patrick.net

GNL says

WookieMan says

I could get drunk and interview for 30 jobs and get them all here in IL.

I doubt this applies to any job that could support a family.

Here it can. I could make $50k a year myself driving a bus for the schools AND get a pension after I'm vested. The median FAMILY income is about $62k(ish) nationally. If my wife makes $50k as well, we're above average by a good margin. That's not our situation, but the jobs are there.

There's no excuse really. Now will that salary buy you a house in desirable coastal areas? No. But there are plenty of small communities where you might have to commute a little longer and have a $300k house. That's well within reach for that salary/pay assuming no massive debt on cars and shit.

zzyzzx says

That’s really not too bad considering the headwinds right now. Other states are faring much worse. My own zip code has gone up a couple percent since last year somehow. But probably down a few since six months ago.

WookieMan says

The median FAMILY income is about $62k(ish) nationally.

Nationally. What's the median where you are?

GNL says

WookieMan says

The median FAMILY income is about $62k(ish) nationally.

Nationally. What's the median where you are?

$62k for my county. I'd like to give the county, but I'd dox myself too much. It's northern IL, north of I-80. East of I-39.

If you assume the 3x's income idea that puts you at $186k. That's not how it works though. You can borrow PITI up to 40 something percent of income. Basically you can afford $2,100/mo in payments on the median household income by lending standards if you don't have other debt and a good credit score (rare). This is back of napkin math, but that gets you into the $300k range on that income with a FHA 3.5% down loan at 6.7% interest.

Housing is just going to stall in non-coastal areas. Some may/will rise still. Interest on $1.2M versus $250k is exponentially different. Coastal areas are going to see an equity loss or potential crash. Specifically in the SFBA because of all the recent layoffs. That's not a surprise. Local government is pure shit so that doesn't help.

I could walk into any business or government entity here in IL and have a $40-70k job if I walked in not wearing pants. We'll see. I'm in Fort Wayne, IN Thursday, Phoenix, AZ Friday to Tuesday and Bozeman, MT until I think Feb 5. So hitting different parts of the country for 10-11 days.

Mexico seemed to be in better spirits than the Dominican. Bahamas was fine and didn't see negative energy economically, but that's the islands of FL essentially. Not that one cannot get stats and info, but experience is a thing. I'm in IL and WI often as well. I'm not bullish on anything currently. But I'm not overly bearish. European War III breaking out is of concern and potential nukes, but I think we're in a tech sector crash again. That's more probable than a recession that moves housing in a large way.

There are also the crazies in charge of our financial system. Seems one of the clueless ones is retiring and decided to spout some wisdom. She didn't really want to have a 2% inflation target and didn't like the idea of QE,, but wants to sell the Fed's portfolio of mortgage securities soon. That would cause mortgage rates to go even higher causing even less homes to be built and decreasing the loan amount for new buyers to qualify for.

You should read the article to see how clueless the Fed members really are.

https://finance.yahoo.com/news/fed-needs-mortgage-backed-securities-183640854.html

... AND they are all like her.

Misc says

There are also the crazies in charge of our financial system. Seems one of the clueless ones is retiring and decided to spout some wisdom. She didn't really want to have a 2% inflation target and didn't like the idea of QE,, but wants to sell the Fed's portfolio of mortgage securities soon. That would cause mortgage rates to go even higher causing even less homes to be built and decreasing the loan amount for new buyers to qualify for.

You should read the article to see how clueless the Fed members really are.

https://finance.yahoo.com/news/fed-needs-mortgage-backed-securities-183640854.html

... AND they are all like her.

In your opinion, is there anything wrong with low interest rates?

GNL says

Misc says

There are also the crazies in charge of our financial system. Seems one of the clueless ones is retiring and decided to spout some wisdom. She didn't really want to have a 2% inflation target and didn't like the idea of QE,, but wants to sell the Fed's portfolio of mortgage securities soon. That would cause mortgage rates to go even higher causing even less homes to be built and decreasing the loan amount for new buyers to qualify for.

You should read the article to see how clueless the Fed members really are.

https://finance.yahoo.com/news/fed-needs-mortgage-backed-securities-183640854.html

... AND they are all like her.

In your opinion, is there anything wrong with low interest rates?

I'm not Misc, but low interest rates are bad because they pull too much future demand forward to the present day. I.e., people buy more now on credit than later, and later, they're too indebted to buy anything else so economic activity stalls.

Low interest rates discourage saving by negating the time value of money - no one has any incentive to defer gratification.

Finally, low interest rates promote speculation in the riskiest assets in pursuit of yield. When these risky assets crash, savings are destroyed instead of invested.

stereotomy says

GNL says

Misc says

There are also the crazies in charge of our financial system. Seems one of the clueless ones is retiring and decided to spout some wisdom. She didn't really want to have a 2% inflation target and didn't like the idea of QE,, but wants to sell the Fed's portfolio of mortgage securities soon. That would cause mortgage rates to go even higher causing even less homes to be built and decreasing the loan amount for new buyers to qualify for.

You should read the article to see how clueless the Fed members really are.

https://finance.yahoo.com/news/fed-needs-mortgage-backed-securities-183640854.html

... AND they are all like her.

In y...

I agree with you. Seems Misc and others do not.

Maybe a peak but around Santa Cruz it's still insane.

clambo says

Maybe a peak but around Santa Cruz it's still insane.

The question is: did it survive the recent string of storms or got washed down the mountain? And what the insurance premium is going to be next year?

PS. I know a couple who "won" a house on a piece of land in that general area and had to back out after getting insurance quotes for the place. And it was before the recent storms (but after the recent wildfires).

In Santa Cruz, mudslide and earthquake disastered specials are slightly marked down. "And here you can have your Jacuzzi! Until it winds up down there. You can immerse your self in if it the fires get close (there were actually people who survived the Oakland Hills fire early 90's by jumping into swimming pools)".

https://thehill.com/policy/finance/3827057-survey-finds-americans-wildly-misinformed-on-housing-market/

https://www.sfgate.com/realestate/article/bay-area-housing-market-cooling-17731732.php

Bay Area home prices fell more than anywhere else in US last month

zzyzzx says

Bay Area home prices fell more than anywhere else in US last month

Good. The high prices have made life miserable here.

B.A.C.A.H. says

zzyzzx says

Bay Area home prices fell more than anywhere else in US last month

Good. The high prices have made life miserable here.

I mildly suspect the fall will get worst because of Prop 13.

cisTits says

DR Horton Reports 40% DROP in Sales (Housing Crash Denial Spreads)

https://www.reventure.app/blog/dr-horton-reports-40-crash-in-sales-housing-crash-denial-spreads

You might as well literally live in a cardboard box in LA or SFBA anyway. DR houses are shit. Link doesn't load. And it says 40% in sales, not value in the link. That's pure clickbait. Sales/building will drop off if you're not building in anticipation of a drop off in sales so your prices don't drop.

Maybe prices are dropping in other places, but I'll keep saying it, they aren't here. No one is building and there's maybe 2 homes for sale out of 800 in my town. The rest of the country is not the West coast. People are moving OUT of CA and not into CA. Your numbers are going to be shit for the foreseeable future, I don't disagree with that. Out of the 39M people living there I'd get out of the dumpster fire. It doesn't get better.

The California dream is over. Most major films and shows don't even film there anymore. You have desert towns in CA, but you've got Alec Baldwin shooting people in New Mexico. Many weekly sitcoms are filmed here in Chicago. Atlanta is a big film spot. CA has lost its luster. Major personal brands are fleeing like Ben Shapiro. Joe Rogan. The list is getting bigger. Since prices are so high in CA it's going to drag the median down nationwide as I've said. It does NOT mean we're in a housing crash.

cisTits,

What is your prediction for home values?

cisTits says

Don't go after me with crap like this again unless you want to be reamed again and in a harsher way in future.

Lol. Get triggered much? 40% drop in SALES is not a drop in PRICES. That's not a strawman or even a dispute. The headline says sales, not price. Really confused where you are going with this.

Unless there's more inventory on the market it is unlikely to result in any meaningful price drops. We'll see this spring. Interest rates will stall PRICES nationally and CA (YOUR PRICES) may be in for a rough ride with the JOB LOSSES I've been talking about. I've been saying this would have to be a job loss housing crash IF housing even gets hit that hard. And even then the floor is pretty high on housing price losses.

SALES could drop 40% for DR because they got 40% less buyers wanting to build 5 months ago, so they didn't build and SALES went down. SALES will naturally go down in that scenario. We haven't built enough new inventory over the last decade and a half as is. These companies got burned leading up to 2006, they've learned. Don't overbuild if people aren't buying. They want to keep the prices up and over building brings them down.

Existing home sales are a better metric. But with regard to SALES, that could mean people are just staying put.

We're talking simple supply and demand economics. It's not an argument. You have ripped nothing on me. Show me year over year price losses in housing that are worse than -10%, regionally and not in a shit area/city like St. Louis or Memphis. Not one cherry picked neighborhood or individual house sales price history. PRICES, not gross SALES of homes. There simply aren't homes for sale in much of the country.

Inventory has to increase to show whether prices go down or not. You're talking about a home builder that probably didn't get contracts on new builds, so they didn't build, so sales dropped. So they layoff or drop contractors and sell the remaining 60% of what they built. Fact is it's a clickbait article using SALES from a builder who can scale up and down within a month or two. They scaled down.... Not much else to it.

Hell, even if the link did open, look at the source. I played this game for 15 years dude. Look at the image you posted. That's pure click bait. As I've said, I'm not bullish on housing, but this isn't 2006 2.0, where an 18 year old with no income could buy a $500k house. No one is moving because they locked in low interest rates. They have to buy a new place at higher interest rates. SALES will fall. It's inventory. No strawman there. Just a fact. Let me know when I'm wrong and you've "ripped" me.

An interesting take on the housing market. Points out that pending new home inventory is often left out of an analysis of supply and demand. And so you can have price declines with an apparent low inventory.

Apologies but not on Rumble.

https://www.youtube.com/watch?v=OQXr_5coj84&t=310s

This is interesting. I watched people's shopping carts at the grocery store yesterday. People are just buying the essentials.

I agree with Wookieman. I'm a real estate photographer and talk to many Realtors (yes, I realize they are sales people but, it makes sense what most of them are saying which is what wookieman is saying). Some seem to believe rates will come down in May. Not so sure I agree with that but, we'll see.

Low inventory will rule unless inflation goes ballistic or job losses go ballistic. There is a ton of boomer $$ out there. If it weren't for boomers, I believe starter homes, condos and townhouses would be priced considerably lower. That's my opinion.

CisTits

I ask your opinion because you are so confident in your discourse. Why wouldn't I ask you? What is your prediction on home prices for ANY market?

zzyzzx says

I guess Floridians don't know California! Costs such as insurance and property tax pale compare to California's state income tax and state/local sales tax. As for hurricanes... here in California we don't even buy insurance for earthquakes because it's too expensive! Add to that the mud slides, forest fires, week long power outages, and occasion BLM "protest" that seems to cause a lot of broken windows and fires and I'll take my chances with a modern, well-built house in Florida. (Note that a modern, well-built houses in Florida only cost $1MM, whereas new construction in California is nearly non-existent.)

zzyzzx says

https://www.sfgate.com/realestate/article/bay-area-housing-market-cooling-17731732.php

Bay Area home prices fell more than anywhere else in US last month

Basic math: If all metro areas fall by 20%, then the highest-priced area will fall by the most $$$.

SunnyvaleCA says

I'll take my chances with a modern, well-built house in Florida.

You might, but the mortage guarantor won't, without the insurance.

FYI: Residential median sales price for southwestern Utah - down 0.4% year over year December 22 compared to December 21. Median price for residential from peak pricing (April 22) compared to December 31, 22 down 17%. Inventory as of last week up 215% YoY and up 263% from bottom in inventory (February 22). We had a whole lot of Californians moving here over those two years, not so much now.

https://www.reddit.com/r/Seattle/comments/10m0cug/bought_a_house_at_the_peak_nearby_houses_are/

Bought a house at the Peak; nearby houses are going for 600K less than our house

Booger says

https://www.reddit.com/r/Seattle/comments/10m0cug/bought_a_house_at_the_peak_nearby_houses_are/

Bought a house at the Peak; nearby houses are going for 600K less than our house

You cant fix stupid

https://www.investmentwatchblog.com/us-median-home-price-drops-12-in-six-months-largest-drop-since-2009/

From the article...

"San Francisco home prices have already fallen 30% from peak.

Denver, Austin, and Phoenix are all pushing 20% drops from peak.

It’s real. It’s happening. It’s not “small”."

I'm not that interested in this subject, but out of curiosity I looked.
The Redfin page says $1.28 million median home price in San Francisco, down 13.3% from last year.
Either way, 1. houses are a fortune up there 2. some people are pissed off 3. some people are happy.

The thing with houses is that they are ever popular. It's interesting to see.
Rich gazillionaires sometimes buy multiple houses, including fucking castles, etc.

After a certain level of wealth, you can afford fancy hotels for every day of your life; why own a castle in addition to your beach house in Malibu?

clambo says

After a certain level of wealth, you can afford fancy hotels for every day of your life; why own a castle in addition to your beach house in Malibu?

This is what Musk realized (and acted upon).

zzyzzx says

Lol! Sadly this is almost true at least in CA after 1978 prop 13. Boomers never cared even if it is hurting their own children.

Right now is not the time to invest in housing. Prices may continue to climb for a while as it continues to be a tight market. If you are a homebuyer, or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again. - Jerome Powell, June 14, 2022

In 2019, two home-sellers filed a lawsuit [Sitzer et al v. National Association of Realtors (NAR)], alleging that several NAR rules violate the Sherman Antitrust Act, an 1890 law which prohibits activities that restrict interstate commerce and competition. One of the NAR rules in question requires listing brokers to offer buyer brokers a commission to list a property. The lawsuit alleges that this practice inflates sellers' costs and, therefore, is anticompetitive. Traditionally, it takes two agents to sell a house: a buyer's agent and a seller's agent. However, if NAR loses the suit, the real estate industry would effectively see buyers' agents removed from the equation. That means the number of real estate agents in the U.S. (there are 1.5 million right now, according to NAR), could drop precipitously .

"You could see hundreds of thousands of real estate agents leaving the profession, and major brokerages go out of business," said Oppenheim. "We're on the precipice of an armageddon that nobody talks about."

There's hope for a settlement with regulators or an appeal process, but there's a high likelihood the marketplace for real estate agents is about to get majorly overhauled, said Oppenheim. He added that we could see the U.S. ultimately turn towards a model with lower total commissions, as is the case in Australia.

https://law.justia.com/cases/federal/district-courts/missouri/mowdce/4:2019cv00332/145710/741/

gabbar says

Right now is not the time to invest in housing. Prices may continue to climb for a while as it continues to be a tight market. If you are a homebuyer, or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again. - Jerome Powell, June 14, 2022

Actually, this was the time where housing prices peaked….if not a month or two before.

Low inflation and low mortgage rates happened through out the whole 2010’s especially the first half of 2010’s. Whoever didn’t buy after the housing bust missed an opportunity once in a lifetime. Prices have gone up 2-4x since. In the lower end markets, some have gone up 10x since.