When you can’t buy carpet, why buy a new one?
New furniture and home goods are becoming harder to find, and so are the affordable ones that once sold for as much as $1,000 a pair.
And for many buyers, the costs of owning a house are just too high.
“There are a lot of people who want to live in a big house and the mortgage is too high,” said Karen Lehner, a retired nurse and owner of a furniture business in Brooklyn.
“It’s not affordable.”
The average new home in the U.S. now sells for about $3,800 a month, according to real estate data company Zillow, up from $2,900 a month in 2008, according the National Association of Realtors.
But that is falling.
The average monthly payment for a one-bedroom condo in New York City last month was $2.5 million, down from $3.3 million a year earlier, according data compiled by Zillows research firm RealCondoData.
A homebuyer’s monthly mortgage payment is $3 million, and if you don’t pay that off before you buy a home, the house will default on its mortgage, according a ZillOW report.
“It’s been a long time since we saw that kind of decrease in prices, but we’re seeing that the economy is recovering,” said Lehner.
“We are seeing people buying houses that are selling, and people are finding that they can’t afford to buy a house anymore.”
Some people are getting into the habit of renting.
Renters are making more money, but are still renting to pay the mortgage.
But the trend is reversing.
“We’ve seen rents increase in many parts of the country,” said John Daley, an analyst with RealNetworks.
“But in New Jersey, rents are flat.
It’s a little more of a trickle-down effect.”
New York has a booming rental market that has pushed up prices.
But for the past decade, prices have dropped, and renters are seeing their monthly payments fall.
“People are being priced out of the rental market,” said Michael Hennessey, chief economist at real estate company Hennesys Realty.
“They are going to move into apartments.”
Some renters are getting a second chance, as well.
One person recently moved into a luxury condo in Manhattan, where rents are down, but they’re paying more than a year’s rent.
“I’m willing to pay more because I want to do it,” said the woman, who asked to remain anonymous.
“The apartment is beautiful, but I’m worried about the rent, especially if I can’t pay the rent.
If the apartment rents for $2 million a month and the rent is $1 million a week, that’s a very steep price.”
Lehner has a condo that she’s been renting to a new couple who have moved into it.
“What’s good about it is they’re moving in right when the market is booming,” she said.
“There’s no stress, so there’s no panic.
I feel safe.”
The median cost of a condo in the New York area is $2 a square foot, according Zillowing.
The median price of a one bedroom in the borough is $8,000.
Lehner said she’s trying to find the best deal for the new couple, and is considering renting to them out of their condo.
But it will be hard.
“My condo is just too expensive,” she admitted.
The condo is like a bank. “
When you buy, you don`t want to buy anything you can never use.
The condo is like a bank.
You don`ve got to borrow it, and you`ve never been in debt.”
The housing market has been a major driver of the national housing shortage.
But experts say it’s just the beginning.
“Real estate in the United States is a housing market that is on the verge of a meltdown,” said Henneses Realty CEO Tom Hennesse.
“At this point, it’s not sustainable.”Read more