patrick.net

joeyjojojunior says

low housing inventory is causing home prices to rise.

I am going to to say this in English because we all speak it

Excuse the capital letters

POST 1996 WHEN HOME PRICES DEVIATED FROM HISTORICAL NORMS, THE ABILITY TO MOVE UP FOR A HOME BUYERS WAS CONSTRAINED, THUS CREATING A NATURAL SUPPLY CURVE FOR HOME SUPPLY TO BE UNDER 6 MONTHS

AS THE CHAIN OF HOMES BEING BUILT SINCE 1975...

Were bigger and bigger homes, ... hence the housing inflation metric is based more on size of new construction

Remember, I went to all these conference in 2012-2013, everyone was way too bullish on home sales and housing starts because they didn't adjust to the over investment thesis of the last cycle running right into the demographic patch of this

Perfect openings for a demographic guy like me

"POST 1996 WHEN HOME PRICES DEVIATED FROM HISTORICAL NORMS, THE ABILITY TO MOVE UP FOR A HOME BUYERS WAS CONSTRAINED, THUS CREATING A NATURAL SUPPLY CURVE FOR HOME SUPPLY TO BE UNDER 6 MONTHS

AS THE CHAIN OF HOMES BEING BUILT SINCE 1975..."

Except I'm not arguing about what the months supply should or shouldn't be. I'm saying that if prices are rising--it, by definition, means demand is higher than supply. If the issue was that people couldn't afford the higher prices, then prices would fall until sales could be made. That's what always happens in a free market. The fact that prices are rising means that isn't the case.

Hazard of the occupation. If only cops still saw things that way...

"You keep saying the policies pushed by the Democrats, which also include globalization in its current form, are the solution"

Clinton does not equal Democrats.

Hilarious PAT.NET people are saying they're smarter that public traded builders

Just open a home building company and build homes like crazy

More to the reasons why the builders can't build

Heraclitusstudent says

This is the heart of the policies that caused the stagnation for western workers. And it is something you seem to favor in every political comment you are making.

I find it interesting that the big clamor about changing or reversing the offshoring of our jobs is happening now, when the globalization of manufacturing is practically over.

That's probably becasue the owners want policies that will bring production back here since soon robots will be doing the labor. Of course that won't particularly help the unskilled workers out there.

"Hilarious PAT.NET people are saying they're smarter that public traded builders Just open a home building company and build homes like crazy More to the reasons why the builders can't build"

Are you having discussions with the voices in your head or something? Who says they are smarter than builders?

Builders want rising prices. Of course they aren't going to overbuild. But, it's better for the economy to have pretty much stable prices and for housing costs to take up much less of one's income.

joeyjojojunior says

Clinton does not equal Democrats.

No? Who else is there? Donna Brazile?

"No? Who else is there? Donna Brazile?"

Well, you can start by looking at the voting record of Senators and Reps.

joeyjojojunior says

Builders want rising prices. Of course they aren't going to overbuild

Since you can't read a data ... let me give you an article with words

Why Building More Homes Won’t Help Housing Affordability

https://loganmohtashami.com/2016/07/25/why-building-more-homes-wont-help-housing-affordability/

"Since you can't read a data ... let me give you an article with words Why Building More Homes Won’t Help Housing Affordability"

I'm laughing at your idiotic article. I certainly didn't say we had a shortage of mansions. Regardless, building more homes ABSOLUTELY will help housing affordability. Even if you only built new 3000 sq foot homes, the effect would trickle down to every segment, with lower prices everywhere. This should be easy to see.

PLEASE... keep this act up!!!

You're all making my points ... about the internet .. which is my 15 year project :-)

Typical Logan.

joeyjojojunior says

Typical Logan.

Just read it and you will know what I am talking about
https://loganmohtashami.com/2016/07/25/why-building-more-homes-wont-help-housing-affordability/

No Housing Bubble in America today because there is no speculation demand what so ever, most real demand curve ever and the safest buyers ever!

That is what the thread was is about..

"Just read it and you will know what I am talking about"

I read it and commented on why it is wrong in my last post.

joeyjojojunior says

Regardless, building more homes ABSOLUTELY will help housing affordability.

This is where I trap people in the debate... I will give you guys a course on how to do this

1 . Did the building from 1994-2007 create cheaper housing or was that the most expensive housing market ever

"This is where I trap people in the debate... I will give you guys a course on how to do this 1 . Did the building from 1994-2007 create cheaper housing or was that the most expensive housing market ever"

Logan--please don't continue this. I promise you are going to look like a fool.

http://www.env-econ.net/supply_demand.html

joeyjojojunior says

Logan--please don't continue this. I promise you are going to look like a fool.

Answer the question?

Logan Mohtashami says

So answer the question

If you don't want to answer the question that is fine, a lot people realize what they got them selves into once they take 2 minutes to think about it

;-)

This is why none of you own a home building company

I ask you honestly Logan--do you understand the theory of supply and demand and how it relates to prices?

joeyjojojunior says

I ask you honestly Logan--do you understand the theory of supply and demand and how it relates to prices?

Logan Mohtashami says

So answer the question, did all that building, one of the highest building rates in decades create cheaper housing

Logan Mohtashami says

So answer the question,

Again, if you feel trapped, don't feel bad... remember it's a trap question

"So answer the question, did all that building, one of the highest building rates in decades create cheaper housing"

Yes, it created cheaper housing than would have existed absent the building boom. The higher prices were driven by the excess demand caused by the underwriting standards being abandoned.

So now answer mine. Do you understand supply and demand?

joeyjojojunior says

Yes, it created cheaper housing

This is why none of you own a professional home building company

Wow--using CIC's trick of cutting off my answer? Well done.

Purposely disingenuous. Popular trolling trick.

joeyjojojunior says

If you couldn't muster up the courage to buy in 2011-2013, I'm not really sure what you are waiting for?

you're right! i'm a nervous nelly! too much of a think!

Logan Mohtashami says

Yes, it created cheaper housing

Adjusting to inflation home prices where the highest ever in 2003-2006 right when the peak of construction boom happened

So did all that building create cheaper housing? or was that period the highest real home price inflation rates ever?

"So did all that building create cheaper housing? or was that period the highest real home price inflation rates ever?"

I already answered. The building mitigated the rise in prices caused by the abandonment of underwriting standards. Do you really that you "got" me?

And Trump's own SecState is for TPP, by the way. As are the vast majority of Republicans in the House and Senate.

In fact, I'd still give it 50/50 that Trump signs it.

joeyjojojunior says

Do you really that you "got" me?

Then what is the excuse of every major professional builder not building massive and massive homes today

Why are you smarter than all them..

Hint ( out of curiosity)

"Then what is the excuse of every major professional builder not building massive and massive homes today Why are you smarter than all them.. "

I already told you. Pay attention. They want higher prices. They are happy building slightly less than enough so that prices continue rising and their profit margin/house keeps going up.

joeyjojojunior says

They want higher prices.

If you read the article truly... then you would truly understand....

joeyjojojunior says

Because that's what people care about--price