Posted on 12/19/2023 8:17:03 AM PST by Kaiser8408a
There is a sudden fire in housing as housing starts soar in November.
Housing Starts: Privately‐owned housing starts in November were at a seasonally adjusted annual rate of 1,560,000. This is 14.8 percent above the revised October estimate of 1,359,000 and is 9.3 percent above the November 2022 rate of 1,427,000. Single‐family housing starts in November were at a rate of 1,143,000; this is 18.0 percent above the revised October figure of 969,000. The November rate for units in buildings with five units or more was 404,000.
Building Permits: Privately‐owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,460,000. This is 2.5 percent below the revised October rate of 1,498,000, but is 4.1 percent above the November 2022 rate of 1,402,000. Single‐family authorizations in November were at a rate of 976,000; this is 0.7 percent above the revised October figure of 969,000. Authorizations of units in buildings with five units or more were at a rate of 435,000 in November.
Median NEW home prices dropped -20% YoY.
1-unit housing starts exploded, but permits declined.
(Excerpt) Read more at confoundedinterest.net ...
Crazy economics.
The supply of a product increases, demand remains level, and prices decrease.
There is a 8,000 square foot home built during the supply chain crisis just down the street. It’s been empty for more than two years.
I don’t think I believe this.
And, insuring an unoccupied/vacant house costs big bucks.
And, insuring an unoccupied/vacant house costs big bucks.
October is typically a time when house listings drop because it’s off season for home buying. Spring and summer is when the number goes up.
This means there is more supply than demand. This is a direct result of high interest rates and rising insurance (and HOA) costs. The money brokers have made it so it’s cheaper to rent than to own.
Do you remember someone saying “you will own nothing and be happy”. This is part of that globalist goal.
I’m not saying there’s anything inherently wrong with renting. It gives people the freedom to move as needed without the added burden of selling and buying a house (if they are going to buy again). The downside is when they retire they will still have to pay rent indefinitely at a rate they might not be able to afford rather than the goal of retiring with a paid-for home or at least a low payment. Huge difference in financial quality of life.
I should add that the entities buying up homes right now (like Blackrock and Vanguard) are paying cash. They also don’t need to insure these homes because if one is lost in a fire or hurricane they can just write them off. They don’t pay high interest rates or high insurance rates. Some of the highest property tax rates are in Florida, NY, and CA. In Florida you can expect to pay up to $10K a year just in property taxes. That’s just crazy in my opinion. No wonder there’s now an exodus from FL.
The rent from these homes pay the property tax and make a huge profit for these filthy rich entities buying homes. They are definitely playing the long game.
Did new home prices collapse for similar houses or did builders just realize that if they want to stay in business they'll have to build 1500 square foot houses that can sell instead of just 4000 square foot ones that have no buyers.
Thing is, also rich people from around the globe want US Real Estate, and will bid up the prices, and reduce the supply available to Americans.
This is partially how the middle class is being decimated.
You should.
The large home builders have reduced the price substantially in markets like Austin. Not only in price, but are also offering 3.99% mortgage rates. In some cases this is equal to dropping the price an additional $30K.
Sales of new homes went down for about a year after making a high in October 2022. Sales of existing homes has slowly gone up since Feb 2023.
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