371–380 of 510 posts
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there's that plus i think a bunch of boomers (like my parents) took it as a sign to retire.
And also nearly a million people died in the US. Even though most of those were elderly and probably not working, it's not insignificant. https://www.worldometers.info/coronavirus/country/us/
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Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.
Same. I think the days of 2+ month locks are over. I've talked to half a dozen lenders since the new year and the longest lock they'd give without massive upfront fees was 60 days.
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Think about a hypothetical city where 100% of the properties are AirBNBs. There will be no source of employees for any local businesses because there are no long-term residents. There is no vested interest to improve the city via taxes and volunteerism, because no one truly lives there. No one will move to that city because the property rates are so absurdly inflated thanks to AirBNB rates. It’s an absurd example but…
Other than perhaps zoning restrictions, how does this differ from traditional hotels/motels in extreme tourist areas, like Niagara Falls. If people don't want to live permanently in a city for whatever reason, of course the city will suffer.
However, AirBNBs and rental houses suck away the usable land such that you begin to meaningfully remove potential long-term residents from the city. The flipside of this, of course, would be apartments/duplexes, which would add more long-term residents than single-family zoning would allow, even with the problem of AirBNB proliferation.
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Can you tell me an area where average house prices have doubled in the last 5 years? I can't think of one. Most expensive areas have gone sideways since Brexit, and risen a bit since the pandemic. Most cheap areas have grown slowly since Brexit. https://www.bloomberg.com/graphics/property-prices/london/ shows the median as having gone up around 6% in total since 2017. Trying a mix of neighbourhoods in that tool, I ca…
Berlin prices has been growing at crazy speeds, it might have doubled the last 5 years. Even with a lot government intervention(rent raises cap etc). The situation is so bad that there isn't even housing stock available. You are generally better off moving out or buying whatever you can.
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I own a house in London. Its total value increase since I bought it 5 years ago is much less than my salary.
Then I guess your salary is amazing, because many house prices across London have doubled in 5 years. If you somehow bought a house at a reasonable earnings multiple, say 4x earnings, then your house has appreciated essentially what you earned over the last 5 years. This is just math.
[0] https://www.savills.co.uk/research_articles/229130/323909-0
12 Years underwater... optimistically given that its already not looking great for their 8% prediction for 2022
Is this because individuals aren't as interested in buying houses, or because investors are buying more of them (and don't need financing)?
It's because the refi boom is done. Every time rates hit a new cycle low, people rush to refi and lock in that rate. On the way out of one of those cycles everyone's already locked into low rates. There's nothing left to refi. The last 3 years have been a gold rush for the refi business. That and we are probably in a general housing slowdown off the highs which is related to the first point anyway via rates rising.
Something like 25% of loan holders refinanced during Covid.
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If you plot Canadian housing supply vs Canadian city population growth, you get another perspective. Houses are incredibly expensive, because there aren't enough of them
Barrie, Ontario is in the middle of nowhere and houses cost $1M. Same with Kelowna, BC and Halifax, NS has doubled in price. That's not population growth, that's speculation. The Toronto suburbs are already falling in price and Canada is only ~1 month into 4-5 rate hikes this year. And unlike the US: 1) most mortgages need to be renewed in a much higher interest rate environment and 2) a lot of Canada has recourse lo…
And once it becomes a trend, they all just collectively give up apparently.
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>buying an asset class that has a history of appreciating in value Correction - over a time period of decreasing interest rates. Housing, on its own, is a depreciating asset. It is a consumable like a TV. It deteriorates with time. "Housing always goes up", without an understanding of why it has been going up, can be a dangerous belief and could be one of the reasons why housing at the moment is so expensive relative…
Most of the housing bubble is actually a land price bubble. Land is only a long-term depreciating asset in shrinking cities, because demand for the land is decreasing.
1) the house itself (this generally depreciates)
2) land (this generally appreciates)
3) a retirement account with great tax benefits (this value can fluctuate based on local, state, and federal laws)
4) a ticket into a good school district (this value will fluctuate based on the the performance of local schools)
5) a ticket to partake in a thriving local economy (this value will fluctuate with the local economy, and has recently been shaken up by the rise of remote work)
Any speculation on real estate prices and whether or not we're in a bubble has to take these things into account.
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But if the situation is that in 2022, you have enough cash to buy a house outright or get a mortgage and invest your cash, you still do have to invest your cash to benefit from the mortgage. If I have $300k in cash today, and I want to buy a $300k house, then I can get a mortgage and let inflation shrink my mortgage payments, but it's also shrinking the $300k I have in cash. I don't see how you can profit from the mo…
This makes a lot of assumptions about interest rates, but it holds up. Buy a house (with mortgage) for 4%. Inflation is 5% a year. Invest the money in real assets (literally anything diversified). Your mortgage price goes down in future dollars because of the delta between interest rates and inflation. Even if inflation isn't happening, mortgage rates tend to be fairly low risk, so any diversified bucket of assets ha…
If you buy during amazingly low rates, you'll feel happy when the rates shoot up (and maybe sad if you look at Zillow, but if you're not moving who cares?) - and if you buy during rising rates you'll be glad you got in when you did, and if you buy at the peak, well, you can refinance later.
Just closed financing on a home. Rocket had a comparable rate but the real no-go for us was their very-limited rate-lock option. With interest rate trends what they are right now, we really needed a 200 day + rate lock with a float-down in case things changed. Other lenders (builder, ownup options, local banks) offered those and the option to buy points and apply them if we were able to float down. Rocket seemed very…
Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.
My guess is local banks and credit unions are the most likely source. They keep the loans on their portfolio instead of selling them like the mortgage companies.