Posted on 12/01/2023 11:22:59 AM PST by davikkm
Despite a surge in mortgage rates, home prices continued to rise, registering a 3.9% increase in September compared to the previous year, according to the S&P CoreLogic Case-Shiller Index. This growth coincided with a climb in the 30-year fixed mortgage rate towards 8%.
While rents show signs of easing, home prices are currently nearly 10% more expensive than in 2008, with real home prices standing 80% above the 130-year historical average, as reported by Reventure.
(Excerpt) Read more at citizenwatchreport.com ...
What a horrible website. Sorry I looked.
“foreign hedge funds”
I have a friend from childhood who started a real estate firm with his little brother. They’ve been in the business from the mid 1980’s.
For a little background he deals with the Memphis market. He gets calls like the following all the time:
Ring! Ring!
My friend: Hello, Ghetto Properties, how can I help you?
Important hedge fund guy: We want to buy this newly constructed neighborhood.
My friend: No you don’t.
Important hedge fund guy: Oh yes, we are going to have a nice rental neighborhood.
My friend: Your rental neighborhood will be a ghetto in five or ten years.
Important hedge fund guy: Oh no. We’ve done this in Oslo, Perth, Wellington and Calgary.
My friend: Well this isn’t Norway, Australia, New Zealand or Canada. You’ll be left with a ghetto here. I will buy it for you, but don’t come complaining when you lose your money.
Important hedge fund guy: But we have really good property managers who will make sure the place is nice and has good tenants.
My friend: And your tenants have guns to shoot your property managers.
Agreed. People naturally don’t see what “inflation” truly is: the devaluation of our personal time and effort captured in a numeric figure. Many people are immune, with income which is not a reflection of their personal time and effort. Those of us in the middle feel it acutely, on the other hand, and it’s more than a little aggravating to fall farther and farther down the socio-economic scale while still working our tails off for the same number of hours (or greater). Destabilizing for our nation, but our ‘leaders’ don’t give a rip, as they consider themselves to be “Global Citizens”.
So glad I paid my home off early;in about 2003. I believe my mortgage was about 8.25% then, but the home was purchased fairly cheap in’77. Now, I guess there is no hope of ever owning another home so now I will likely live here until either or the house collapses. It is un-affordable at this point to even fix it up, thanks to Bidenomics.
Right here the rebuild costs are 150 per sq foot according to my insurance guy. So. That is 225. Figure a 75k for an improved lot and there you have a 300 k starter home. Sorry no ocean view or pool or tennis court. People seem to want a 900k home with those amenities for 300k then complain cannot find one. My moms 1600 sq foot home sold for 125k in 2000 and sold recently for 325 which confirms my numbers. Then again those who cannot afford may include the same bunch who borrowed 225k to go to college to study puppetry and cannot par it back. The difference is a mortgagee must show they plan to pay the payments.
They are pointing to the high right before the bottom fell out. Remember McCain suspended his campaign and scampered off to Washington?
Your comment is spot-on because it demonstrates the large price differences around the country. You rebuild costs sound low compared to most areas. Your developed land cost sounds a little high, but it’s been along time since I did that kind of work.
“The difference is a mortgagee must show they plan to pay the payments.”
The mortgagee is actually the lender. The old trick to remembering is “Simon Lagree, the mortgagee.” The person mortgaging thir house is the mortgagor, even though it sounds backwards!
Yeah, my grandpa had a house before Memphis turned into a hellhole. I used to ice skate at the mall. Now it’s all gone to sh*t.
You must have gone to what we called the Mall of Murder.
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