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It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of le
by darth_avocado 3y ago
It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student payments that they’d give up on homes. If anything all sectors except housing market will take a bigger hit as housing takes priority over everything else.
- mberning 3y agoIt only takes a small nudge in the economy to force a lot of real estate back on to the market. A small uptick in unemployment could force the number of homes on the market to double or triple in certain areas.
- bryanlarsen 3y agoIf the problem is, as you say, "less supply" that means that it's mostly a local problem requiring primarily local fixes. "economists, policymakers and even the fed" aren't local actors.
- xapata 3y agoCan you make some money with that bet?
- sidewndr46 3y ago90% of mortgages may be locked in under 3%, but no one who has payed off their home is going to sell that and wind up financing another house with interest rates where they are at.
- ethanbond 3y agoInterest rates are not that high currently. Sheesh you give people a taste of 2.5% and they act like 7% is usury.
- armatav 3y agoIt’s literally usury.
- baggy_trough 3y agoWhat do you think usury is?
- TheSpiceIsLife 3y agoLending money out at unreasonably high interest rates. Which makes 7% usury.
- baggy_trough 3y ago7% is not unreasonable by any stretch of the imagination.
- armatav 3y agoDo the math and tell us the income you'd need for a $1,000,000 house at prime. It's unreasonable. Pay a loan to term one of these days and you'll see why.
- thunky 3y agoDon't buy the $1,000,000 house if you think it's too expensive. It's only (over)priced that way because rates were low and prices haven't adjusted to current rates yet.
- TheSpiceIsLife 3y agoI don't think those are the only reasons house prices are high now. Why don't you try telling the whole truth.
- fortran77 3y agoTrue, but people who paid off their homes can often move and buy their next home for cash, especially if they're downsizing.
- sidewndr46 3y agothat only works if you can sell your home for what you paid for it. Demand contracts when interest rates rise.
- hexo 3y agohousing is NOT a market.
- vba616 3y agoCould you give an example of something that is a market, unlike housing? And why? Is a super market a market? Or a stock market ?
- WalterBright 3y agoOf course it is. Anything that is bought and sold is a market.
- deleted 3y ago[deleted]
- dragonwriter 3y agoIts not an ideal market, but no real markets are.
- TheSpiceIsLife 3y agoYou're right, it's an essential service and a human right. Everyone should have access to reasonably well maintained, warm / cool, shelter they can call their own.
- neilv 3y agoEliminate the portion of demand from investor ownership of homes, by outlawing it?
- cscurmudgeon 3y agoWhat is the investor fraction and how does it compare to other countries and the past? Without these basic stats, suggestions like this are dangerous and verging on Mao’s bird genocide.
- bryanlarsen 3y ago34% of Americans rent. Virtually all of them from investors. What will happen to them if you disallow investor ownership?
- magicalhippo 3y agoHere in Norway, a big issue in the smaller districts and towns have been that people are moving to the bigger cities[1]. The result is a lot of empty houses. Still, it can be difficult to find a home in these places for those who go against the flow, because those who leave (or inherit) often keep the house as a vacation home[2][3]. On a related note, since so few move to these places, the prices are quite low, so building a new house results in a significant loss from the get-go[4]. This means it can be difficult to get a sufficient loan to start building. [1]: https://www.nrk.no/vestland/byene-vokser-_-distriktene-blor-1.15126075 https://www.nrk.no/vestland/byene-vokser-_-distriktene-blor-... [2]: https://www.nrk.no/nordland/tross-mange-tomme-hus-er-det-boligmangel-i-loppa-i-finnmark-_-steigen-i-nordland-kan-ha-losninga-1.15486028 https://www.nrk.no/nordland/tross-mange-tomme-hus-er-det-bol... [3]: https://www.nrk.no/nordland/boligmangel-i-distriktet-far-traena-kommune-til-a-be-folk-selge-feriehusene-sine-for-maritas-familie-1.15472060 https://www.nrk.no/nordland/boligmangel-i-distriktet-far-tra... [4]: https://www.nrk.no/nordland/verdien-pa-hus-i-distriktene-halveres-1.16093109 https://www.nrk.no/nordland/verdien-pa-hus-i-distriktene-hal...