patrick.net

Now everyone go eat some good food!

It's Thanksgiving :-)

No wonder every one you see is a stressed out of their minds powder keg.

They are only making 52K a year for combined household income and they are splurging on $290K median home prices.
I make double that, and I wouldn't dare take on more than $175K. Not when all of the other variables are ignored and the FED claims there is no inflation.

Now they say you should spend only 35% of your income on housing. I wouldn't ever spend over 25%.

Tenpoundbass says

They are only making 52K a year for combined household income and they are slurging on $290K meidan home prices

I believe the household median income is 66K a year

New homes are only 1/10th of sales, however, economic output is the most important factor due to construction jobs, big ticket item purchases , etc etc .

Since a good portion of the homes sold are much bigger than the median I would venture to say that we are talking about more than 100K household incomes buyers here

For new homes, which is a factor why the sales demand curve has been light in this cycle since it's a 90% mortgage market based sales sector

I was put through the ringer with my income back in 2010, I felt like if I made one penny less the whole deal would have been off, when I was closing and working with the loan officers.
I went from solid brown hair to salt-n-pepper litterally during that 45 day closing period.

Tenpoundbass says

I went from solid brown hair to salt-n-pepper litterally during that 45 day closing period.

marriage did that to me :-)

Ironman says

I'm so tired of hearing the "low inventory" chant causing prices to rise. It's total bullshit. There is 5.2 MONTHS supply, which is PLENTY of houses. Period.

That is very true for sales demand, yes.. but for price declines, it's not enough

In fact we have more annual inventory now than any period from 1999-2005 but missing roughly 1.5 million mortgage buyers a year in this cycle

On the rate aspect, rates have been falling for 34 years

If we pull back starting from 1900

Majority of the economic life cycle has had low rates

True but it can't and won't go on like this forever.

mell says

True but it can't and won't go on like this forever.

No it can't but it can stay low for a lot longer than what people think if inflation stays low as well.

Best case for higher rates and higher inflation are years 2020-2024 when demand consumption from a younger workforce creates more inflation.

However, big picture, older demographics are deflationary and the world is getting older, America does have a young workforce coming on line but a lot countries in the world are fighting older demographics