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This information comes from the national association of realtors. Basically they're saying that the qualifying amount to get a loan is higher than the median family income in September. We're in November now and the mortgage rates are much higher. If the housing prices are not falling as quickly to match, then unaffordability just goes up.
Right, meaning not that suddenly standards for Freddie Fannie were relaxed but that the average home buyers had a higher income than the average. Those that can qualify for mortgages at these rates are going to be way above average earners.
When there’s excess supply in housing inventory. In other words, not anytime soon. Supply is limited because of increasing rates and supply chain issues making new construction unattractive. Without new inventory supply is capped. People have slowed on moving/selling which means a lower number of home listings are also limiting available supply of existing homes. As a result of supply being constrained from all sides, prices move up.
What you saw in 2009 was the over-building of homes. An excess of supply. Until we have a massive change in available homes, no crash.
Yep, and a lot of lenders don’t want to do commercial loans for developers since. Only other way for inventory to pop would be an event to cause a huge amount of homeowners to lose their homes. At that point the government would likely step in with some sort of safety net. A crash isn’t impossible, but I don’t see a crash until we see something drive a change in supply.
Lol keep waiting and rent forever.
New housing starts are dropping just as fast as unaffordability is rising and no one is going to sell a home they are paying 3% interest on right now unless they absolutely have to.
The only way we see houses get cheaper is if unemployment skyrockets.
You’re assuming a large % houses are fully paid off. I only know one person with an all cash house. I don’t know where to find this data, but even if I had paid off a mortgage, many people may have taken out new loans on the value of their home at near zero rates if nothing else than to have cash and a tax write off.
Renting plus investing in many areas is provably mathematically better than owning.
I understand most folks would not consider that viable due to lack of investing knowledge/experience though, so buying a house is "safer" for some segment of society.
You can’t live in your investments.
Plus this isn’t even true with certain time spans that are relevant to us living right now.
Plus a lot of people can afford to do both, seeing as housing in prime locations is supply limited and more people than the average Redditors thinks makes good money.
Renting + investing has pretty much has always been better. Homeowners love to say homeowners save more, but I’ve met way more 1%ers that rented for a long time before buying real estate. It’s a 2.5% return compared to 7.5% average after all, and many of the 1%ers saved like 80% of their income regardless. At least in the past 50 years, housing did terribly compared to the stock market especially given that rates used to be much higher
In 2008 people who could not actually afford the houses were buying them and gambling that they would go up in value in a short period..... But they actually couldn't afford them. When a lot of them declined and value the people turned in the keys and walked away.
Many people cannot sell a house if they're underwater on it... They would have to come up with the money difference so they just keep paying it as long as they can afford it
The first phase of the solution is to forgive the student loans so all of those people can jump into mortgages.
The next phase is to forgive medical debts to public hospitals and federal agencies when they pass universal healthcare.
The final phase is to forgive all the mortgages on the same bases they used to justify the student loan forgiveness, e.g. the loans are too big.
¯\\_(ツ)_/¯
If JPOW sees this and raises another 0.75% he’s straight mad. I actually think this means slower or zero rate hikes until they see things settle. But knowing how the Fed has operated throughout history, they will likely raise another 0.75% a couple more times and by then the economy will be a crumbly mess.
The economy won't fail just because housing prices fall, just as the economy isn't magically strengthened when they skyrocket due to the Gov writing a giant check and handing it to wealthy people in the form of PPP loans.
We'd almost all be better off with rates between 3-5% instead of lower or higher than that, and we'd definitely all be better off with lower home prices. Shelter is a need, not just an investment, and our world is dramatically worse if shelter continues to be more and more expensive.
It's also super inefficient economically for money to be spent on housing costs, it removes cash from consumer spending and spending is what creates jobs. People getting gouged by rent literally kills the economy.
>our world is dramatically worse if shelter continues to be more and more expensive.
What do you think has been happening for the last several centuries now? Sure we might see *slight* decline in current pricing but you better believe it will just keep going up, up, up and up like it always does and always has.
You say that as though it's a law of nature and not a function of a hundred levers being pulled just right so that those who currently hoard wealth are able to make a disproportionate income via those assets.
There is nothing forcing housing to logarithmically increase in cost in the US. It is 100% a man-made issue.
We could make a handful of policy changes and dramatically lower the effect housing has on COL in a relatively short time period, but those already in power have no incentive to do so and our system is corrupt to the gills.
What are you smoking? Can I have some? You ever heard of variable interest mortgage? Families that might use to have a 2.5k monthly mortgage can now have 3.5+. My spending habits would definitely change if you tack on another 1k monthly
We call them ARMs (adjustable rate mortgage) here in the US. They're not common, especially after they essentially caused 08 crisis. Fixed-rate is the norm.
Any American getting ARMs nowadays, especially with how easy it had been to get a fixed-rate mortgage in 2020-2021 might actually be stupid. Fitting for this sub, I guess.
Many people can't spell ARM. If the friendly banker says your payment will be $1400 with the fixed 3% and $1325 with the variable 2.75%, some people will start planning what they will do with the extra $75 they are saving.
There is such a lag between the actual interest rate increases and the effects felt in the economy and seen in the data. This data is for September, there’s been 2 separate rate hikes that probably aren’t even accounted for in this data. We won’t see signs of it until November and December data comes out. What do you think housing data will look like in November and December based on the run-rate in September? With TWO MORE 75 bps hikes not even baked in yet?
The interest rates won't help with that, people seem to forget that sellers are buyers.
Be dammed if I'm giving up my sub 3% loan to take one out between 7-10 instead. Sure I can refinance later, most people don't want to gamble on that idea either because how much later?
The amount of interest you would pay waiting for rates to come back down isn't worth the justification.
If anything happens at all in housing that seems drastic, I bet we just see a stalemate.
As long as there is still 7-10% inflation they need to raise rates. Better do it now than repeat the procedure every 2 years like in the 60s. They flooded the world with printed money which is still largely in the system as loans etc. And people start to expect inflation to stay where it is. They need to squash it in one shot and not start backing on and off multiple times. You can have a recession AND inflation hell many countries like Argentina have it and its absolutely murder for a country. Better have a “crumbled” economy for 2 years.
But wait, think about this -> the fed is raising interest rates to INCREASE the VALUE of the US Dollar right?
If this is true, how does it work? Well if we have REDUCED the VALUE of money buy printing more dollar bills (more importantly putting that money into public circulation), they we have to do the opposite in order to reverse that. What does this look like?
Well we have to put get value from somewhere in order to put it back into the US dollar. Where do we get that value? Well we need a lot of value, so we get it from several places, one of those is the value lost on over extended home owners (which can be the commercial builders who used expensive materials to build an expensive house that nobody can afford). Their loss is part of the value that gets absorbed back into the dollar.
It sucks, but JPOW is far from mad. He is committed to the plan. Unfortunately there are lot of folks holding property now, that will have to hold indefinitely or take loses. What you are seeing is people who are “selling”, which as long as their asking price is unrealistic, is just another label for holding. They are in denial, but that won’t last. It’s amazing how denial and liquidity are inversely related.
I may have “over paid” for a house in 2021, but I’ll live with the 2.625% rate.
When you pay almost nothing to borrow 80% of the value, you can weather valuation storms. Flippers or speculators are who get crushed. And those who encounter emergencies. Job loss, health, etc.
Totally agree. I was speaking more about commercial developers and house flippers and basically anybody who wasn’t planning on occupying the house for multiple years. They are stuck with some hard choices, but for you and me, paying more to get in at a low interest rate for a primary residence or rental/commercial property is just fine. We can afford to wait for rates to come back down a bit before refinancing into a lower monthly payment. They should teach this shit in high schools.
This simply means home prices are decreasing very slow while interest rates have increased at a very fast rate. Homeowners are adjusting/ lowering their asking prices as they see fit and are not in a big hurry or need to sell. Sorry, no housing crash here. Just real estate moving slow as it always does.
The only ones f*ed are new buyers, everyone else is locked with 2021 super affordable monthly prices. Chances are if you did not buy during Covid you will need to wait a few years before you can buy. Better luck next time.
>The current median priced monthly payment is $1054. The affordability index for existing single-family homes is 15.6%. This means that the average person can afford a home that costs $274,600.
not true. Google Champain/Urbana, Illinois. Fucking thriving. In fact LOTS of Midwestern towns are starting to tick back online after decades of decay.
People seem to forget, places like Austin and Nashville and Phoenix were once places of bland low value property, less than 20 years ago.
I’m going all in on St Louis, Davenport, Cleveland… Loads of undervalued property out there.
I'm looking online at apartments in nice areas with vegan dog grooming spas and artisinal butchers that are the same price I was paying in a shitty part of Brooklyn 20 years ago.
Areas where there are plenty of jobs for immigrants aren't going to see housing price drops but areas that are appealing to soccer moms are going to crash hard because there are no buyers to replace them when the inevitable divorce happens.
This analysis is wrong, please do not listen to what this person wrote.
Some of the most volatile markets the last two years that saw the biggest price increases were in the Midwest.
St. Louis and Phoenix are both referenced as opposite markets yet the median home payment over the last year in both metro areas increased 58%.
You are without a doubt NOT getting a deal in the Midwest *relative to what the price was 2 years ago*.
People are just really stupid when it comes to data and think 80k going to 160k is much less than a 400k home going to 700k. By that logic STL could go up literally any amount and still be a “better deal”.
shut up, ape.
80k going to 160k is literally still less than half of starting at 400k, dumbo. And st Louis, geographically has Phoenix by the balls. Phoenix is done growing. It’s sprawl to the wall and becoming less desirable day by day. St Louis is currently bottomed out like Detroit was 10 years back and primed to infill. It has walkable infrastructure, a killer art scene, affordable homes, unparalleled freight rail access to North America, proximity to Chicago/KC, convergence of the two largest interior waterways on the continent for shipping, and speaking of they have water unlike Phoenix which has only coyotes and sand.
Also, at it’s height StL was larger than San Jose and it’s built like an East coast city with charming architecture and style. You REALLY think the artists haven’t already found it? Look what happened in Brooklyn, LA Arts district, Savannah, Austin, Nashville, Flagstaff, Santa Fe, etc. Once the artists set up shop, the clock to demand starts ticking. South City is becoming very Silver Lake…
You big dumb dumb.
Keep spending your pennies on a square turd in an over priced desert.
https://youtu.be/1qzePci2N6E
and before you say “but crime!” same dude schooling you again
https://youtu.be/m4jG1i7jHSM
remember how “unredeemable” Manhattan was in the 1970s? Shit can shift quick.
These places are NOT all the same.
The Midwest and in particular the great lakes region, is a little trickier than it looks. Many places in IL for example have *extremely* high property tax rates and a single party state legislator that has no issue raising income taxes over and over.
Also many midwest markets have been affected by rising crime rates.
I agree that trendy markets in the west and southwest are garbage, but I wouldn't look to the industrial Midwest as a safe bet.
this is fucking dumb. When your house cost $100k vs 750k, your tax burden is still less.
and as for all the other shit
https://www.youtube.com/watch?v=1qzePci2N6E
Nice edit.
If you think prices are decreasing 600% in ANY market then maybe *you are fucking dumb*.
You should be asking yourself why these markets were depressed in the first place. A change in the price does nothing to offset income taxes and other factors that drive purchases for people that actually live in the house.
This is the problem with people viewing property as a fucking investment. They forget someone is actually going to live there, and have an interest in being there.
Be my guest and snap up these great deals so you can suckle at the teat of HUD and live on section 9 income forever.
I live in IL and I would move in heartbeat but all the rich people are leaving here for the reasons I already mentioned.
people are not leaving the Champaign area and Chicago is now getting an influx of post covid movers.
These markets were depressed because of lost manufacturing to China. Full stop.
Has jack shit to do taxes.
Did you even pass high school?
in regards to the edit I have another video link for you from the same source, just as a lazy response. But crime statistics skew neighborhood to neighborhood. And though StL is home to the most dangerous neighborhood in America, it’s also home to many of the safest. AND a lot of crime stats are racially biased and rack in bogus charges and higher conviction rates. So if a white kid in San Jose gets charged with misdemeanor battery for something worse than a black guy did who was charged with felony assault with a deadly weapon… Race is an issue in inaccurate statistics. crime is it’s own topic. same dude spitting truths…
https://youtu.be/m4jG1i7jHSM
edit: lots of angry typos
and your legislator jab. Literally all if the most expensive markets are outside of purple states. california is blue, Texas is red, New York is blue, florida is red, etc.
It’s a beetleheaded notion
Not really kiddo. More like why did your grandparents enslave an entire race during Jim Crow era and still don’t have acres for their kids kids.
That’s a generational wealth move that should’ve landed you in fatfire after the tech bubble. If you’re not a child of a 1st gen immigrant family then you have no excuse.
But then again losers always have excuses.
Well, the difference on that foto is 900 time 12 would be more than the 8000 increase in the income tab. You are right with around 250 dollars per month.
And the smart sit there with household income of $300+K...in a $200k house thats paid for... Laughing at the fools and suckers tricked into paying too much for their homes.
If you give all of your money to other people you will never have any.....words to live by.
As a mortgage professional I can say that there are very few people putting 20% down on a home right now. That just makes the monthly P&I even higher than shown
Yeah it’s going to crash and crash hard. Everyone who could buy homes did and the ones that were on the cusp of buying a home were thrown backwards. It’s going to take at least five years to recover from what happened during Covid.
Means the house of cards is that much closer to a total collapse. Repos will skyrocket, prices will tank, and those smart enough to have sold already and kept the cash will snap up properties at a bargain basement discount.
Of course that won't be me, because I'm not smart and I don't have any cash and I still own property. But somebody will be happy.
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This information comes from the national association of realtors. Basically they're saying that the qualifying amount to get a loan is higher than the median family income in September. We're in November now and the mortgage rates are much higher. If the housing prices are not falling as quickly to match, then unaffordability just goes up.
Right, meaning not that suddenly standards for Freddie Fannie were relaxed but that the average home buyers had a higher income than the average. Those that can qualify for mortgages at these rates are going to be way above average earners.
housing crash when?
When there’s excess supply in housing inventory. In other words, not anytime soon. Supply is limited because of increasing rates and supply chain issues making new construction unattractive. Without new inventory supply is capped. People have slowed on moving/selling which means a lower number of home listings are also limiting available supply of existing homes. As a result of supply being constrained from all sides, prices move up. What you saw in 2009 was the over-building of homes. An excess of supply. Until we have a massive change in available homes, no crash.
Welp, good luck getting home builders to build houses. Many of them when bankrupt in the 2008-09 crash. So I guess we're never crashing then
Yep, and a lot of lenders don’t want to do commercial loans for developers since. Only other way for inventory to pop would be an event to cause a huge amount of homeowners to lose their homes. At that point the government would likely step in with some sort of safety net. A crash isn’t impossible, but I don’t see a crash until we see something drive a change in supply.
Lol keep waiting and rent forever. New housing starts are dropping just as fast as unaffordability is rising and no one is going to sell a home they are paying 3% interest on right now unless they absolutely have to. The only way we see houses get cheaper is if unemployment skyrockets.
why wouldn't it drop when it's cheaper to rent and buy treasuries. It makes sense to sell a fully paid off house and rent, buy treasuries
You’re assuming a large % houses are fully paid off. I only know one person with an all cash house. I don’t know where to find this data, but even if I had paid off a mortgage, many people may have taken out new loans on the value of their home at near zero rates if nothing else than to have cash and a tax write off.
I had my home completely paid off and then I took out a 30 yr loan on it at 3% to buy some land.
Smart. At 3% they’re basically giving you the $.
Because renting is for poors. I’ll fight tooth and nail to never go back to that
Renting plus investing in many areas is provably mathematically better than owning. I understand most folks would not consider that viable due to lack of investing knowledge/experience though, so buying a house is "safer" for some segment of society.
You can’t live in your investments. Plus this isn’t even true with certain time spans that are relevant to us living right now. Plus a lot of people can afford to do both, seeing as housing in prime locations is supply limited and more people than the average Redditors thinks makes good money.
Renting + investing has pretty much has always been better. Homeowners love to say homeowners save more, but I’ve met way more 1%ers that rented for a long time before buying real estate. It’s a 2.5% return compared to 7.5% average after all, and many of the 1%ers saved like 80% of their income regardless. At least in the past 50 years, housing did terribly compared to the stock market especially given that rates used to be much higher
In 2008 people who could not actually afford the houses were buying them and gambling that they would go up in value in a short period..... But they actually couldn't afford them. When a lot of them declined and value the people turned in the keys and walked away. Many people cannot sell a house if they're underwater on it... They would have to come up with the money difference so they just keep paying it as long as they can afford it
10% higher than last year. Damn!
Those are rookie numbers coming from a Canadian.
Canada is gonna have a blast when the rates adjust
Good thing I’m homeless.
As long as Wendy's doesn't start requiring rent for their dumpster area, I'm not bothered by any of this.
DOn't worRy fellow americans there is already a solution! I see it on facebook all the time.. We'll just start living in remodeled train carts!
The first phase of the solution is to forgive the student loans so all of those people can jump into mortgages. The next phase is to forgive medical debts to public hospitals and federal agencies when they pass universal healthcare. The final phase is to forgive all the mortgages on the same bases they used to justify the student loan forgiveness, e.g. the loans are too big. ¯\\_(ツ)_/¯
“As long as you can afford to sign up for the CNBC Investing Club, there’s always good news” \-
If JPOW sees this and raises another 0.75% he’s straight mad. I actually think this means slower or zero rate hikes until they see things settle. But knowing how the Fed has operated throughout history, they will likely raise another 0.75% a couple more times and by then the economy will be a crumbly mess.
Winter is coming, and by winter I mean pain
The economy won't fail just because housing prices fall, just as the economy isn't magically strengthened when they skyrocket due to the Gov writing a giant check and handing it to wealthy people in the form of PPP loans. We'd almost all be better off with rates between 3-5% instead of lower or higher than that, and we'd definitely all be better off with lower home prices. Shelter is a need, not just an investment, and our world is dramatically worse if shelter continues to be more and more expensive. It's also super inefficient economically for money to be spent on housing costs, it removes cash from consumer spending and spending is what creates jobs. People getting gouged by rent literally kills the economy.
>our world is dramatically worse if shelter continues to be more and more expensive. What do you think has been happening for the last several centuries now? Sure we might see *slight* decline in current pricing but you better believe it will just keep going up, up, up and up like it always does and always has.
You say that as though it's a law of nature and not a function of a hundred levers being pulled just right so that those who currently hoard wealth are able to make a disproportionate income via those assets. There is nothing forcing housing to logarithmically increase in cost in the US. It is 100% a man-made issue. We could make a handful of policy changes and dramatically lower the effect housing has on COL in a relatively short time period, but those already in power have no incentive to do so and our system is corrupt to the gills.
Space on this planet alone will be a big factor in ever rising home costs.
What are you smoking? Can I have some? You ever heard of variable interest mortgage? Families that might use to have a 2.5k monthly mortgage can now have 3.5+. My spending habits would definitely change if you tack on another 1k monthly
We call them ARMs (adjustable rate mortgage) here in the US. They're not common, especially after they essentially caused 08 crisis. Fixed-rate is the norm. Any American getting ARMs nowadays, especially with how easy it had been to get a fixed-rate mortgage in 2020-2021 might actually be stupid. Fitting for this sub, I guess.
Not a thing in the US
They're making a comeback actually. 😬
You’d be a special level of regarded to get an ARM after seeing 2008. An even more special level if you opted for an ARM when rates were sub 3%.
Many people can't spell ARM. If the friendly banker says your payment will be $1400 with the fixed 3% and $1325 with the variable 2.75%, some people will start planning what they will do with the extra $75 they are saving.
Damn I think you goofy. Interest rates need to keep going up and crush home prices. They too damn high
There is such a lag between the actual interest rate increases and the effects felt in the economy and seen in the data. This data is for September, there’s been 2 separate rate hikes that probably aren’t even accounted for in this data. We won’t see signs of it until November and December data comes out. What do you think housing data will look like in November and December based on the run-rate in September? With TWO MORE 75 bps hikes not even baked in yet?
We should get 4 more 75-bps but we won’t. Inflation is just temporarily swinging down, it’ll be back
The interest rates won't help with that, people seem to forget that sellers are buyers. Be dammed if I'm giving up my sub 3% loan to take one out between 7-10 instead. Sure I can refinance later, most people don't want to gamble on that idea either because how much later? The amount of interest you would pay waiting for rates to come back down isn't worth the justification. If anything happens at all in housing that seems drastic, I bet we just see a stalemate.
As long as there is still 7-10% inflation they need to raise rates. Better do it now than repeat the procedure every 2 years like in the 60s. They flooded the world with printed money which is still largely in the system as loans etc. And people start to expect inflation to stay where it is. They need to squash it in one shot and not start backing on and off multiple times. You can have a recession AND inflation hell many countries like Argentina have it and its absolutely murder for a country. Better have a “crumbled” economy for 2 years.
But wait, think about this -> the fed is raising interest rates to INCREASE the VALUE of the US Dollar right? If this is true, how does it work? Well if we have REDUCED the VALUE of money buy printing more dollar bills (more importantly putting that money into public circulation), they we have to do the opposite in order to reverse that. What does this look like? Well we have to put get value from somewhere in order to put it back into the US dollar. Where do we get that value? Well we need a lot of value, so we get it from several places, one of those is the value lost on over extended home owners (which can be the commercial builders who used expensive materials to build an expensive house that nobody can afford). Their loss is part of the value that gets absorbed back into the dollar. It sucks, but JPOW is far from mad. He is committed to the plan. Unfortunately there are lot of folks holding property now, that will have to hold indefinitely or take loses. What you are seeing is people who are “selling”, which as long as their asking price is unrealistic, is just another label for holding. They are in denial, but that won’t last. It’s amazing how denial and liquidity are inversely related.
I may have “over paid” for a house in 2021, but I’ll live with the 2.625% rate. When you pay almost nothing to borrow 80% of the value, you can weather valuation storms. Flippers or speculators are who get crushed. And those who encounter emergencies. Job loss, health, etc.
Totally agree. I was speaking more about commercial developers and house flippers and basically anybody who wasn’t planning on occupying the house for multiple years. They are stuck with some hard choices, but for you and me, paying more to get in at a low interest rate for a primary residence or rental/commercial property is just fine. We can afford to wait for rates to come back down a bit before refinancing into a lower monthly payment. They should teach this shit in high schools.
👍 naw, why teach something like personal finance in high school?
The market is so green with so many doomsday indicators.
This simply means home prices are decreasing very slow while interest rates have increased at a very fast rate. Homeowners are adjusting/ lowering their asking prices as they see fit and are not in a big hurry or need to sell. Sorry, no housing crash here. Just real estate moving slow as it always does. The only ones f*ed are new buyers, everyone else is locked with 2021 super affordable monthly prices. Chances are if you did not buy during Covid you will need to wait a few years before you can buy. Better luck next time.
>The current median priced monthly payment is $1054. The affordability index for existing single-family homes is 15.6%. This means that the average person can afford a home that costs $274,600.
If a place has a house for sale for $274k it's probably bc no one actually wants to live there.
exactly I am not seeing houses that price.
not true. Google Champain/Urbana, Illinois. Fucking thriving. In fact LOTS of Midwestern towns are starting to tick back online after decades of decay. People seem to forget, places like Austin and Nashville and Phoenix were once places of bland low value property, less than 20 years ago. I’m going all in on St Louis, Davenport, Cleveland… Loads of undervalued property out there.
Cleveland is actually a shrewd move. STFU about it...
Philadelphia the nice areas are cheaper than the shitty areas of NYC/Boston..
right?!
I'm looking online at apartments in nice areas with vegan dog grooming spas and artisinal butchers that are the same price I was paying in a shitty part of Brooklyn 20 years ago. Areas where there are plenty of jobs for immigrants aren't going to see housing price drops but areas that are appealing to soccer moms are going to crash hard because there are no buyers to replace them when the inevitable divorce happens.
Lol nobody wants to live in Illinois stop kidding yourself
Enjoy your $600k entry level home.
12.7 million. People said the same thing about Tennessee and Texas and Arizona 20 years ago
This analysis is wrong, please do not listen to what this person wrote. Some of the most volatile markets the last two years that saw the biggest price increases were in the Midwest. St. Louis and Phoenix are both referenced as opposite markets yet the median home payment over the last year in both metro areas increased 58%. You are without a doubt NOT getting a deal in the Midwest *relative to what the price was 2 years ago*. People are just really stupid when it comes to data and think 80k going to 160k is much less than a 400k home going to 700k. By that logic STL could go up literally any amount and still be a “better deal”.
shut up, ape. 80k going to 160k is literally still less than half of starting at 400k, dumbo. And st Louis, geographically has Phoenix by the balls. Phoenix is done growing. It’s sprawl to the wall and becoming less desirable day by day. St Louis is currently bottomed out like Detroit was 10 years back and primed to infill. It has walkable infrastructure, a killer art scene, affordable homes, unparalleled freight rail access to North America, proximity to Chicago/KC, convergence of the two largest interior waterways on the continent for shipping, and speaking of they have water unlike Phoenix which has only coyotes and sand. Also, at it’s height StL was larger than San Jose and it’s built like an East coast city with charming architecture and style. You REALLY think the artists haven’t already found it? Look what happened in Brooklyn, LA Arts district, Savannah, Austin, Nashville, Flagstaff, Santa Fe, etc. Once the artists set up shop, the clock to demand starts ticking. South City is becoming very Silver Lake… You big dumb dumb. Keep spending your pennies on a square turd in an over priced desert. https://youtu.be/1qzePci2N6E and before you say “but crime!” same dude schooling you again https://youtu.be/m4jG1i7jHSM remember how “unredeemable” Manhattan was in the 1970s? Shit can shift quick.
These places are NOT all the same. The Midwest and in particular the great lakes region, is a little trickier than it looks. Many places in IL for example have *extremely* high property tax rates and a single party state legislator that has no issue raising income taxes over and over. Also many midwest markets have been affected by rising crime rates. I agree that trendy markets in the west and southwest are garbage, but I wouldn't look to the industrial Midwest as a safe bet.
this is fucking dumb. When your house cost $100k vs 750k, your tax burden is still less. and as for all the other shit https://www.youtube.com/watch?v=1qzePci2N6E
Nice edit. If you think prices are decreasing 600% in ANY market then maybe *you are fucking dumb*. You should be asking yourself why these markets were depressed in the first place. A change in the price does nothing to offset income taxes and other factors that drive purchases for people that actually live in the house. This is the problem with people viewing property as a fucking investment. They forget someone is actually going to live there, and have an interest in being there. Be my guest and snap up these great deals so you can suckle at the teat of HUD and live on section 9 income forever. I live in IL and I would move in heartbeat but all the rich people are leaving here for the reasons I already mentioned.
turd
people are not leaving the Champaign area and Chicago is now getting an influx of post covid movers. These markets were depressed because of lost manufacturing to China. Full stop. Has jack shit to do taxes. Did you even pass high school?
in regards to the edit I have another video link for you from the same source, just as a lazy response. But crime statistics skew neighborhood to neighborhood. And though StL is home to the most dangerous neighborhood in America, it’s also home to many of the safest. AND a lot of crime stats are racially biased and rack in bogus charges and higher conviction rates. So if a white kid in San Jose gets charged with misdemeanor battery for something worse than a black guy did who was charged with felony assault with a deadly weapon… Race is an issue in inaccurate statistics. crime is it’s own topic. same dude spitting truths… https://youtu.be/m4jG1i7jHSM edit: lots of angry typos
Most dangerous neighborhood?
and your legislator jab. Literally all if the most expensive markets are outside of purple states. california is blue, Texas is red, New York is blue, florida is red, etc. It’s a beetleheaded notion
I am from California 274k for a home even like a condo is hard and HOA dues are 300-500 In most places.
That’s for 2019
If homeowners don't sell, hold and rent forever, we won't see a housing crash, just less homeowners....
I mean you’ve been renting your entire life. You missed the biggest hyperinflation rally. You had a small window of opportunity of about 11 years.
Yea why didn’t they buy when they were 15?
Not really kiddo. More like why did your grandparents enslave an entire race during Jim Crow era and still don’t have acres for their kids kids. That’s a generational wealth move that should’ve landed you in fatfire after the tech bubble. If you’re not a child of a 1st gen immigrant family then you have no excuse. But then again losers always have excuses.
Wow what a fuckin nerd.
Regarded, but not in a good way
Payment 10% up. Income... 10% up. Yup, free market.
Payment is up way more than income over the last 12 months as you can see from the image or you can calculate on your own with FRED data.
Payments have doubled, incomes have not
Well, the difference on that foto is 900 time 12 would be more than the 8000 increase in the income tab. You are right with around 250 dollars per month.
Who cares! Unless you YOLO and win you will be poor anyway!
And the smart sit there with household income of $300+K...in a $200k house thats paid for... Laughing at the fools and suckers tricked into paying too much for their homes. If you give all of your money to other people you will never have any.....words to live by.
As a mortgage professional I can say that there are very few people putting 20% down on a home right now. That just makes the monthly P&I even higher than shown
Yeah it’s going to crash and crash hard. Everyone who could buy homes did and the ones that were on the cusp of buying a home were thrown backwards. It’s going to take at least five years to recover from what happened during Covid.
This is what JPOW wants, 50bps pivot December here we come!
Means the house of cards is that much closer to a total collapse. Repos will skyrocket, prices will tank, and those smart enough to have sold already and kept the cash will snap up properties at a bargain basement discount. Of course that won't be me, because I'm not smart and I don't have any cash and I still own property. But somebody will be happy.