Flock Cameras

[Captain Virgil Hilts]

Which will just collapse the prices further in a snowball effect.

Interest rates are still below the 50 year average.

Interest rates aren't the problem.  Employment is the problem.  Confidence in future economic state is the problem.  The over all unemployment rate is not bad (well the numbers are probably fake), but the unemployment rate for young people is the worst it's been for decades.

Unless you can sell you house to other boomers who are already trying to down-size, there is no one to buy them.  It's like the car lots trying to sell 100k trucks.  Let them rot.

Interest rates ARE the problem. Even mortgage companies are telling people new mortgages are not smart.

Interest rates might not be such a problem, if home prices were not high. Interest rates approaching 7% were not a horrific problem when I bought my first house 30+ years ago, for $77,000. But throw a 6.5% interest rate on a $425,000 home, and interest becomes a serious problem.

And there's no reason for it. It's stupid. Interest rates have nothing to do with inflation. That's just a government excuse to manipulate money. And, historically, government interference has made the economy worse, and prolonged the periods of recession and depression.

Interesting, the market added 160,000+ jobs last month. Companies struggling two plus years ago are now posting their 18th consecutive month of growth. The economy isn't quite as bad as they'd like you to think.

[CptTrips]

The 50-year historical average for a 30-year fixed-rate home mortgage in the United States is approximately 7.7%.  Today it's about 6.75%.


The real problem is house prices that have doubled since COVID and young people who would be buying the houses off boomers don't think they will have a job in a year.

Sure 4% home loans were great cocaine.  But those days will never be seen again.  And a lot of these boomer houses are heading for 30% reduction.

[Eagler]

Lower rates cause inflated prices everytime as most can only afford to buy over time..credit..how much can you afford monthly 🙃

We are now buying our own debt back as the buyers don't see the value these days..

That has to change if the circus is to continue as scheduled..

Eagler

[CptTrips]

Lower rates cause inflated prices everytime as most can only afford to buy over time..credit..how much can you afford monthly 🙃

We are now buying our own debt back as the buyers don't see the value these days..

That has to change if the circus is to continue as scheduled..

Eagler

The 100 year mortgage is coming.  That is just another word for Serfdom.

And they still won't be able to give them away in two years.

[AKIron]

The 100 year mortgage is coming.  That is just another word for Serfdom.

And they still won't be able to give them away in two years.

Most won't sell at significantly reduced prices. That's a fantasy. More people will rent and the rent will go higher and higher.

[Captain Virgil Hilts]

Lower rates cause inflated prices everytime as most can only afford to buy over time..credit..how much can you afford monthly 🙃

We are now buying our own debt back as the buyers don't see the value these days..

That has to change if the circus is to continue as scheduled..

Eagler

 

Economics (intelligent, factual economics, anyway) proves that claim utterly false. The government spending money it doesn't really have, "borrowing" money it will never repay, printing money continually, making every penny in circulation already worth less, all drive inflation. And it is done intentionally. Interest rates mean nothing when it comes to inflation. The government flooding the economy with "money" it has destroyed the value of is the driving force. It happens every single time. The $40 trillion in debt is driving inflation.


The government makes your money worthless, and you beg them to do it, while clinging to your annuities, and begging the fed to wreck the economy.


 

[CptTrips]

Most won't sell at significantly reduced prices.

It's already happening.  For many, selling is a necessity, not optional. People get laid off and need the money. People need to move closer to children.  People need that equity back out to live on in retirement after downsizing.

For a lot of people, that house WAS their retirement fund.

You think granny and grandpa want to try and run a rent house two states away when they need to downsize and move closer to kids?




You can still find reasonable houses out in BFE Wyoming etc, but young people need to buy homes where the jobs are.

[AKIron]

Prices have fallen a bit but not substantially. No one who paid $400K for a house is going to sell it for $200K or even $300K. Homes around here just aren't moving very fast and north Texas is still a growing area and houses are not priced out of reach like many other areas. Like I said before though, apartments are being built all around. People do need a roof over their head and the money is anticipating renters for a while.

Never forget, Soylent Green is people.

[Eagler]

Flock home prices...just hoping they eliminate or reduce the property tax rip off....but ain't betting on it..

Now back to the op concerning a specific camera paranoia  ...

Eagler

[AKIron]

Jefferson probably didn't say it but I bet he thought it.

"Government big enough to give you everything you want is big enough to take everything you have."

[Randy1]

The Real Estate market has largely stalled thanks to interest rates. Apartments are going up all around us. Even if prices fall as a result few will buy due to the interest rates. The market should dictate rates. Not a self-interested organization like The Fed.

I had an interest rate at 8.3% then the next house I had to borrow at 11.2%   Hard for me to get too excited over the low interest of today. 

These low interest rates are making house unaffordable due to the tremendous amount of upfront money required to buy a starter house for a young family...

[Captain Virgil Hilts]

I had an interest rate at 8.3% then the next house I had to borrow at 11.2%   Hard for me to get too excited over the low interest of today. 

These low interest rates are making house unaffordable due to the tremendous amount of upfront money required to buy a starter house for a young family...

In most places, FHA and THDA are offering low down payments, the problem is, as stated earlier, 6%-7% is not terrible on an $80,000 loan. It's brutal on a $400,000+ loan, and then there's the price inching up above $450,000 or higher here. For a young family, with average incomes, anyway. Even a 30 year mortgage is often out of reach, and they're 1/2% to 1% higher than a 15.

Hell, I wouldn't want to pay my 15 year mortgage if it was at 6% rather than 3%. We probably could afford it, if I stopped contributing to my retirement, and gave up everything else.

People who don't need to sell are not selling cheap. People who want to sell are selling high. The new thing is the massive number of "leased" homes. Entire developments where you NEVER own the home. You have an open ended lease, and it ain't lease to own. About 7-8 miles from my house, there's a 200 house development leasing houses at $2500 a month.

[AKIron]

We live in a relatively small HOA. About a hundred homes in our area. The HOA restricts rentals to no more than 15% of the homes at any given time. Some hate that and have sued the HOA. They lost.

[AKIron]

An aside, I recently learned Houston Tx has no zoning. Build what you want on your property. Not sure I'd like that.

[CptTrips]

An aside, I recently learned Houston Tx has no zoning. Build what you want on your property. Not sure I'd like that.

I Grew up in the Houston suburbs.  It never seemed a problem.

That would be the least of their problems.