Interest rate increase next week: Housing is dead

[JustRalph]

Originally Posted by fast4522

And things are not bright up north of us.

Canada's unprecedented housing crisis could be a warning sign for the US

https://www.businessinsider.com/cana...ecline-2023-11

Good post. I missed that article.

Multiculturalism having an effect? Never thought about it that way…….i guess the more you take in……the more problems


“Moffatt said he was concerned that as the affordability crisis continues and immigration rates remain high, Canadians would blame high prices on immigration and seek to limit migration. Recent polling has indicated that a growing share of Canadians feel this way, threatening the government's liberal stance on immigration policy. But immigration is just one of many factors at play — Canada's housing crisis far preceded the rise in immigration.

"It's starting to cause backlash here, you're starting to see anti-immigration sentiment," Moffatt said.

[fast4522]

Originally Posted by JustRalph

Good post. I missed that article.

Multiculturalism having an effect? Never thought about it that way…….i guess the more you take in……the more problems


“Moffatt said he was concerned that as the affordability crisis continues and immigration rates remain high, Canadians would blame high prices on immigration and seek to limit migration. Recent polling has indicated that a growing share of Canadians feel this way, threatening the government's liberal stance on immigration policy. But immigration is just one of many factors at play — Canada's housing crisis far preceded the rise in immigration.

"It's starting to cause backlash here, you're starting to see anti-immigration sentiment," Moffatt said.

What I found interesting, and I hope that I did not read it wrong was Canadians typically carry more debt than we do or others.

[fast4522]

Not that Europe means anything.

German property prices plummet as housing bubble bursts.

https://www.yahoo.com/finance/news/g...194050106.html

[JustRalph]

It took a little more than a year……

WORSE IN 30 YEARS

https://justthenews.com/politics-pol...ws-aggregators

[denniswilliams]

Originally Posted by JustRalph

It took a little more than a year……

WORSE IN 30 YEARS

https://justthenews.com/politics-pol...ws-aggregators

Been reading this stuff for a while now. Yet, housing values continue to increase, houses sell very quickly, and there's usually a bidding war. At least in my area. Oh, and, of course, inventory is down significantly.

[Parkview_Pirate]

I would argue that low sales don't necessarily equate to "worse" when it comes to the housing market. The correct word is "lowest sales". Sure, it's worse for the banksters and the realtors and the finance companies who can't grift as much for their cut, but not necessarily for the buyers.

It's only natural think twice before playing musical house when financing a mortgage is bringing much more expensive payments to the table. If you don't have to move and you have a roof over your head, you're calling up the local remodeling company instead if you want granite countertops.

Which does bring up the point that some sellers are getting hosed - those that must move due to a job loss, layoff, transfer or the ever present need to put some distance between themselves and lefties. They may have to sell when their house is underwater, and finding a new place to live that's affordable - well now, that's a problem.

What I don't know is the percentage of sellers that have to move versus those who don't need to versus those who have the cash to skip financing. But my gut tells me it's a smaller group forced to move.

[JustRalph]

Originally Posted by denniswilliams

Been reading this stuff for a while now. Yet, housing values continue to increase, houses sell very quickly, and there's usually a bidding war. At least in my area. Oh, and, of course, inventory is down significantly.

Your last sentence is what’s propping up your other points.

[Dave Schwartz]

In our area the housing market is booming. Our home went up 3.6% LAST MONTH!

It is, as you said, Ralph, about the shortage of inventory.

My next door neighbor was planning on moving to Phoenix this year. He realized that he could sell-here-buy-there for almost a straight swap.

However, the difference in interest rates would (literally) double his mortgage payment!

He's staying.

[JustRalph]

Originally Posted by Dave Schwartz

In our area the housing market is booming. Our home went up 3.6% LAST MONTH!

It is, as you said, Ralph, about the shortage of inventory.

My next door neighbor was planning on moving to Phoenix this year. He realized that he could sell-here-buy-there for almost a straight swap.

However, the difference in interest rates would (literally) double his mortgage payment!

He's staying.

During Jimmy Carter I remember my dad was looking at houses and just gave up when rates went over 15%

https://fred.stlouisfed.org/series/MORTGAGE30US

[Tom]

When Carter was destroying the country, my Dad bought a freezer.
He folded the box up and put it in the garage.

My mother asked him why he was saving it.
He said iif Carter got reelected, we could sell it as a house.


Or we might have to move into it oursekves!

Today, it would be gold!

[davew]

Originally Posted by denniswilliams

Been reading this stuff for a while now. Yet, housing values continue to increase, houses sell very quickly, and there's usually a bidding war. At least in my area. Oh, and, of course, inventory is down significantly.

Corporations are buying them and renting them out. Some states restrict farmland ownership so foreign individuals or corporations can not own any. They might have to do the same with single family homes.

[Dave Schwartz]

Originally Posted by JustRalph

During Jimmy Carter I remember my dad was looking at houses and just gave up when rates went over 15%

https://fred.stlouisfed.org/series/MORTGAGE30US

Wow.

Considering the damage he did to the US (and, hence, the world), imagine if he'd gotten a 2nd term.

And this one is far worse.





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