Post by TommyPost by -hhPost by AlanPost by TommyPost by AlanPost by TommyPost by AlanPost by TommyPost by AlanPost by TommyPost by AlanOn Saturday, September 30, 2023 at 7:36:56 PM UTC-7, Alan
Post by TommyThey can wait for interest rates to drop, but if they
https://www.msn.com/en-us/money/realestate/barbara-corcoran-says-housing-prices-are-going-to-go-through-the-roof-here-s-when/ar-AA1cbCcI?ocid=hpmsn&cvid=60b4b9d1efe04a1dac1081dcc65bb378&ei=10
How is this different than any other time, Sunshine?
Post by TommyPost by AlanPost by TommyPost by AlanPost by TommyPost by AlanWhat do you think?
Sorry.
Answer my question before you ask one.
Well, that is EASY: mortgage rates are at their highest level
in TWENTY-THREE YEARS! Add to that that home prices are up
FORTY PERCENT in just THREE YEARS!! This is a rate of housing
inflation that is at a historical high. Thank you, Lyin'
Biden!!!!
You've failed to answer the question.
When interest rates drop, housing prices rise.
That's always been the case.
So how is this time DIFFERENT?
Are you REALLY this stupid? REALLY?? Interest rates HAVE NOT
dropped, Fool, they are on their way to TRIPLING.
I was pointing out a relationship that has always existed.
When interest rates go up, house sales decline and prices decline
or at least flatten out.
When interest rates come down, housing sales increase and prices go up.
This is not new.
Your overly simplistic reasoning is not borne out by the facts
Several factors could be driving the decoupling of house prices and
the homeownership rate. From the housing supply side, there is a
trend toward decreased construction of starter and mid-size housing
units. Developers have increased the construction of large
single-family homes at the expense of other segments in the market.
This limited supply, particularly for starter homes, could result in
increased prices for those homes and fewer new homeowners.
Except I never said that this (the subject YOU brought up: "They can
wait for interest rates to drop, but if they do home prices will
skyrocket") was the only factor.
You tried to make it seem like housing prices rising when interest rates
drop was something special to this era.
It's not, Sunshine.
Sorry.
Hey Fool, home prices AREN'T dropping, but interest rates keep rising.
Oh, look: wrong again, because you didn't bother to check the facts
before posting!
<https://fred.stlouisfed.org/series/MSPUS>
The median price for houses sold peaked in Q4 2022 at $479,500...
...and since then (Q2 2023), the median price has dropped to $416,100...
...a decline of a little more than 13%
Tommy’s just not good with financial information.
Case in point, US homeownership is 66%, with 38% of these being mortgage-free,
which means just (.66*(1-.38)) = 41% of households have a home mortgage, not 75%.
-hh
LOL! That 75% is the percentage of the public that give Lyin' Biden an F on the ECONOMY,
you idiot, NOT those with a home mortgage as you said.
First, your " SEVENTY-FIVE PERCENT" that you've claimed is utterly unsubstantiated.
Post by Tommyhttps://www.bankrate.com/homeownership/home-ownership-statistics/
Which states that "... homeownership...peaked in 2005 when well over two-thirds of
American housing units were “owner-occupied”....This homeownership rate then began
to sink, down to 63.1 percent in 2020 — its lowest level in five decades."
The start of the decline from the 2005 peak happened under Bush (Republican). And the
bottom in 2020 was Trump (Republican, again), despite his claims of a 'roaring' economy.
Post by Tommy"High inflation is the No. 1 reason that Americans across regions, age, race and income
aren’t feeling financially secure, according to Bankrate’s Financial Freedom Survey.
Housing is a key component in inflation. The shelter category, which includes housing costs,
consistently has been the largest contributor to the Consumer Price Index’s monthly all-items
increase for the past several months."
Except if if one actually goes to that cited survey, one finds that it says:
"About 2 in 5 each blamed insufficient retirement funds (41 percent) and emergency funds
(42 percent) as factors keeping them from feeling financially secure. More than 1 in 4 blamed
high or revolving debt (26 percent) and renting instead of owning or housing affordability (25 percent)."
In other words, that survey's respondents put housing costs down at 4th place.
Just because housing may have _traditionally_ been a major contributor in the past does not
constitute proof that it currently was this time too. Case in point, continuing on that referenced cite:
"Items among those with the most rapid price growth in 2022 included food at elementary
and secondary schools (prices jumped 305%), eggs (59.9%), margarine (43.8%), fuel oil (41.5%)
and airline fares (28.5%). Some of these prices ballooned for reasons beyond broad pandemic-era
inflationary factors such as snarled supply chains, pent-up consumer demand, household cash
infusions, labor shortages and war in Ukraine."
<https://www.cnbc.com/2023/01/12/heres-the-inflation-breakdown-for-december-2022-in-one-chart.html#>
TL;DR: housing costs aren't even mentioned in the source's "highlights reel."
-hh