I thought the homes were at an all time high last week? my bad.
Build more homes
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?
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.
In my neighborhood in Austin houses are selling for $750 - $775 per square foot. It will be interesting to see how the Austin City Council’s plan to destroy the single family home will have on home prices.
The Millennial Generation is now the largest generation, over 72 million people and they need homes, this was forecast over 12 years ago, Covid sped up the timeline.