That's what I see. I've got a neighbor trying to sell their un-updated boomer nest full of 90s interior design and who knows what maintenance nightmares for more than I paid for a to-the-studs reno a full year ago. Guess whose house isn't getting any walk through traffic?
I still remember one guy on here whose Boomer parents rented a storage unit for several years just to keep obsolete furniture, waiting for someone to pay full price for it.
At least his parents updated their furniture. I've got a Boomer hoarder nest full of 1970s furniture- worst part is that it's better than the crap they make now.
Deported illegals. They were living someplace, now those places are vacant.
Owner/bank sells them, other people with investment homes panic and try to sell while prices are still high, nobody buys because they expect prices to crash down.
Too many are caught up in houses as an investment or what they perceive their house is worth, put them up for sale, and sit on them for ages. It's emotional or greed or both.
I've mentioned before but I used to have two rental houses, both became vacant last year a few months apart from each other, and I sold both. I'd just decided the rental business was never a good fit for me and probably for half the time I owned them it was just to not throw a tenant out who already lived there. I put the first one on the market for about 3% less than a couple similar ones on the market. Got an offer in a couple weeks along with a lowball cash investor offer and a strange cold call almost trying to bully me into a sale to their investor for an offer they wouldn't even tell me. I sold it to the real person offer, it took a bit longer, probably didn't make me much more. Did nearly the same with the second house, took a little longer to work out a deal but still was signed in a month closed in three. After this whole deal of selling two houses, one of the ones I undercut was still on the market and hadn't budged a dime. Seems like if I could sell two houses in six months there, yet that one just sat.
Another note, the mortgage process is absolutely fucked up now. For context, I bought my first house at the absolute bottom of the trough of the 2008 financial crisis. I got a mortgage when they were picking at everything in detail as a guy in his mid 20s. Selling these two houses and the shit I had to sign and explain just to appease the mortgage company of the buyers was absurd. I'm not the one signing up to get a mortgage, I'm the seller. It got delay after delay after delay, zero communication of any value. I'm convinced mortgage underwriting has been outsourced to India. These were houses in the absolutely bottom rung of pricing too, we are talking sub-$200k sale prices, not someone signing up to owe a million.
Renters being one. Extra accounting. The main thing being I'm just not cut out to make money in it. You have to be prepared to let the banks hold the maximum mortgage and then to be a cheapskate about every little thing and squeeze the renters for every dime. I don't like banks or being a douchebag. It's also very illiquid of an investment.
Personally, I could have done better in the stock market or about the same in silver and gold prior to the big boom last year with much less work.
The problem are the low interest rates. We need to raise interest rates to lower asset prices. Not just homes but all asset prices need to come down dramatically. Interest rates should be at 15%.
If we raise the rates to 15%, home sales will drop to zero. New buyers still wouldn't be able to afford to buy, and sellers who are selling their primary residence now wouldn't be able to afford to sell due to being fucked as soon as they become buyers since they still need to live somewhere.
Supply and demand determine the price, so the problem isn't the rates, but the demand for housing. Interest rates don't lower demand because people still need somewhere to live regardless of the rates. If the government wants to lower demand, they need to stop subsidizing housing for societal parasites, and deport every single illegal alien that is currently keeping housing off the market.
The problem isn’t low interest rates, it’s affordability. If we put homes at 15% interest the only people walking away happy would be banks because neither buyers or sellers are getting anything from it. The last time asset prices were that high was what the 70s during a market crisis.
Low interest rates, especially rates that stayed low for way too long, were one of the main causes. If loans are cheap and saving is pointless, you get a debt crisis.
But it's far too late for high intereat rates to fix the problem.
Zero immigration will destroy demand and crash the market, bringing prices down with it. Probably the best we can hope for, at this point.
Higher interest rates lower all asset prices. Young people are asset low and labor income high. They want low asset prices. It's people who already own assets that want low rates. Higher rates benefits young people.
No… it’s because wages haven’t met inflation for over 30 years now. If we jacked up interest rates right now the housing economy would collapse in a decade because no one would sell what they bought and no one would buy.
You know what causes a market collapse? High interest rates on an already low market. What part of that graph suggests inflation from high demand and low supply? They’re already selling homes at half the rate of a decade ago and you think the problem is interest rates? Absolutely fucking retarded.
You would completely kill the housing market going to 15%. That would put a 300k house which is barely starter home price 30 year mortgage at over 3500 a month. If you go up to the average home price of 512k you’re looking at roughly 6k a month. Unless labor wages magically unfuck themselves for decades of losses there’s no way it brings prices down over completely crashing the market.
It’s magical when home prices shot up an average of 100k more around 2022 the buyer market tanked. What should be terrifying is the complete lack of activity compared to even the bubble crash. There were 1 million more homes sold in 2010 and 1 million more first time buyers than last year.
Sad thing is.. jeets and chinks will buy everything if blackrock doesnt. Hell even rapefugees will be house owners before the average young american couple these days.
Boomers refusing to sell lower than they think it’s worth?
That's what I see. I've got a neighbor trying to sell their un-updated boomer nest full of 90s interior design and who knows what maintenance nightmares for more than I paid for a to-the-studs reno a full year ago. Guess whose house isn't getting any walk through traffic?
I still remember one guy on here whose Boomer parents rented a storage unit for several years just to keep obsolete furniture, waiting for someone to pay full price for it.
At least his parents updated their furniture. I've got a Boomer hoarder nest full of 1970s furniture- worst part is that it's better than the crap they make now.
Boomer furniture is structurally great
Deported illegals. They were living someplace, now those places are vacant.
Owner/bank sells them, other people with investment homes panic and try to sell while prices are still high, nobody buys because they expect prices to crash down.
It’s amazing how fake all the Jewnited States numbers are so suddenly.
No buyers because nobody can afford it
This.
We are far more fucked than most people realise. New houses can't be made any cheaper, because of inflation, but still no one can afford to buy them.
Governments can print money to subsidise construction but that just devalues the currency even more and pushes more people out of the market.
If the market crashes, millions of people will be underwater on 30 year mortgages and lose their homes, making the situation even worse.
If only we had imported more Africans...
Previous update on this from 5 months ago when it was still only around 500k
https://kotakuinaction2.win/p/19BtZH7tRL/housing-data-shows-sellers-now-e/c/
Too many are caught up in houses as an investment or what they perceive their house is worth, put them up for sale, and sit on them for ages. It's emotional or greed or both.
I've mentioned before but I used to have two rental houses, both became vacant last year a few months apart from each other, and I sold both. I'd just decided the rental business was never a good fit for me and probably for half the time I owned them it was just to not throw a tenant out who already lived there. I put the first one on the market for about 3% less than a couple similar ones on the market. Got an offer in a couple weeks along with a lowball cash investor offer and a strange cold call almost trying to bully me into a sale to their investor for an offer they wouldn't even tell me. I sold it to the real person offer, it took a bit longer, probably didn't make me much more. Did nearly the same with the second house, took a little longer to work out a deal but still was signed in a month closed in three. After this whole deal of selling two houses, one of the ones I undercut was still on the market and hadn't budged a dime. Seems like if I could sell two houses in six months there, yet that one just sat.
Another note, the mortgage process is absolutely fucked up now. For context, I bought my first house at the absolute bottom of the trough of the 2008 financial crisis. I got a mortgage when they were picking at everything in detail as a guy in his mid 20s. Selling these two houses and the shit I had to sign and explain just to appease the mortgage company of the buyers was absurd. I'm not the one signing up to get a mortgage, I'm the seller. It got delay after delay after delay, zero communication of any value. I'm convinced mortgage underwriting has been outsourced to India. These were houses in the absolutely bottom rung of pricing too, we are talking sub-$200k sale prices, not someone signing up to owe a million.
What did you not like about having rentals? Besides, you know, renters.
Renters being one. Extra accounting. The main thing being I'm just not cut out to make money in it. You have to be prepared to let the banks hold the maximum mortgage and then to be a cheapskate about every little thing and squeeze the renters for every dime. I don't like banks or being a douchebag. It's also very illiquid of an investment.
Personally, I could have done better in the stock market or about the same in silver and gold prior to the big boom last year with much less work.
Interesting, thanks.
The problem are the low interest rates. We need to raise interest rates to lower asset prices. Not just homes but all asset prices need to come down dramatically. Interest rates should be at 15%.
If we raise the rates to 15%, home sales will drop to zero. New buyers still wouldn't be able to afford to buy, and sellers who are selling their primary residence now wouldn't be able to afford to sell due to being fucked as soon as they become buyers since they still need to live somewhere.
Supply and demand determine the price, so the problem isn't the rates, but the demand for housing. Interest rates don't lower demand because people still need somewhere to live regardless of the rates. If the government wants to lower demand, they need to stop subsidizing housing for societal parasites, and deport every single illegal alien that is currently keeping housing off the market.
Both are good things. Raise interest rates and deport all non-Whites. That would help with housing prices.
The problem isn’t low interest rates, it’s affordability. If we put homes at 15% interest the only people walking away happy would be banks because neither buyers or sellers are getting anything from it. The last time asset prices were that high was what the 70s during a market crisis.
Low interest rates, especially rates that stayed low for way too long, were one of the main causes. If loans are cheap and saving is pointless, you get a debt crisis.
But it's far too late for high intereat rates to fix the problem.
Zero immigration will destroy demand and crash the market, bringing prices down with it. Probably the best we can hope for, at this point.
Higher interest rates lower all asset prices. Young people are asset low and labor income high. They want low asset prices. It's people who already own assets that want low rates. Higher rates benefits young people.
Young people are asset low and labor income low. That's the problem.
Their labor income seems low because asset prices are so high.
No… it’s because wages haven’t met inflation for over 30 years now. If we jacked up interest rates right now the housing economy would collapse in a decade because no one would sell what they bought and no one would buy.
You know what reduces inflation? Higher interest rates.
You know what causes a market collapse? High interest rates on an already low market. What part of that graph suggests inflation from high demand and low supply? They’re already selling homes at half the rate of a decade ago and you think the problem is interest rates? Absolutely fucking retarded.
Their labor income seems low because it is low.
I thin k 15% is too low. The 4 trillion that Biden pumped into the economy needs to come back out, and high interest rates is the only way to do that.
You would completely kill the housing market going to 15%. That would put a 300k house which is barely starter home price 30 year mortgage at over 3500 a month. If you go up to the average home price of 512k you’re looking at roughly 6k a month. Unless labor wages magically unfuck themselves for decades of losses there’s no way it brings prices down over completely crashing the market.
You're probably right but 15% would be a good start.
It’s magical when home prices shot up an average of 100k more around 2022 the buyer market tanked. What should be terrifying is the complete lack of activity compared to even the bubble crash. There were 1 million more homes sold in 2010 and 1 million more first time buyers than last year.
"Then the prices will come down, right?" - Padme
Sad thing is.. jeets and chinks will buy everything if blackrock doesnt. Hell even rapefugees will be house owners before the average young american couple these days.
Neat.
Are home prices coming down yet?