patrick.net

https://www.fastcompany.com/91429491/housing-market-mortgage-free-40-of-u-s-home-owners-why-the-number-keeps-growing

According to ResiClub’s analysis of the U.S. Census Bureau’s new annual data, 40.3% of U.S. owner-occupied housing units are now mortgage-free, marking a new high for this data series. That’s up from 39.8% in 2023.

The portion of homeowners with no mortgage has ticked up almost every year since 2010—when it was 32.8%.

AD says

https://www.fastcompany.com/91429491/housing-market-mortgage-free-40-of-u-s-home-owners-why-the-number-keeps-growing

According to ResiClub’s analysis of the U.S. Census Bureau’s new annual data, 40.3% of U.S. owner-occupied housing units are now mortgage-free, marking a new high for this data series. That’s up from 39.8% in 2023.

The portion of homeowners with no mortgage has ticked up almost every year since 2010—when it was 32.8%.

Good. They have plenty of equity to apply to price drops.

Oh wait! The Housing Experts of PatNet who refuse to accept reality will come up with more bullshit, I am sure.

Glock-n-Load says

Half mil? That seems significant.

It's CA. 15% on a 2 bed home that the owner might be throwing darts blindfolded trying to sell? Gotta look at the comps and see if it was over priced. Also looks outdate and furnished like shit. Looking at water 2-4 hours a day is not worth it.

Remember our buddies, Realtors as a former one. They'll over price listings to get a buyer at that price point. They would like to sell it, but it's a common con for Realtors to over price and do a bunch of open houses and find 1-2 multimillion buyers. Sit there, drink from a flask or offer up champaign to buyers. Tough job unless you're retarded said no one.

Basically price cuts on active listing are a bad metric on the market. You have to know the motive of the seller and broker. I wasn't the listing agent but our office would commonly list homes they couldn't sell to get buyers. In CA with the price point it's likely rampant.

The "Can't sell your home in the horrible Orlando-Sanford market? We can help, cash offers..." ads are everywhere now on billboards, radio, local streaming.

DemoralizerOfPanicans says

The "Can't sell your home in the horrible Orlando-Sanford market? We can help, cash offers..." ads are everywhere now on billboards, radio, local streaming.

I noticed east side of Panama City Beach that 3 bedroom 2.5 bath 2 car garage townhomes built after 2006 that went for an all time high of $320,000 in 2022 (and $275,000 in 2006) are now priced around $275,000 and the bottom feeders (i.e., cash buyers who will likely try to flip them if not rent them for a couple of yeas) are offering 70% of the latest sales price (around $270,000) which is $189,000.

The same townhomes were selling for $187,000 in 2016 and $210,000 in early 2020.

Ceffer says

Housing prices in Santa Cruz are coming down, believe it or not. Price cuts are habbening.

This place is right on a cliff overlooking the water and is a walk down the hill to the restaurant row of Capitola by the sea and the pier. Ordinarily, at the very least it would be a SiCo valley vanity acquisition.

@Ceffer

On Bing Maps, there's no house there. It's the beach itself.



Or maybe it's that brown roofed place above the marker. That must be it.

Patrick says

Or maybe it's that brown roofed place above the marker. That must be it.

LOL! Obviously, the beach up to the high tide mark is not 'ownable'. It does show what looks like vulnerable cliff. There seems to be a discontinuity along the cliff there.

Maybe the owners experienced a chunk of their yard being remanded to the ocean gods and decided to cut fuck while the cutting was good. I have seen houses on the ocean facing heights while paddle boarding that had their cliffy back yards and decks collapsed after storms. One guys unsupported deck was sticking out where his yard used to be. The house was on the market soon after. A guy I knew said he found prehistoric shark remains in rubble from that one.

The Capitola pier was cut in half by storm waves with a large chunk missing, and the 'former' restaurant at the end was trashed by storms in the last couple of years. They just rebuilt the pier last year. Also, a couple of very expensive condo type homes on the main beach of Capitola were destroyed by waves. Several of the popular restaurants have had to rebuild more than once in the last couple of years.

The end of the main Boardwalk pier over in Santa Cruz was also ripped off a couple of years ago by storm waves. It was kind of funny because they showed a restroom or building floating away on the piece of the pier with somebody on it. The person got off OK and wasn't hurt.

It is illegal now to fix your seawall in Maui. All of West Maui will be going into the ocean over the next 10-30 years. The government's plan is to grow marijuana in what's left of the land to, "replace tourist's dollars".

Due to plate tectonics, the Pacific Ocean is shrinking, while the Atlantic Ocean is spreading. Perhaps a lot of the Pacific Coast erosion is a temporary "sloshing around" while Pacific waters make their way to Atlantic waters while the respective oceanic crusts sort themselves out.

The Pacific on California coast is an erosive ocean. I have watched over the last ten years or so an attached rocky isthmus become a detached outcrop that is progressively being fractured and broken up. There is a neigborhood above Capitola on the cliffs and you can see where a previous ocean cliffside two lane paved road has been reduced to a small remaining asphalt strip. Temblors haven't been very big for a long time, but a lot of crap fell into the ocean with the Loma Prieta earthquake. Old pictures of Santa Cruz show lots of farmland out to cliffs that don't exist anymore.

AD says

DemoralizerOfPanicans says

The "Can't sell your home in the horrible Orlando-Sanford market? We can help, cash offers..." ads are everywhere now on billboards, radio, local streaming.

I noticed east side of Panama City Beach that 3 bedroom 2.5 bath 2 car garage townhomes built after 2006 that went for an all time high of $320,000 in 2022 (and $275,000 in 2006) are now priced around $275,000 and the bottom feeders (i.e., cash buyers who will likely try to flip them if not rent them for a couple of yeas) are offering 70% of the latest sales price (around $270,000) which is $189,000.

The same townhomes were selling for $187,000 in 2016 and $210,000 in early 2020.

What are the HOA fees on these?

I'd say, if you are obsessed with coastal properties, it's better buy on the Atlantic rather than the Pacific coast, because the earth is making more Alantc coast and reducing Pacific coast.

Plate tectonics is a bitch. All of the Pacific along the coasts are subduction zones. In the middle of the Pacific, where magma gets squeezed by the subduction on both sides, you get the various volcanic Pacific Islands. This is why the various islands in the middle are not sinking into the sea because of global warming. the entire Pacific plate is rising in the middle as it is forced along its edges into the Earth's mantle.

Conversely, on the Atlantic coast, new oceanic crust is being created, stabilizing, if not lowering sea levels along the edges of that ocean.

The emphasis here is on the edges or coastlines versus islands in the middle.

Glock-n-Load says

What are the HOA fees on these?

$420 a month (includes townhome insurance from drywall out, landscaping, roof and exterior surface maintenance and repair, pool, gym, garbage, etc)

but its going down from $420 a month to $383 a month starting in January 2026

.

Patrick says

On Bing Maps, there's no house there. It's the beach itself.

Better view:



Street View

Maga_Chaos_Monkey says

It is illegal now to fix your seawall in Maui. All of West Maui will be going into the ocean over the next 10-30 years. The government's plan is to grow marijuana in what's left of the land to, "replace tourist's dollars".

Where did you read this?

AD says

Glock-n-Load says

What are the HOA fees on these?

$420 a month (includes townhome insurance from drywall out, landscaping, roof and exterior surface maintenance and repair, pool, gym, garbage, etc)

but its going down from $420 a month to $383 a month starting in January 2026

I don't think I've ever heard of an HOA fee going down.

HeadSet says

Better view:

Ah, maybe that oceanfront property is relatively cheap because it will not be long until it is in the ocean.

Patrick says

HeadSet says

Better view:

Ah, maybe that oceanfront property is relatively cheap because it will not be long until it is in the ocean.

After seeing mudslides on news mostly between SF and half moon bay over the years, I wonder how these brave people still hanging around the cliffs and expecting everything will be fine!
The insurance premiums are going up hopefully more to these crazy properties like $1k/mo to be more responsible.
Most CA costal properties are owned by people and corporations taking advantage of Prop 13 lowest tax base.

AD says

https://www.fastcompany.com/91429491/housing-market-mortgage-free-40-of-u-s-home-owners-why-the-number-keeps-growing

According to ResiClub’s analysis of the U.S. Census Bureau’s new annual data, 40.3% of U.S. owner-occupied housing units are now mortgage-free, marking a new high for this data series. That’s up from 39.8% in 2023.

The portion of homeowners with no mortgage has ticked up almost every year since 2010—when it was 32.8%.

What's remarkable is that this period from 2010 included a long stretch of time when rates were between 2% and 3%. Really wouldn't make sense to pay off with those rates.

That said, I paid mine off, but rates were 4-5% at the time my 1.875% ARM was going to reprice. I figured paying off was the equivalent to putting some of my investments in bonds that paid similar. i.e.: No reason to keep a mortgage at 4.5% and use that spare money to buy bonds that pay 4.5%.

GNL says

AD says

Glock-n-Load says

What are the HOA fees on these?

$420 a month (includes townhome insurance from drywall out, landscaping, roof and exterior surface maintenance and repair, pool, gym, garbage, etc)

but its going down from $420 a month to $383 a month starting in January 2026

I don't think I've ever heard of an HOA fee going down.

I know someone who lives at that townhome HOA in Panama City Beach and they told me the HOA regular assessment $200 a month in 2013. So it will increase by about 5% a year when it is $383 in 2026.

I was told the decrease is because the HOA shopped around for better property insurance which also resulted in about a 25% savings from the previous year with state-owned Citizen insurance. Also they saved money on other services like landscaping.

(Reuters) -Parts of the U.S. economy, particularly housing, may already be in recession because of high interest rates, U.S. Treasury Secretary Scott Bessent said Sunday, repeating his call for the Federal Reserve to accelerate rate cuts.

"I think that we are in good shape, but I think that there are sectors of the economy that are in recession," Bessent said on CNN's "State of the Union" program. "And the Fed has caused a lot of distributional problems with their policies."

Bessent said that, although the overall U.S. economy remains solid, high mortgage rates still hinder the real estate market. Housing, he said, is effectively in a recession that is hitting low-end consumers the hardest because they have debts, not assets.

Pending home sales in the United States were flat in September, according to the National Association of Realtors.

The treasury secretary characterized the overall economic environment as in a transition period.

Fed Chair Jerome Powell last week signaled that the central bank may not cut rates further at its December meeting, prompting sharp criticism from Bessent and other Trump administration officials.

Federal Reserve Governor Stephen Miran, who is on leave from his post as chairman of the White House Council of Economic Advisers, said in an interview with the New York Times published on Saturday that the Fed risked inducing a recession if it did not swiftly lower interest rates.

Miran, who is due to return to his White House job in January, was one of two central bank governors who dissented from last week's Fed decision to lower interest rates by 25 basis points, arguing instead for a cut of 50 basis points, or 0.5 percentage point.

"If you keep policy this tight for a long period of time, then you run the risk that monetary policy itself is inducing a recession," Miran said in the New York Times interview, which was conducted on Friday. "I don't see a reason to run that risk if I'm not concerned about inflation on the upside."

Bessent echoed that view, saying that the Trump administration's cuts in government spending had helped to lower the deficit-to-gross-domestic-product ratio to 5.9% from 6.4%, which in turn should help lower inflation. The Fed can also help by continuing to bring down interest rates, he said.

"If we are contracting spending, then I would think inflation would be dropping. If inflation is dropping, then the Fed should be cutting rates," he said.

https://finance.yahoo.com/news/bessent-says-high-us-interest-180813344.html

Al_Sharpton_for_President says

housing, may already be in recession because of high interest rates

They spelled "prices" wrong.

https://www.fastcompany.com/91434330/housing-market-affordability-is-so-stretched-that-dr-horton-is-leaning-even-harder-on-mortgage-rate-buydowns

I wonder if the buydowns by DR Horton are just for a few years and then the mortgage rate is reset to the current rates.

I hope this is not a gimmick for unsuspecting buyers.

AD says

wonder if the buydowns by DR Horton are just for a few years and then the mortgage rate is reset to the current rates.

I'm sure that's how it works, but the victims are still underwritten based on the full interest rate at the time of reset. Who knows mayne interest rates really will go down or their salaries go waaaaaay up before reset.

Looks like they are pushing a 3, 2, 1 buydown product, but yeah quilified based on max reset amount.

https://www.cmgfi.com/calculator/buy-down

Be a damn shame if interest rates did drop quite a bit over the 3 years, but so did housing prices. That way the victim couldn't refinance unless they brought more coin to the table. -- Don't worry nobody is telling the victims about this possibility.

AD says

I wonder if the buydowns by DR Horton are just for a few years and then the mortgage rate is reset to the current rates.

I hope this is not a gimmick for unsuspecting buyers.

According to AI it is a gimmick for unsuspecting buyers:

DR Horton's rate buydowns are promotional incentives where the builder pays to lower your initial mortgage interest rate for a set period, often for the first year or two of the loan. This temporarily reduces your monthly payments, making the home more affordable, but the rate will increase later in the loan term. These offers are market-dependent and can include deals like a \(3.99\%\) rate for one to two years, followed by a higher rate for the remainder of the 30-year mortgage. 

https://www.reddit.com/r/RealEstate/comments/1ci6xk2/thoughts_on_using_dr_horton_as_a_lender_for_lower/
The lower interest rate is a buy down for only 2 years.

Not that there was really any doubt in your mind!!!

Shakedown nation.

AD says

https://www.fastcompany.com/91434330/housing-market-affordability-is-so-stretched-that-dr-horton-is-leaning-even-harder-on-mortgage-rate-buydowns

I wonder if the buydowns by DR Horton are just for a few years and then the mortgage rate is reset to the current rates.

I hope this is not a gimmick for unsuspecting buyers.

zzyzzx says

The lower interest rate is a buy down for only 2 years.

But it's their loan package. So in 2 yrs they will have bad loans on the books unless they hoist them off to Freddy & Fannie?

the cost of buying a home should include title insurance to protect from zombie mortgages or any zombie debt liens

https://www.the-sun.com/money/15435289/homeowner-foreclosure-zombie-second-mortgage-debt/

AD says

the cost of buying a home should include title insurance to protect from zombie mortgages or any zombie debt liens

https://www.the-sun.com/money/15435289/homeowner-foreclosure-zombie-second-mortgage-debt/

???? Why would title insurance cover this? Did you read the whole article? He failed to deal with this despite notices. This was debt he incurred. Title insurance would not cover this.

This also would have came up when he tried to sell this anyway.

MolotovCocktail says

50% of states so far.

The Hipster Coastal States.

Misc says

Be a damn shame if interest rates did drop quite a bit over the 3 years, but so did housing prices.

This happened in California 1990-1994

MolotovCocktail says

AD says

the cost of buying a home should include title insurance to protect from zombie mortgages or any zombie debt liens

https://www.the-sun.com/money/15435289/homeowner-foreclosure-zombie-second-mortgage-debt/

???? Why would title insurance cover this? Did you read the whole article? He failed to deal with this despite notices. This was debt he incurred. Title insurance would not cover this.

This also would have came up when he tried to sell this anyway.

I agree this is the exception as this article states he is to blame (i.e., “did nothing to tender or cure the arrearages” on his second mortgage) for that zombie mortgage which he likely took out during the Clinton House Bubble of 2003 to 2007, and he thought he was cleared when they sent him a notice on that 2nd mortgage or zombie mortgage back in 2009.

I have read that this was not uncommon for mortgagees to receive notices like this to find out later on some company bought that note and then pursued the note's debtor.

AD says

I have read that this was not uncommon for mortgagees to receive notices like this to find out later on some company bought that note and then pursued the note's debtor.

They do the same for credit card debt as well.

AD says

But...but...I thought the rates were going down!

So, what is the average age of a first time home buyer ????

Answer: 40

A new all time high. No need to make it look even more extreme than it is.

Misc says

So, what is the average age of a first time home buyer ????

Answer: 40

A new all time high. No need to make it look even more extreme than it is.

In fairness, everybody knows the price of housing is too damn high, and nobody wants to catch a falling knife. While memories are short, most people know or can easily see recent, past 7 year price history. Seeing ranches that went for $180k in 2019 go for $300k in 2022 and still too much today at $270k, esp. factoring in rates and double digit tax/ins increases.

So the people buying right now have money to burn and most are on the sidelines due to expectations both prices and rates will drop substantially over the next year or so.