31–40 of 71 posts
It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student pa…
housing is NOT a market.
There are 2 paths for the upcoming generation to afford houses - as the prices are unsustainable. Let's see which group politicians choose to screw over: - Older homeowners, who statistically have a majority of their wealth in their home - Upcoming generations, whom if home prices do not drop - must have their wages inflated artificially significantly to afford the homes. Which then causes more inflation
Hedge funds and Private equity have billions of dollars waiting to buy up houses and condos. In their eyes every condo bought a family is a lost opportunity to create another renter who had no control over the rent that the funds dictate.
They will never let house prices drop far enough so that regular people can afford homes anymore.
It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student pa…
IMO borrowing rates are high and going higher, for no other reason than the US has no effective legislative actors to write the checks or govern. Also insurance agencies not covering certain areas of the country is going to torpedo large markets, and states that underwrite them, like CA are essentially trying to underwrite climate change without making the premiums unaffordable… what a pending mess.
Earlier quoted context omitted.
Interest rates are not that high currently. Sheesh you give people a taste of 2.5% and they act like 7% is usury.
Just like 7% inflation isn’t that bad because it could be a whole lot worse?
It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student pa…
Eliminate the portion of demand from investor ownership of homes, by outlawing it?
Without these basic stats, suggestions like this are dangerous and verging on Mao’s bird genocide.
The fundamentals of housing I think are still a ways away from a crash. There might be selective markets that cool off or drop. I'd also say Canada is closer to a crash than the US is. But I wanted to mention 2 hacks for legally avoiding crippling student loan debt repayments, possibly forever. 1. Move overseas permanently. This requires you to be on an IDR (Income Driven Repayments) plan, which you have to apply for…
If you start your education with 2 years of community college, it works even better to manage debt.
It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student pa…
The result is a lot of empty houses.
Still, it can be difficult to find a home in these places for those who go against the flow, because those who leave (or inherit) often keep the house as a vacation home[2][3].
On a related note, since so few move to these places, the prices are quite low, so building a new house results in a significant loss from the get-go[4]. This means it can be difficult to get a sufficient loan to start building.
[1]: https://www.nrk.no/vestland/byene-vokser-_-distriktene-blor-...
[2]: https://www.nrk.no/nordland/tross-mange-tomme-hus-er-det-bol...
[3]: https://www.nrk.no/nordland/boligmangel-i-distriktet-far-tra...
[4]: https://www.nrk.no/nordland/verdien-pa-hus-i-distriktene-hal...
Earlier quoted context omitted.
90% of mortgages may be locked in under 3%, but no one who has payed off their home is going to sell that and wind up financing another house with interest rates where they are at.
Interest rates are not that high currently. Sheesh you give people a taste of 2.5% and they act like 7% is usury.
So excuse me if I complain about having to pay almost twice the amount.
People like to give the example of high interest rates in the past and how that was fine, but often forget to account for the fact that home prices were low, home ownership numbers were high (thus stable supply/demand), income to cost of living and income to cost of housing ratios were much more reasonable than today. So yeah, high interest rates work in different conditions but not in the distopia that exists today.