Posted on 04/25/2024 7:10:58 AM PDT by ChicagoConservative27
It is more expensive than ever to buy a home in the U.S., according to a new report from the real estate company Redfin.
The median home price hit a record $383,725 during the four week period ending April 21. That’s up 5.2 percent from a year ago, Redfin found, one of the largest leaps in home prices since October 2022.
The average 30-year fixed mortgage rate hit 7.1 percent this week, the highest it’s been since November 2023. Mortgage rates dipped briefly at the end of last year after the Federal Reserve signaled it would cut interest rates this year, but have steadily climbed as strong economic data has extended the timeline for those initial rate cuts.
The median monthly housing payment also jumped to a record $2,843, up 13 percent from the same period last year.
(Excerpt) Read more at thehill.com ...
I thought the homes were at an all time high last week? my bad.
Build more homes
deport illegals. stop subsidizing them. let Americans enjoy the fruits of their labor. yadda yadda yadda.
People like to point out that interest rates in 1981 topped out at 21.5% — which is pretty brutal.
But median home price in 1981 was $68,900 and median income was $22,390. So three years of income could pay for your home.
By 2024, median income had doubled, and is now $44,225. But the median home price is up 500% to $384,500. So it will take you about 9 years to pay for your home.
People who say “It was tough back in my day” do not understand the situation today.
Rich foreigners are buying up houses, pricing out the natives.
My wife an I are possibly getting ready to buy another home in the next few months.
By my estimation, home prices will NOT go down, and there should NOT be a crash (housing)
1) Supply is still very low while demand is still at a high,
2) There is no catlayst that I can see to make home owners to forcibly sell there exisitng homes to start a crash.
3) When interest rate cuts come this summer/fall...that will increas demand and prices more than they are currently.
I honestly welcome anyone to tell me Im wrong and why...seriously.
because I am wracking my brain trying to come up with a situation where housing will make a correction in the near future.
I remember when Rush facetiously argued for a $100.00/hr minimum wage about the time when the minimum wage was headed for $10.00.
That number would solve ‘all’ of our nation’s problems now -— to be SURE!!!
(...at least temporarily)
sarc off
Wow, pretty hard to believe elections have real world consequences.
Save this headline.
We can reuse it many times between now and November......................
It’s okay, we’ll all be happy when we own nothing.
Is that what the kids are calling Biden's hyperinflation these days?
Excellent post.
While today it may take about 9 years to pay for your home the associated costs of ownership (property taxes, utilities, insurance, maintenance, repairs, upgrades, etc.) are rapidly rising as well thus making a home purchase these days an even greater burden.
I did a lot of slave labor on my fixer-the grunt work part. Too many dirt-bag contractors out there. I was in my mid-60’s. The opportunities are drying up now. Now 70 I won’t go there again. A 1 br condo perhaps.
The problem is big and obvious. The lazy left has the easy part with their leftist solutions. Our explanations and solutions are the hard part. They’ve got us on the run.
The only solution. But a coalition of interests is broadly opposed to the construction of entry-level housing.
The best case for sellers is to do a rental after selling. Then go in with a good offer, good down payment, not contingent on the sale of your property. There are sellers who are not taking any contingencies, and want bank statements showing buyers have the money for an all cash purchase. Good market for sellers, tough market for a buyer.
When the cost to BUILD a house isn’t going down, I don’t see existing homes going down either. Inflation has made home building very expensive.
In our neighborhood no one’s buying anything. But all the absentee owners sure are renting. Rent rates have skyrocketed so now there’s four unrelated illegal alien families per house, in order to cover the cost, with driveways loaded to the hilt. So many vehicles all over the streets you can’t even see your own home anymore. Sucks now to be owner-occupied.
I once bought a home (a considerable upgrade at the time) and a housing crash occurred shortly thereafter. While it was distressing to see the builder pack up and vacate the community, I wasn’t really concerned because the purchase of our primary residence was made with numerous considerations in mind (i.e., it met pretty much all of our needs and wants). The fact that our home had suddenly decreased in value was of little concern as it was our primary residence in a community we wanted to live in and we were planning to live there a long time.
Part of your ROI on a home relates to its utility value. That is to say it is basically your home, not an investment per se. If you run a discounted cash flow analysis on home ownership you’ll find that there are so many carrying costs that its not really a great investment. There are other far more attractive places to put your money to work than in a home IMO.
If you’re looking at the home more as an investment then as your personal “castle” than remember that recessions can be stressful game changers if losing value in your home bothers you.
I have another property that was bought primarily as an investment a couple of years ago when interest rates had a 2 handle. I would not buy the same place today as it would not be an attractive investment for me. The point here is the dichotomy between a residence and an investment. That’s just how I look at it.
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