patrick.net

Eman says

The housing market has been having low inventory due to affordability and existing owners don’t sell as they can’t afford the new mortgage payments if they move.

I read that it costs at least $100,000 before even the shovel hits the dirt to build a single family home in California.

The costs to develop are getting way out of hand, and a lot of that is not due to the cost of land.

.

The cost of designing, engineering, city permits and fees is easily $100k before we break ground to build a house.

Basically, all the requirements make the cost to build extremely expensive.

Eman says

The cost of designing, engineering, city permits and fees is easily $100k before we break ground to build a house.

Basically, all the requirements make the cost to build extremely expensive.

.

yes, due to California building code and zoning

in Florida, the builders leverage economies of scale as far as fixed costs and the state is a lot more pro residential development

,,,

https://ottawa.ctvnews.ca/home-prices-in-carleton-place-drop-significantly-1.6718571

Carleton Place homes sold for $400,000 under original selling price

30-year fixed mortgage rate is below 6% for the Bay Area now. I guess lenders anticipate the Fed is done with the rate hikes and will cut rate soon.

30-year fixed mortgage rate is below 6% for the Bay Area now.

Eman says

30-year fixed mortgage rate is below 6% for the Bay Area now.

To be fair, that 5.875% rate requires you pay 0.25 points up front. An APR "as low as" 5.992% is breaking the 6.0 barrier by the barest of margins.

Eman says

30-year fixed mortgage rate is below 6% for the Bay Area now.

To be fair, that 5.875% rate requires you pay 0.25 points up front. An APR "as low as" 5.992% is breaking the 6.0 barrier by the barest of margins.

In the current environment, I’m not sure it’s prudent to buy down rate as history suggests there’s a higher chance of interest rate dropping in the coming years rather than rising. Paying 4 points is a lot of money to buy down 1%

“San Jose rent growth in 2023 pacing below last year. Twelve months into the year, rents in San Jose have fallen 0.7%. From January to December 2022 rents had increased 6.1%.”

“Santa Clara County rent growth in 2023 pacing below last year. Twelve months into the year, rents in Santa Clara County have fallen 1.0%. From January to December 2022 rents had increased 8.7%.”

Eman, Venture capital money is drying up more in Silicon Valley compared to 2019-2022. Layoffs are abound in Silicon Valley 😕

We all know it, but worth repeating. A picture is worth a thousand words. The link is below too.



https://x.com/charliebilello/status/1747316842861838567?s=46&t=5lEEPaezr6Ic-W4Z6huZ5Q

These analysts are hilarious. The housing market is bottoming. 😂

https://www.marketwatch.com/story/buy-home-depots-stock-because-the-housing-market-is-bottoming-analyst-says-732d5268?siteid=msnheadlines

Eman says

We all know it, but worth repeating. A picture is worth a thousand words. The link is below too.



https://x.com/charliebilello/status/1747316842861838567?s=46&t=5lEEPaezr6Ic-W4Z6huZ5Q

What would you, as an investor, do going forward? Reading the tea leaves (the totality of the economy and the political and financial atmosphere) I'm pretty sure this is the new normal. I believe the homeownership rate is going to fall for years to come.

It may tick up and down from time to time but, the trajectory = down for a long time. IMO, of course.

There was a mainstream media headline that notes that poor Americans are benefiting from falling inflation !

There was a mainstream media headline that notes that poor Americans are benefiting from falling inflation !

There was a mainstream media headline that notes that poor Americans are benefiting from falling inflation !

There was a mainstream media headline that notes that poor Americans are benefiting from falling inflation !