Posted on 10/29/2021 7:45:12 AM PDT by millenial4freedom
The median U.S. home price just passed $400,000 for the first time ever, according to data from the St. Louis Federal Reserve.
In the third quarter the median home price hit $404,700, jumping nearly 13% since third quarter of 2020, when the median sales price was $358,700.
Though it’s an eye-catching number, the market has been hot of late, and a lack of inventory and high demand means foretold the rise in home prices.
According to a recent note from Goldman Sachs, home prices could rise another 16% by the end of next year. Goldman economist Jan Hatzius pointed out that of all the pandemic shortages, the housing shortage might last the longest and that a crash is very unlikely.
(Excerpt) Read more at finance.yahoo.com ...
Homes in the hood down the road (East Orange) start at $375K for single family built in 1890s. For that you get $12K a year in property taxes and open air dope dealing on your block.
Wait until cars pass $100K
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For the low end ... coming soon with FJB Inflatanomics
For questions of affordability...... its not what people can afford, its what people can afford to pay in terms of a monthly payment.
Same with cars. There are some stupid deals out there.....84 month stuff.
We live on borrowed money but I think we are living on borrowed time now.
Not a problem.
The democrats are giving each illegal alien $455,000.
More than enough for a house and some remodeling.
“the majority of middle class families can no longer afford a median priced home”
most can really not afford a new, median priced CAR.
But they get one anyway and pay, pay, pay.
Except when they start raising your property taxes or taxing “unrealized” capital gains.
“Wait until cars pass $100K”
Many trucks are past that.
#2 the illegals will be able to buy a house in cash and have millions left over from all their family members.
“Who the heck can afford these houses? Or I should say, how many middle class families can afford these houses?”
40-45% of the population is doing very well. The other hlaf barely getting by. Have and have nots.
My nieces husband is a independent grant writer for health care co’s trying to get govt grants. He is paid a percentage on what he is able to get approved.
Last year he made $350,000. He is in his late 20’s and is incredibly smart.
He works out of their house.
Your example is a good indicator of what the “economy” has become these days.
An incredible number of “private” companies are totally dependent on government contracts, grants, loans etc.
When the world no longer accepts the US dollar the result will be catastrophic for government spending—and they will take the rest of the economy down with them.
yup, and I’ve been hearing talk of a new ‘40-year mortgage’ payment plan...that’ll sure help quell appreciation. </sarc>
The value of a home hasn’t changed and the price didn’t rise - it’s that the dollar continues to drop in value.
“The value of a home hasn’t changed and the price didn’t rise - it’s that the dollar continues to drop in value.”
Nope.
The drop in inventory is not an independent event—it is a function of inflation.
People want to keep hard assets in times of inflation.
I agree...despite the costs its better to buy/own than rent if possible. There’s also the benefit of tax deductions.
” There’s also the benefit of tax deductions.”
Not so much now with a standard deduction of $24,800 and the very low interest rates.
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