Entry level/starter homes $200-300,000?

Originally Posted by sloinker
Originally Posted by JeffKeryk
Originally Posted by sloinker
The house my folks bought in San Jose in 1960 and sold in 1968 was originally $16K. It is now worth close to a million bucks. 3 bedroom 2 bath 2 car garage on 8000 sf lot in what used to be the barrio near Reid-Hillview airport. My uncle lived in Campbell and had a similar house/price which he sold a decade ago for right at a million bucks, it did have a pool though.

Campbell is a great place to live. Schools are top notch. There are zero houses in Campbell for $1M. Anything close to that is a beater.


My late grandmother's hunting cabin turned home on an acre in Mill Valley was eventually subdivided into two parcels. The cabin/home was torn down 20 years ago and both parcels had custom homes built on them since then by my aunt and uncle. They took the profits and comfortably retired to Paradise,Ca. that's another story. 10 minutes to San Fran from grandmas place. Don't even ask what those places are going for now. They went for 3 million each 15 years ago. It is funny to think that anybody would have considered Mill Valley hunting cabin appropriate but she got it in the 1940's.


Yea my dad went to college in the early 70s out of state and he always has lamented to this day the loss of space inbetween the little bay area towns. They all grew into each other whereas in the 50s and early 60s there was still farms between these little towns going all the way up the peninsula.

On a side note. There are still some affordable places in California if you are willing to live WAY out in the sticks. Somewhere like say Yreka. You'll find the climate much more continental there than in the Bay Area though.
 
Originally Posted by bbhero
Love that snow picture....

Wood stove in there ??

Sadly no, just a fireplace with blower. I would much have preferred a wood stove.
 
Originally Posted by ZZman
Man I am either out of touch or live in a very reasonable housing market. That seems high for what I would consider to be a starter home in most areas.

Maybe wants are much higher now.

https://www.msn.com/en-us/money/rea...er-homes-get-built/ar-BBYOb4d?li=BBnbfcN


As the real estate sales guys say, values are based upon location, location and location.
What would buy you a shack in the Bay Area or the GTA would buy you a palace in most of Ohio or Michigan.
Be thankful to live in an area of affordable housing options.
 
Originally Posted by CKN
sloinker-
The whole Western United States is exploding in property value. Places such as Utah, Idaho Nevada, Arizona, Wyoming, Montana, etc., where people use to move to be able to buy a house cheap find that in most cases its $400,00.00 to get something really nice.

Here just outside Salt Lake City-I bought a 2,500 square foot house 7 years ago that was 7 years old when I bought it that was in foreclosure for $200,000.00 Today-this same house could be sold in a week for $370,00.00. (Could be higher since everything goes in to a multiple bidding situation).

Of course the Utahans are blaming the Californians coming in and driving up property values. That's too to a small degree-but there are other factors at play.



My wife got offered a job in Sheridan WY. We went out there with our 2 kids to scope out the town and housing market. I was dumbfounded at the housing cost out there. To live in a comparable house and land we would have to pay double or more. Her salary wasn't going to double though...
 
Real estate has been my greatest investment. I bought 8 homes (most were in foreclosure) when the financial crisis hit, and during the following 3-4 years. My first investment home was a newer 5 bedroom 3000 sq/ft brick home in a great school district for 93K. Its worth 300K+ today, easy. The others are mostly worth 2X what I paid for them, and I don't think the price appreciation is over with yet. They all easily rent out from $1500 - $2000 per month.

One thing people forget is the effect ultra low mortgage rates have on real estate valuations. Historically low rates help make the higher priced homes reachable for the masses. For example, I paid a whopping 11% back in the 80's for my first home. Now that is unheard of. 4% rates are plentiful. Also keep in mind the newer built homes are so much better constructed and have much finer materials. Remember vinyl 12" tile floors, Formica counter tops, particle board cabinets, low ceilings and ship lap exterior walls? Now its ceramic tile, granite or quartz counters, upgraded cabinetry, soaring ceilings with high pitched roofs and brick exteriors, etc.
 
Originally Posted by gfh77665
...Remember vinyl 12" tile floors, Formica counter tops, particle board cabinets, low ceilings and ship lap exterior walls?...

Yes, and this is what starter homes are supposed to be, and what made them affordable. These homes last 50+ years as is for the most part, and can be upgraded over time. They also increase in value over time just as other homes do.
 
What is "supposed to be" is determined by market forces. Expectations are light years higher for buyers than what they were 50 years ago for a starter home.

Try selling a vinyl 12" tile floors - Formica counter tops - particle board cabinets - low ceiling- ship lap exterior home for top dollar in Katy. Prospective buyers would run away.

Amazingly, when adjusted for inflation, today's better homes are actually better values than those "cheaper" homes of 50 years ago. Tons more energy efficient and weather resistant, and easier to insure too.
 
We had our house built in 2016. 1660 sq ft, 3 BR, 3 bath, laundry room, living room, kitchen with breakfast nook and a formal dining room....AND attached 2 car garage. Mortgage was $134,900. In the first year, our equity was $30K due to the sky rocketing home values.
 
Originally Posted by gfh77665
What is "supposed to be" is determined by market forces. Expectations are light years higher for buyers than what they were 50 years ago for a starter home.

Try selling a vinyl 12" tile floors - Formica counter tops - particle board cabinets - low ceiling- ship lap exterior home for top dollar in Katy. Prospective buyers would run away.

Amazingly, when adjusted for inflation, today's better homes are actually better values than those "cheaper" homes of 50 years ago. Tons more energy efficient and weather resistant, and easier to insure too.




Maybe not in Katy but in the high growth regions that need affordable homes these could fill a gap.
 
Originally Posted by PimTac

Maybe not in Katy but in the high growth regions that need affordable homes these could fill a gap.



You are correct they could, but that is not at all how market forces work. Market forces don't care about "filling a gap" to make things more affordable for first time buyers. They have no noble, altruistic agenda to help anyone out. The RE market is emotionless. It simply adjusts to whatever buyers are willing to pay, up or down.
 
My daughter bought a new house in Leander, TX last year in the $270K range.

Nice new 1 story home in NW Austin region of Texas. Nothing fancy or too big.
 
Originally Posted by Mr Nice
My daughter bought a new house in Leander, TX last year in the $270K range.

Nice new 1 story home in NW Austin region of Texas. Nothing fancy or too big.

Congrats on her new home; there is nothing like home ownership.
Bravo!
 
Originally Posted by gfh77665
What is "supposed to be" is determined by market forces. Expectations are light years higher for buyers than what they were 50 years ago for a starter home.

Try selling a vinyl 12" tile floors - Formica counter tops - particle board cabinets - low ceiling- ship lap exterior home for top dollar in Katy. Prospective buyers would run away.

Amazingly, when adjusted for inflation, today's better homes are actually better values than those "cheaper" homes of 50 years ago. Tons more energy efficient and weather resistant, and easier to insure too.

Everything is. Vehicles especially.
 
Houses are very expensive in any metro area, including were I live, the Twin Cities in MN. I live in a north metro area that is gaining in popularity, lots of space to build out here, houses going up like crazy.

The GF and I have been looking to upgrade from our 2BR town house to a new construction 4B, 3 bath, c car garage ~ 2800Sq/ft home for the last month or so. Unless you buy the crap lots facing the street or these new weird ramblers they are building, it's starting around ~$450K-480K for something in a good neighborhood that's not full of immigrant families etc. ( nothing against them, just not something I want in even a $350K house).
 
Originally Posted by Leo99
Originally Posted by blupupher
Quote
"In the last 12 months, we have made an effort to try to build more affordable homes," Altura CEO Justin Webb says.


I agree, I just don't see how $250,000 is an affordable home (yes location makes a difference, but still).
Then (especially here in Texas) you have to add on the value based taxes you have to pay every year ($3,000 +, higher the more value of the home).

Homes now days are a huge waste of space. Hard to find a new home with less than 2,000 sq feet.
Breakfast area, dining room, office, den, huge laundry room, monstrous bathroom, giant vaulted ceilings, etc are a lot of space that a "starter" home does not need. Also costs more to heat and cool these wasted spaces.

Build a 1,200 to 1,500 sq foot house with a 2 car garage, 3 bedrooms, 2 bathrooms (master having only a shower, no need for a bath and shower), reasonable size living room and kitchen (dining area as part of kitchen extension area, what most call the breakfast area).
Sell for
Oh wait, that is what I have. And the reason the houses in my subdivision sell within a month of going on market vs the $250,000+ homes that surround me (although those are selling well also).



What they don't build and what I think would sell is similar to what you propose. A really nice 1200 sq ft house. The only really nice 1200 sq foot houses are in 55+ developments it seems. I want the nice tile floors, granite or solid surface counters, really fancy bathrooms. But I don't need 3000 sq feet. I don't need a dining room that I never use or a formal living that has no purpose.


Because houses like you described are practical and the builder can't make as much money selling these types of homes. They'd rather build "show off" homes with space and rooms nobody needs...there's a much higher profit margin with such homes...
 
Our home is a 3 BR, 2 bath, 1844 sq ft home with a 2 car garage. Ever since we became empty nesters, the house is actually more than we need now, but it would be nice to have more garage space...
 
Like everything else as the value of the dollar drops along with supply and demand and increases taxing prices for everything are skyrocketing
 
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