From Fox:
Why are home prices so expensive? Blame the boomers, Barclays says
U.S. home prices across the country are surging even with the astronomical rise in mortgage rates, putting ownership out of reach for millions of Americans.
The spike in interest rates – which topped 7% last year for the first time in two decades – has created a “golden handcuff” effect in the housing market: Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell and take on a more expensive option, leaving few options for eager would-be buyers.
The number of available homes on the market at the end of August was down by more than 9% from the same time last year and down a stunning 45% from the typical amount before the pandemic began in early 2020, according to a recent report from Realtor.com.
But there’s another factor driving home prices higher, according to Barclays economists; baby boomers. In a recent analyst note, titled “Blame the Boomers,” the strategists argued the aging of America is spurring more household formation.
“The US housing sector is on the upswing again, even with mortgage rates at multi-decade highs,” the strategists, led by Jonathan Millar, wrote. “Although much has been attributed to shortages of existing properties and mortgage lock-in effects, we think strong demand is a symptom of the aging population.”
…
It may seem “paradoxical,” because an aging population tends to require fewer homes. But that’s not the case with the baby boomers, who are currently between the ages of 57 and 75. Boomers are reaching retirement age and forming new households, either due to divorce or death, but they aren’t freeing up existing supply.
…
“While it is likely true that older people tend to prefer smaller housing units, it is not true that an older population requires fewer housing units,” Millar said.
Although there have been “notable” increases in demand from the younger population, nearly all additional demand is explained by the aging population and significant increases in households, according to the analysis.
Barclays anticipates the imbalance between excessive demand among boomers and limited supply to last for several years.
Is anyone running a pool on which automaker files bankruptcy first?
Hat tip to Phoenix for last night’s find on the Spring Valley mayor’s rant. This is classic beyond words and a must see:
https://www.reddit.com/r/PublicFreakout/comments/16ijhw6/village_of_spring_valley_new_york_mayor_alan_simon/?utm_source=share&utm_medium=web2x&context=3
Is anyone running a pool on which automaker files bankruptcy first?
I bought a Ford Explorer in 2009, the transmission went after 50,000 miles. I doubled down like an id1ot, got a new Eddie Bauer Explorer after the 1st Explorer and electrical systems starting going haywire after five years. Lights in the cabin wouldn’t go off, some components would blink and a myriad of other issues. This, after owning Hondas that easily reached 150,000 miles and beyond.
Somehow, the O’Biden regime will pilfer your money, claim he saved the auto industry and the votes will be secured.
Watch an autoline discussion on youtube yesterday with John Mcelroy about the possibility of the strike, very informative.
“When auto CEOs say they can’t afford to pay their workers more, remember that the Big Three have made a combined $21 billion in profits in the first half of 2023 and $250 billion in profits over the decade.
They’ve also spent $5 billion on stock buybacks the past year.
Hello?“
-Robert Reich
Jews vs Italians
https://youtu.be/bbGSI0Ahtac?si=XLM9OHhDcdgnywxV
Barclays anticipates the imbalance between excessive demand among boomers and limited supply to last for several years.
The value of my house is rising daily akin to watching that national debt clock turning numbers faster than a 72-inch broken water main flooding the Fulton St. station. Sorry kids, it’s gonna cost ya.
So if I am understanding this article, baby boomers who had families and houses ( presumably), they are now starting new families, but I presume no kids at that age, and they need more houses to start their new families? So what are they doing with the houses they already have? Just asking.
Ten 433.2
Last month’s and cycle high was 436.
Estimated tax day. God this sucks.
3b,
As long as house goes up 70-100% then why sell. It is a g-d windfall. The Fed has to destroy it and cause major correction. Once boomers see 100k of value destroyed then will sell before losing more. This is not hard to see. Fed f&cking over younger gens to please boomers yet again. It can’t go on for years. They are destroying labor market as well. Two things that boomers don’t need of course
Boomer have pension.
Boomer have 401k.
Boomer have social security.
Boomer have consulting gig.
Boomer like Vermont in summer. Boomer buy house in Vermont.
Boomer like Florida in winter. Boomer buy house in Florida.
Boomer like beach. Boomer buy house by beach.
Boomer like money. Boomer sublet houses when not in use to make more money.
3b says:
September 15, 2023 at 8:06 am
So if I am understanding this article, baby boomers who had families and houses ( presumably), they are now starting new families, but I presume no kids at that age, and they need more houses to start their new families? So what are they doing with the houses they already have? Just asking.
Lol. Family values
https://www.dailymail.co.uk/news/article-12509093/Kristin-Noem-Corey-Lewandowski-secret-affair.html#article-12509093
Seriously, this corp world is f-in nuts. “We need people!” “No we don’t” “Yes we do”
They just let go of 7k not even 10 months ago. All about getting rid of folks to hire back at lower wages. Nice.
Salesforce wants to hire over 3K
“Glamorous Noem – who served four terms as her state’s only member of the US House of Representatives – won the governorship in 2018 promising to uphold the wholesome family values that she said South Dakotans have ‘long embraced’.
Defending ‘traditional marriage’, which she defined as ‘a special, God-given union between one man and one woman’, was particularly important to her.
It was the foundation for her beliefs, policy priorities and the ideals she lives by, said Noem, who has a son and two daughters with her husband Bryon who she married in 1992.”
Bob for the win!
HMB,
Yeah, I thought it was fake as well. But it’s not. Story behind it is interesting.
I met someone last night at a local football game. 32, just graduated nursing school. Said offers were 85 k with a 3 year contract. Kid is complaining not enough money, can’t be locked down, how it would have been enough before covid, won’t be able to save after apartment costs, 3 more years of school if she wants NP or CRNA.
I agree with her. Boomer caused all of it. It’s all boomer greed. Generational theft.
That lady smiling in the supermarket wants to F you out of your last dollar and your child’s.
If I am wrong, I will admit it. But I truly believe it’s boomer greed fueling this fire.
VSG,
What’s the frequency, Kenneth?
Feminism has told women they can make it on their own without a man.
Well, feminism hasn’t planned on fighting Boomer greed and the American Federal bank.
It hadn’t planned on fighting covid, or this crazy housing market.
So, since you are getting older, and cannot stay in school until you are 50 yet still have a child, pick some stable guy now with your 85k salary, stretch yourself and buy a house now. Pump out a baby, stick around until the kid is 7 and you have a bit of equity, start monkey branching, and find your dream guy. Kick your stepping stone to the curb, take his child support and alimony and run.
If you are good and lie alot, you might be able to get your kid free and clear.
You ain’t buying your “McMansion” or, even a cape, on one salary. Barbie was wrong.
Feminism defeated by BOOOME RRRR.
Bystander: Is it Boomer not selling their current houses causing the shortage, or Boomer keeping current house and buying more houses? Where does the Boomers starting new families fit in?
VSG,
I guess Kristi was “Monkey Branching.”
Family values my azz. God given my azz again. Bet the poor husband had no idea and since she bragged about her “family values and “God,” he believed her. My ex was a “God “worshiper, and liar.
If there I have one thing listening to women all day, it’s that every married or dating one is unhappy, the smallest thing annoys them, they will flirt with other men easily, and give them a few drinks and they can be easily convinced to cheat.
They do it at the same rate as men, they are just much quieter about it. Unlike men, it’s not an attribute to kiss and tell, they look bad, so the man they think will keep it quiet will get some.
I’d bet that affair with Corey has been going on for some time.
It is both, 3b. Rich boomers buying second home, leveraging Fed’s printing gifts while they have no mortgage on first home. I think it was noted that boomers were still 50% of sales last year. Nuts! Other avg boomers are house rich and no need to sell or move. They don’t need money now, won’t buy at high rates and prices keep rising anyway. Fed needs to force hand in other ways while not punishing youth
Phoenix,
85K in NYC area? A F-in joke for educated person while other package workers getting 40% raises. Unions and govt jobs are the way. I am seeing lots of tech jobs being offered at lower salaries than a few months ago…much lower, 100k lower. This country is f-ed up
Fed needs to force hand in other ways while not punishing youth.
I propose we take in the youth as assistants, running errands for us, doing housework, etc. on their free time. In exchange, we can grant house credits, sort of like those tickets you used to get playing skee ball down the shore. As you earn credits, we’ll reduce some of the price of our house. A few years of credits could earn them a maximum of a 5% price reduction! That’s assuming prices stay at current levels or rise. Future proceeds are not always indicative of past results.
…package workers getting 40% raises…
Offer me $170,000 per year to deliver packages and I’ll quit my current job tomorrow. I was reading comments from an article that were 99% sympathetic to the poor drivers who had to work in all kinds of weather and deal with traffic.
Cry me a fucking river. I commuted 90 miles each way to install 2000 pound sections of concrete storm pipe for $10 per hour, 12 hours per day with no overtime; loaded trucks and often did double shifts of 16 hours straight; pumped gas overnight in sleet and freezing rain with no overhang; worked diner kitchens scrubbing pots and the list goes on. I don’t want to hear sob stories from anyone who hasn’t traveled this road.
So, you’re right, Bystander. If you earned time in the Business/IT world, one should be able to call the shots and earn way more than what they’re currently getting. We’re screwed in this country because too many are too soft and think they deserve too much.
Goona be a wild weekend in Asbury. Foo Fighters, The Killers, Greta Van Fleet and Weezer, and Beach boys on the beach. Hurricane waves off shore..
https://www.seahearnowfestival.com/
Ed,
Extra credits for the young ladies willing to help old man out? I just want a natural job market, natural housing market. There are too many ‘rules for thee but not for me’ going on especially with labor and tax code. You can’t reward Benioff of world, taking tax money, hiring like mad then saying goodbye bc Fed raised rate, only to rehire again 10 months later. This short term incentivizing at top to boost stock price is abhorrent. My brother took job at hedge fund 16 months ago and he says job not looking good and cuts coming. He told me three other former coworkers in tech let go. Yes, they make alot but spend alot too. High skill, high education and experience. There is no place to go.
Can corroborate:
SIL was let go from Google contractor in the summer. Got a call from same contractor yesterday and learned that a different group is frantically looking for people. Was offered lower hourly than before.
Ed,
Absolutely we have become soft but easy money leads to easy society. I think many of us remember the wipeout of dot com. Enron, Worldcom,Anderson scandals that decimated 100ks of jobs. Wealth was wiped away. For 20 years easy money has created great wealth for boomers. They did not work for it. It was provided to them by policy. This is all ok if you do the same for Genx and millenials. I will say it again, my house has to be worth 4 times what I paid for it with next 10 years. The Down has triples in value since boomers got bailouts in 2008. I will need it around 60-70k too for retirement. Boomers paid 75k salary with 200k home purchase. I will need 200k for 800k home . How do we get there? We won’t..they will accept lower quality of life and news won’t cover it.
Bystander: I understand what you are saying, but don’t, if that makes any sense. Own house free and clear let’s say, only to buy another house with a mortgage, property taxes and maintenance etc, what’s the point? But if it’s the young or the boomers, the young will pay.
The property taxes ensure you are a renter for life. There are placed in the world where ownership of land is actually real and the government isn’t your landlord. Not many, but they do exist.
3b,
I think a lot of boomers paying cash. They can tap investments which went bonkers since 2020. That is what I saying. Maybe took ones in 2020-2022 when rates were low if made sense. Getting 5 percent on cash with 3 % fixed mortgage rate. Not bad. Lots of article about people coming with cash. Unprecedented levels. Has to be major part of that story
11:27 we’ll, clearly the stats tell the story.
More “kids” living at home into their forties.
Not everyone makes $300k a year, yet somehow that number
seems like a minimum to live as the boomers lived.
They paid $150k for their homes and sell them for $1m.
Boomer,
I have seen numerous jobs recently reposted on LI with 50% less salaries. This is real. I applied several months back and now recently reposted. I would never have applied at these wages. My own IB on freeze all year and awaiting layoffs from merger.They will rehire desperate people and ask them to give up severance. Not kidding. I was talking to ED about it other day.
Maga Family Values
Phoenix says:
September 15, 2023 at 10:08 am
VSG,
I guess Kristi was “Monkey Branching.”
Family values my azz. God given my azz again. Bet the poor husband had no idea and since she bragged about her “family values and “God,” he believed her. My ex was a “God “worshiper, and liar.
If there I have one thing listening to women all day, it’s that every married or dating one is unhappy, the smallest thing annoys them, they will flirt with other men easily, and give them a few drinks and they can be easily convinced to cheat.
They do it at the same rate as men, they are just much quieter about it. Unlike men, it’s not an attribute to kiss and tell, they look bad, so the man they think will keep it quiet will get some.
I’d bet that affair with Corey has been going on for some time.
I get PHX listings beamed into my mailbox since the summer trip.
8/9/2023 Listed for sale $719,500+56.4%$370/sqft
3/29/2019 Sold $460,000$237/sqft
It doesn’t even matter what this listing is as there are so many like it. It’s a town home in a central location, no gut reno or anything since 2019.
How do people float something this with a straight face?
Kristi is rocketing her way up the Trump VP shortlist, how does Nikki respond?
OF leak?
Hughes,
I thought Nikki was caught in some affair years back before she went cult. I think she denied it.
Americans do not trust the government’s economic news – or the media’s reporting of it – according to a Harris poll conducted exclusively for the Guardian that presents the White House with a major hurdle as it pushes Biden’s economic record ahead of next year’s election.
The US has roared back from the Covid recession by official measures. But two-thirds of Americans are unhappy about the economy despite consistent reports that inflation is easing and unemployment is close to a 50-year low. And the poll suggests many are unaware of or don’t believe the positive economic news the government has reported.
Bystander,
Thank you for reaffirming my position that the bottom isn’t in. The pain has only just begun. This was a bear market rally…massive one. No way I have the balls to hold in this market.
As for real estate, i hope the greedy people that took extreme leverage realize they better sell now or get royally f’ed bag holders till the bull market returns which may take years. 2025…
Researchers at the Federal Reserve have issued warnings in recent weeks about possible disruptions in U.S. Treasuries due to hedge funds’ short positions hitting a record high with basis trades, per Reuters.
“So, what you’re telling me, is that the music is about to stop, and we’re going to be left holding the biggest bag of odorous excrement ever assembled in the history of capitalism.”
“Fed f&cking over younger gens to please boomers yet again. It can’t go on for years.”
When speaking of the highest levels of governance never attribute to malice that which can be explained by mere incompetence.
There is not enough intelligence there to have the intent to fuck one party over another, just gross incompetence wallpapered by a massive ponzi scheme that most of them aren’t even bright enough to be aware they are running.
“Because the VIX is clearly being manipulated. Everyone and their mother worth their salt, has abandoned it.”
You can’t be this stupid…VIX is simply a mathematical derivation of the values of near term option series on the SPX…so if you believe your drivel you are stating the SPX, largest market in the world, is somehow being manipulated.
The only association ‘everyone and their mothers’ has with the VIX is that the twidiots from whom you derive this misinformation are in fact still living in their mothers’ basements…
Dove into some chains, heavier on the options than the futes. Managed positions closely, still cost me about 1/2 of 1% of total portfolio and 2% of actively traded part. Today made up about half that ground, took the opportunity to lighten up position size, and did roll some positions out to later expiry.
Not predicting anything, just an efficient low cost, high payout trade for any downdraft.
Doing well overall, off ATHs but still within the bandwidth. My CRWD is carrying me. My remaining VNO had so many positions written against it I actually have a negative basis lol. Have some RIG treating me nicely. Traded this earnings/events calendar well enough, profitable trades already exited in ABNB, RTX, ZM, BBY. Still kinda treading water, no strong opinion one way or the other. And no real need to have one yet.
“Harris poll conducted”
Kamala? No I don’t trust it. Nor did I trust Dumpy’s big tax cut that led to great windfalls for America. We got zilch from old IB. They are all liars and basically spin anything to make it seem like we all are benefitting when it is always a small minority.
left,
VIX heavily influenced options. You keep thinking the market isn’t manipulated. Until someone proves to me it’s not, I will continue to play the game understanding it’s heavily manipulated.
Heavily influenced BY options market.
And what I meant by abandoned…they don’t rely on it as the indicator it once was.
Why risk losing 20-30% in stocks if a recession hits when you can make 5% in a money market or treasuries risk free?
I think many investors are starting to ask themselves this question.
Fool, VIX is not influenced by the options market….it is a number directly derived from the options market. It doesn’t otherwise exist….I can settle for cows, corn, Coca-Cola, or QQQs…try to settle for a ‘VIX’…it doesn’t exist. Mathematical derivation.
Also, re: manipulation, hard to prove a negative right, teacher?
Boise real estate agent Shauna Pendleton has clients who bought at the peak and are now forced to sell as they get called back into the office.
“They’ll probably have to take a $100,000 loss on their home” she says
Left,
You are seriously going to die on this hill? You don’t think the options market is f’ing manipulated? You don’t think it’s wild that the VIX is this low right before what looks like a major correction? Oil flying high and the bond market trading like a penny stock….yet VIX says all is calm and nothing to fear. Good luck with that.
Do you understand as a trader that you are playing a game of poker where someone at your table knows everyone’s hand? That’s the reality. That’s why the more money you have, the harder it is to make it. They know your moves. Doesn’t mean you will lose, but you have to be extra smart.
Class: https://www.dailymail.co.uk/news/article-12522933/Denver-homeless-camp-bar-rent-prostitution.html
major correction? Is that one of your 10 year calls?
Give it a rest Pumps. Here is some research for ya..
https://www.yardeni.com/pub/stmkteqmardebt.pdf
First Kristi, now Lauren. “Anxiety of being out in public, the freak’n woman is a politician, not an accountant.” The lies just roll out of their mouths.
Republican firebrand Lauren Boebert has finally apologized for her sleazy behavior during a trip to see Beetlejuice the musical at a Denver theater. Boebert, who became a grandma earlier this year aged 36, blamed her divorce and the anxiety of being out in public after was caught heavy-petting with ‘ Democrat ‘ boyfriend Quinn Gallagher , waving her hands, singing loudly, using flash photography and vaping. After being ejected from the show last Sunday, she asked an usher ‘Do you know who I am?’ and gave a staffer the finger
“ Security footage from Denver’s Buell Theatre Sunday shows the 36-year-old Colorado Republican reaching down for her date’s crotch shortly after blowing a plume of vaporized smoke into the air, which she initially denied doing.
When her date — Aspen bar owner Quinn Gallagher, 46 — in turn appeared to fondle her breast, the congresswoman aggressively grabbed his hand to keep it there.
The heavy petting was just one immature action in a series by Boebert, which led theater staff to boot the pair out before the end of the show.”
Lefty,
Even if you don’t believe the manipulation, that’s fine. Doesn’t matter, so let me give you a different angle based on the current low on the VIX. Imagine it has been sunny without a cloud for a month straight, hasn’t happened in the last 3.5 years. Might be smart to assume it might rain soon…no?
If taxes are your problem, then New Jersey is not the state for you.”….Murphy was ahead of his time … New data released by the U.S. Census shows the Garden State has the country’s highest median household income.
New Jersey’s median household income is $96,346, which is more than $20,000 higher than the nation’s median household incom
Highest median income highest property taxes, and high housing prices.
“ Lauren Boebert was thrown out of a kid-friendly musical for groping her boyfriend’s crotch while he groped her boobs.
Married governor Kristi Noem is having an affair with Corey Lewandowski.
Marge Greene cheated on her husband.
Welcome to the Hall of Fame of Evangelicals”
VSG
In the south it’s amazing how many people when they introduce themselves will tell you in the first few minutes how many years they’ve been a member of their church and how many times they’ve been married.
Same as it ever was:
After a dramatic impeachment trial that lasted more than a week, Ken Paxton, the ultraconservative Texas attorney general, has been acquitted and will be able to resume his work in elected office.
Paxton, who faced 16 articles of impeachment against him in this trial – involving bribery, dereliction of duty and disregard for official duty – and four more separately, avoided becoming Texas’s highest-ranking elected official to be removed from state office. The only two successful impeachments of Texas state officials were governor James “Pa” Ferguson in 1917 and a district judge in 1975.
During Saturday’s senate voting session, which required 21 votes to convict Paxton on any one article, the majority of senators voted along party lines to acquit. Republicans currently dominate the chamber with a 19-12 majority.
Just a smack of Chipotle.
https://www.reddit.com/r/PublicFreakout/comments/16k3nru/chipotle_employee_gets_clean_right_hook_on_rude/?utm_source=share&utm_medium=web2x&context=3
VSG,
It used to be the men that were the pigs, that did all of the cheating.
Feminism has given them a “leg up” it seems.
😂
Boebert clearly knows how to rig an erection.
To those looking forward to moving to Vegas. Avoid bike riding
https://www.reddit.com/r/PublicFreakout/comments/16jsoep/las_vegas_teens_steal_a_car_hit_and_run_another/?utm_source=share&utm_medium=web2x&context=3
Two days ago, I pointed out that over the prior 6 trading days, utilities had beaten the S&P 500 by 4.5% and the Russell 2000 by 6%.
People said 6 days was too short and we shouldn’t draw conclusions.
Today, over the past 8 trading days, the gap has grown to nearly 6.5% on the S&P 500 and 7% on the Russell 2000.
Time to start paying attention. Something’s changing here!
“To those looking forward to moving to Vegas. Avoid bike riding”
might want to rethink Portland too.
https://www.reddit.com/r/PublicFreakout/comments/16hpxm2/crazy_cyclist_rides_through_traffic_in_portland/