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don't disagree that perhaps the size of homes has gotten out of hand, but found it funny how poster claimed people should downsize to settle for 2500 sq ft when in many part of the US that's an almost 7 figure house, before rates jumping.
in many parts of the country a 2500 sq ft home is 800k....hoe small should people go? 800sq ft?
In those parts of the country, the land is the biggest part of the purchase price so shrinking the house won't have much impact. If you live in one of those areas I'm routinely told it's just the price of living in such a wonderous location. *shrug*.
This is of little concern to me (in fact, it's a positive since I am more often on the lending side), but I can't help but wonder how it hits the forgotten man and woman. Stable wages....at most up 1%, yet fuel up 10-20% and interest rates up 30-60%.
As it stands, the housing market in many areas has barely recovered (if that!) from the Great Recession, now this means the average person can afford less...
It looks like the Citibank Plutonomy memo is more true than ever. There is "us" and then there are the rest (most people!)..... https://delong.typepad.com/plutonomy-1.pdf
i don't see where 6% is coming from. we will likely be in the next recession well before that. Most folk are calling for a recession in the next 18 months, maybe sooner maybe later.
It's a little early to be in a panic. I just checked, and Wells Fargo is advertising 30 years at 4.876%. Historically, that's a steal. Unfortunately, buyers often make decisions based on payments rather than value, so home prices are a bit inflated. All that does is extend the time you have to hold the property to reach the break-even point.
I might actually start seeing a return on my savings account, instead of having to play the stock market.
But if everyone can make money on their savings without playing the stock market, it means there will be fewer people in the Wall Street Casino. So you can bet that interest rates won’t go up that much.
What folks are missing is that this means that the rich will continue buying up the housing markets, and sucking up wealth through renting at ever higher pricing. There is a reason people like Sean Hannity own over 900 houses. Its because they can see that the future has more and more people renting at higher and higher prices.
*shrug* if you don't want to rent then scrape together the down payment, get roomates etc.
That's what I did. There will certainly be cases where people can't do this because they have huge student loans or a low paying job in an extremely expensive area etc. but then that's up to you to decide if you want to keep living in that sort of situation or not.
What folks are missing is that this means that the rich will continue buying up the housing markets, and sucking up wealth through renting at ever higher pricing. There is a reason people like Sean Hannity own over 900 houses. Its because they can see that the future has more and more people renting at higher and higher prices.
It's the same in every facet of life, not just RE. Those willing to work hard and take some chances reap the gold. The rest continue to sit on their backside, make excuses, and want to be taken care of.
Smart, hardworking people seem to get it all -- waaaah ..waaaah
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