#realestate #housingmarket #homesforsale
Daryl Fairweather, Redfin Chief Economist joins the Yahoo Finance Live panel to discuss the February existing Home Sales numbers and the shortage of supply of homes for sale.
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Maybe if the government didnt make it so hard to build a home… people could just build their own homes.
Exactly. I would like to build my own house. The things in the so called market is so crazy for the price. I wish I can just build, you know…..
@der Jakob yep! He/she types like one…
Supply and demand is the new housing crisis.
Just let foreclosures follow through then we’ll get a lot of supply of houses. Haha
OMG. Powell really screwed up the market
oh just wait, it’s going to get WAY WORSE… we’re in the EVERYTHING BUBBLE.
@stachowi Trust in JPOW. It’s better to get back to full employment than try to balance all the asset markets. We’ll have more productivity, less poverty, and less crime. A sustained increase in unemployment would mean more people leaving the work force. We need this QE or “money printing” to fight off the insane deflationary pressures we had at the onset of the pandemic. We haven’t had consecutive years of inflation beyond 2% since the early 1990s.
@Joseph Guzman i can’t tell if you’re being sarcastic or serious.
@stachowi Totally serious, we have been in a low growth low inflation environment for over a decade. I don’t think that’s suddenly changing.
Well… if you let’s those houses that are supposed to be foreclosure then all problems will be solved.
My country in Philippines is ready now be ready to face to face and bankruptcy , big charges,big penalties and sentences in prisons jails.. I don’t want to wait or I don’t to waiting because my they were gives this month’s. I will charges you and big penalties you mark my words!
Most didn’t see it coming, and now that it happened, they still can’t adjust themselves to the unhappy reality.
I saw it coming. I knew those working in jobs that could afford housing when the economy was “booming” were going to work from homes only they could afford! Those already struggling to pay rent or buy a home were the ones that lost their jobs.
There is enough for everyone’s needs but not for everyone’s greed. If investors keep on buying multiple houses, the supply will never be sufficient. Keep the investors away and first time homebuyers should be good. Policymakers should set higher down payment rules for investors.
@Joseph Guzman I think Musk is being practical myself, but who knows? What we do know, is that he’s dreamt of going to Mars since childhood, and PayPal, Tesla, SpaceX, etc. are but a means to achieve that goal. On the way, he’s _happened_ to become one of the richest men alive, but greed (youre rather fond of that word) doesn’t seem to be a big motivation for him.
@Joseph Guzman Another thing driving the price of housing up is the fact that over 25c of every dollar was created in the last year. Look at a chart of the M2 money supply. For extra credit, compare that to a chart of the M2 money volume. Scary times ahead.
We need to disincentive owning multiple homes. You should have one home AND MAYBE one vacation home. After that your 3rd+ house should be HEAVILY taxed. At that point you’re a parasite on the housing market.
@Anthony Lalama What you’re saying is that you want to get rid of most rental properties, because that’s exactly what would happen with your scheme. In reality, millions would go homeless.
@Kevin M Its not like we would abolish apartments, they would just have restructured ownership.
Landlords would be replaced with collective ownership of the apartment by the tenants, think of it as an apartment HOA. Instead of paying rent, youre paying an HOA directly proportional to the value of your space to maintain the apartment, cover utilities, etc.
In this model the traditional “landlord” would be hired as an independent contractor and still be paid by the apartment HOA to execute the management duties.
Maybe this is a hot take: but “having stuff youre allowing others to use for a fee” isn’t a justifiable contribution to the economy, especially if that asset is considered a basic human necessity. You need to actively provide value otherwise you’re technically just a parasite with a lot of negotiating power.
This model allows lower income individuals to build wealth and equity while eliminating the portion of wealth directed towards higher income individuals that isn’t a result of any actual work.
If we don’t change our housing ownership model soon, given the current trends we could find ourselves in a dystopia where home ownership is essentially limited to the top .01% of Americans, and millions of Americans are essentially just renting homes across the country that are all owned by a few wealth individuals and investment companies. If we’re not careful the only reliable asset of wealth accumulation for the lower and middle class will disappear.
It’s hard to put a home up for sale when you can’t remove a tenant who’s not paying rent. Or for a bank to list foreclosure on borrower 300+ days delinquent on their mortgage.
I guess 2nd home as an investment isn’t an investment after all?
@Maeu Daou Not when the government can step in and say your tenants don’t have to pay but you still have to pay property tax, maintenance, and mortgage on that second home. Imagine if the government said all super markets have to give out free milk, bread, and vegetables without gov compensation. You can’t champion the “free market” then manipulate the market and still call it free. Can’t have it both ways.
@TheM0joDoj0 they’ve turned our entire country into welfare recipients… not going to end well.
The government is trying to build low cost housing for people but has not worked at all!!
The second the stimulus stops, tens of thousand of homes are going to go up for sale like a blue light special.
@Jordan lavalley who has to? The government? The banks? How much do they make if everyone goes bankrupt?
@didheisa either way the big banks make money. who do you think buys and owns all the properties if everyone goes bankrupt? if you think the banks don’t make money from recessions than I can’t help you.
@Jordan lavalley perfect. They own a bunch of properties that no one can buy. Banks benefit from a healthy economy dumbass.
I hope so…
it will be interesting how people will react yo not getting free money.
The problem isn’t stock. There are more empty home than there are homeless. Investors buy up homes that would be great for families starting out and rent out instead. This drives up the cost of housing making it harder for people starting out to afford a house. Rent seeking behavior is killing us.
Home ownership in China is 90%, in the US it is 60%
That’s why this crash is gonna hit the hardest. Eventually, the people who are in it to rent will dry up, and the investors will basically be buying houses that will earn them nothing. It’ll be a slow, but beautiful mass sell off once they realise their mistake. It’ll take time, but it WILL happen, mark my words.
@MrTW that’s crazy that a “communist” country has a higher home ownership rate than a capitalist one
Before that I will big in charges and big penalties and sentences to these people and bankruptcy to these dirty works
In criminals activities and scammers
The good news is once you get a mortgage it’s illegal to be foreclosed on, so simply stop paying your bills and tell the bank to suck it. These economists ought to mention only losers pay their bills in 2021.
okay, sure
Lol, ok give it 12 months and you will see tons of forecloy.
@John Sineni I don’t believe the politicians in DC have the cajones to actually foreclose on anyone. Paying your bills is for losers and idiots.
Just wait until the people who are paying their rent/mortgage realize they don’t have to anymore…
Why don’t they have to?
Last week I gave up trying to buy my first home. Been searching since October last year and the prices are now outrageous, nothing to even buy!
@CDL Virtuoso So do what then? Buy when you can’t afford and be house poor forever?
Keep saving that money. Don’t buy something you can’t afford or don’t like. There has to be an end somewhere.
Same here. Those price will come down when those forbearance ends. And more inventory will be on the market. Will have a lot of inventory. Those people who did not pay their mortgage and their rent will have to pay in the future. It is not FREE !!
@CDL Virtuoso what do you suggest I do? Buy what is not worth what it is being sold for or buy what I cannot afford or don’t even like?
@Christopher Hendricks thank you. Will keep saving….
Every market is cyclical, lets wait it out. What goes up must come down. Interest going up, forbearance/moratorium will end, and stimulus will stop. Then inventory will increase, thus prices will come down.
I’m not so sure, I think the mass move to tele-commuting after COVID was a game changer
Marketing
Canadian immigration rates are among the highest for any country in the world. And guess what? They all need housing. So is it at all surprising there is a huge housing shortage in Canada? Leading Canadians already here to have fewer children to get by to make room for the immigrants? Already Canada has 3 times the immigration rate as the U.S. And any talk of reducing it to sustainable levels leads to accusations of racism, etc. Well it’s only going to get worse. Far worse..
300 000 immigrants a year = much higher house prices for Canadians already here. Duh.
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Going back to smaller houses is the answer. I say back because in the 1800s log homes with large families was the norm. Today huge homes with small families is the norm. I myself lived in my vehicle recently for 5 months and loved it. And would recommend it even as a temporary measure to learn about life and save money.
The other issue is people aren’t listing because they are concerned that that won’t be able or afford to find a new residence!!
Depends where they want to move to.
There are many cities and towns in the US that has an abundance of affordable housing and vacancies.
Some places are even giving away housing and land to attract new people.
lumber is the American housing price problem …. let’s make mortgage 5% …. and airbnb rental house mortgage 8% ……. lumber will start growing out of A&^*^*^*^ :::))))))
If people would stop buying, prices will drop!!!
People are cautious to sell because they will have a hard time getting into another home.
got in a year ago, house went from 630k to 750k (zillow and socal). glad i jumped in instead of waiting for a “crash/burst”
@Fidel Garcia its based off purchase price not value. im sorry youre poor and cant afford a house.
@Fidel Garcia When Thomas’s wife (or husband) leaves him he’ll be back to renting.
@Thomas it’s ironic you call people poor when you have NASCAR videos on your channel filmed with a flip phone. You were just dying to Humble brag about buying a house, weren’t you?
@Thomas lol I reply to your post because I’m the one that could say what you said. Fyi I bought my house in 2008 for 1/4 of the price that was sold in 2005. I paid it off already and more than likely I’ll buy a second home when you lose your house, like Stewart said when your husband/wife leaves you and you can’t pay the mortgage or sell your house because it’s only going to worth 1/3 of what you paid. Again you talked too soon bud..
@Thomas “I’m sorry you’re poor and can’t afford a house”.
Oh f*ck off. This market has virtually nothing do to with work ethic or skills. You just got lucky.
They need to create a seller incentive.. not a buyer incentive. Give sellers $15k tax credit to sell.
Until investors use it to make more money and flood the market with homes.
@Christopher Hendricks that’s what we need. We need millions more in inventory.
@S D I’m all for it . if it works.
So many people sitting on the fence waiting for the bubble to burst they got that picket fence so far up there ass there never going to get off
Not enough inventory? Maybe we shouldn’t sell to international buyers who don’t even occupy the home.
Flippers are ruining the market and pumping it out of reach. 265 SARAH STREET was sold in July for $391K and was listed for $330K. It’s now being listed for 530K only 9 months later….
I guess buying a house is the American dream… cause we can only own in our dreams now.
Just another bubble. But it’s the worst one since housing is a basic human need…
first time home buyer are suffering the most. tax evasion surrounding real estate is a big issue. In GTA rent from illegal basements is gross and all in cash. One bed room illegal basement gives landlord 1300 dollars tax free and no one cares. It is not simply demand supply. It is policy paralysis, greedy flippers and unregulated unsafe cash cow basements. Realtors want their hefty commission so they do not care about average canadian. Black money from India pakistan mostly corruption money is eating up a good life for average canadian. As a country we need to constitute an inquiry commission to prevent going canadians homeless. Do u think that policeman, psw or grocery workers afford a place? It is big scam where ppl r getting laid off and house prices are risin
Lol fed home deferment caused a squeeze in homes take advantage and get rich selling at maximum value! Also BTFD is stonks let’s make money!
not true
Rising interest rates. Deferment ending. Renters will get evicted. Landlords will get out.
We are on precipice of a depression
Nothing about eviction and loan forbearance?
uh hello there is a shadow inventory waiting to be unleashed once the courts open and evictions ramp up. Who are all these so-called experts?
Unemployment rate Up
Home prices Up
Money Supply Up
Building Material Up
Inflation Stable (According to Fed)
We are good fellas, buckle up……