Housing prices are out of this World high, and with interest rates going up it’s no wonder sales are down.
I think you’ve hit on the reasons. Fortune trends liberal so it’s probably trying to cast aspersions toward Trump. They are always controlling the narrative. It’s just what liberals do.
Throw in bad weather over a lot of the US and you have a “witches’ brew” of bad financial timing re buying a house.
And for we lucky folks who have out of control Democrats taxing every kind of “property” they can get away with, it is no wonder young first home buyers are screwed, yet they still vote for these Marxist financial fools.
Maybe they can buy a “Tiny House” as a starter.
Bingo
I keep an eye out for abandoned houses that can be refurbished into rental property. I spotted a nice, apparently factory built 1500 square foot 3/2 on about a quarter acre in an attractive neighborhood. The back door was wide open. The laminate floors were buckled; mold on the wall, a few holes in the wallboard. I looked it up. It sold in 2016 for $205,000. I was considering offering $75,000. There is no way a bank would take that kind of loss unless they’ve had it for several years. They have no incentive to take the write-down. It isn’t a loss until they sell it.
But, in my mind, the correct price for such a new, small stick-built in that neighborhood was about $105,000 new. Here we had what appeared to be a manufactured home for twice what I thought it should go for. I think we are seeing the result of Obama quadrupling the money supply in eight years. We are just beginning to see the result of that financial ineptness. That money spent a long time floating way up in the economy, in the stock market; because banks did not loan it out. They invested it. So, the stock market went up and the economy stayed low. Now, that money is coming down the ladder and starting to compete for groceries and houses. That is the very definition of inflation; too much money chasing too few goods.
You nailed it. But isn't it funny that the business press can find a reason for every up and down the stock market takes. Yet, they are dumb-founded by fundamental economic concepts that you have just espoused.
Some of the best financial news I’ve heard in years. Real estate is a huge, corrupt operation. People have no idea.
Simple, if you’re not going to make money on the price going up, why go out on a limb for such enormous amounts? Leverage works both ways - on the way up and on the way down.
Theyve been predicting for decades that there aren’t enough people in the younger generations to maintain ownership levels of the exidsting housing stock. Combine that with those generations being highly leveraged with college loans, putting off marriage & families, and you got what you got. Bottom line: It was going to happen at some point, and maybe we are “there” now,