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 ...
“home prices are currently nearly 10% more expensive than in 2008”
Wow, show me that market! I want to go there and buy all the houses.
What is the unprecedented reality in real estate—that they’ve stopped making more land?
Could it be allowing 3 million people per year to illegally cross the border and resettle in the United States is creating demand pressure on the housing market, particularly when the US government pays the rent for the “migrants”?
More like it’s foreign hedge funds buying large populations of houses to make money off of expensive rents.
Currently, the Biden administration is going after real estate agents, by suing the MLS (multiple listing service). The legal battle is astonishingly expensive and most agents can’t afford it.
My leftist cousin stated that “people should be allowed to purchase homes in the free market without agents.” Ummm. They already can. That’s not new. But she thinks in order for that to happen that being an agent should be illegal. That THEY were the ones who drove starter home prices outrageously up. So just get rid of real estate agency as a career. Easy! THEN magically somehow real estate prices go down. This IS how they think. She knows better, but as a good little leftist, for immorality sake, she HAS to support their non-sensical and dangerous cause.
Now pay no mind to the hedge funds Blackrock and Vanguard swooping up blocks and blocks of starter homes in many major cities (that would be tens of thousands of homes)for the past five years, paying cash for WAY over list price (like twenty, thirty sometimes seventy five thousand over and more, not selling them or renting them out making options for housing less and less.
Oh interesting who are on the boards for these hedge funds…. You can look that up for yourselves.
People took out mortgages before Bidenomics can pay them off with Zimbabwe-like dollars.
People who do not have a house title or mortgage are priced out.
Rent isn’t cheaper in TX. Mine went up again.
Also, all those millions of illegals have to live somewhere. That reduces housing supply and drives up prices.
Don't forget the holding costs -- property taxes, insurance, utilities, maintenance & repairs, municipal fees (e.g., sanitation, etc.).
And when you sell, there are capital gains taxes, state and federal.
Good point yours. The illegals put pricing pressure on everything. Food, housing, energy, etc. Combine that with reckless government spending, and a perfect storm is coming our way.
What our liberal friends don’t understand is that it’s not the year 1900. Back then, there was plenty of factory work for immigrants. Those immigrants pulled their weight. They had to, or starve. Those factories are now gone, replaced by expensive social welfare programs.
Except it’s gotten a lot cheaper since interest rates have fallen 80bp over the last 6 weeks.
yes, illegal aliens are buying up tons of middle class housing. At least they can shower now, though.
So the author is saying that over the last 15 years, the average home in the U.S. has increased in value at an annualized rate of less than 0.7%.
That statement must be either wrong, or it is completely debunking the idea that homes are "unaffordable" these days.
Supply and demand. Population at least 50% higher than in 1973. Maybe 25% higher than in 2000. Do we have 50% more homes? Schools? Roads? Hospitals?
The past is another country. I miss it. 1973 was a bad year in many ways, personally, aesthetically, politically, and I miss it. I lived in my own country, with traditional people around me as examples to follow.
“Prices are sticky on the down-side” - Econ 101 Professor.
“home prices are currently nearly 10% more expensive than in 2008”
Wow, show me that market! I want to go there and buy all the houses.”
The market you wanted was 2012. 2008 was a peak.
This is a tough situation.
On the one hand, most of us on Free Republic believe very much in free markets, and the market says our houses are worth “X” amount. And for many of us, that “X” amount is astoundingly higher than we ever would have thought our middle class homes could be worth.
On the other hand, many of us are distressed about our children’s generation being able to buy a house at today’s higher prices.
The level of housing costs seems unsustainable longer term. Yet here we are.
“What is the unprecedented reality in real estate—that they’ve stopped making more land?”
My reality is that I started buying land with a few thousand bucks I saved working on the road in ‘79. Still barely doing it now cause it’s in the blood, too fun. Also had rentals, homes, second homes over 40+ years. Lost money on one deal early on, and the education regarding that was worth more than I lost. I bought right before crashes, didn’t matter. I sold too early in booms sometimes, didn’t matter. It went great.
There’s not much you can do about people that ignorant.
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