From Yahoo Finance:
Homebuyers still price sensitive as mortgage rates climb: Economist
Mortgage rates rose for their fourth straight week, the 30-year fixed rate mortgage now sitting at 6.54%. Existing home sales also fell to a 14-year low, the National Association of Realtors reporting a figure of 3.84 million for the month of September.
Market Domination welcomes Realtor.com chief economist Danielle Hale to talk about this week’s wave of housing and mortgage data.
“A lot of consumers were expecting mortgage rates to trend down for longer than they have. The economic strength that we’ve seen in… the most recent job market reading has caused a bit of a rebound in interest rates, including mortgage rates,” Hale explains to Julie Hyman and Josh Lipton. “And so consumers have been a bit caught off guard. And we haven’t seen the improvement yet. I think people were waiting for more and we just haven’t seen that yet.”
Hale anticipates mortgage rates to sit just above 6% this time next year. Currently, she is seeing “extraordinarily resilient” home prices as new homebuyers pull out of their housing market searches.
“And so that the fact that supply only just meets demand has kept prices relatively elevated. So I don’t think we’re going to see a lot of pricing relief unless we add a lot more construction,” Hale tells Yahoo Finance.
Foist
This is only relevant to places where people want to live: Blue Cities.
It’s not relevant to places where people do not want to live: Maga GOP States.
NYC, Seattle, San Francisco, Montclair etc, have tremendous demand.
Oklahoma, Alabama, Tennessee, Arkansas have no demand.
“And so that the fact that supply only just meets demand has kept prices relatively elevated. So I don’t think we’re going to see a lot of pricing relief unless we add a lot more construction,” Hale tells Yahoo Finance.
I see pods being built everywhere. Or, are pods not what younger families want or need? So many what-ifs. Then again, pods are going for what single family homes were going for just a few years ago plus HOA fees AND property taxes. No advantage there. Does one need to go to Fort Wayne or seize Gary, Indiana and turn it into a thriving city again?
Nowhere to run, nowhere to hide. The People’s Great City of Clifton, listed for 699K, sold for 777K this past June. It’s late 1970s decor throughout but hey, you want a house? It’s for the privileged. I can find hundreds of similar sales in the vicinity:
https://www.trulia.com/home/61-pilgrim-dr-clifton-nj-07013-39725772
Fast: Not too long ago, 770k was a Franklin Lakes house price. Today every town in Bergen Co/ north Jersey is Franklin Lakes.
Fast Eddie says:
October 25, 2024 at 8:52 am
“It’s late 1970s decor throughout but hey, you want a house?”
I wonder if my father can ‘sell’ his garden shed??? True, someone would have to share it with two lawnmowers and a few bags of twenty year-old weed-n-feed, but it has 4 walls, a roof and even a small window — isn’t that enough in today’s market?
A power couple paid $875k for move into a more dated house than mine two homes down. I paid $435. He’s a corporate lawyer, she works for Bloomberg. All those earnings, straight into the mortgage payment.
Fast
It’s got a Married with children decor. That’s easily worth another 100k
BRT: no. Large down payment. Ask daddy where it came from. Not kidding.
Normal people sitting on massive amounts of money.
$500K accounts are now $1M
$2M are now $4.
Not craziness. Regular people.
I keep guilting parents to help their kids.
I’m beginning to think there are two possible things at play here regarding RE prices.
First, I think a ton of homes are being purchased with inheritances from boomer gains. This is the last pensioned generation, so this will not happen when their offspring age, especially considering the lesser likelihood that RE will keep exploding upward against the backdrop of continued higher interest rates and a demographic shift of people having less kids and even staying single.
Second, there’s a phenomenon that occurs as one ages that is easy to ignore due to our own inherent biases. That is, we choose to ignore the impact of inflation on the starting salaries for newly minted college grads since it makes many of us look unsuccessful in comparison. For example, I recall when my dad sold his company for a million dollars around the the millenium. He was very successful. He had an advanced degree from Columbia in Engineering, was an All-American athlete in high school and worked incredibly hard his entire working life, waking at 5am and returning home from work between 5:30 and 6:00pm. He put seven kids through college and all of us have managed to have decently successful lives ourselves. He built his electronics manufacturing business from the ground up and specialized in the production of rectifiers used primarily in elevators, but also in some military applications. When I first heard he was a millionaire, I was completely wowed. Until about ten year later when I realized I was a millionaire and would retire with many times that. And all I did was work as a mid level manager in the corporate world. I look at what kids make out of school today and many of them get a signing bonus larger than my first professional salary out of college. Heck, I know a lot of people who are starting near 6 figures. It took me almost fifteen years of sweating my ass off to get there. Now today, I see what people are being hired at and I wonder what all of my experience has gotten me? Thank Muhammed I saved all of this time. If I didn’t, I would be looking forward to the day my son graduates so he could take ME out for dinner. I guess what I am trying to say in simple terms is that houses sounds really expensive until you factor in the impact of inflation and wage increases.
Just some food for thought.
Chicago,
I think we are saying the same thing in different ways. Funny how it occured simultaneously.
Chi, my other new neighbors across the street, definitely, they went $950k and won the bidding war. You can tell it wasn’t their money they were bidding with. And the parents were regularly in checking on the contracting work to fix everything. But yes, I don’t doubt that most of these new purchases at obscene prices are coming from parents money.
But this couple, I talked to the kid. His parents live in Madison and have like 3 vacation homes. He moved to Lawrence because anything North of 287 was out of their price range. I think the whole carrying $600k in combined student loans probably prevented them from getting anything elsewhere.
Beer,
It’s got a Married with children decor. That’s easily worth another 100k.
Christina Applegate! Ooofa! ;)
Parents bought her a house? My property?
https://www.reddit.com/r/PublicFreakout/comments/1gbp0fd/unhinged_girl_after_almost_mowing_down_a_lady_and/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
re: “I keep guilting parents to help their kids”
Are 50 year olds really “kids” anymore?
Lib
There is also the fact that around the time your dad was doing his thing, Europe was destroyed, Japan was nuked, Russia had 40 million dead soldiers, Germany was finished, and America was unscathed with only 30k losses and no attacks on it’s mainland. Not to forget manufacturing was in high gear in America with goverment assistance, the same assistance China gives its manufacturing departments today just not under wartime.
The age to adulthood is rising as fast as home prices. We like our youth stupid and high on legal weed.
Juice Box says:
October 25, 2024 at 10:29 am
re: “I keep guilting parents to help their kids”
Are 50 year olds really “kids” anymore?
Boomers tilted the scale in their favor.
Same ones that have a pension themselves made sure no one else will ever get one.
Then they got Covid, cried, and stuck the youth with the bill. Or the debt, that’s why that FRED chart looks like a Musk Rocket climbing.
Speaking of 50 year old kids. One of my relatives keeps hitting everyone up for favors and money this month. Lost regular good job last year and was driving Uber since maybe clearing $200 a day. They just got into an accident (not their fault) and car is totaled, it was a new car and now no car no income. Insurance will probably cut them a check for less than they put down on the car and total it, probably won’t get another new car loan etc without income other than Uber? Not really sure how car loans work these days if all you do is drive Uber.
re: ” We like our youth stupid and high on legal weed.”
Was in town the other day to pickup some greek takeout food and there is a new dispensary, next to WaWa and were day laborers sometimes wait to be picked up.
https://frostednug.com
I think the town approved three licenses so anyway was out for dinner and drinks with a coworker Wednesday night at the local Red Rock, nice evening so we were outside. It’s next to the Hospital. I don’t know who was smoking weed but the smell was everywhere around. It’s illegal to use weed in public places, and really I just want to enjoy my dinner. If you smoke cigarettes or weed do it somewhere else.
“It’s illegal to use weed in public places, and really I just want to enjoy my dinner. If you smoke cigarettes or weed do it somewhere else.”
Ok Boomer.
Hehe
We like our youth stupid and high on legal weed.
Soft and high. I was in the office this week… a colleague is training recent grads, says they simply don’t want to be proactive or assertive. He says they’re too passive and not willing to troubleshoot or research. He says way too much hand-holding.
Katrina is now up in 6 of 7 swing states, +5 nationally. I guess saving democracy sprinkled with joy is the mood for a day.
Our youth being asked important questions.
https://youtu.be/U8b_7jgjWCM
10:58 maybe your firm isn’t attracting good people…
Who is Katrina? Is this day drinking on a Friday?
Anyone think that shares in gun stock/gun sales gonna rise if Kamala becomes President?
Lib as a woman
https://www.youtube.com/shorts/hQDcBsbfB1I?feature=share
It is interesting as we get older how much our parents influence is impacting us.
11:10 It’s really easy to get guns in red states.
Not so much in blue ones.
As I was driving last night to a dinner I was thinking the car looks a little dirty. I found a car wash in Westfield. The basic wash was $22 WTF. Same wash in my area is $9.
If the price wasnt bad enough, you had to get out of your car and let the staff drive it through the wash lane. No way I’m handing over my pride and joy to someone who may or may not have driven a manual back in the old country.
I’ll stick to Bergen, Union is weird.
Some boomers help their children more than others. Buying a house for them is a nice gesture, but wait till you read this:
The parents of a Utah woman accused of murdering her husband after confessing an affair have been arrested on charges they helped her clean the crime scene.
Thomas Gledhill, 71, and Rosalie Gledhill, 67, were charged with obstruction of justice for allegedly helping their daughter Jennifer Gledhill clean her $1 million home after, police say, she shot her husband Matthew Johnson dead as he slept.
Police say witnesses saw the parents cleaning 41-year-old Jennifer’s house for five hours, with Rosalie suspected of buying a new mattress for her daughter
Tucker Carlson. Daddy spanking Hehe.
The train has left the tracks.
https://youtu.be/fYNrDI1dtEw?t=121
It’s good to be the king.
Goggins, who lives in Chatham, was a former senior vice-president and general counsel for the credit rating service, before retiring this year. From 2018 to 2021, Goggins earned $54 million in earned income, yet never failed a federal income tax return, US Attorney Philip Sellinger said.
Goggins was also sentenced to one year of supervised release and paid the IRS $3.11 million, Sellinger said. He was also fined $40,000.
Lib: You have a point in some respects, but not every boomer parent is giving that kind of cash for down payments. Even the ones that do have those kinds of resources, once the down payment is done, there is still the monthly mortgage payment. One person loses employment, and then it becomes a problem. It was not that long ago, where one income could buy a house in a nice suburb and support a family, while one parent stayed home with the kids until school age. That is out of reach for most young families today.
In your mind Which one of us looks the most like this guy?
https://nypost.com/2024/10/25/us-news/bearded-perp-covers-his-face-in-markers-after-threatening-to-blow-up-ulta-beauty-store/
It was not that long ago, where one income could buy a house in a nice suburb and support a family, while one parent stayed home with the kids until school age. That is out of reach for most young families today.
What do you think caused this 3b?
Obviously you have someone in mind. You should go first.
Hold my beer says:
October 25, 2024 at 12:13 pm
In your mind Which one of us looks the most like this guy?
https://nypost.com/2024/10/25/us-news/bearded-perp-covers-his-face-in-markers-after-threatening-to-blow-up-ulta-beauty-store/
Phoenix,
Yes, that could be me, though my breasts are probably larger.
3B,
Absoultely it’s not all. Everyone else moves into a cardboard apartment.
And for those who want to claim the election is being “stolen” again. Please read this!
https://www.readtangle.com/election-fraud-explanations-debunked-2024/?ref=tangle-newsletter
Flab
Hold my beer says:
October 25, 2024 at 12:13 pm
In your mind Which one of us looks the most like this guy?
https://nypost.com/2024/10/25/us-news/bearded-perp-covers-his-face-in-markers-after-threatening-to-blow-up-ulta-beauty-store/
A lot of it is indirect. The kids are launched out of the house with a chunk of change.
Most kids want a car, insurance, gas, restaurant bills, clothes etc.
How do you pay for it? Job. Gifts through the stages of life.
What if all those “wants” are covered by the parents through the end of college?
You walk off campus with a small amount of debt possibly, but maybe sitting on $10,000-$100,000 of cash/investments.
If you ask the kid, they will say well that’s my money. It’s my savings. But I say fuck that, it’s easy to save when you have no expenses.
Lather rinse repeat across the population
3b says:
October 25, 2024 at 12:09 pm
Lib: You have a point in some respects, but not every boomer parent is giving that kind of cash for down payments. Even the ones that do have those kinds of resources, once the down payment is done, there is still the monthly mortgage payment. One person loses employment, and then it becomes a problem. It was not that long ago, where one income could buy a house in a nice suburb and support a family, while one parent stayed home with the kids until school age. That is out of reach for most young families today.
Phoenix
That guy took the look I was going for.
Washington Post and the LA Times won’t endorse VP Harris….
Yes they did not endorse Trump either but why not Harris?
The GOP way, what’s the point of elections.
Freedom Caucus leader endorses radical proposal for North Carolina to hand its electoral votes to Trump
Rep. Andy Harris said the damage caused by Hurricane Helene in pro-Trump counties would justify the extraordinary maneuver.
https://www.politico.com/news/2024/10/25/trump-freedom-caucus-north-carolina-electors-00185520
The LA Times owner is a big Trump supporter. There are Electoral Board resignations over it.
Jeff Bezos owns Washington Post.
Patrick Soon-Shiong owns LA Times.
Both are billionaires that have main businesses that depend on interactions with the US Govt. So is best and smarter thing not to stir the psychopathic wasp nest in case OrangeTurd gets in, besides 300lbs+ 80yrs old, the grim reaper likely booked a date already.
OrangeTurd will sting them. Harris will given them an automatic pass, as she is a 3rd Way Democrat, aka Corporate Democrat or in the 1970’s – a Rockefeller Republican at heart. That is why the Clinton/Obama machine selected her.
BTW, This is how the kowtowing and bending the knee starts.
Soon enough the last one that does not gets this treatment
https://en.wikipedia.org/wiki/Apple_Daily
OrangeTurd has his days heavily limited by his age, but the crowd that will be empowered by him is the problem. This crowd will eventually will inner fight once he is gone. Because of their different gravity points that fall all over the map in the right wing ideological and religious spectrum.
Once, the knee is bent. The integrity is gone, only the value of the sell out will decide actions.
I love the rationalization..
“Harris will given them an automatic pass”
Hahhahahahah…… Sorry bud Bezos doesn’t think she will be elected….
Several rich men with their fingers on the election. this time. We do need to get the money out. I howeer imagine Kamala wants to keep the spigot open…just like Trump. So why the pivot Bezos???
Who is the next man behind the curtain? Fed Governor Chair a woman? Hhahahhahahahahhahahahhah!! < Insert evil laughter here…