Why Americans are not buying or selling homes.

[Missouri_Mike]

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

Those would actually be more valuable than the duplexes.

 

[Rigby5]

The Feds can’t keep interest rates at zero forever. You got used to free money. That’s not realistic.

That is true that you can not have 0% interest very long.
But it should not have been jumped up to 7%.
It should still be around 3%.
That is because the jump in prices was not from "inflation", but from the illegal economic sanctions on Russia.
Instead of raising interest rates, the appropriate action would have been to stop the illegal economic sanctions that cause the price hike.

 

[Rigby5]

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

You can't "cash in" on the post pandemic price increase because if you sell, then you have to buy yourself, at even higher prices.

 

[Rigby5]

Wait for rates and prices to come down.

That’s what I did in the early 80s

Rates won't come down until we end the illegal economic sanctions on Russia.

 

[Rigby5]

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

Almost no one can buy with cash.
And prices are still going up.
They never came back down.

 

[MarathonMike]

The Feds can’t keep interest rates at zero forever. You got used to free money. That’s not realistic.

For once I agree with you. Interest rates were artificially suppressed for many years. Mortgage rates are now near long term historical averages of 6-7 percent but everyone got spoiled with 3 percent mortgages. On the bright side I'm loving 5 percent CD rates.

 

[HereWeGoAgain]

Almost no one can buy with cash.
And prices are still going up.
They never came back down.

The only house we didn't pay cash for was our first house.

 

[Esoteric Inkling]

The threat of infinity mortgages may be a part of the problem:

Bank regulator steps in to deter banks from extending mortgages to as long as 90 years

Earlier this week, the Office of the Superintendent of Financial Institutions proposed changes that would force banks to build reserves to address risks posed by ‘forever mortgages.’

www.thestar.com

It's already happening with car loans. Sure, you get a low payment but the interest rate is sky high and you'll be paying it off ad infinitum. I, of course realize this is in Canada, but predatory lending tends to spread.

Reinvented feudalism but instead of being bound to the land of an aristocratic lord you're owned by an international finance cartel.

 

[Rigby5]

For once I agree with you. Interest rates were artificially suppressed for many years. Mortgage rates are now near long term historical averages of 6-7 percent but everyone got spoiled with 3 percent mortgages. On the bright side I'm loving 5 percent CD rates.

I also like the 5% CD rates.
But raising interest rates to 7% was a bad idea.
No one can afford to buy houses any more.
They raised the interest rates to try to stop the price rise, but it does not work that way.
Raising interest rates causes prices to increase, not decrease.
That is because rising prices were cause by the oil shortages when Biden place the illegal economic sanctions on Russia.

 

[Rigby5]

The only house we didn't pay cash for was our first house.

Even if you use the proceeds from the previous to buy the next, unless you are down sizing, you are unlikely to have the cash.
We did it the opposite.
The first house we had to pay cash for, since we did not have credit history.
We always take out a mortgage, and then let the tenants pay it and buy the house for us.
Makes no sense to pay cash, because then you could have used the cash for down payments on 5 houses, and made 5 times as much profit.

 

[Missouri_Mike]

That is true that you can not have 0% interest very long.
But it should not have been jumped up to 7%.
It should still be around 3%.
That is because the jump in prices was not from "inflation", but from the illegal economic sanctions on Russia.
Instead of raising interest rates, the appropriate action would have been to stop the illegal economic sanctions that cause the price hike.

You actually think it wasn’t our own government spending and printing money? It was sanctions on Russia.

 

[westwall]

You will either own 8 mansions around the country and the world as you make your money working for the political elites in the DNC, or you will rent a row house and be happy.

That is the direction society is going..light bulb?

Until society ends the political class.

 

[Andrew_Jackson_FTW]

I also like the 5% CD rates.
But raising interest rates to 7% was a bad idea.
No one can afford to buy houses any more.
They raised the interest rates to try to stop the price rise, but it does not work that way.
Raising interest rates causes prices to increase, not decrease.
That is because rising prices were cause by the oil shortages when Biden place the illegal economic sanctions on Russia.

I got a cd account going now at about 5.2%. But what’s it all really worth??. How much is our money really worth today? That’s the big question. Certainly not anything near what it was under Trump. And I hear these excuses Biden supporters make it’s the most childish thing I’ve ever heard. They blame Trump for our current economic struggles, and then they claim Obama was responsible for the success we had during trumps presidency. Yet when Trump became president, the markets all went up.



Yeah, sanctions on Russia and the funding of Ukraine is an error for sure… Russia did not sanction America for invading Iraq or Afghanistan. . You’re talking about two light authoritarian countries in Ukraine and Russia. it’s not good guys versus bad guys.

But regardless of where anyone stands on politics, or why they think prices are so high whether they say it’s because of Ukraine, Trump or Biden or Russia... The facts are that American families across the country are very sad that they can’t buy a home . They’re stuck in small apartments or being forced to live with their parents or relative. not many have the cash for an average home price of 350,000.

But we keep getting told by Biden supporters that there’s “record low unemployment”. It’s meaningless with the astronomical price of a home coupled with a high interest rates.

Not many people have hundreds of thousands of dollars to put into stocks or whatever and try and bang out a nice profit. It just doesn’t work like that. Huge numbers of Americans don’t have stock options, 401ks , big bonuses from work things like this.

And so that’s what frustrates the American people when they talk with Biden supporters. It really boils peoples blood when they have some Biden supporter talking about “low unemployment” . In some ways it’s extreme arrogance . . On top of it all you have the racism from Democrats the support of BLM and the radical LGBT agenda which just add fuel to the fire. Couldn’t have came at a worse time. You got these millionaires like Colin Kaepernick and other lowlife pro blm Celebs complaining about racism in this country when their living in multi million dollar mansions.

 

[Andrew_Jackson_FTW]

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~

That is a very inspirational story . The fact of the matter, though is with what is being taught in schools, there is a very small percentage of people in this country who can build their own home from scratch. Some folks are disabled and they can’t do that kind of stuff.

Building Materials is also very high in price compared to 2005

 

[Papageorgio]

The Feds can’t keep interest rates at zero forever. You got used to free money. That’s not realistic.

If you hold a 4% mortgage are you going to sell your home and buy a new one at a 7.5% interest? That is the issue, Americans don’t want to sell because it is no longer advantageous to do so.

 

[Andrew_Jackson_FTW]

in another thread somebody made a post that said their relatives home is worth 380,000 grand right now but it really truly should be worth 200,000 if inflation and the economy kept up to where it should be at.

That’s heartbreaking.. under Joe Biden
the pro BLM Democrats are ruining our countries image we have this ugly economy…. We have people like Eminem a man who’s worth hundreds of millions of dollars getting in front of a camera ranting and raving about Trump attempting to try and tell middle class people that they shouldn’t like Trump…. When under Trump the average price of a home was $100,000 les than it is today.





watch excuses pour in from the Biden Democrats.

One thing we can hope for is to avoid a prolonged depression. Imagine a scenario where young people in this country have to go 10 or 20 years before they can get a home. That is a crime right there and it’s disgraceful this is happening in America, all under Joe Biden’s watch. Where is Kamala Harris? Where is Joe Biden. They are some of the worst leaders in this country’s history.

 

[Thinker101]

I got a cd account going now at about 5.2%. But what’s it all really worth??. How much is our money really worth today? That’s the big question. Certainly not anything near what it was under Trump. And I hear these excuses Biden supporters make it’s the most childish thing I’ve ever heard. They blame Trump for our current economic struggles, and then they claim Obama was responsible for the success we had during trumps presidency. Yet when Trump became president, the markets all went up.



Yeah, sanctions on Russia and the funding of Ukraine is an error for sure… Russia did not sanction America for invading Iraq or Afghanistan. . You’re talking about two light authoritarian countries in Ukraine and Russia. it’s not good guys versus bad guys.

But regardless of where anyone stands on politics, or why they think prices are so high whether they say it’s because of Ukraine, Trump or Biden or Russia... The facts are that American families across the country are very sad that they can’t buy a home . They’re stuck in small apartments or being forced to live with their parents or relative. not many have the cash for an average home price of 350,000.

But we keep getting told by Biden supporters that there’s “record low unemployment”. It’s meaningless with the astronomical price of a home coupled with a high interest rates.

Not many people have hundreds of thousands of dollars to put into stocks or whatever and try and bang out a nice profit. It just doesn’t work like that. Huge numbers of Americans don’t have stock options, 401ks , big bonuses from work things like this.

And so that’s what frustrates the American people when they talk with Biden supporters. It really boils peoples blood when they have some Biden supporter talking about “low unemployment” . In some ways it’s extreme arrogance . . On top of it all you have the racism from Democrats the support of BLM and the radical LGBT agenda which just add fuel to the fire. Couldn’t have came at a worse time. You got these millionaires like Colin Kaepernick and other lowlife pro blm Celebs complaining about racism in this country when their living in multi million dollar mansions.

Buying a home has been an interesting topic for the last 40 years. So many of the younger people wanting to buy only want the brand-new house with the tile roof and a swimming pool. Used to be they had to find something 50 miles out of town. Then there are the ones who want to buy the $500,000 house and run for the hills when they figure out after a 30-year mortgage they really paid $900,000. My guess nowadays is the ones complaining the most are the ones still living with mom and dad.

 

[Andrew_Jackson_FTW]

Buying a home has been an interesting topic for the last 40 years. So many of the younger people wanting to buy only want the brand-new house with the tile roof and a swimming pool. Used to be they had to find something 50 miles out of town. Then there are the ones who want to buy the $500,000 house and run for the hills when they figure out after a 30-year mortgage they really paid $900,000. My guess nowadays is the ones complaining the most are the ones still living with mom and dad.

There’s another percentage of young Americans, who wanna buy these box homes. Basically these tiny homes that look like sheds, and they think it’s cool, or modern to live in such a travesty.

There’s tons of young people who are totally fine with playing video games all day living in their parents basement. They have headphones on their gaming all day.

But there are those the young generation who are doing the right thing, working out being healthy, working to three jobs, saving up money, doing what they can. It’s a very difficult challenge right now for the young generation.

It is, as you said interesting to look at the real estate development over the past few decades. But it’s always unfortunate with this country hits a really bad economic time like we are today. It’s most unfortunate for young families who have children who are looking to get their own space to get out of a drug infested apartment complex.

 

[Lumpy 1]

Always, with the personal attack from the far lefties

Me .. I enjoy being passive aggressive .

 

[Andrew_Jackson_FTW]

Thinker101

A 15 year mortgage is the way to go. If one has the cash just buy out a home but of course 57% of Americans don’t have $1000 to their name. So we have problems here in this country and Joe Biden and Kamala Harris are some of the worst leaders in this country’s history. Look what they’ve done to the economy.