As housing prices decline the cost of mortgages rises. The monthly cost of a mortgage doesn’t actually change so much. The rise in interest rate is a major part of the decline in price.
They are not wrong. Housing prices have far outpaced their value.
Cannot really blame them for that. But one might want to blame them for a good many of them having the math and economics (il)literacy of a Democrat.
Be careful what you wish for. We are in the early stages of an economic bubble popping that will make 2008 look like a picnic. Those Millenials won’t have jobs or credit.
If I were looking for a house to buy, I’d hope for the same thing. Here in the PNW though, that’s not going to happen. There is a huge shortage of single family homes. Construction companies keep building apartments, but young, prosperous families want to live in and own single family homes. The shortage makes the value of existing homes only go up.
Why do they want homes? Having a home takes work, repairs, maintenance, money etc.
GenZ, who has caused all that..?
1) I hope for a future in which I own nothing, and I am happy.
2) These dang house prices are ridiculous! I can’t afford anything! I’m so unhappy!
3) Cognitive dissonance is the only way I know to view the world.
My 26 year old son, a well compensated astronautical engineer was just talking about this a few minutes ago. There are no houses anywhere near him below $400k. He’s not interested in spending that much or more.
Great woke leading photo at the source.
Laughing twenty-somethings at a bistro paying for overpriced coffee. Cute white, blonde chick with a black boyfriend (of course) accompanied by friends, all wearing surgical masks.
That house in Arlington is “affordable” for DINKS each taking home low 6 six figures. There are lots of those in that area - say a couple of graduate level bio industry types.
>>they want a housing crash, but will they get one? Honestly, I’m doubtful at this point.<<
A “crash” will be a drop of a point or 2. And industrial investors will move in well ahead of individual home buyers.
Mostly because the places where the homes are needed the worst is where it is most expensive to build.
So supply stays limited which means no meaningful crash.
The FBA declaring 40 year mortgages robe conforming this week was a bail out for the housing market. Don’t hold your breath on priced decreasing anytime soon
Banana republic we are
I paid $1200 to have a backflow device put in, something Florida law does not allow me to do myself.
It took the plumber slightly over two hours.
My neighbor the roofer can expect to become a multi-millionaire within a few years.
So. I’m guessing that these are the same ones who demand all their student loan forgiveness.
This country has become a nation where many of its younger denizens EXPECT the rest of us to support them. And, if that means chaos and devolution then they don’t care. It’s all about them.
My advice is to be kinder to your parents; maybe they’ll take you in. Or at the very least find some other losers to bunch up on an apartment lease (IF you actually have a job, that is). If that’s not a workable option move to SF and get a tent. You can sh!t in the street like the rest of them out there.
Muslims don’t believe in interest.
One might buy 20% of a house and rent 80%, then buy 4% per year (say at 106% of the latest property tax assessment) for 20 years.
In the first year, the buyers would pay 80% of the normal rent and the owner of 80% 80% of the repair costs.
In the second year, the buyers would pay 76% of the normal rent and the owner of 76% 76% of the repair costs.
Under this system, there is never a bad time to buy a house and interest rates never matter.
Housing prices can be quite sticky in high demand/high salary areas.
If rents remain high, so will housing prices.
My bank doesn’t issue CDs beyond four years. It does not expect interest rates to remain above 4% beyond four years.
Just move to blue states where normal people are fleeing from. Got to be some bargains there.