We were driving home from the park today and I thought to myself "oh, gas is only $3.97 at this gas station!"
Only.
I was just in Los Angeles and lucky to find an Arco near the airport for $5.55 thanks to Gasbuddy - I saw PLENTY of gas that was around $6.50. I lived there during the great recession and I remember coming back from a trip to Germany in 2008 to find gas prices at around $4.50, which was crazy, so a full $2 more expensive is almost European levels of pricing.
I'm back in PA now and it's "only" $4.50 or so, which seems so much more normal.
Yet, people are somehow still able to pay $$$$$ for housing. Demand is still strong. I don’t understand the disconnect.
In my experience, it’s a lot of people moving from more expensive markets (ie: California, NY, etc) to less expensive markets. In some cases it’s the tech industry expanding into new areas, in other cases it’s the growth of telework allowing people to move to a less expensive area or to be close to family or whatever. If you sell your home in CA for over $1M, you’ll have plenty of cash to to pay for a $700k house somewhere else (and it’ll probably be twice as big).
Also, for those of us like my family who are both selling AND buying it’s not too bad as long as you’re moving to a similar market. We made lots of money, then turned around and put it all into a new house…so it wasn’t TOO painful.
But for first-time home buyers, this shit is unreal. I feel awful for people who haven’t been on the property ladder for a while. We made more money on our home in the last four years than my husband made in salary in that time…by a LOT (he’s a teacher). The average salary just can’t keep pace with the rise in home prices.
But who is buying the $1 million houses?
I moved out of LA in 2013 (not by choice, really, for my H's job) and there were houses in neighborhoods that weren't considered great, mostly in South LA, that would have sold for $250k-$350k. Just 3-4 bedroom, 1-2 bath craftsman or spanish style, 1-story bungalows, sometimes with a garage, 1300 sq ft or so. ALL of the neighborhoods in LA and the surrounding area now seem to have gentrified because literally ALL houses are in the $1 million range. I just stayed in a 2 bedroom, 1 bath 1920s bungalow as an AirBnb in West Adams that the owner bought for $350k in 2014. He just moved out of state and the zillow estimate for it is now $800k.
It seems like even in the late 90s there were still plenty of places in SoCal that were affordable to working families. The prices skyrocketed to 2005/2006 levels before the crash, but then never really leveled out that much. They were back up within a few years when interest rates were low during the recession, and have just ballooned again.
I've noticed insane price increases. Last summer, we bought the Cozy Coupe toddler car at Target for $49.99. This year it costs $64.99, a 30% increase! Price of fruits are insane too. Halo mandarines are 30% more expensive and no sales at all. Raspberries are also 40% more expensive! Bananas are strangely 3% cheaper. We'll see how it is affecting our budget. I haven't had a salary increase in 3 years. Most people in my company had a salary cut so I am not complaining too much.
Bully sticks jumped from $50 to $90 on Chewy.com in just 4 months. I don’t understand that one. What else are you going to do with that part of the animal?
Price of fruits are insane too. Halo mandarines are 30% more expensive and no sales at all. Raspberries are also 40% more expensive! Bananas are strangely 3% cheaper.
Someone in my daughter's class brought in raspberries, blueberries, and strawberries instead of cupcakes for their birthday. All I could think of is how much money they must've spent to feed 17 kids fresh berries 😂
But yes cuties at my Costco are never below $10. Before they were like $5? I thought it might be a one time price hike and then it would go back down some to even out, but I've been waiting like a year at this point so I don't think that's happening.
I was just thinking how I’m going to have to feed both my kids all day this summer since they’ve had free school breakfasts and lunches for the past two years.
But now I’m feeling awful for those kids/parents that already struggle with food and how this must be REALLY terrifying them.
I know I’ve mentioned it before, but if anyone is struggling, look into Dinnerly or Every Plate. I’m assuming their prices will have to increase soon but they haven’t yet and their “beginner” deals are pretty good.
My attitude about retirement is that we aren't close to retiring so let's not even look at it because it will make us sad. But my annoying husband likes to check daily and then have anxiety attacks about it.
I’m tired of every single thing we buy telling me they have to pass along their costs to me, meanwhile I’ll get my usual 1% annual increase from my company.
I make entirely too much money to be this broke, but these prices are killing me. I'm back to mostly paycheck to paycheck, which is a huge blow after saving so much money over the last year.
All of these things spoke to me. I am not even thinking about my 401K because I have so much time before I retire that I have to bury my head in the sand on that one. And I am at a new job so I cannot yet ask for a raise to help off set these crazy price increases.
But mostly, it is so disheartening to be making a pretty decent household income and live paycheck to paycheck. Part of it is our own fault for not cutting back when we should have, but a huge part is because of unexpected costs and increases in things. Our weekly gas budget used to be $100 for the two of us. Now it is literally double. Our grocery budget for the week for 3 of us was about $150; now it is $225. That shit adds up and is eating away at any savings we once had.
I need to help my mom manage her money but truly, it's hard to say where she should put it. She she already lost a fair amount in the market fall this year, I doubt she'll make up all those lossses (she wasn't even in particularly risky market investments, just everything is down). I don't want high interest rates, but it would be nice to have a place to put money where it will reliable earn more than 1.5%..... esp when inflation is like 8%.
DH and I are mostly effected b/c we'd like to upgrade our 2012 Civic. The kids are getting bigger (5&8), and it would be nice to have a hybrid car in the fleet that comfortably fits the 4 of us. We may be waiting until next year though....
I need to help my mom manage her money but truly, it's hard to say where she should put it. She she already lost a fair amount in the market fall this year, I doubt she'll make up all those lossses (she wasn't even in particularly risky market investments, just everything is down). I don't want high interest rates, but it would be nice to have a place to put money where it will reliable earn more than 1.5%..... esp when inflation is like 8%.
Post by followyourarrow on May 24, 2022 10:57:16 GMT -5
One of my neighbors told me they are food insecure. Our rent increased significantly, about 20%, and now their social security barely covers rent and nothing else. I helped out how I could and got them a list of resources, but ugh, that's not enough. I really feel for our seniors and those who were already struggling.
I complain the about the rising costs, but thankfully can make it work. I just may need to push off some goals, like buying a car and a house.
Post by pierogigirl on May 24, 2022 14:47:30 GMT -5
Rising costs finally inspired us to put up our clothes line. We need to replace a car and will do a hybrid when we do, but I fear it will be many months before that can happen with supply chain issues.
Our food and gas budgets are way up. We're OK, but we definitely feel the pinch.
I got a quote from an old friend who owns a pressure washing company. Since when does it cost $500?!
My house is only a one story and 1700 square feet! This includes the driveway and walkway, but yikes.
How much time can it take to pressure wash a driveway and walkway? Is that even a two hour job? That's an obscene amount of money for something that doesn't even require super specialized equipment.
eta: Oh, wait, are they doing the whole house too? That's maybe not super crazy if so.
I got a quote from an old friend who owns a pressure washing company. Since when does it cost $500?!
My house is only a one story and 1700 square feet! This includes the driveway and walkway, but yikes.
How much time can it take to pressure wash a driveway and walkway? Is that even a two hour job? That's an obscene amount of money for something that doesn't even require super specialized equipment.
eta: Oh, wait, are they doing the whole house too? That's maybe not super crazy if so.
It's the house too. I guess I just have sticker shock because it was less than half that for the same thing last year with a different company.
Post by fancynewbeesly on May 25, 2022 18:28:43 GMT -5
DH was laid off a couple of months ago and has yet to get a call back. Every application is online now and as soon as he lists his ethnicity they won’t let him complete the application.
Even though he hasn’t been working we were able to save money. His commute was almost an hour away twice a day so we are saving a ton with gas. My job is 15 minutes away. Last summer we downsized and moved to a smaller house in a slightly low cost of living towns which has definitely helped with heating/cooling costs
However food costs are insane. We are trying a garden and bought some fruit trees to help with the produce costs. Both of our girls are very good eaters and they love meat, veggies and fruit. A pound of turkey deli meat for lunches was 14.99! We tend to shop around and go to different places. Luckily they are all close. Lidl/Aldi we get produce/dairy from. Walmart are school snacks. Shoprite/butcher shop are meats/deli and random things.
I did just spend $46 and all I got was 2 lbs Cabot cheddar, arugula, rolls, hot dogs, a “sharing” bag of candy, a watermelon and tater tots (all on sale). This was my fill in “regular” store shopping of things I can’t get at Aldi. I spent $80 at Aldi just on produce, shredded cheese, trout, pickles and a pound of pork chops.
I swear we don’t eat cheese for every meal! The Cabot was on sale and expires in 2023.
DH was laid off a couple of months ago and has yet to get a call back. Every application is online now and as soon as he lists his ethnicity they won’t let him complete the application.
I’m sorry, what? Multiple online forms are not allowing him to continue filling them out after he enters his ethnicity?
DH was laid off a couple of months ago and has yet to get a call back. Every application is online now and as soon as he lists his ethnicity they won’t let him complete the application.
Even though he hasn’t been working we were able to save money. His commute was almost an hour away twice a day so we are saving a ton with gas. My job is 15 minutes away. Last summer we downsized and moved to a smaller house in a slightly low cost of living towns which has definitely helped with heating/cooling costs
However food costs are insane. We are trying a garden and bought some fruit trees to help with the produce costs. Both of our girls are very good eaters and they love meat, veggies and fruit. A pound of turkey deli meat for lunches was 14.99! We tend to shop around and go to different places. Luckily they are all close. Lidl/Aldi we get produce/dairy from. Walmart are school snacks. Shoprite/butcher shop are meats/deli and random things.
What do you mean he can’t finish applications once he enters his ethnicity? Are you in the US?
DH was laid off a couple of months ago and has yet to get a call back. Every application is online now and as soon as he lists his ethnicity they won’t let him complete the application.
I’m sorry, what? Multiple online forms are not allowing him to continue filling them out after he enters his ethnicity?
Nope. He worked for banks before so I don’t know if it is outside banking but he applies on line. Enters his name. Age. And then ethnicity. After he chooses his it pretty much says end of form and wont let him answer anymore questions. Needless to say he hasn’t gotten a call back.
I see my question has been asked fancynewbeesly. If you are comfortable sharing more info, maybe someone here can help guide him on what to do.
I think right now he is going to cast a bigger net. Problem is due to gas it is really hard for him to swallow a long commute again and there are less banks etc (which is what he has done for years) in our area.
Heating oil (which heats homes and water in the northeast) is currently $5.99 a gallon. I have never seen it that high. A typical tank is 250 gallons, and you can’t usually get less than 100 gallons delivered.
We are caught between a wild housing market (projected to be the fastest growing in the US for 2022) and needing more space.
My house value has doubled since I bought 12 years ago, but houses are going hundreds of thousands over asking the day they go on the market.
So we looked into a renovation/addition and the first quote was more than the value of my house. So. I guess we will just keep on keeping on.
I just want a second full bath, and better space since we both WFH FT now.
I see my question has been asked fancynewbeesly . If you are comfortable sharing more info, maybe someone here can help guide him on what to do.
I think right now he is going to cast a bigger net. Problem is due to gas it is really hard for him to swallow a long commute again and there are less banks etc (which is what he has done for years) in our area.