To preamble, I live in the US, in the great lakes region. I grew up in rust belt post-industrial car manufacturing cities.
Think Detroit/Pontiac/Toledo/Cincy/Cleveland/Columbus/Erie/Pittsburgh/Lorain/Johnstown/Youngstown/Sandusky/Lordstown/Dayton/Marysville
I havent lived in all of them but I have lived in all of them because Ive lived in one of them and more than one of them. IYKYK.
Against my better judgement, or any iota of sanity I have left, I just offered 25k over asking on a 600k house (that my partner and I can only “afford” together after 6 years of saving, not having children, and a boatload of equity in what I would call a lovely but overpriced home that has increased in value since purchase more than I will earn after taxes for the next 10 years) and still AND STILL WE WERE OUTBID. We secured a bridge loan to avoid a sale contingent on our house, and fuck me someone offered 75 over asking ALL CASH. IS THIS FUCKING TORONTO?
I talked with my lender and I noted that unless you had 20 mill banked, interest rates are so low, buying a house in cash like that would represent an obscene financial loss without refi which would take at least 6 months. Thats tantamount to setting 12k on fire IF they refinanced, and what kind of person has that kind of money to buy in a middle class neighborhood anyways?
Also before you call me out of touch and that this home isnt middle class, it sold for 300k in 2010. Total inflation is 23% and sure as fuck I havent seen that in wages.
This is outside a middle class city, in a middle class burb in the midwest.
And you know whats fucked? I dont think this is a bubble, I think its here to stay, which is why Im offering 3 times what I thought I would ever pay for a 4 bedroom 2.5 bath house on .5 acres of property. Spoiler alert the bathroom sinks arent made out of fucking diamonds.
I didn't go to college, I lucked into my career, I didn't luck out solely on privilege although I'm coasting on having enough money to keep me away from The cops. How is anyone supposed to do this? Only a lifetime consuming psychedelics could possibly prepare someone for this kind of insanity.
Can someone please explain it to me, please. Im so tired of looking at houses I will never live in and should never indebt myself for anyways.