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Why are home prices so expensive? Blame the boomers, Barclays says
Fox Business ^ | 09/12/2023 | Megan Henney

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 ...


TOPICS: Business/Economy; Chit/Chat; Humor; Weird Stuff
KEYWORDS: biden; election; inflation; trump
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To: Reno89519

This is nothing... in the 70’s I knew people who bought homes and paid 17% interest... hoping they could get their homes and refinance is a few years.

Anyone who wants to buy a home needs to consider the rates could go MUCH HIGHER. And if they don’t, just refinance if and whn rates go down.


41 posted on 09/12/2023 8:34:02 AM PDT by GOPJ (Our side must NOT work with democrats. Or we'll Bud Light them...)
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To: millenial4freedom
scratchin my head...keeping the old and buying a different house? That would seem to be an exception, not the rule.

"It may seem "paradoxical," because an aging population tends to require fewer homes. But that's not the case with the baby boomers, who are currently between the ages of 57 and 75. Boomers are reaching retirement age and forming new households, either due to divorce or death, but they aren't freeing up existing supply."

Why does an aging population need fewer homes? They have to live somewhere.

what did seniors do before this?
42 posted on 09/12/2023 8:36:59 AM PDT by stylin19a (The #1 Golf rule you MUST follow: take car keys out of golf bag before throwing it into the creek)
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To: Theoria

AirBnB isn’t welcome in most HOA’s here in FL. At all.


43 posted on 09/12/2023 8:37:13 AM PDT by FLNittany (Autotune is jealous of Karen Carpenter)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...
Nope, just those boomer stooges who continue to vote for the Demagogic Party, while preferring to live in suburban settings for reasons they won't go into.

44 posted on 09/12/2023 8:39:09 AM PDT by SunkenCiv (Putin should skip ahead to where he kills himself in the bunker.)
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To: FLNittany

That is a advantage of some hoa content, NYC seems to have cracked down on the as well. Lots of places aren’t hoa’s and some people want to be able and rent out their property. I understand that most hoa’s “own” the land, and folk pay a fee to live there.


45 posted on 09/12/2023 8:41:04 AM PDT by Theoria
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To: millenial4freedom

Bull Hit!


46 posted on 09/12/2023 8:43:17 AM PDT by Chgogal (Welcome to Fuhrer Biden's Weaponized Fascist Banana Republic! It's the road to hell.)
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To: millenial4freedom

Certainly don’t blame artificially low interest rates for a dozen years and the Fed is innocent too.


47 posted on 09/12/2023 9:01:22 AM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: cgbg

The bad news: I get blamed for everything.

The good news: Those who blame me for everything are sociopaths.
...........................

Yup! So true.


48 posted on 09/12/2023 9:04:12 AM PDT by ViLaLuz (2 Chronicles 7:14)
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To: millenial4freedom

I think Barcklays hired some really stupid analysts.

Every instance of everyone I know, across all friends and family, and in my town, where someone has been hunting to buy or has bought a home, has been people in their late 30s to mid 40s, not “boomers”. I don’t know a single “boomer” who has moved or sought to move in a long time.

The ONLY force that boomers have a significant prescence in the housing market is, yes, they comprise a big portion sitting on homes, with or without an unfinished mortgage at a low interest rate. They see available houses as over priced and have no interest in acquiring a new mortgage at a high interest rate. That part is true. But they are not a big force as far as buyers go.


49 posted on 09/12/2023 9:18:58 AM PDT by Wuli
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To: stylin19a

I read that to mean that Boomers would need fewer detached single family houses.

Some empty nesters and older people sell a detached single family house and move into a condominium or an apartment.

Yes they have to live somewhere but that somewhere may not be a detached single family house.


50 posted on 09/12/2023 9:29:42 AM PDT by Dilbert San Diego
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To: Tom Tetroxide

“Money printing and de-dollarization.”

Agreed

Nice and simple. Very well put.


51 posted on 09/12/2023 9:46:30 AM PDT by Macoozie (Handcuffs and Orange Jumpsuits)
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To: millenial4freedom

Investment companies bankrolled by large equity firms.

https://www.theguardian.com/us-news/2021/jun/22/blackstone-6bn-deal-homes


52 posted on 09/12/2023 9:52:19 AM PDT by yuleeyahoo (The nation which can prefer disgrace to danger is prepared for a master and deserves one. Hamilton)
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To: Dilbert San Diego
Thanks for that

Boomers are reaching retirement age and forming new households, either due to divorce or death, but they aren't freeing up existing supply.

I can see divorce causing one's divorced spouse to buy, But death ?

Supply probably includes condos and t-homes, as the article talks about "housing units"
i didn't read about single-family homes only, anywhere in that article.

i can easily suppose that maybe they aren't freeing up existing supply because the millenials are still in their parents' basement.(which is mentioned in the article)

or

Boomers are taking care of aging parents?

The reasons given in that article for boomers being the cause are sketchy at best.

Boomers have been blamed for a while. see here for perhaps a better reason:

"Boomers need to stop buying starter homes as their retirement homes. It's driving the cost up to where first-time homebuyers can't afford it."

https://www.businessinsider.com/millennials-blame-boomers-starter-home-shortage-housing-crisis-2021-12?op=1

anecdotally: We own a small family starter home since 92. The loan is paid off. It's a 3-bedroom 2 bath 1 car garage ranch on a crawl...no stairs. Perfect for retirement.
53 posted on 09/12/2023 10:00:29 AM PDT by stylin19a (The #1 Golf rule you MUST follow: take car keys out of golf bag before throwing it into the creek)
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To: cgbg

why should i move into a retirement home so some stranger couple can buy my house? That’s some real entitlement there.


54 posted on 09/12/2023 10:00:29 AM PDT by ronniesgal (The bidens are actually more white trashy than the Clintons, and that's sayin' something)
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To: millenial4freedom
"Sellers who locked in a record-low mortgage rate of 3% or less "

That would be us. But we ain't sellers.

55 posted on 09/12/2023 10:10:36 AM PDT by Enterprise
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To: Red Badger

That’s racist!


56 posted on 09/12/2023 10:22:24 AM PDT by fruser1
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To: ViLaLuz

The problem comes when the sociopaths are the ones with the guns.


57 posted on 09/12/2023 10:24:25 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Dilbert San Diego
Some empty nesters and older people sell a detached single family house and move into a condominium or an apartment.

No thanks. I tolerated the "condo" experience when I first got married. Never again. I'm staying in my single family detached home until I'm room temperature. I have a nice backyard to set up the ham radio antennas that I could never put up in a condo. I feel zero obligation to "free" my home so others can buy it. There's plenty of apartments being built. I want no part of them. They are available for others to rent.

58 posted on 09/12/2023 11:24:33 AM PDT by Myrddin
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To: millenial4freedom

This seems to be the pattern from Government and its lackey MSM and print. Blame the boomers. Blame them for dying in the Pandemic because they wouldn’t get an untested VAXXINE. Blame them for the ever increasing cost of SS (never mind SSI and SSDI where you don’t have to be a boomer, or even worked and paid SS taxes for SSI for instance). Just blame the damned boomers.

Take their houses and put’em out in the cold to catch the flu, er uhh Covid, put’em in the hospital and jamb a big tube down their gullet and spike’em with Remdesivir. If that don’t do it, cluster them all together in some nursing home somewhere to die.

That’ll ease up on the SSA burden, for sure. Then all they gotta worry about is the 50 million illegals they’re eventually gonna have to give SS to. I won’t be alive when the full impact is seen but it sure would be a sight to see. Oh, the chaos.


59 posted on 09/12/2023 11:36:21 AM PDT by Gaffer ( )
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To: Myrddin

None of us are obligated to do anything. Just observing, some older folks sell the family home after the kids are grown. Nobody is required to do so. No one is obligated to do so.


60 posted on 09/12/2023 12:27:56 PM PDT by Dilbert San Diego
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