Now only is the price of a home +50% since COVID, but so are interest rates.
To put that into perspective. Had you bought a home before 2021, odds are at 20% down you’d pay under $2,000 per month mortgage for a $500,000 home. Now that same fucking house is worth $750,000 and rates are 5%, so you’ll be paying ~$3450 a month in mortgage payments.
MBS bonds get crushed daily
30 yr fixed nearing 5%
Avg home sale ~$500,000
It’s more or less over. I don’t give a fuck what futures are saying. Even worse than affordability is lack of supply. I spoke to my local realtor here in Cary, NC and she said the area usually is running 7,000 listings and now only 1,700 — due to spike in prices and rates. There isn’t anywhere to go so people are staying put.
New homes sales dropped for 4th month in a row.
“Pending transactions diminished in February mainly due to the low number of homes for sale,” said Lawrence Yun, NAR’s chief economist. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale.’ It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,” Yun said, referring to prices that are still climbing and today’s rising interest rates. “Consequently, home sellers cannot simply bump up prices in the upcoming months but need to assess the changing market conditions to attract buyers,” he said.
The squeeze on the middled class, as well as the upper middled class, is fucking on. Prices for everything is going up and wages cannot keep up with double digit inflation. This is bound to have a profound effect on home prices, employment, and GDP. This is a ticking time bomb that will make you beg for a nuclear detonation over your city, instead of having to deal with the pangs of debilitating depression.
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ugh. it’s going to be so bad.
In 110 years, none of this will matter to anyone alive today.
What a time to be alive though.
Indeed, The squeeze is on.
Using this blog as an example, what % of people have a clue about what’s really going on and coming down the pike? Not many. Some here & some business owners have an idea.
The average office drone, joey bag-o-doughnuts… clueless.
They will be frozen like deer in the headlights with a giant wood chipper bearing down on them. Shock then bedlam. The WOKE even worse.
no bubble here
@DiMartinoBooth
He’s not alone, nor are these trends ma
@RileyHaws
Funny that I am seeing this today. Last night at a friends party I met a guy whose company buys homes by cold calling people and then turns around and immediately sells the home to a hedge fund for a nice quick profit. These homes don’t get a realtor or put into MLS. Interesting
@Sophos_Veritate
I would agree. In my community which is million dollar homes, I don’t know of a single one that was bought by a normal family to live there in the past year. Most go in a day and are bought by investors, and then go for rent for $6000 a month, or are turned into ABNBs.