Waiting on New Trucks thread.

My first mortgage was 14% you youngens got it easy……….

 

But the house only cost $3.50.

 

If interest rates were still like that we would all be living simpler lives because of it…

 

Wait until the Fed pivots on interest rates next year.

 

I think I heard this is the most aggressive interest rate increases in history. I just switched my checking from Chase to a Credit Union. New account pays 5.25% as long as I use my debit card at least 10 x per mo. What a deal!!!

 

Average Mortgage rates just dropped again. 2 weeks (or months?) in a row. I think they said 7.2 or 7.3 was the average for a 30 yr. Pretty close to what they were in 1994 when I bought my first house . We thought it was great to be under 8%. No telling what all this interest rate manipulation is going to end up causing. Home prices have outpaced inflation. Overall they’re always in step with inflation. A correction is inevitable. Question is when? I’m guessing sooner than later. It’s already starting to happen. There’s speculation of Builders hiding unsold properties by classifying them as pending sales for tax purposes. Also there’s a lot of Companies owning Air b&b properties. It adds up to an excess in inventory. Once (if) they start to foreclose, it will set off a huge drop in prices. Only takes about a 5% increase in foreclosures to cause home values to drop, like in 08. Like every financial disaster, there’s opportunities to benefit. Wish I understood it more. Instead of just waiting and watching everything unfold. Whatever happens, it don’t look good. As always we’ll survive and the Banks will Thrive, while taking credit for once again saving us all from ourselves.

 

This is not '08. The pace of home building since '08 has been significantly below the long term average -- translation: there were too few new houses built and now there's not enough houses to go around.

On the other hand, apartment buildings are rising like mushrooms after the first spring rain. Highest number of apartments under construction since the 60's! Rents have already started coming down (from historically record highs, to be sure).

The trouble is in commercial real estate. In a lot of markets, the vacancy rate for office buildings is between 20 and 40%, and a fair bit of what is leased is not occupied, and leases won't be renewed when the term is up.

For residential, however, you could put up another 10% on the market tomorrow, and it would get sucked up. Supply is so low that even though mortgage interest went from 2.5% to 8%, PRICES WENT UP!

 

My neighbor has been trying for a new house for over a year. He gets out bid every time. Everyone of them is getting over asking price, sometimes 25K more. Not to mention the asking price is too high to begin with. He even has a budget of 400K. It’s crazy.

 

Get someone to build a insulated steel building with utilities, then put in your rooms and move in,done instant home. don’t need to spend $400,000 for a house you’re not gonna live in for a long time we’re only on this planet for a short time.

 

My neighbors are millennials. They make great money but want a huge house. I argue with them often about their wants VS needs. Complain about spending $300 at Sams Club on food, but want a 400K house. It’s ridiculous. They want to keep appearances up even though they say otherwise. Oh, they only have 2 kids. They want a house that holds 12 lol.