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https://finance.yahoo.com/news/existing-home-sales-in-september-fall-to-lowest-level-since-2010-151911420.html
Existing home sales in September fall to lowest level since 2010
Demand Destruction for Existing Homes: Sales in 2024 to Plunge Below 4 Million Homes, Lowest since 1995, as Supply Spikes
by Wolf Richter • Oct 23, 2024 • 135 Comments
Because prices are way too high. Buyers’ Strike deepened even with mortgage rates at 2-year lows at the time of those sales. But rates have spiked since then. ...
The NAR has been blaming everything it can drag by its hairs except the actual problem: Prices are too high and have killed demand. Much lower prices would stimulate demand – and commissions for Realtors because they’d make more sales. Why is this so hard to come to grips with?
Demand Destruction for Existing Homes
household income and wages have increased since early 2022.
AD says
household income and wages have increased since early 2022.
What about spending power being reduced by 25% because of Bidenflation during that time?
AD says
household income and wages have increased since early 2022.
What about spending power being reduced by 25% because of Bidenflation during that time?
Inflation is killing the poor people. And that's why I think Trump wins. Rich people know the game, but there's not enough of them to sway an election, just donate money. Kamala has nothing to say about anything. The rich want inflation because $3 more on milk or eggs is nothing to them. If their piggy bank keeps growing, house value, they make up the difference in their sleep doing nothing.
So don't be poor, duh!
For those that own homes housing inflation has been a boon for them, hence why they don't move. If they bought in 2010-2020 they borrow tax free on their home.
Secondly, inflation is not a "boon" for a homeowner as it causes property tax increases.
My new assessment, for example, will cost me about $2,000 MORE per year in property taxes.
I agree 100%, even for landlords.
You can still appeal the assessment though
I'm surprised you two don't know this.
Doing that still doesn't negate the fact that inflation isn't good for anybody except for maybe something loan brokers can say to help them push product.
I also have never heard off $2k property tax increase. You own a $1M plus home?
Appeal.
Take out a $10k tax free equity loan
WookieMan says
Take out a $10k tax free equity loan
Why would anyone do that unless they are cash poor? My cash in the bank earns about 4% while equity loans are around 6%. "Tax free" has nothing to do with it.
Why spend your after tax dollars or capitals gains??? I think my point is obvious. I'm taxed around 20% federal alone. Varies year to year. The spread is 16% and I still get to keep the cash in the bank. Not sure what's confusing here. I'm losing 14-16% if I just pay the property as normal income. That $2k increase is costing you 3-4 times more than borrowing it and planning.
When you make payments on that loan, aren't you paying each installment with "after tax income?" Still cheaper to pay the $2k with "after tax income" up front than to make a series of "after tax income" payments that amount to the that $2k plus added interest.
Lol why not get 0% CC offers or take an emergency 401k loan.
Sure, but you invest the next 4 years of future taxes payments.
Either way, I'll state again $2k is trivial.
Oh yeah? Name them. I would be glad to take cash money out of my 4% and 5% accounts to put in a higher return.
Well now you have. My neighborhood is full of $1M plus homes who all got the $2k or so increase. Thing is, just 3 years ago these same homes were not $million homes. Now we are taxed like million-dollar homes. The mil rate here is 83 cents per hundred and I suspect the mil rate where you live is much higher.
From about 1870-1910, inflation in the US was minimal despite a boom in industrial capacity, population, etc.
Taxes on a 500K house in San Antonio is nearly 12K. In the county. It's a lot worse in the city limits.
Ultimately you need to move if they're bumping annual tax payments $2k. That's not normal at all unless in a $2-3M neighborhood in almost any state.
Oh yeah?
Here is where the `the taxes went up $1,131 per six months or $2262 per year:
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https://finance.yahoo.com/news/pimco-kiesel-called-housing-top-160339396.html?source=patrick.net
Bond manager Mark Kiesel sold his California home in 2006, when he presciently predicted the housing bubble would pop. He bought again in 2012, after U.S. prices fell more than 30% and found a floor.
Now, after a record surge in prices, Kiesel says the time to sell is once again at hand.