In California, for a family trying to buy a home (be it condo, townhouse, or detached single family home) in the Bay Area—Eastbay, North Bay (Napa, Vallejo, and San Rafael), South Bay, Peninsula and San Francisco—for example, is nothing short of needing a miracle. How are families able to compete with investors who are offering cash and/or astronomical moneys, offering as much as double what a house is listed for? It suddenly becomes a bidding war, and a couple with a modest salary and a worthy down payment does not stand a chance!
A home goes up for sale and a bidding war begins; it soon becomes like a frenzy of piranhas in water attracted by fresh blood, and in this case its “money”. Alas the house is sold to the highest bidder who is also waving a wad of money, adding enticement, sweetening the deal. And as it so happens, this is now to be expected at every turn.
Investors seem to have the upper hand. Money indeed does talk loudly.
What happened to “The American Dream”?
What happened to “America, Land of Opportunity”?
In the past few months, my daughter and son-in-law, now expecting their first child, have actively gone house-hunting for a home—to be first-time buyers—only to find that they do not stand a chance. They, and other people we know that are actively searching, preparing for retirement, are fast becoming disillusioned and losing all hope. They fear they may never be able to buy a home close to their families. Homes are quickly being bought-up by investors who are turning around and renting them for more than they are worth. It has become a carousel ride with no beginning and no end.
Whether one rents or buys, it is a lose/lose scenario rather than a win/win!
Recently, they were excited at the prospect of buying a small home within their [already high] price range, but the place was overrun (shoulder to shoulder packed) by a crowd of potential buyers, all desperate to make the cut. Sadly the place was won (or lost) to a buyer that offered twice as much as the asking price.
What is happening is ludicrous, to say the least! Good honest people are being pushed out of the market with no hope for help. Where are they to turn?
We dream a life to be; we live to dream that life! (vka)
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