by AD ➕follow (1) 💰tip ignore
« First « Previous Comments 4,460 - 4,499 of 5,687 Next » Last » Search these comments
Nope these are Case/Shiller prices. They measure the difference in prices for the same houses over time.
I'll post my prediction again.
House prices will not see any kind of significant decrease. In fact, I believe we will see prices hold and go higher and higher. America is for sure creating a 2-tier economy...the haves and the have nots. The % of have nots will increase. But I do believe that property taxes will go to the moon OR the fed printer will continue to go brrrrrrrrrrrrrrrrrrrr.
https://wolfstreet.com/2024/02/26/prices-of-new-houses-v-prices-of-existing-houses-why-sales-of-new-houses-hang-in-there-while-sales-of-existing-houses-plunge/
which is a racket
30% of office buildings are ‘worth nothing’ and have to be torn down, say experts
https://creditnews.com/economy/30-of-office-buildings-are-worth-nothing-and-have-to-be-torn-down/
Wouldn't it be easier and better to simply ensure everyone has a living wage job? Or is that muh socialism speaking?
You cannot have a robust society society wide (or as wide as possible) if nothing is left on the table for the next guy.).
Materialism and Female Liberation (80% of consumer spending is female, and 2/3 of credit card debt AND the majority of college loans) was very expensive.
Wolf Richter
Feb 26, 2024 at 3:40 pm
ChS,
“Home prices aren’t that out of step with CPI”
LOL. CPI Rose by 31.6% over the past 10 years, while the median price of existing homes rose by 97% — home prices rose three times faster than CPI and nearly doubled!!!
Those numbers are accurate?
Right now the average 3 bedrm townhome is easily selling for around $275,000 and renting for $2200 a month, based on monthly costs of $400 for HOA, $150 for property insurance and $140 for property tax.
According to rent.com:
Rents in Florida have decreased -4.15% year over year.
Tampa’s rent has decreased -.96% year over year and -3.38% month over month, with a median rent of $2,162.
Orlando’s rent has decreased -1.99% year over year and -.04% month over month with a median rent of $2,110.
We'll see - I know we disagree on this, but I think the median home price is more fairly in the $200k neighborhood when all is said and done.
I'm focused mostly on Central and South Florida, but I think the whole state will shake out on a trip back to the historical mean.
According to rent.com:
Rents in Florida have decreased -4.15% year over year.
Tampa’s rent has decreased -.96% year over year and -3.38% month over month, with a median rent of $2,162.
Orlando’s rent has decreased -1.99% year over year and -.04% month over month with a median rent of $2,110.
I think Robert Shiller stated back in 2015 that historically housing prices have appreciated about 4% annually since 1950.
I'm focused mostly on Central and South Florida, but I think the whole state will shake out on a trip back to the historical mean.
According to rent.com:
Rents in Florida have decreased -4.15% year over year.
The decline of family formation - we are a post-nuclear family, not just post-extended family society - and the record unaffordability, and the building of 4/5 beds on Zero Lots is going to break the long term trend. Not many lazy girl jobs can support a $350k SFH mortgage when there's only a cat or single child, when factoring in 6 figure college debt on top of it all.
Then we're going to have the Boomer expiration/mandatory downsize (meaning, it will not longer be an option to delay leaving the larger home due to health or death) starting in the next 5-10 years.
My guess is because the 3 bedrm townhomes come with a very valuable garage and people don't want to rent a 3 bedroom apartment on the 2nd floor.
https://finance.yahoo.com/news/us-home-buying-demand-nears-120000320.html
US Home-Buying Demand Nears Worst Since 1995 With Rates Above 7%
AD says
My guess is because the 3 bedrm townhomes come with a very valuable garage and people don't want to rent a 3 bedroom apartment on the 2nd floor.
You would think that being on at least the 2nd floor in a place like Panama City beach would be the more desirable location.
That means housing prices are going to have to fall, in general. All markets are local so there will be some big variations.
Fall...or don't get sold. Homebuilders have already figured this out and now outcompete with existing home sellers with mortgage points buy downs. They have to move their houses, after all.
The home building industry is seeing the same demographic data as you, so I don't think they will overbuild and there will be an oversupply condition to cause a major drop in prices in the long term.
AD says
The home building industry is seeing the same demographic data as you, so I don't think they will overbuild and there will be an oversupply condition to cause a major drop in prices in the long term.
Did I say they were going to overbuild? No, I did not.
And you don't know what I was referring to by demographics. Had nothing to do with demand for housing. Had to do with cost of money. Since I was talking about mortgage rates I figured that was pretty clear.
Had to do with cost of money. Since I was talking about mortgage rates I figured that was pretty clear.
Boomers are keeping their homes. Likely paid off. Kids living in them.
I never said you said they were going to overbuild. I stated they would adjust the new construction rate to match forecasted demand. Yes the cost of money impacts demand. The higher the future cost, then prices may drop even more if there is an over supply. That is why home builders are cautious.
The 2000 tech crash was minor to the housing crash.
You're predicting sub 4% rates in 12 months?
VA which has been providing no money down mortgages and 100% cash out refis calls for halt to foreclosures:
https://news.va.gov/press-room/va-calls-on-mortgage-servicers-to-pause-foreclosures-of-va-guaranteed-loans-through-may-31-2024/
FHA suspends foreclosures for 60 days: https://www.housingfinance.com/news/hud-halts-foreclosures-for-60-days_o
« First « Previous Comments 4,460 - 4,499 of 5,687 Next » Last » Search these comments
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.