Posted on 03/07/2021 2:11:30 AM PST by RomanSoldier19
‘The people we sell houses to aren’t using their salary, they’re using their portfolios’
Housing IS the business cycle, it’s been said.
So it may be fitting that a K-shaped recovery from the COVID-induced downturn would be accompanied by an increasingly unequal housing market. What’s less certain is what that will mean for the broader economy and markets.
“I definitely think the pandemic widened the gap between the haves and the have-nots,” said Glenn Kelman, CEO of Redfin RDFN, -5.75%. “When I started in this business, there was a broad consensus around making the American dream accessible to middle- and lower-income people. After this year I now see housing as a luxury good.”
Read: Redfin CEO: Technology is finally ready to change how you buy and sell your house
One of the clearest signs of the new affluence is that people with means have been able to go anywhere they want to escape the pandemic’s risks, or even its doldrums, while have-nots have been stuck in place.
“The customers we serve are people in white-collar professional jobs with massive gains from the stock market who are free to work anywhere in the country,” Kelman said. “For them this hasn’t been a catastrophe, but a bonanza.
(Excerpt) Read more at marketwatch.com ...
The housing prices depend greatly on where you are. Here in AZ, it is up up up, and we are priced out.
I expect the Usurper and team of Kommies to turn it into a lambda λ (empty).
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Read later.
Hmmm... looks more like a FALLEN “V” RECOVERY,
But I don't expect a Trump-like recovery with this bunch in charge. Two trillion dollars isn't going to magically appear unless they're Zimbabwe dollars.
Why, I could make a better K than that when I was in kindergarten.
That doesn’t count maintenance cost, insurance, and taxes after you buy the house.
later
One wonders......why don’t the poor have portfolios?
What did they do wrong?
New York and California were destroyed by their governors. The lower portion of the K is self inflicted, purposeful destruction.
There are no tears or sadness for New York or California. The destruction is good for the rest of us if the blue fades away
The “industries needing assistance” NEED the govt to get out of the way.
Those recoverying industries are those who are NOT impeded by govt policies and their operatives.
Were in AZ are you at, Dr? I’m new to the area but I thought the outskirts of Phoenix were still somewhat reasonable. By that I mean < 300K.
A) the poor are poor because of circumstances of birth or bad luck, bad parenting, but mostly due to bad decisions/laziness if they are still poor later in life. B) the poor don't have a lot of money to invest, being poor and all. C) Financial Wisdom is simply not taught in most of our public schools now. Especially poor school districts.
What did they do wrong?
Ultimately, we are responsible for educating ourselves, even if the system we paid for doesn't, and then making good decisions for ourselves. What they did wrong was to expect that money would just be handed to them in exchange for nothing. But really, are they wrong? We've been doing just that for generations. Why wouldn't they have that expectation?
Perhaps it is we who worked hard and built businesses and created jobs who are the real suckers here. Well, except for all the nice stuff I have now.
Central New Jersey here.....anything decent in the $500,000-$1,500,000 range is sold within 30-60 days. Not unusual for a nice property to be sold within a week at full asking price all cash.
Jersey, 500,000 or more, incredible.
I’m buying a house in Florida, brand new, on a beautiful golf course, 230,000.
The north east has gone insane.
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