Posted on 09/12/2023 7:36:49 AM PDT by millenial4freedom
U.S. home prices across the country are surging even with the astronomical rise in mortgage rates, putting ownership out of reach for millions of Americans.
The spike in interest rates – which topped 7% last year for the first time in two decades – has created a "golden handcuff" effect in the housing market: Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell and take on a more expensive option, leaving few options for eager would-be buyers.
(Excerpt) Read more at msn.com ...
I bought at the top of the market in 2006.
My house value didn’t exceed what I paid for it until about 4 years ago. Over 12 years just to get back to even, not figuring for inflation.
Somehow this makes the housing crisis my fault.
My house is now worth about 40% more than I paid for it. When I subtract out the major improvements I have made to the property it is about 20% more. That is not a great return over 17 years.
I refuse to feel guilty.
It’s all the condition people to accept a Government takeover of housing.
There are many causes, the most serious of which may be the demand for housing created by fewer people sharing space.
A seldom discussed cause is local zoning restrictions on the construction of affordable housing. The flood of two-earner couples into the market bidding for a sluggish increase in housing supply also raises prices.
Get ‘Em Out By Friday
https://www.youtube.com/watch?v=2js9Z6rtENA
Both my primary residence and my rental were paid off free and clear in 2013. The only leverage I got from the low interest rate was purchase of my 2015 Ford F150 SuperCrew. Financed at 1.9%. Fully paid off in 3 years. I'm debt free at this time. I will need to replace my 1984 vintage shake shingle roof. Getting quotes. I want to retire this year, so avoiding more debt is a key objective.
I watched something recently that 40% of homes in some markets are now owned by people that are not living in them as their PRIMARY residence.
Meaning it is a second home(vacation/seasonal home) or it is a rental. AirBnB is a big part of that in many markets now.
Then you have real estate investors either small or large own a major percentage of homes in certain markets. Most of these are being rented monthly to people who can not afford/qualify for the down payment and have to rent.
In markets like Orlando, Cape Cod, Palm Springs or any other vacation destination there are now a large percentage of homes that are owned by people based on renting them nightly or weekly. Their MORTGAGE is based on the revenue generated by the rental income. This could be a very dangerous dynamic IF we enter a long recessional period where people cut back on vacations.
This is similar to 2003-2005 when people were buying houses no money down with no income verification. When the market turns, investors are much quicker to dump properties than an owner occupied residence.
Crybabies, millennials, same thing. youll find them spending$400 a piece on concert tickets, $1500 on the new I-phone, spending hours on their playstation 5, ordering door dash 5 days a week. and then crying” I cant afford a house,its you guys fault”. Throw in a refusal to work nights, weekends, overtime, get their hands dirty or backs sore. ya, its not boomers fault, except they raised ‘em wrong.
Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell and take on a more expensive option
.....................................
You can’t blame someone who made a smart investment decision. But the Marxists try to demonize them.
sorry we are not dying fast enough for the youngin’s.
The bad news: I get blamed for everything.
The good news: Those who blame me for everything are sociopaths.
“we are not dying fast enough for the youngin’s”
Their plan is to keep vaxxing and boosting us until we croak—because we are “vulnerable”.
My plan is to show them my middle finger.
On this, we can agree.
Imagine how many single home properties have been turned in to Sect 8 housing.......
Their plan is to keep vaxxing and boosting us until we croak—because we are “vulnerable”.
Well....it seems to be working.
We know several fully jabbed/boosted older folks who have either recently passed....have a horrid turbo cancer, or, expedited alzheimers.
Sad to see it, all around. :-(
Your plan sounds like my plan, btw :)
“...been reluctant to sell and take on a more expensive option”
They see people who don’t take on debt as a problem for the economy, even though they will turn right around and report how savings are at a new low and people are running up debt.
The people who write these articles are of the same mentality as those who want to make all forms of energy and freedom disappear so that everyone will be hardwired to their masters, slaves to them for everything they need to live and move.
And for wanting some semblence of autonomy, self-reliance, and freedom, YOU are the problem.
Put your money into hard assets.
The value of the item remains the same. It’s the currency used to value the item that has shrunk. Turn your view around. Fiat dollars (not gold-backed) is where the devaluation lies...
Then there is this:
https://freerepublic.com/focus/f-bloggers/4181795/posts
? What the hell? Ain’t branDUHnomics great? My BIL is closing on a house in SC next week. Managed to get 6.75%. Yikes! Of course our first place was 9%. 🤔😁👍
Blame the one group that pays the majority of taxes in this country and is the backbone of the middle class. Blame the one group that is patriotic as the greatest generation.
Tulips
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