Posted on 06/14/2022 8:12:39 AM PDT by Browns Ultra Fan
US home prices are still skyrocketing as The Federal Reserve kept its massive foot on the monetary accelerator pedal.
CoreLogic’s home price index grew at a 20.9% YoY pace in April, but is expected to slow to 5.6% YoY in late 2022.
Remember peeps, The Fed still have its staggering monetary stimulypto in place.
The Fed is signaling its withdrawal of stimulus, causing mortgage rates to soar.
Given the slowdown of the US and global economy, we shall see if The Fed keeps to its tightening plans. As of today, the market is expecting The Fed to raise its target rate from 1% to 3.819% by February 2023. That is a 291% increase in The Fed’s target rate.ng
The Fed trying to tame inflation (caused by The Fed and Biden’s energy policies and Congressional spending) is like Curly trying to eat oyster stew.
(Excerpt) Read more at confoundedinterest.net ...
Eventually the piper has to be paid.
Everyone’s been saying that for years. There’s no money left to pay the piper so the Drag Queen Piper is going to take your children and grandchildren.
This has been happening for a while, though. It’s been a creep and it started before President Trump.
An old co-worker of mine was a licensed real estate agent. We were cops. He got his license because he got screwed on a deal and decided to take matters into his own hands. Anywho, he was telling me that the next real estate crash was coming and it could potentially be worse than the 2008 crash, this was in 2017. Was talking about the hedge funds and equity groups snatching up entire portfolios from the banks.
Then of course, there were certain folks in the White House, prior to 2017 and now, that wanted to bring back the old mortgage policies that were partly responsible for what happened in 2008.
In a 10% inflation environment, savers need to get about 12% on their money before income tax to maintain the buying power of their savings.
If this buying power is nor maintained, tens of millions of retirees will be buying less.
More people will be renting because of higher mortgage rates and forced into living closer to where they work because of high gas prices.
Doesn’t seem housing market will crash but the definition of where ‘location location location’ is might change.
California purchase mortgages contained poison pills back in 2007 to try to evade a state law.
Their interest rate was high and could be lowered by refinancing with a mortgage not subject to a lender despised state law. Unfortunately, refinance mortgages were often not possible to get.
There was also the post-Katrina homeowner insurance price rises. They were big enough to sink the Florida real estate market.
And lets not forget about the real estate cartels of folks that were flipping houses with dirty agents, appraisers and brokers.
Zip Code 30310, in Atlanta, was one of the worst locales in the country during that time. Homes, crack houses, were being flipped for 100s of thousands of dollars and of course, the no income verification mortgages that were being approved.
I remember watching a sob story on one of the networks. Poor lady was a bus driver, making around $50k a year. In Texas, somewhere, in a $500k home that she was about to lose. $50k a year salary, $500k home and Texas property taxes....what could go wrong?
And lets not forget about the dirty lenders like Delta Funding that were providing mortgages to folks they knew couldn’t pay them. Foreclose within 6 months. Clean the house up and sell it to another person in the same situation. Kind of like the OGs in real estate fraud, Bill and Hillary Clinton and their Whitewater scam.
I’m neither an economist, banker or realtor. I am an engineer, but recall quite vividly the late 90s and early 2000s prior to both the dot.com crash and then the housing crash.
Even without the credentials or education required to be considered an “expert or authority” on the situation, I kept warning friends, family and co-workers about the obvious , impending and unstoppable doom approaching for investors, homebuyers, developers and the average Joe of what was coming. All to no avail.
I was ridiculed, derided and scoffed at for stating the obvious.
Fast forward to 2002, and the CEO of my former employer, whom I met at a fund raiser, apologized for not heeding my warnings, as well as my 1st ex-wife whom I ceded the house / mortgage to in our divorce and two brothers that lost their butts as well on home speculation.
IMHO, I believe we are on the precipice of another financial catastrophe beyond our experience or expectations.
The Fed continues to reassure us they have everything under control, insist we don’t panic, maintain our faith in them, and keep our treasure in their care, all while they, their friends and politicians are liquidating and preparing for the “crash”.
I challenge anybody here to name one single member of Congress, the Fed, or Big Business/Tech that lost their ass in any of the previous crashes. Not one! Stop listening to them and the “experts” like “Kramer”.
It’s a side show, a con, a scam and a game of three-card Monte. We are being lied to and scammed. You only have yourself to blame if you believe them and lose everything.
It’s a big and exclusive club; And you are not in it. ~George Carlin~
Nailed it....
May be a bit off topic but one thing in your response stood out... I challenge anybody here to name one single member of Congress, the Fed, or Big Business/Tech that lost their ass in any of the previous crashes. Not one! Stop listening to them and the “experts” like “Kramer”.
Saw an article headline for the Epoch Times ...... The Electric Car Is Biden’s ‘Golden Calf’ https://thescotfree.com/opinion/the-electric-car-is-bidens-golden-calf/
From the article.....I would nominate Bjorn Lomborg—the Danish author and president of the think tank Copenhagen Consensus Center—who has been perhaps the world’s most esteemed climate journalist for decades.
As recently as February, Lomborg wrote a lengthy article for the Daily Mail with the equally lengthy title, “Are electric cars the new ‘diesel scandal’ waiting to happen? They generate polluting particles just like petrol vehicles, are not even that cost-effective and, as one expert finds, will not save the planet.”
How many of the “experts”, members of Congress, the Fed, or Big Business/Tech are so heavily invested in EVs, that are not seeing the ROI they were promised and now have zero problems with manipulating the economy to get said ROI. The Chamber of Commerce and Wall St are two of the puppet masters for those in DC. So many have invested heavily in EVs and they just don’t work. For the most part, the only folks that want them are the actual “living and breathing, white, liberal hipster Biden voter”.
It may be a dead horse to anyone that reads my comments, but to think that Republicans in Georgia...so called Conservatives...have ZERO problem getting in bed with Soros and the EV car company he owns, Rivian, to the tune of a record setting $1,500,000,000 in tax breaks and incentives. All for a company that can’t produce or sell a vehicle and that all the initial major investors have walked away from or sold their stocks.
“another financial catastrophe beyond our experience or expectations.”.....this one has the serious potential to be about a lot more than folks losing homes and could get very violent, very fast.
One of the reasons we didn’t relocate to Texas was the punitive property taxes... Not to mention the humidity...
There’s plenty of Texas where humidity will never be a problem. Property taxes, no so much.
The Texas legislature is completely owned by the entities funded by property taxes and every effort at reform gets killed by the tax whores every session.
And with the Cali refugees fleeing to Texas with and buying everything in sight for ever more ridiculous prices, it’s the perfect storm. People don’t sell property in Texas anymore, they hold it hostage and Californians pay the ransom.
They’re doing the same in Arizona...But we get folks from all over the country, including CA and the frigid north. The infrastructure expansion is mind boggling, but so many people are coming the roads can’t keep up. But I don’t complain coming from the LA area.☺ They don’t know what real traffic is. And I’d guess 85% who are coming to our area from CA, are just like us, patriots who fled the punitive controlling government of CA.
Their property taxes are pretty crazy. Higher than Cali if you’ve been living in Cali for a while.
But hey.....they don’t have an income tax...ha ha ha ha
One thing I always wonder during the tax debates: folks get so wrapped around the axle about their income taxes, yet property tax arguments seem to be almost non existent in comparison. Yet, the taxpayer has a 70,000+ tax code to take advantage of to lower their income taxes. They have no such book for their property taxes. Sure they can challenge them, but in this day, I wish them luck. And rarely does anyone know what they’re actually paying for when they look at their property taxes and realize that more than half go to schools. And now the public school numbers are dropping and taxes aren’t going down with them.
If questioned, city councils/county commissions just say “increased costs”. While never detailing what they are, why they are or any steps to offset the costs. And we just pay. And we continue to elect the same people, screwing us over, over and over again.
Abbott said that he was looking into challenging the court decision, a 50 year old one, about mandating kids being in school. I guess he might be realizing just how much taxes are going to have to go up for all the illegal alien kids that are in Texas...school itself, interpreters, breakfast/lunch/dinner, more classrooms in the form of trailers, more costs associated with cooling and heating those classrooms, maintenance and all the other costs associated with public education. This coming school year is going to be a disaster.
Where I live, east of Atlanta, up until about a year or so ago, I didn’t see all that many hispanic families, at least 3 or 4 young kids in the group, in any of our stores. They’re there every day, now.
And to think, President Trump gave states, counties, cities and towns the option of not allowing any resettlement of illegals, asylum seekers or refugees. Curious to know how many took him up on that.
Gonna be a real rough ride.
I just looked up the property taxes
For the average priced home in AZ it’ about $1,446
In Texas? It’s about $3,907....Almost 4k...Gezzz
Btw, I agree, sales tax is no biggy here...We fix and repair our own stuff and buy as little as possible anyway due to the country killing inflation, thanks to the Democrat Communist.
And I agree, whatever people are paying in property tax it’s robbery...There should be no or very little paid. It’s obscene and hard to believe people just stood by and allowed government to basically charge you rent, even though many may own their homes. It’s outrageous. Property tax needs to be abolished!
“Was talking about the hedge funds and equity groups snatching up entire portfolios from the banks.”
This is a bigger factor than most people realize.
Blackstone, Invitation Homes, Tricor and other huge investment firms have decided to buy up single family homes and turn them into rentals. They aren’t flipping them. They make full cash offers above list which prices normal buyers out of the market. And now in already expensive SoCal rents are going up.
Some of these firms are rumored to be acting as agents for the Chinese government’s investment fund. That would be icing on the cake.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.