It’s a Great Time to Buy a Home Contrasting BubblesInflation was low during the 2007 housing bubble. It was a simple, old-fashioned bubble where the fed gave the monopoly game players lots more money for little more cost. Thus the price of baltic ave and boardwalk soared. When the bubble deflated, home prices went down. …
Simply put, as mortgage rates rise, monthly payments rise, which means prices should fall. That or people settle for cheaper homes. Since many people buy homes based on monthly payment cost rather than home price, it is worthwhile to look at what happens to home prices and payments when interest rates rise, as is currently …
How a 1% Increase in Mortgage Rates Affects Home Prices Read More »
I was in the building industry from 2001-2007 and then from 2015-2018. By 2018, it had gotten so difficult to deal with permitting authorities and find good subcontractors that I decided to stop building. Building a house is just a process, and the process itself had become such a grind that it wasn’t worth it. …
There’s no way the rise in mortgage rates can maintain this trajectory. If it does, the housing market will collapse post haste. If housing goes, everything goes. Either way, massive changes are coming to America that will result in the decline of everyone’s living standards. Look for war with Russia to divert attention away from …
Here are June’s stats for my zip code in North Florida. The number of listings is falling off a cliff as prices rip higher. Average list price went from 400k to 589k, up 45% from June 2019 to June 2020. Average sale price went from 293k to 335k during the same time period. An average …
Real estate prices have soared through the pandemic? Not so fast says Wolf Richter
Real Estate Valuations Post Covid Let’s say someone bought 10 units in 2019 for 1.2 million dollars. Each unit renting for $1,000 a month. He made 10k in gross income and after expenses his net operating income was 6k a month. The mortgage payment was 5k, leaving him with cash flow of 1k a month. …
Real Estate Outlook in a Collapsing Fiat Based Economy Read More »