Why Americans are not buying or selling homes.

[gipper]

Many did just that because they were cashing on on the sky high prices post pandemic

Maybe, but not now. We’ve been house hunting to some time. Not much available and what is, is often high priced and needs work.

 

[FranklinRoosevelt_FTW]

You would never know it in my AO......Nothing sits empty for long.

They sold a 895 sq ft house built in the 1930s down the street from my mom for $330K last week, it was on the market for three days.

A very shitty town lot up the street from me sold for 80K....20 years ago I doubt you could have got a permit to build on it.

You gotta wonder how much that same home would’ve sold for 10 years ago or even four years ago.


The middle class has been devastated in this country. We have very bad policies from our government and I would say both Republicans and Democrats. But what makes things all the worse is cancel culture and that’s all from Democrats with a few Republican supporters.

 

[rampart]

The coronavirus lockdowns, and this is from Republicans and Democrats …was a big mistake. The printing of trillions of dollars during that time was the wrong move and that is in large part what has led to our economic problems of today.

do not blame a mere virus for trumps insane need to remain in office - no matter what it cost the usa.

the democrats are not blameless, and should have let the economy drop around his lard ass, just ,like the repubs have been doing ever since.

 

[rampart]

You gotta wonder how much that same home would’ve sold for 10 years ago or even four years ago.


The middle class has been devastated in this country. We have very bad policies from our government and I would say both Republicans and Democrats. But what makes things all the worse is cancel culture and that’s all from Democrats with a few Republican supporters.

both parties are feckless, but the "middle class," if there ever was one in the usa, has contributed more to this mess than the poor, or even the rich have,

 

[SassyIrishLass]

Interest rates.. duh

 

[dblack]

Right now there’s about 1 million homes on the market in the USA. But usually around this time of the year there should be about 4 million homes on the market.

Whatever side of the isle one comes down on. This is certainly an issue. Whatever one might say about what they think about the economy this affects Americans across the country who want to buy a home and pursue the American dream. It is extremely frustrating for Americans, who have new families to look at high interest rates and high home prices …These are the kind of things that might get Trump back into office.

Right now interest rates on a home mortgage loan is around 6 1/2 to 7%. Down from his high is 8%. But still extremely high considering what many Americans are paying right now for their mortgage. under Trump mortgage loan rates were around 2 1/2%.

Another thing affecting our economy , are hospital costs, which have effectively doubled since 1995.

Patrick bet David brings this up on his podcast this morning. Showing us a few factors on why people are not selling or buying homes.

“A few factors why people aren’t selling or buying a house.

92% of Americans have a mortgage below 6% right now

61% are below 4%

23% have a mortgage below 3%
(source @DavidBahnsen)

So what would cause people to start selling & buying:

1. Americans running out of savings

Personal savings in reached $686 Billion in 2022, the lowest figures since 2009.

2020: we had $3 trillion
2021: we had $2.5 trillion
2022: $686 billion
2023: $800 billion (as of April)

We went up slightly but as savings decreases, that panic could cause owners to sell at a lower price.

2. Unemployment.

It’s still at 3.6% ish and hasn’t gone up to the 10% many thought like it did in 2008.

The market expected unemployment to skyrocket if Powell kept increasing rates.

Hasn’t happened yet.

3. Congress has more power than Powell

Everytime Powell increased the rates to help address obsession the govt has with over spending the last 14 years with low interest rates, congress undermined it by delaying the time bomb that was coming to the next generation.

So will anything happen with a massive crash in real estate?

In certain pockets, maybe. But across the country, probably not.

Let the fake success economy continue.

No politician or majority of congress has the brass to actually do what’s best for .

Zero chance of getting elected let alone re-elected.

Our current structure with no term limits will hurt the next 2 or 3 generations.

Someone with brass who doesn’t care about pleasing the majority needs to take the lead.

But can that person get elected?”

tl;dr - but, I get the sense that flipping homes has become less attractive for various reasons. And that's a good thing.

Have you seen what's happened in China?

 

[22lcidw]

Wrong move your ass.

It kept the economy functioning until the virus waned

The fiat currency greatest design is to print money during not so good times. We however have printed excess money during good times also. So much so we are addicted. The problem is over time the spark it creates decreases more and more as the money printing never stops. It would be interesting to know how much printed and digital dollars there are over the supposed GDP. For it is not supposed to be much more than that. We stopped releasing that decades ago.

 

[1srelluc]

You gotta wonder how much that same home would’ve sold for 10 years ago or even four years ago.


The middle class has been devastated in this country. We have very bad policies from our government and I would say both Republicans and Democrats. But what makes things all the worse is cancel culture and that’s all from Democrats with a few Republican supporters.

Around here it's speculators buying homes/lots. I walked up the street and looked at the building permit and yep, a out of town builder.

I suspect it's the same with that old 1930s home what with rent being so high, either that or it will be torn down and a duplex put on the 3/4 acre lot.....A duplex in town where one unit sold for $75K when built about 15 years ago sells for 285K now. It's insane.

In my AO I blame the lock-down of DC that allowed hundreds of thousands of federal paper pushers to work remote.

Most still are for the most part so even if they have to commute once a week the 60-odd miles into the DC/Metro area it's a win cost of living/quality of life wise.

Hell most of them use their vacation days on the days they are scheduled to go in. Nobody cares because their supervisors are doing the same thing.

 

[Skylar]

Right now there’s about 1 million homes on the market in the USA. But usually around this time of the year there should be about 4 million homes on the market.

Whatever side of the isle one comes down on. This is certainly an issue. Whatever one might say about what they think about the economy this affects Americans across the country who want to buy a home and pursue the American dream. It is extremely frustrating for Americans, who have new families to look at high interest rates and high home prices …These are the kind of things that might get Trump back into office.

Right now interest rates on a home mortgage loan is around 6 1/2 to 7%. Down from his high is 8%. But still extremely high considering what many Americans are paying right now for their mortgage. under Trump mortgage loan rates were around 2 1/2%.

Another thing affecting our economy , are hospital costs, which have effectively doubled since 1995.

Patrick bet David brings this up on his podcast this morning. Showing us a few factors on why people are not selling or buying homes.

“A few factors why people aren’t selling or buying a house.

92% of Americans have a mortgage below 6% right now

61% are below 4%

23% have a mortgage below 3%
(source @DavidBahnsen)

So what would cause people to start selling & buying:

1. Americans running out of savings

Personal savings in reached $686 Billion in 2022, the lowest figures since 2009.

2020: we had $3 trillion
2021: we had $2.5 trillion
2022: $686 billion
2023: $800 billion (as of April)

We went up slightly but as savings decreases, that panic could cause owners to sell at a lower price.

2. Unemployment.

It’s still at 3.6% ish and hasn’t gone up to the 10% many thought like it did in 2008.

The market expected unemployment to skyrocket if Powell kept increasing rates.

Hasn’t happened yet.

3. Congress has more power than Powell

Everytime Powell increased the rates to help address obsession the govt has with over spending the last 14 years with low interest rates, congress undermined it by delaying the time bomb that was coming to the next generation.

So will anything happen with a massive crash in real estate?

In certain pockets, maybe. But across the country, probably not.

Let the fake success economy continue.

No politician or majority of congress has the brass to actually do what’s best for .

Zero chance of getting elected let alone re-elected.

Our current structure with no term limits will hurt the next 2 or 3 generations.

Someone with brass who doesn’t care about pleasing the majority needs to take the lead.

But can that person get elected?”

Its pretty straight forward: Interest rates are high. That lowers buyer purchasing power and increases their payments. Thus, they offer less on average.

Sellers are waiting for interest rates to go down so buyers can afford higher prices.

 

[HereWeGoAgain]

Right now there’s about 1 million homes on the market in the USA. But usually around this time of the year there should be about 4 million homes on the market.

Whatever side of the isle one comes down on. This is certainly an issue. Whatever one might say about what they think about the economy this affects Americans across the country who want to buy a home and pursue the American dream. It is extremely frustrating for Americans, who have new families to look at high interest rates and high home prices …These are the kind of things that might get Trump back into office.

Right now interest rates on a home mortgage loan is around 6 1/2 to 7%. Down from his high is 8%. But still extremely high considering what many Americans are paying right now for their mortgage. under Trump mortgage loan rates were around 2 1/2%.

Another thing affecting our economy , are hospital costs, which have effectively doubled since 1995.

Patrick bet David brings this up on his podcast this morning. Showing us a few factors on why people are not selling or buying homes.

“A few factors why people aren’t selling or buying a house.

92% of Americans have a mortgage below 6% right now

61% are below 4%

23% have a mortgage below 3%
(source @DavidBahnsen)

So what would cause people to start selling & buying:

1. Americans running out of savings

Personal savings in reached $686 Billion in 2022, the lowest figures since 2009.

2020: we had $3 trillion
2021: we had $2.5 trillion
2022: $686 billion
2023: $800 billion (as of April)

We went up slightly but as savings decreases, that panic could cause owners to sell at a lower price.

2. Unemployment.

It’s still at 3.6% ish and hasn’t gone up to the 10% many thought like it did in 2008.

The market expected unemployment to skyrocket if Powell kept increasing rates.

Hasn’t happened yet.

3. Congress has more power than Powell

Everytime Powell increased the rates to help address obsession the govt has with over spending the last 14 years with low interest rates, congress undermined it by delaying the time bomb that was coming to the next generation.

So will anything happen with a massive crash in real estate?

In certain pockets, maybe. But across the country, probably not.

Let the fake success economy continue.

No politician or majority of congress has the brass to actually do what’s best for .

Zero chance of getting elected let alone re-elected.

Our current structure with no term limits will hurt the next 2 or 3 generations.

Someone with brass who doesn’t care about pleasing the majority needs to take the lead.

But can that person get elected?”

The only way to buy a home these days is to use cash.
And with prices going down it's a buyers market.

 

[1srelluc]

The only way to buy a home these days is to use cash.
And with prices going down it's a buyers market.

It's only a "buyer's market" when houses sit unsold for three weeks.

Buyers no longer insanely competing with each other does not make it a buyer's market. They were just dumb shits.

 

[HereWeGoAgain]

It's only a "buyer's market" when houses sit unsold for three weeks.

Buyers no longer insanely competing with each other does not make it a buyer's market. They were just dumb shits.

It does in my case.
We're looking for our retirement place and we're going to pay cash.
Where we live now is a very popular area and there's still homes being sold,not as high as they were a few years ago but still high enough for us to make money on the sale after living here for 18 years.
We couldnt ask for a better time to buy.
We're finding some really nice properties in the $400k range that have dropped from the $500k plus range.
And with these properties being vacation type homes no one is really buying them as they are a luxury item.

 

[konradv]

Four years ago under Donald Trump. The interest rates were below 3%. The average cost of a home was $250,000. Now today the interest rate is approaching 7%. And the average cost of a home is 350,000.

From the Pbd podcast

Go back far enough and everything is cheaper. It proves nothing and 7% sounds like my first mortgage.

 

[sparky]

in '05 i dug a hole, threw some lumber on top

no bank would have anything to do w/me

i lived a rather spartan existence for quite some time

i built my farm one stick of wood at a time, much of it waste from job sites i worked

i eat what i raise, it's not that hard to do, i have no debt because nobody would loan me a dime....

now the same folks who threw me out their fiscal establishments are all about extending all manner of credit , and the town assessors say i'm worth 1/3 mil

WHY am i telling you this?
Well, it's not hard to be me, no great shakes
What is hard is turning your back on the 'system'

Free yourself from it, by whatever means you have , living unsubjugated has it's pros / cons , it's a lifestyle that's gained legs in the current economic outlook.

~S~

 

[Tumblin Tumbleweed]

The average mortgage rate did not go under 3% will Aug of 2020.

The prime rate was never under 3% during the Trump admin.

United States Prime Rate History

Prime Rate History

fedprimerate.com

View attachment 807818

Magaturds just fudge numbers and make things up. You can't believe anything they spew.

 

[AZrailwhale]

Wrong move your ass.

It kept the economy functioning until the virus waned

If democrats hadn’t locked down the country, the economy would have been just fine.

 

[AZrailwhale]

Around here it's speculators buying homes/lots. I walked up the street and looked at the building permit and yep, a out of town builder.

I suspect it's the same with that old 1930s home what with rent being so high, either that or it will be torn down and a duplex put on the 3/4 acre lot.....A duplex in town where one unit sold for $75K when built about 15 years ago sells for 285K now. It's insane.

In my AO I blame the lock-down of DC that allowed hundreds of thousands of federal paper pushers to work remote.

Most still are for the most part so even if they have to commute once a week the 60-odd miles into the DC/Metro area it's a win cost of living/quality of life wise.

Hell most of them use their vacation days on the days they are scheduled to go in. Nobody cares because their supervisors are doing the same thing.

A duplex on three quarters of an acre? More likely six to eight McMansions on postage sized lots.

 

[Thinker101]

The average mortgage rate did not go under 3% will Aug of 2020.

The prime rate was never under 3% during the Trump admin.

United States Prime Rate History

Prime Rate History

fedprimerate.com

View attachment 807818

And now it's up to 7+%, thanks Joe Biden.

 

[Missouri_Mike]

Right now there’s about 1 million homes on the market in the USA. But usually around this time of the year there should be about 4 million homes on the market.

Whatever side of the isle one comes down on. This is certainly an issue. Whatever one might say about what they think about the economy this affects Americans across the country who want to buy a home and pursue the American dream. It is extremely frustrating for Americans, who have new families to look at high interest rates and high home prices …These are the kind of things that might get Trump back into office.

Right now interest rates on a home mortgage loan is around 6 1/2 to 7%. Down from his high is 8%. But still extremely high considering what many Americans are paying right now for their mortgage. under Trump mortgage loan rates were around 2 1/2%.

Another thing affecting our economy , are hospital costs, which have effectively doubled since 1995.

Patrick bet David brings this up on his podcast this morning. Showing us a few factors on why people are not selling or buying homes.

“A few factors why people aren’t selling or buying a house.

92% of Americans have a mortgage below 6% right now

61% are below 4%

23% have a mortgage below 3%
(source @DavidBahnsen)

So what would cause people to start selling & buying:

1. Americans running out of savings

Personal savings in reached $686 Billion in 2022, the lowest figures since 2009.

2020: we had $3 trillion
2021: we had $2.5 trillion
2022: $686 billion
2023: $800 billion (as of April)

We went up slightly but as savings decreases, that panic could cause owners to sell at a lower price.

2. Unemployment.

It’s still at 3.6% ish and hasn’t gone up to the 10% many thought like it did in 2008.

The market expected unemployment to skyrocket if Powell kept increasing rates.

Hasn’t happened yet.

3. Congress has more power than Powell

Everytime Powell increased the rates to help address obsession the govt has with over spending the last 14 years with low interest rates, congress undermined it by delaying the time bomb that was coming to the next generation.

So will anything happen with a massive crash in real estate?

In certain pockets, maybe. But across the country, probably not.

Let the fake success economy continue.

No politician or majority of congress has the brass to actually do what’s best for .

Zero chance of getting elected let alone re-elected.

Our current structure with no term limits will hurt the next 2 or 3 generations.

Someone with brass who doesn’t care about pleasing the majority needs to take the lead.

But can that person get elected?”

That’s all true but there’s a bit more to it. In addition to the prices and interest rates keeping people where they are there’s the restrictions on what you can build as a replacement. Building new is cost prohibitive. Too many regulations push the price higher than the average consumer can afford. You may like your gas stove, and if you move you can’t have one. You may be perfectly happy with a fireplace. Which you can’t have if you move. You may not want solar panels for a roof that cost you money but are required in a new build.

So you lose all the things you like about your home and get to pay double the interest on the new one. Is it that hard to figure out why nobody wants to move?

 

[RhodyPatriot]

Someone with brass who doesn’t care about pleasing the majority needs to take the lead.

Not the majority, the elite.