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Realtors use comps to come up with the right price for the home.
Incorrect. They do not "come up with the right price." They make their own guesstimate of what a willing buyer will pay for the home. Sometimes the real estate agent or broker will guess too low. Sometimes they guess too low. Sometimes, they guess correctly. But they have NOTHING to do with "the right price." Only willing buyers determine the selling price.
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Originally Posted by Oklazona Bound
Buying qualify to get the lowest interest rate possible. Its not just the buyer and seller deciding on a price. The seller decides the price to list the house at.
Buyers determine prices, not sellers. Listing prices are not transaction prices. Listing prices are irrelevant. What matters is transaction price - that is the home's value.
It enhanced the lives of Americans by allowing cheaper goods to enter the country.
It GREATLY enhanced the lives of the wealthy by vastly increasing their profits.
Its like the stimulus. Most people got a couple thousand bucks which is nice. But the real money went to the people at the top.
Let’s fill in 2022 so far(year to date) under Biden:
SP500: -19.38%
NASDAQ: -29.35%
I am trying to leave politics out of this and maintaining that Presidents do very little to affect the stock markets.
But, "annual" rate of return is measured annually, so this year is not over yet. If you want to pick and choose a date then you should look up the SP on March 23, 2020.
SP500 March 23, 2020: 2237. Did you blame Trump then?
You have a funny idea what a "fact" is. Regardless, you are incorrect.
You seem to be spending a fair bit of time regarding something that, in your words, "doesn't matter."
And yet we are doing relatively well now. Hardly "no hope." Evidence that the US's policy, with the benefit of 20-20 hindsight, was more appropriate than China's.
Putin's decision to invade Ukraine had nothing to do with the Maidan Uprising.
1 million dead from covid and you think it was handled well and deemed appropriate.
Guess senior citizen lives don't matter.
Oil exploration is financed via capital markets. Oil exploration companies go to major banks & Wall Street financiers asking for funding to drill for oil & gas.
The Progressive Wing of the dominant political party has informed banks and Wall Street that they don't want those projects funded. If the banks & Wall Street ignore this political guidance, they are assured that every federal regulator known to mankind will give each of them a never-ending colonoscopy with no Propofol.
Nope. Not true. I've been in the oil business for over 30 years. The big companies are more active now because they have cash. The smaller ones that have cash or are backed by venture capital are drilling, but far more slowly than in the past, because they need to make enough money to pay off the debt, rather than jus trolling it over to be paid by a new well.
Exactly. The government was a bunch of buffoons' saying how home prices needed to recover when they in reality did not in 2009-2012 as they were fair valued. They should have encouraged massive building to keep prices stable in 2012 when it became clear there was a shortage of homes. Instead the government cheered on as if it was a recovery when prices started to rise at absurdly fast rates starting late 2012 to early 2013!!
When will the government and society get it through their heads that $110K to $140K for a small starter home in a good neighborhood of a major metro area is not a depressed price, but rather fair value. If the prices of such homes were $60K to $70K, then a skyrocket to $120K would be welcome as $60K to $70K is a depressed price of starter home. Not $110K to $140K. The government and realtors want us to think anything less than $200K is an undervalued price for even a starter condo which is disgusting!! $200K is even pushing it as insanely high price for starter home let alone a condo!! Nevermind the horribly high prices way above $200K for such home today which is exosphere outrageous!! $200K was bad enough already!!
Lol, imagine spending less on a mortgage than on groceries? Some of you are just delusional
I agree that areas in California for example lack available land and many residents have the NIMBY mentality. You can't do much about that. However the country at large and even inland California there is plenty of land. You set up enterprise zones or huge tax breaks and tax credits to get builders to go to these areas as well as businesses. As the baseball movie once said. Build it and they will come. You offer say 3br track homes for 100K and easy qualify as well as lots of new jobs. People will flood there and pressure will come off of places like coastal california. They could also give big tax breaks for modular homes that can be built off side and moved there. Make the homes solar powered. Use whatever tax breaks needed to hit that price point.
Post WW2 the federal government put restrictions on non residential housing construction and required lumber to be prioritized for home construction. There was an understanding that there would be a massive housing shortage if this was not done.
Some here talk about how the great economists should not be criticized by neophytes like myself. How come no one saw this housing crisis coming? Low interest rates alone were going to push prices way up. And a lack of building made it much worse.
You can't build a 3BR house for $100k anywhere. Materials and labor cost more than that.
Well they do not have a choice and want to own a home so have to pay insanely high prices. And the greedy local zoners and Federal reserve driving dow interest rates has contributed to these insanely high prices.
If interest rates were actually normal and the old rule of 20% down minimum still applied and builders built homes at a normal rate, small starter homes would be $110K to $140K in good neighborhoods of most major metro areas.
Instead we get absurdly low interest rates and lack of building punishing responsible savers who want to work their tail off for large down payment or to pay cash for such home in many years. Now that is an impossibility for anyone living with their parents saving money like mad unless they want to live with them for 20 years instead of 8 to 10 years. And even at $110K to $140K still a very rough goal to make let alone today's prices.
Where are you getting the idea that a house can be built for $110k? You might be able to build an 800 sq ft house for that.
I don't give a damn about the markets. Real investors write promissory notes....and get paid first if a company fails and ends up in bankruptcy, unlike weak-kneed stock-holders who get nothing.
The stock market has never caused a recession and never could.
You're not even informed enough to understand that the stock market is an indicator of where investors are putting their money and nothing more.
During some of the "crashes" lasting up to several years, GDP was 2.5% to 12.5% every single quarter.
The stock market has frequently set record highs on a weekly/month basis during pas recessions.
You don't even understand that the stock market A) set a record high; and B) recovered from its record high achieved during the 1928-29 Recession whilst smack in the middle of the 1960-1961 Recession.
Yeah, that's right....the stock market set weekly record highs during the 1928-29 Recession, and then when the economy recovered, the stock market tanked.
It didn't get back to that level until the middle of the 1960-61 Recession.
The Federal Reserve is not responsible for the irrational thinking, lack of knowledge, and irrational behavior of people like you.
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Originally Posted by k374
... people being laid off now losing their jobs,....
You only lost 115,000 jobs in March. It's not the end of the world.
Quote:
Originally Posted by k374
....and slowly but surely people are also going to start losing their homes as the housing bubble pops.
No, wrong.
People lose their jobs and then default on mortgages, not the other way around.
And to which one of the 120,000+ housing market bubbles are you referring?
Quote:
Originally Posted by k374
making up? Are you serious dude? Mortgage rates are projected to be at 7% by end of year, what do you think that will do to housing?
It will do the exact same thing when interest rates were 16% which is nothing will happen very slowly.
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