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Will real estate ever be normal again?

nytimes.com

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Re: Will real estate ever be normal again?

#81

Post by IAmGraydon »

ByteJockey wrote: post #59
Supermancho wrote: post #7

Earlier quoted context omitted.

https://www.nytimes.com/2021/11/12/magazine/real-estate-pand... The publication year is 2021, which is the typical way a story is tagged. I have to wonder why 2007 and not 1913 or 1929? Throwing out a date does not imply a specific context or add to the discussion.

2007 implies right before the 2008 recession where housing prices tanked. In 2007 people were panic buying houses because they thought that if they didn't buy right now, they'd never be able to afford to buy a house.

It’s true…the market always seems to turn when you start seeing widespread sentiment that it will never turn.

Re: Will real estate ever be normal again?

#82

Post by mikem170 »

lostdog wrote: post #44
toss1 wrote: post #28

Earlier quoted context omitted.

Yes, it is sucky to not be able to live where you like, but the attitude seems odd. Why do you feel entitled to live at any particular location (that was not actually inherited)? I've never felt it was my "right" to be able to afford any particular location and/or living standard at that location, and always noticed that it was a trade-off between costs, location, commute/travel times. Same whether it is in a resort…

> Why do you feel entitled to live at any particular location (that was not actually inherited)? For me, it's less about my own life, and more about how terrible the world is when people get pushed out of their homes. Most people need stability to have a good life. They do better when they understand their neighborhood. Their kids do better when they can go to the same school system until they are 18. Plus, the emplo…

I agree. I believe zoning is a big impediment.

People wouldn't be priced out of their communities if there was more supply of housing at varying prices.

Instead current regulations restrict the supply of housing and seem to prioritizing uniformity and property values.

Re: Will real estate ever be normal again?

#83

Post by hanoz »

uejfiweun wrote: post #52
RappingBoomer wrote: post #49

Earlier quoted context omitted.

the problem is that if inflation continues, then interest rates will go up, whether the fed wants them to or not...once rates go up, money will flow from asset investment to bonds etc...and that will crash asset prices...checkmate...one way or another, asset prices WILL crash

How exactly does this work? I thought that the fed controlled interest rates. Under what circumstances could the interest rate rise independently of the fed?

At the end of the day, money is stored work. If your country is running a deficit, living beyond its means, then you're dependent on other people's work now, on the promise of returning the favour later. If it starts to look like you're not going honour that, then suddenly you have to face the shock of living within your means, and no amount of printing new money is going to relieve you of that. If you can't live within your means, i.e. reduce the deficit to zero, you're going to have to start promising at lot more work in return, for the shortfall you have now.

Re: Will real estate ever be normal again?

#84

Post by listenallyall »

mrfusion wrote: post #79
mercy_dude wrote: post #71

Earlier quoted context omitted.

Also if they do 1) just imagine how much interest payment that would mean for US Govt and all the dollar denominated debt. I think a mere rate raise to 5% will cause the US Treasury to have to pay for another military.

I’m wracking my brain trying to figure out how we’ll ever raise interest rates again due to this issue. Does anyone know? Any tricks I’m not aware of? Was there way less gov debt in the early 80s when they massively raised rates?

Yes, of course, much less. Regardless, the size of the debt is not an excuse to keep interest rates artificially low.

https://images.app.goo.gl/NVYuu3q3rJMVpPRu8

Re: Will real estate ever be normal again?

#85

Post by [deleted] »

uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

[deleted]

Re: Will real estate ever be normal again?

#86

Post by listenallyall »

RappingBoomer wrote: post #49
uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

the problem is that if inflation continues, then interest rates will go up, whether the fed wants them to or not...once rates go up, money will flow from asset investment to bonds etc...and that will crash asset prices...checkmate...one way or another, asset prices WILL crash

That's assuming a free market with true price discovery. In reality, we have the Fed buying up financial assets and printing enormous amounts of money, and bailing out companies (which reduces risk, keeping rates low)... the entire thing is specifically engineered to AVOID true price discovery.

Re: Will real estate ever be normal again?

#87

Post by [deleted] »

hprotagonist wrote: post #10
thefounder wrote: post #8

Earlier quoted context omitted.

Why don't you move to a cheaper place/smaller city? I don't understand why there are some many homeless people in big cities (i.e NYC). If people would just move to cheaper areas/cities the whole issue of housing would be fixed.

My community is here. How is it just that I be forced into exile because “the market” says so? I’ve done no wrong.

[deleted]

Re: Will real estate ever be normal again?

#88

Post by [deleted] »

flyinglizard wrote: post #39
wankerrific wrote: post #18

Earlier quoted context omitted.

Sorry. You’re going to have to move. Owning is for investors, banks, and other financial entities. /s The best part is that if things go upside down in a few years we get to bail them out.

Aren’t most houses owned by their inhabitants, rather than evil corporate entities?

[deleted]

Re: Will real estate ever be normal again?

#89

Post by uncomputation »

lostmsu wrote: post #47
throwawaygh wrote: post #30

Earlier quoted context omitted.

Presumably OP means a job in their profession, not employment generically.

In the current system not everyone is entitled to a job for their profession. People should get used to it.

> People should get used to it.

Historically, this line of thinking never ends well.

Re: Will real estate ever be normal again?

#90

Post by robotresearcher »

lostmsu wrote: post #46
chuckee wrote: post #40

Earlier quoted context omitted.

> If you don't want to pay a million quid for a house in London, refuse the game. Move elsewhere. Find a different way to get by in life, perhaps even a different country. People did exactly what you suggest. And the country they moved to was England, and the city, London, which now has 38% non-UK born residents: https://www.ons.gov.uk/peoplepopulationandcommunity/populati...

Million quid homes sound cheap in comparison to SF. Maybe we should move to London

Take a look at the salaries before you do.

Engineers may be disappointed compared to the Bay Area.

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