Housing affordability is worst of all time on Biden's watch (salaries, legal)
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Well Trump was just as guilty of that as Biden. In fact he should have let the Feds raise interest rates before Biden even took office, to try to hedge inflation. But also inflation was world-wide, and we import a lot of things, also fuel was up and we had shortages of truckers. Inflation would have been an issue whether we spent a lot or not.
But interest rates do not explain the huge rise in housing values. That is pure and simple market dynamics, people moving around more due to remote work, etc, and not enough housing stock for everyone that wants them. The value of my house is hugely inflated compared to what it was 5 or 6 years ago.
"The average New Jersey home value is $484,467, up 4.2% over the past year and goes to pending in around 14 days."
That's why people can't afford homes or rent. it's not just about interest rates. So again, how exactly is Biden solely responsible for this?
"The average New Jersey home value is $484,467, up 4.2% over the past year and goes to pending in around 14 days." ...... So again, how exactly is Biden solely responsible for this?
Biden is not solely responsible for this but does share a deep part of the blame.
When houses are going to pending in 14 days, that is a sign of too much population growth - in other words, old fashioned supply and demand. And because the United States is growing irresponsibly faster than almost any other Western country, we now have corporations like REITs and even foreign investors buying up single family homes in order to rent them out.
And now they are pushing the government to increase immigration as well as abolish local zoning so they can build even more apartments. Profits is more important than the environment, the quality of life of Americans or even if they can ever afford their own dream home.
So Biden's open borders policy is not to "reunite families", it is a gift to the establishment billionaire and investor class who want population growth and cheap labor.
You actually believe the people buying $700,000 homes in Florida got their money through Covid $1200 payments and child care credits, lol??
Of course not. But the Covid federal stimulus subsidies move on up to store owners, investors in the stock market and the more rich. Many Boomers. And they bid up the house prices.
Government run Housing for everyone. This will be the new Democrat mantra.
If you ever take the Danube River cruise, they might go to Bratislava. There you can go on a Communist tour and see the stark differences from the Cold War, including Gov't provided housing.
People would long for the days of those record high at the time prices (oh and they were inflated then with stupid ZIRP) compared to the horrific prices of today that make those prices and 2005-2006 look like child's play.
Shame on the government and ZIRP since 2012 and greedy builders and less than 20% down mortgaging available punishing responsible savers who desire to live with parents or super frugal and thus pay cash for a smaller house while doing nothing to benefit those who only care about the monthly mortgage payment except those who feel entitled to low money down or HELOCs none of which I have an ounce of sympathy for or respect for!!
And if I was my 11-13 year younger self saving to pay cash in the market of the last 6-7 years let alone today, I would be beyond furious at government policy. In fact in late 2012 as it was unfolding I already was, but even with prices starting to raise, they were still bearable to get in and pay cash for, but it still made me angry, but I got my home and am ok now.
but I sympathize for those who think like me and hate any loans ever in todays market or even market last 7-9 years.
The whole housing market is no different than prior to 2008 except lets just have a shortage of homes so they increase dramatically and have little money down and some patches to income verification and HELOCs and all that crap. Its the same rising home prices ponzi scheme but made by builders and government with them encouraging builders to not build and ZIRP so it sticks unlike 2005-2006 which is a shame. After 2008, it should have been back to 20% doing no exceptions, HELOCs banned normal 6-7% mortgage rates, incentives for builders to build modest starter homes for reasonable prices. Instead it was lets go 2005-2006 with home shortages so record runaway prices stick!! What a shame for future responsible savers whose savings will not make a dent in price appreciation if barely keep up.
And some for it is Biden's fault to address the topic at hand for the last couple of years situation, but no he is not responsible for the situation as a whole which has been happening for a decade now. Well finally ZIRP and stupid low mortgage rates are over (That is Powell and has nothing to do with Biden BTW_, but it is way way way too late, That should have been done in 2012-2014 and that article I read about almost 5 years old would not have existed. Though blame Biden for continuing less than 20% down FHA loans which Powell does not control. And also Trump and Obama admin as well for FHA less than 20% down mortgaging.
Joe Biden's economy is horrendous...inflation, gov't overspending, exploding gov't debt, fed interest payments exceeding $450B, and the worst housing affordability in history.
We need Joe to go.
Well, first we need you to understand Economics, which obviously you don't.
The "inflation" is not Hiden's fault. It isn't even caused by government over-spending.
Housing is not unaffordable country-wide.
Housing is unaffordable only in a handful of the 39,000+ municipalities in the US.
Actually, less than a handful since it's only unaffordable in 0.0046% of all municipalities.
There are more than 600,000 housing markets in the US contrary to what Zillow and other propaganda sites claim and if you want to look at pricing there, maybe 1% to 1.5% of those 600,000+ housing markets.
Blaming Hiden because people have money and are willing to buy houses in certain of the 600,000+ housing markets is absurd.
Asserting that housing is somehow a benchmark of the economy is equally absurd. In fact, it's as absurd as claiming that the economy is crashing because 0.0044% of publicly-traded companies -- which is what the DJIA is --- saw their stocks fall an average of 3%.
It would be correct to claim that Liberal policies are responsible for housing prices in the less than a handful of the 39,000+ municipalities that are unaffordable because of HUD and DOT yet Trump did nothing to disband HUD or DOT and didn't do anything to change their harmful policies, so if Hiden is to blame then so is Trump. And Obama and Bush and Clinton and Bush and Reagan.
Not at all true, Housing shortage lower interest rates even more higher prices and bidding with stupid easy credit.
Lock it to 20% down mortgage normal 6-7% mortgage rates and demand falls off.
That should have been the case since 2012-2013.
Though investment firms now are a serious problem.
I do not think back in 2012-2013 investment firms would have started to drive a supply shortage by buying up homes then if 20% minimum down and 6-7% mortgages were a thing. And those who lived with parents to save and pay cash would have had at least 2-3 more years to get in at reasonable prices. Rather we and to rush in in late 2012 early 2013 and pray and act so fast to get a home at reasonable 2010-2012 prices if not still somewhat higher. That made me so mad then before I got my home and I was cursing at Bernanke and Obama in my sleep and when waking up during the search; But I got my home in the nick of time thank god to avoid the evil low interest rates and evil unfair little money down mortgage buying competition and rising home prices and government begging my debt hating self to take a mortgage with already and very soon to be higher prices that started to run away!!
Not at all true, Housing shortage lower interest rates even more higher prices and bidding with stupid easy credit.
Lock it to 20% down mortgage normal 6-7% mortgage rates and demand falls off.
That should have been the case since 2012-2013.
Though investment firms now are a serious problem.
What you're describing failed everywhere it was tried. All you accomplish by making credit less accessible is make it impossible for anyone who doesn't have a giant pile of cash to buy a house.
The South Koreans tried taxing the crap out of second homes and restricted LTV to 40% and variable rates. Houses went nowhere but up for the 5 years that they tried this nonsense. They either paid cash or took out lesser quality credit to buy.
Mortgage rates have been 7+% for close to a year now. Houses are less affordable this year than they were last year. Houses will become more expensive for as long as Supply < Demand no matter how many people you lock out of the housing market.
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