#realestate #homesales #yahoofinance
Yahoo Finance’s Rick Newman discusses existing home sales dropping for eight months and how rising mortgage rates are weighing on home buyers and sellers.
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Investors are the only ones that continue to benefit from our housing market for 3 years.
3 years trying to buy a house 34 yo 73 bids outbid by cash. Now I’ll be lucky to have a home by 40
Frustrating, to be sure, to be so close to your goal but not be able to reach it due to circumstances outside your control.
Perchance the Universe will permit you a much better deal in just a few years, with both pricing and rates. 🙏
I gave up trying. Same thing as what you went through.
As those delusional boomers will say, just don’t buy coffee or the latest phone bro. Just work harder!
Capitalism
I think it’s still going to be tough for buyers. Mortgage rates are going up faster than home prices coming down, monthly mortgage payments therefore increase anyways. If home prices come down, investors and company buy in cash and use them as rentals. Once mortgage rates finally come down, home prices go up further. All this coupled with inflation leading cash to be poured into real estate. By the time you know it, you’ve been paying 3 more years of rent. Good luck buyers, hopefully y’all find something to get you started soon.
@Rahul Poonekar Noticed how quiet it got when the truth is spoken.
Google the mortgage rates calculator using both examples. Then tell us who are the winners
@Senior Housing Analyst Why? Answer. Mortgage rates. That’s why prices are lower. But the lower price doesn’t come free. The banks are smiling and rolling out the red carpet
@Gator Gator Are you sure?;)
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
Housing always lags the economy, once layoffs start happening people will sell for cheaper investors still need to see green on their investments no way they can keep buying at the rate they were and not be severely over leveraged
Buy a home now? Hoping the rate don’t go up to 15% for 20 years
Yahoo reporters showing that Yahoo doesnt pay them very much. Funny when you compare it against older reporters interviewing economists.
3:00 that dude laughing coz he got a BUNCH of homes and this reporters praising him like he bought his first house lolz
Rick Newman is a clown the fact that he is an economist makes me laugh hes just a partisan hack for the democrats.
The Bubble is brusting….so fast compared to 2008 😈
Unfortunately not. There will only be a crash if there is a severe recession and many people lose their jobs.
@Bill R already started we see more and more tech workers laid off the one these landlords and sellers were banking on with work from home.
It’s a battle between buyers and sellers, the Fed is just a bad referee in the middle of the field .
Fed wont pivot anytime soon – they know if they do inflation will eat everyone alive. Who cares if your home was worth 450k last year and now its worth 700k if your food bill goes up to 100k a year.
And worth $150k next year.
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
“I waited it out for crash and saved 10k on my list price. Only had to pay a 17.9% interest rate to get it”
*swallows cope pills*
“I’ll just refinance when the rates go down”
@Jay Bartgis Why buy a house when prices are falling? Rent it for half the monthly cost. Buy it later after prices crater for 70% less.
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
@Senior Housing Analyst why like your own comments?
@Jay Bartgis There you go again…. taking falling housing prices personal.
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
@Senior Housing Analyst sources for your claims?
@Jay Bartgis There you go again…. taking falling housing prices personal.
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
I see plenty of predictions for the FED to reverse on rates soon, but the FED has never hinted at a pivot. It’s actually the opposite. They’ve warned about lowering rates prematurely causing even more inflation.
Typical boomer. He probably wonders why people have so much student debt because he was able to pay his way through school working a part-time job.
Hahaha
The beginning of a correction? Seriously? We’re 6 months into a correction and are working on a bottom in the next 4-6 months.
Are you sure?;)
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*
@Senior Housing Analyst yeah, pretty sure. Your market dynamics may vary but not on the timing for the rebound.
@Michael Cheng rates are rebounding pretty good.
@Senior Housing Analyst rates were rebounding pretty good. We’re about to roll over.
@Michael Cheng prices sure are. And going down to sleep set of stairs.
A correction? For every 1% increase in interest rates 10% loss in purchasing power by the average buyer. Interest rates are up 4%+ YOY (3.19% vs 7.37%). The average selling price of a house in October 2021 was $355,100 with 20% down and a 3.19% rate just the P&I would have been $1,227 per month. Today the average house is $384,800 and the interest rate is 7.37% and just the P&I is $2,125, a $898 or 73% increase. To put it in round numbers, if you could qualify for a $1MM house in October 2021 you can only qualify for a $625K house today, and this is before the Fed Nov 2nd meeting where the will raise interest rates again because inflation is at 8.2% through the end of September 2022. The fallout is that as inventory builds some people will sell their house at a low price (does not mean they did not make $$ because they owned the house before the mkt went crazy after 2017) below what their neighbors paid for their house in 2019-2021 which will reset the comps for the entire area and maybe the town/city. A correction indeed.
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*Garden Grove, CA Housing Prices Crater 28% YOY As Subprime Mortgage Implosion Levels Orange County Housing Market*
Can you share Yuba City, CA??
@Daily Occasions It’s cratering.
I hear people say “good for buyers”. This ignores the issue. Buyers act as a mob. If the mob piles back into buying they hit the same issue, low inventory. That’ll trigger bidding wars again. Potential buyers seem to think they’re some special case that they alone will be the only buyer out there. Pretty funny.
So, let’s say tightening stops. Then interests rates begin to scale back down… Then sellers begin selling again. Then builders begin building.
The sellers market will restart again…because there still wont be enough inventory.
Not sure, why he said a few months. Change that to a few years…Likely 4-6 minimum until housing supply is back healthy or on the verge of being so.
It’ll get worse demand destruction is real.
*Orange, CA Housing Prices Crater 26% YOY As Southern California Housing Prices Slip Under 2018 Level*