Just need to vent...

Only if you aren't underwater. A paid off house can get a reverse mortgage.

One thing seems certain to me, that the constant increase in housing prices isn't sustainable. While some argue that we all should get houses because they appreciate faster than inflation, at some point they just won't be able to. Either that, or vast cities of people will become homeless or need to move to cheaper countries.

Another thing that looms over a new home buyer today is the question if whether housing prices will go down. I like looking at price histories for the properties I'm looking at. All of them are double what they were at the beginning of the pandemic in early 2020. What if they go back down to something closer to that? What if I buy now at the wrong time, then end up under water? Then what if I lose my job?

I think I can only do what seems best at the moment. And at the moment, that doesn't seem to be buying a house (or tiny, old condo).

 

long term, everything goes up. short term, there are bubbles. you don't wan't to buy at the top. it's a tough call though, like the market.
the problem is, money keeps pouring in from retirement investments. it will take quite a depression to make a big difference.

 

It can cost between $20K to $35K to secure reverse Mortgages. Plus there's a max that you can pull out on a reverse ... it ain't a panacea by any means.

 

why so expensive?

 

A house on a lot is the gold standard. Condos are ok if you have trouble taking care of a house. I’ve sat and watched so many couples buy houses, sort of pretend they are here forever, and in exactly two years sell and take their profit. Do this enough times and you end up with a free house. It’s risky though. It takes jumping into the deep end. It hasn’t been very risky here in Calif in this area. But that’s hindsight which is easy to see. The tax code allows up to 500k deduction for a married couple living two years in a house as their primary residence. It’s been jaw dropping actually, seeing them take 500k tax free.

 

If I scrounge around and wait, I might be able to find a house for $500,000, maybe even $400,000. But that would be out of what a bank would even loan me, let alone something I could pay every month.

This condo is literally the only place I might be able to afford that includes the whole thing, not just a trailer on leased land and that wouldn't require me to move somewhere far.

Well, we don't know what the economy will do in the next few years. Will prices go down? How much?

On the other hand, the wife and I lived here for the past 20 years. While buying a home wasn't as important to us as now due to several reasons, but we still have no intent of leaving this place. My boat for buying a home may have sailed. But we'll see what the future brings and try to make good decisions.