Posted on 01/04/2024 7:47:17 AM PST by Kaiser8408a
Bidenomics has cast a gloom over the housing market. Mortgage rates up 130% under Biden while housing prices have soared.
For the average American, 2023 was the worst year ever for housing affordability—and now there’s more data to back it up.
According to Redfin data analyzed by Creditnews Research, the average U.S. household can only afford 15.5% of the homes that went up for sale in 2023—the lowest on record.
By comparison, the average household had the means to buy 20.7% of homes for sale in 2022 and over 40% before the pandemic.
Redfin data also showed the number of affordable homes for sale plunged to record lows in 2023, falling 40.9% to 352,500.
Although mortgage rates have declined since late October, they’re still double what they were before 2021.
According to NAR data, the housing market has about 3.5 months’ worth of supply at the current sales pace. As a result, existing home sales have plunged to 13-year lows and are on track for their worst year in more than four decades.
Experts predict lower mortgage rates, but will they help?
With mortgage rates declining for eight consecutive weeks, industry experts believe rates will continue heading lower in 2024.
The NAR has pegged 30-year interest rates as low as 6.1% in 2024 before rebounding slightly to 6.3%. The Mortgage Bankers Association has a similar view and expects rates to drop to 6.1% by the end of the year.
Meanwhile, Mortgage News Daily’s chief operating officer Matthew Graham believes rates could fall even below 5% next year.
Lower mortgage rates should help ease housing costs, but even 5% might not be enough to fix the housing shortage—the root cause of record home prices.
(Excerpt) Read more at confoundedinterest.net ...
However, there have been no mean tweets. The public knows there are problems, but is unable to reason that Democrats are the cause.
The biggest problem is real estate speculators... foreign and domestic. Given their financial backing, they aren’t as affected by mortgage rates. I’m told that 40% of residential properties sold in NC in 2023 were purchased by conglomerate entities, not families. They are pricing average Americans out of home ownership.
It is literally an economic attack, these conglomerates are doing it to destroy the US.
People cannot find a place to own and end up permanently renting, not much difference form the old company owned homes or worse, plantations to house your labor.
This leaves all renters at the mercy of the faceless entity that owns the property who can then demand whatever restitution they desire for you living in their property. Eventually the cost will always match whatever meager wages you are making, this is intended such that you can never work your way out of your wage slavery.
This is the intent of WEF, own nothing.
“I’m told that 40% of residential properties sold in NC in 2023 were purchased by conglomerate entities, not families.”
But were you told the truth? Also, if pros are buying it’s a good sign, they are in it for profit which means they expect higher prices at some future target date. Cash buyers like high interest rates, they pay cash and then put a mortgage on when rates drop to raise cash. Then they hold until they think it’s time to sell. It’s a cycle, I’m watching an area now. My best investment ever was a piece of land I owned for almost 30 years. Sold it 7 years ago, still get checks every month since I kept the mineral rights, which have produced nat gas for 16 years. Plus a pipeline company paid $200k for a pipeline R.O.W. through the piece. Bonus!
Why have investors decided to buy so many Residential Properties, including so many single family homes?
40% of Residential Properties being owned by investors seems like a huge number. I can see based on supply and demand such activity can only drive up prices.
I wonder if investors have always been so heavily into real estate . How can average middle-class people compete with a conglomerate in the housing market?
Bidenomics is making people rich beyond their wildest dreams.
People in Mexican Cartels that is.
Don’t worry!
Millions on millions of illiterate South Americans will be lining up to buy these homes soon!
Just remember: they can put 13 families in each home!
A lot of Freepers will show up and say "Things were tough when I was young, but I triumphed over adversity! Kids today need to suck it up just like I did!"
But this isn't 1980. It's a lot worse.
The new fuedalism.
In 1980 our enemies were external. Now the enemy is an entire political party.
Yeah, but about 65% of them already own a home. And about 38% of all homes are free and clear. Those people can sell and buy either cash or with low loan to value loans. People lose more money listening to fairy tales than any other way.
“40% of Residential Properties being owned by investors seems like a huge number.”
That’s because it isn’t true. Also, it wouldn’t matter if it was true. Investors are just people.
“13 families”
Expect about four families, not 13. It’s all California law allows. Anymore and the leftists in California government would confiscate the ill-gotten gains.
A California single family property can legally house four families and is priced accordingly.
My grandkids are doing incredible, they own a home and a rental and are only about 30 years old, done it all on their own. Ex-military, diesel mechanic and stay-home Mom with a home business. I talk to a lot of people, and ignorance is rampant, just like always. People believe the strangest things and fail to prosper as a result. They seem more interested in scare stories and excuses than anything else. Meanwhile go-getters do very well. That’s why we see the great split in wealth creation. Most never try it, even on a small scale.
According to the 1910 census, my mother’s parents had two boarders and a relative living with them.
If you think interest rates are too high, buy mortgages.
If you think local housing prices are too high, move to another place.
Make sure to acquire geographically broad skills such as those of a nurse, physician assistant, plumber or other repairperson.
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.