000 homes are going to $50,000. Those that bought at $600,000 are going to lose their ass.

[RobEurope]

Only if the market collapses. But 2008 banking crisis showed governments will let the population pay for mzrket collapse.

[gorydetails]

After the recession hits, they'll come down.

[Asker]

that’d be great

[gorydetails]

well except for the fact that you may lose your job.

[Asker]

right

[Debbie14217]

there is no normal... pices go up never back to the way they were

[Avicenna]

Not without a significant increase in supply

[JohnK123]

Nah I hope they keep dropping

[Stoner710]

Not at the Democrat stay in power.

[FunkyMonkee]

Probably, once Trump takes over, again.

[Anonymous]

Due to inflation, I would not bet on it.

[bootieclapper9000]

just let the bible play out