How much is an avg house in your city?
- ThemLv 75 years agoFavorite Answer
Absolutely through the roof - $195,000 and stuff like that - for a junker worth maybe $10,000 tops. How this happened, it's hard to know.
I know part of the deal goes back after Vietnam and the government began to lend VA money to veterans to buy houses.... and that was fine except it put a LOT of money into the hands of people who weren't prepared for it. Untold thousands of those houses were abandoned and repossessed by the Federal Government through the 1980's.
BUT............ after some veteran had gone and gotten a mortgage on a $20,000 house - and paid $40,000 or $60,000 - and then couldn't make the payments......... when the house was repossessed, it didn't go back to being a $20,000 house. The excessively high mortgage stuck to the house - and suddenly there were all these complete pieces of trash on the market for $40 and $60K..... Nothing much you could do about it. If you wanted a house, you had to pay this.
Consequently home prices were very artificially boosted by a bunch of pretty stupid lending. And perhaps that continued to happen for other reasons as well.
I remember buying my first house here for $6500 - bought my second junker for $2500. But that was before the big ball of VA and FHA money was dumped on America. In any case, it's made a lot more people homeless - over all. No kid I know can afford a junky little house for $195,000.
- Veronica AliciaLv 75 years ago
A 4-bedroomed, detached house costs around £200,000 - middle of England.