Posted on 09/12/2023 7:26:34 AM PDT by Kaiser8408a
Danger Will Robinson! Danger! Median sales price of homes in the US sank by -7.4% in Q2 2023.
This is particulary dangerous since it was the worst correction in home prices since two rather nasty recessions of 1970 and 2008 (The Great Recession and financial crisis). This correction occured as M2 Money growth (green line) went negative.
With Fed rate hikes, debt to income ratios are the highest in history.
Mortgage rates are above 7% under Biden and Powell (not Baden-Powell, the founder of the Boy Scouts).
But not only are mortgage rates above 7%, but the mortgage credit box is tightening.
Mortgage rates above 7% and a tightening mortgage credit box = heartaches on heartaches for America’s middle class and low wage workers.
Danger Jay Powell! Danger!!
(Excerpt) Read more at confoundedinterest.net ...
“The Great Recession”
If they had to make up a new name for it then it’s probably bullshit. No mere recession could’ve been that bad.
This house for sale by owner
Asking price $nnnK
PI year 1 = $xxxx/month
PI year 2 = $xxxx+yy/month
PI year 3 = $xxxx+2*yy/month
PI thereafter= $zzzz/month
If approved by....
Open Saturday 11am-4pm
“May 20, 2023”
“A 2-percentage-point difference is even better. And that’s what Pulte Homes was offering earlier this year. The homebuilder recently offered a 30-year mortgage rate at 4.25% for qualified homes under construction through its financing arm. During the time it ran the special, the average rate on a 30-year mortgage ranged from 6.09% to 6.73%, according to Freddie Mac.”
https://finance.yahoo.com/news/want-a-5-mortgage-rate-buy-a-newly-built-home-123655671.html
“Through the FHA 245 Growing Equity Mortgage program, first-time home buyers and families with lower incomes can purchase a home with a low monthly mortgage payment that increases gradually over time. This allows them to buy a home sooner than they would be able to through conventional loan programs.”
https://www.home.loans/home-loans-faq/fha-245-mortgage-loan
https://www.montgomerycountymd.gov/gilchrist/get-help/housing/affordable-housing.html
“If you want to be notified about new and resale Workforce Housing Units as they become available, click here to subscribe to the County’s eSubscription service and select Housing and Community Affairs/Workforce Housing under Subscription Topics.
“For rental Workforce Housing Units, apply directly to the rental complexes.
“Workforce Housing is intended to be affordable to households with incomes that are too high to be eligible to participate in the Moderately Priced Dwelling Unit (MPDU) Program.”
“New and resale homes have a 20-year Control Period, except as otherwise described in the Reselling a WFH Home section below. These controls are enforced by restrictive covenants”
“When the property is sold after the 20-year Control Period, the owner must pay half of the excess proceeds to the County’s Housing Initiative Fund.”
https://www.montgomerycountymd.gov/DHCA/housing/singlefamily/workforce/index.html
affordable apartments under the Moderately Priced Dweklling Unit program (81 complexes):
https://apps.montgomerycountymd.gov/dhca-mpdu/Rental/List
Paying 7% on a $600,000 home, with inflation rising due to govt gimme programs. That’s gonna break the femur of housing sales.
But hey, that bidenomics has everybody happy as clams, eh?
Regarding the world’s economy, geopolitics, war and potential war, and US politics, 2024 is gonna be one for the history books. Keep your powder dry.
The one that fascinates me is commercial real estate. I retired from LG&E a little over two years ago. We were working from home even though we were leasing out pretty much all of a large building across the street from the Yum center (14 floors, total). They just announced that the lease expired and they’re moving all those offices to their very old “original” building across town. I used to go to meetings there. It’s like moving from your beautiful home with in ground pool to the single wide you lived in when you first got married.
And they were smart to do it if they are STILL working from home.
But the BIG employer downtown is Humana. They were even quicker to go WFH. If they are abandoning space downtown, Louisville is about to become like Detroit or Gary.
Which makes you wonder which cities will NOT dodge this bullet.
I just got back from Seattle which has been in a construction boom for many years. My son has reaped the benefits of this boom as a journeyman ironworker. But he said the employment has completely dried up, and the guys that used to call in sick all the time are suddenly being “ultra responsible” because they believe that if they lose their job they will be hard pressed to find another one.
That’s the plan Sparky!
Crash the economy.
Biden was installed BECAUSE he IS incompetent. That way, the intentional steps taken to cripple our economy and nation by those pulling Biden’s puppet strings can be hid behind a patina of “incompetence”.
Yup—commercial real estate loans are hanging over the heads of all kinds of financial institutions.
Their accounting statements are legalized lying—the only question is whether they crash and burn slowly or quickly.
When accounting is lying then the only way a business gets to fail is when they run out of cash.
The Federal Reserve can delay that collapse a long time for any entity they choose—and withdraw that support any time they choose.
Insiders rule and everyone else drools.
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