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Old 05-13-2022, 06:56 AM
 
Location: Free State of Florida
25,737 posts, read 12,815,111 times
Reputation: 19305

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Quote:
Originally Posted by loves2read View Post
There was clip in the news about recording meeting between CEOs where they were saying they should ramp up pricing (even if there was no budget/supply need for increase) because the “inflation” talk would cover it—and lead to higher profit margin

There are some companies that are not hurt nearly as badly as the news might make you believe and just like the crash in 08 allowed them to cut employees close to retirment w/o being charged with age discrimination they are using the cover term inflation to pad their bottom line
Will it go to wages and improvements—not likely—stock buybacks, CEO perks, and other uses more likely
Competition helps to control prices, & all the rest you mention is capitalism...perfectly legal, and the best system known on Earth. Nobody said it was perfect...there are big winners & big losers & most of us fall in between.

Its only when gov't gets involved to distort free markets do we have bubbles, inflation, recessions, ect..

Median home sales rising here (& elsewhere) is not some random occurrence. People made it happen, & those people are mostly in gov't, & a few that they collude with in the private sector. Some of this collusion is legal some is not, I'll grant you that.

High median home prices do not hurt homeowners much, it hurts renters a lot more...& those in the bottom ~40% or so.
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Old 05-13-2022, 07:13 AM
 
3,833 posts, read 3,344,638 times
Reputation: 2646
Quote:
Originally Posted by beach43ofus View Post
Competition helps to control prices, & all the rest you mention is capitalism...perfectly legal, and the best system known on Earth. Nobody said it was perfect...there are big winners & big losers & most of us fall in between.

Its only when gov't gets involved to distort free markets do we have bubbles, inflation, recessions, ect..

Median home sales rising here (& elsewhere) is not some random occurrence. People made it happen, & those people are mostly in gov't, & a few that they collude with in the private sector. Some of this collusion is legal some is not, I'll grant you that.

High median home prices do not hurt homeowners much, it hurts renters a lot more...& those in the bottom ~40% or so.
Hurts if you're shopping for a home and wanting to upgrade to something better though. If you're home sells for a million and want one that's 1.5 million.
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Old 05-13-2022, 09:21 AM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
From BuildersOnLine magazine and not limited to the Sarasota or FL area—but nationwide:

Residential real estate loan demand was weakest for qualified mortgage (QM) jumbo loans, with 51.9 percent of banks reporting weaker demand. 17.6 percent of banks reported stronger demand for revolving home equity lines of credit, exceeding the shares of banks’ reporting stronger demand in the the other RRE categories. Banks’ lending standards eased most visibly for QM jumbo and non-QM jumbo loans, the segment that is pricing out many first-time homebuyers.


The pinch is starting to impact homebuying—
Why more home development companies are building rent-to-own developments
They will make their profit by selling the contracts just like they did the stacked mortgages back in 06-08
But this is what those who want to move into a “home” and have lower resources to qualify for a bank loan will be facing in future…
Don’t know that any developments have started in SRQ area because lot of money comes here from out of state which crimps local buyers but Arizona and other states are seeing these developments in growing numbers…

Another article about rates impact on sales
https://www.builderonline.com/data-a...ffordability_c

But as they say real estate is local and location matter a good deal
Some areas won’t be as hurt as others
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Old 05-13-2022, 09:50 AM
 
3,833 posts, read 3,344,638 times
Reputation: 2646
Quote:
Originally Posted by loves2read View Post
From BuildersOnLine magazine and not limited to the Sarasota or FL area—but nationwide:

Residential real estate loan demand was weakest for qualified mortgage (QM) jumbo loans, with 51.9 percent of banks reporting weaker demand. 17.6 percent of banks reported stronger demand for revolving home equity lines of credit, exceeding the shares of banks’ reporting stronger demand in the the other RRE categories. Banks’ lending standards eased most visibly for QM jumbo and non-QM jumbo loans, the segment that is pricing out many first-time homebuyers.


The pinch is starting to impact homebuying—
Why more home development companies are building rent-to-own developments
They will make their profit by selling the contracts just like they did the stacked mortgages back in 06-08
But this is what those who want to move into a “home” and have lower resources to qualify for a bank loan will be facing in future…
Don’t know that any developments have started in SRQ area because lot of money comes here from out of state which crimps local buyers but Arizona and other states are seeing these developments in growing numbers…

Another article about rates impact on sales
https://www.builderonline.com/data-a...ffordability_c

But as they say real estate is local and location matter a good deal
Some areas won’t be as hurt as others
Wtf. Rent to own houses? So now they're basically rent a centers for housing now??
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Old 05-13-2022, 10:08 AM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
Quote:
Originally Posted by MOforthewin View Post
Wtf. Rent to own houses? So now they're basically rent a centers for housing now??
Yes—and has been happening for at least a year or so
https://www.wsj.com/articles/built-t...-s-11623075610
May have pay wall
This doesn’t
https://www.builderonline.com/land/g...ies-in-texas_o
Or this

https://www.builderonline.com/land/d...-in-colorado_o

Just search on builder online site
Many articles about developments

You don’t research much I guess about national trends
And it has always been possible for an owner to sell a house directly to a buyer under a rent to build equity contract—
Many lower income/distressed homes went that way in the past
Had friend in Houston who got into his first house by agreeing to paint it inside and out as the down payment
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Old 05-13-2022, 03:08 PM
 
3,833 posts, read 3,344,638 times
Reputation: 2646
Quote:
Originally Posted by loves2read View Post
Yes—and has been happening for at least a year or so
https://www.wsj.com/articles/built-t...-s-11623075610
May have pay wall
This doesn’t
https://www.builderonline.com/land/g...ies-in-texas_o
Or this

https://www.builderonline.com/land/d...-in-colorado_o

Just search on builder online site
Many articles about developments

You don’t research much I guess about national trends
And it has always been possible for an owner to sell a house directly to a buyer under a rent to build equity contract—
Many lower income/distressed homes went that way in the past
Had friend in Houston who got into his first house by agreeing to paint it inside and out as the down payment

How much to paint the house?? That sounds like a a KILLER deal! No 50k down payment? Just paint a house??
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Old 05-13-2022, 03:41 PM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
Quote:
Originally Posted by MOforthewin View Post
How much to paint the house?? That sounds like a a KILLER deal! No 50k down payment? Just paint a house??
1970s Houston
House wasn’t worth much but our friend was working his first job, had a wife and a baby on the way
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Old 05-14-2022, 12:46 PM
 
402 posts, read 261,442 times
Reputation: 586
No one knows next week's weather, let alone next weeks stock or real estate market. But, we do know todays weather, stock and real estate market. So, what is going on in real estate now? Here is one slice - new construction in and around LWR.

https://docs.google.com/spreadsheets...gid=1188635662

You will note that some builders are still using, and have long, waiting lists, some are priced high on a first come first served spec home basis and a few, at the higher price points, have homes to build for immediate sale.

Prices start under $500k at a few places, but escalate rapidly.

There are no signs of a bubble nor of price decreases in new construction at this time.
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Old 05-14-2022, 01:05 PM
 
3,833 posts, read 3,344,638 times
Reputation: 2646
Quote:
Originally Posted by Trying941 View Post
No one knows next week's weather, let alone next weeks stock or real estate market. But, we do know todays weather, stock and real estate market. So, what is going on in real estate now? Here is one slice - new construction in and around LWR.

https://docs.google.com/spreadsheets...gid=1188635662

You will note that some builders are still using, and have long, waiting lists, some are priced high on a first come first served spec home basis and a few, at the higher price points, have homes to build for immediate sale.

Prices start under $500k at a few places, but escalate rapidly.

There are no signs of a bubble nor of price decreases in new construction at this time.
Houses for sale seem to be lower priced or price cuts compared to new construction. My area charlotte county and also naples I'm noticing price reductions on homes for sale.
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Old 05-14-2022, 02:42 PM
 
402 posts, read 261,442 times
Reputation: 586
Quote:
Originally Posted by MOforthewin View Post
Houses for sale seem to be lower priced or price cuts compared to new construction. My area charlotte county and also naples I'm noticing price reductions on homes for sale.
The numbers for May will be interesting. Zillow shows single family in Sarasota County sales (new and resale) rose 4.3% in April and 3.9% from April 12-May 12. That would suggest still going up 3% this month. I am surprised at how strong demand remains in the face of purchasing power being reduced about 20% by the interest rate increases this year.
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