Posted on 02/25/2022 8:30:31 AM PST by Browns Ultra Fan
Well, at least markets recovered yesterday (Dow up 500 points this AM) from the Russian invasion of Ukraine. But now on to other news.
US pending home sales fell -9.07% YoY as mortgage interest rates began rising.
The University of Michigan Buying Conditions for housing fell to 71 as mortgage rates increase.
(Excerpt) Read more at confoundedinterest.net ...
No.
Pretty soon only people who cant afford them will be able to buy homes...FHFA, Fannie Mae, Freddie Mac ping
That’s the plan, Make Blackrock and Bain Capital your Landlords..
Bidenflation.
Poor writing. Falling a NEGATIVE number means it grew. I swear, journalism today sucks.
DOW up almost 600 points today.
I only note this because the DOW gets all kinds of attention when it’s down 600.
The housing market will be fine. The shortage isn’t going away, nor the demand, but marginal buyers won’t qualify as rates go up.
As it should be.
I think they realized with everything else that’s going on that COVID must be over.
“Poor writing. Falling a NEGATIVE number means it grew. I swear, journalism today sucks.”
This blog is pitiful. No analysis, just exclamation points and cherrypicking.
Pending home sales declined primarily because the existing home supply is down an average of 31 percent across the country.
It’s been slowing since last year. My son had contacts in the industry and the temps were jumping ship. If anything this was a delayed indicator. It still doesn’t address the current ongoing shortages of housing.
Our son just bought a used home in Austin suburbs and it is going up in value about $1 or $2K per DAY! He was afraid he paid too much but he found one he likes with new roof, etc. needs repairs inside but most of the major repairs and updating were done already.
> but marginal buyers won’t qualify as rates go up <
Well, yes. A gentle rise in interest rates will wash out some potential buyers. But as you noted, that’s they way it’s supposed to work. I wonder what people who complain about this want, anyway. Do they want artificial near-zero interest rates forever, and the accompanying inflation?
, “but marginal buyers won’t qualify as rates go up.
As it should be.”
NO a that’s not “normal” for a young couple saving and having good credit in the market for a home qualified to purchase one and as they make an offer a cash buyer comes in and pays $40,000 above list price in a lower income level neighborhood.
That’s not as it should be.
This is wiping out perfectly good home buyers and they will NOT be able to build wealth and may have to rent forever.
Don’t applaud this. I’m watching it happen and it’s heartbreaking. These are not folks in debt up their eyeballs or with shaky credit. They are stable and have jobs, but they’re being outbid every time by the cash investment firms with a total of 17 trillion dollars in their pocket. They’re not flipping the houses back to buy set. They’re holding on to them….to make more rented a than ever before and prevent the first stepping stone toward independent wealth building.
So you can see in our area the median household income is $56,000 per year. Builders will not contract to make any dwelling which costs less than $1,000,000. Most of the new houses are close to $1,800,000-$2,200,000.
The new houses are often second or third or fourth homes for wealthy people. They purchase them because they work here or have grandchildren who live here.
Given this is one of the most crime-infested places in the country, how long do you think this trend can continue? I’ll give you a hint, this place is certainly no Austin and a little better than Detroit.
They scream when rates go up.
They scream when rates go down.
They scream when rates stay the same.
Yeah, it appears Putin cured Covid in a day.
Heh, heh. I’m a numbers guy and I missed that! Good catch. Stupidity and innumeracy reign.
I’ve worked in real estate since I was 15 and I’m 73, now retired but still involved. I done many development projects that required analysis of market conditions 3-7 years out.
98% of what I read about real estate is complete BS written by people with an agenda, which is clicks, not analysis.
I know of two young couples, one in WI, one in TX that ended up having to build versus buy.
There are no affordable existing homes in either spot for them to purchase.
One of my BFFs is a Realtor; she’s busier than she’s ever been, SHOWING the scant few existing homes available and brokering Bidding Wars, but her closed SALES these days are in new builds.
So, people ARE making money - builders, Realtors, etc. but it’s ugly out there.
So glad I have the LUXURY of staying put!
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