#Housing #realestate #yahoofinance
Realtor.com Chief Economist Danielle Hale joins Yahoo Finance Live anchors Seana Smith, Rachelle Akuffo and Dave Briggs to discuss housing affordability following Fed Chair Powell’s recent comments on interest rates and inflation.
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Communication
Wow 😲😳
Unable to get first home 74 bids when rates were 2% now it’s IMPOSSIBLE for the better part of a decade. FED has been wrong at every turn for 3 years. FED has never acheived a soft landing in history. “Transitory”
I am always amazed at how certain people are able to lather on the 💩, and make it palatable for the fools and the forlorn.😣
Powell just told everyone who bought a home in the last two years that they’re going to owe more than the home is worth in the near future.
@craig rodriguez Are you sure?;)
*Citrus Heights, CA Housing Prices Crater 17% YOY On Soaring Mortgage Defaults And Plunging Rental Rates Across Sacramento Area*
Houses were way overpriced.
Homeowners are screw
As long as you make your mortgage payment you will make money on real estate investment. It takes years but always goes up.
@Dan Erickson
Yes you will make some money.
But the way is looking right now, it seems you’re going to be able to make money 20 years from now and that’s an if
@Dan Erickson guess how many will be able to afford mortgage payment when the recession hits?
The problem is that if middle/upper middle class first-time buyers “stick to their budget” (as suggested here) then there is simply nothing even moderately desirable for them to buy…
Ironically new builds likely to drop their prices faster than foreclosed older homes as developers look to not go bankrupt and banks not want to lose as much of their investment.
Not sure how the economists can go against the actual statement from the feds. The correction literally will mean that prices will go down. There will be a ton of houses upside down in their loans. Forcing many foreclosures. Pushing millions into rental properties while they repair their credit. Leaving the banks to liquidate all at once. Prices are coming down and the economists is hard coping with likely his bad investments.
House price is unsustainable right now
Hopefully we come up with policies and procedures that limit how fast institutional investors can drive real estate prices back up.
By relaxing zoning laws and cutting down on regulations delaying real estate development.
😮
Somehow she’s kinda optimistic…
I hope people stop selling
When they lose their jobs, they’ll start again
They aren’t going to lose their jobs, there is a worker shortage in this country.
@Jon Parente Housing prices are cratering irrespective of employment.
*Citrus Heights, CA Housing Prices Crater 17% YOY On Soaring Mortgage Defaults And Plunging Rental Rates Across Sacramento Area*
You might think home prices will go down but they won’t. Owners will just refuse to sell them.
Seriously! Nobody is gonna sell in this economy when theyll have to buy another house w/ crazy mortgage rate. Prices are still high. The time to buy was last year when i bought my home for 2%!! Thank goodness i took leap, the door has closed.
I seen houses here California go for 50k less.
@Sew_Gal According to realtor for sale houses has gone up more than 1% YTD, So idk what you mean by nobody’s going to sell. When Data shows more people have put there homes for sale comparing to last year. Not to mention all the new homes being built that have not been sold. Agree 2% is great but probably over paid for the house, now people are buying at lower prices with higher interest but you can always refi your mortgage but people who over paid can’t readjust for a overpriced home.
By the way “Frank”…. I know the guy pictured in your avatar…. His name isnt “Frank”.
Why is she smiling while she says all this? I get that you’re excited to be interviewed but damn, most Americans can’t afford a house and you just smile about it?
Because she rich brotha
@ERobsessed K true
Housing is dead. Buying a house in this market at this time is financial suicide. Property is way overpriced now by at least 40 percent
People Beware of the Scams in comments. These repeated messages. Youtube doesn’t investigate and close these Spambots. Scams about cryptos and con artists investors. Scams with wassap numbers.
Housing prices are heading substantially lower by the middle of next year median price will be 1/2 of what it is today. Unfortunately for renters the prices won’t be falling nearly as much.
This is what I’ve been waiting to happen for the last few years now so I can finally buy a house. Hope it happens
I’m better off renting my house out than selling it.
Too low! Should be higher than market consensus, like 100 points. This old man just cannot do things correct and always lag behind.
Please print more money Jerome Powell. If It is not the cause of inflation, why can’t we keep printing and distributing? “80% of all US dollars in existence were printed in the last 22 months (from $4 trillion in January 2020 to $20 trillion in October 2021)”.
“Transitory”
Blah blah blah, can’t afford a house anyways.
Get your money out of the bank. When mortgages go belly up because of job layoffs banks will inact the bank bail-in law and steal your deposits. The major banks will become solvent when defaults come from millions of mortgages! Just like 09 but their will be no government bailout this time. Banks will be bail-in your deposits!
She says continue to go up, ???? has she look recently all the cuts lol
So now that prices are down I’m not going to sell my house, and new buyers don’t want to buy at over 6 percent interest rates. So prices didn’t drop, just no transactions are going to happen.
You’ll sell, when your house is half its current value from now.
Prices will be dropping in 6 months. Real estate markets move slow.
Are you sure?;)
*Citrus Heights, CA Housing Prices Crater 17% YOY On Soaring Mortgage Defaults And Plunging Rental Rates Across Sacramento Area*
home prices should come down by 40 %
i think its basic economics… rent rise is only a transitory…. cannot transfer the cost inflation in full to renters no chance.. its just a basic economics… most important thing home owners or people aspiring to own a house should treat housing as an asset and not as an attractive asset… “NO WAY”
It will probably take 5 yrs before enough houses are built, and what size and price will they build? Americans may not be able to buy a new home for YEARS. Wall Street “innovation” caused this, along with a rightwing magical belief in markets regulating themselves, and governments trying to clean up the financial disasters the business community caused. Liberals didn’t cause this, GOP free market “theory”, and Wall Street crooks caused this. Ain’t capitalism grand?
Can’t afford that interest rate regardless of dropping prices. 😴
Common..accept wrong assessment…free money free money. 2021 fall tightening would have saved the economy from crazy price increases..atlease 25 bps should have helped.
Need huge correction about 40% to get to prepandemic level .No reason for lower standard of living by increase housing cost to the point only top 1% earner can afford
With 2019 levels homes would still be over priced by 20-30% . No way inflation is going down if I bought my home in 2018 and all I have to do is sell my home to not work in my life .
Exactly
We need more housing built to meet demand. The high prices should incentivize developers. The biggest change we need is less regulation to permit more development.
@Karl Diedrich yep—the market will only change and be set by new builds. Resellers are crazy.
When you vote for an administration that has no idea what sound fiscal and monetary policy entails
Cheers
Wait you guys interest rates are going to keep going higher in the next year. let’s rent for 6 months until prices drop or move in with family, People need to stop buying and control the urge to buy in order for these prices to drop, sellers need to stop being greedy and drop prices now before they keep raising rates
Stop enterprises from buying home n renting them. That a huge part of the problem.
I agree, why make owning a house a misery in life? It is already causing population decline in many developed nations… unsustainable housing means the end of humanity.
We need to distract Powell with beer 🍺 and pole dancers 👯♂️ to stop these rate increases
Good to see a person in the real estate industry being knowledgeable, realistic not shamelessly pumping. Danielle was professional.
Don’t buy kids! Wait who am I kidding, nobody can afford anything anyway lol
It’s a disaster that Powell and Biden are ignoring energy costs in their “war” on inflation. Powell’s current policy will result in a severe recession.
why didnt realtor economist leave open the possibility of higher then 20% decline as if thats out of the question i would say nothing is of the question when we have a once in 100 yr pandemic
Nobody has any more budget to go you max out your monthly payment based on what the bank will give you nobody has any more room for your so-called keep within a budget
Mortgage rates are already 6.46% as of today of course they’re gonna be 7% they’ll be high sevens by the end of this year
May not see a sell off in mbs but they’ve stopped buying them so an increase is more than likely
They fooling…us!…..Biden plan til buys him time fix things behind scenes…that’s why low 75 basis and slow move.
Biggest bomb 💣💥💯 …… Fools investors falling for fed. Don’t need be rock scientist know this…
The Fed wishes house prices and rent would come down, but it won’t. Rent is sticky, usually negotiated yearly. Unless unemployment spikes, there will not be rent reduction. Landlords are often paying mortgages on the properties they are renting, there is no incentive to lower rent when mortgages are going up, unless there are no renters. People renting are usually on the lower end of the economic ladder. If they can’t afford rent, their next home is the street. So, rents won’t be dropping, and if they do, the Fed has raised too much and broken the system.
Stick to your budget that would have gotten you a new well built home. Now will get you a shack
You are being tricked. The rate hikes mean less building now and less homes will exist in 2025 and prices will triple from there when rates are reduces in the cycle. This is so only corporations can buy and afford homes in 2025 and continue to enslave America in rentals and deprive them of ownership. This is the goal by the FEDS and the corporations.
If home prices drop and interest rates rise that means mortgages payments will rise correct and then there will be layoffs the fed said correct so how will people afford housing then? Sound like when home prices drops only cash buyers will be able to afford real estate
For Daily Headlines 👆👆👆👆👆
crush the middle class and kill the poor……. while they steal tax payers monies
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Is this the build back better America Joe Biden promised us?
Oh, think this is turning to the buyer’s market side. So buyers, be patient!
I remember Yasushi Mieno; Governor of the Bank Of Japan giving the same speech i 1990. Housing crashed…….and never came back.
It’s the perfect cluster F*** right now. Deflation of assets in stocks and home values, but still heavy cost inflation. Were screwed! Buy short term treasuries and hoard cash especially at home. The banks are going to fail and you may see bail-ins by your local neighborhood bankster. Oh yeah, canned food plus good can openers, rice, pasta and good wine or liquor….you will need it!
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What a foolish approach. At his pace of raising rates, he may win the battle but lose the war.
Institutional investors have destroyed many American’s dreams of ever owning a home. There ought to be strong laws to combat investor greed to buy up all the inventory so that they can drive up the price.
There is no failing from bad decisions anymore. The fed might bring this country into a recession but then big daddy government will bail everyone out again (everyone except the middle class) and interest rates will drop causing prices to go right back up. It’s remarkable that we have reached a point in this country that the only thing keeping it all together is money printing from the fed.
*Citrus Heights, CA Housing Prices Crater 17% YOY On Soaring Mortgage Defaults And Plunging Rental Rates Across Sacramento Area*
She doesn’t really know 😂