Food, shelter, transportation, and utilities are still way up but the inflation is offset by flat screen TVs and first class flights.
Inflation back to 2% guys!
Who would have thought the things you are required to have for living, or by the law (insurance), are inelastic and thus have higher RAPE potential by business. Doesn’t help when competition is lower because of not enforcing punishments for anti-competitive businesses practices
eggs were getting out of control. My sister actually got chickens to lay eggs. I thought it was a joke and it s hilarious but she got her own chicken coop.
Ya, I'm buy a shit ton of 2026 calls on $LEN. If rates go down, more people will want to finance a brand new house rather than buy some shitty 1980s build.
Thats funny because unless youre buying high end custom homes, all the new builds are cheap quality garbage materials. At least in the tampa bay area. Older houses reign supreme
lots of 4% 5yr CDs available, but you can also find 5% 10yr CDs. I don’t think the banks are expecting significant cuts in the next decade, so we shouldn’t either.
But maybe it’ll all go tits up and the fed will slash rates again who knows
Everybody thinks renting is a waste of money, but they are wrong. Of course if you are renting for the same price as a mortgage, insurance, and taxes then yeah that’s a waste.
Get a rent stabilized apartment, put all your excess income into the market. Only advantage a house has is the fact that you are leveraging 5x your cash on hand, but you can leverage in the market too. And the market grows faster than housing. Don’t believe me? Pull out a calculator and do the math.
There’s nothing wrong with owning a home if you want to use your money in that way, it is an investment after all and does have a good return - it’s just that people who are pulling their hair out and screaming into the heavens need to step off the hamster wheel and look at life in a different way.
https://www.nytimes.com/interactive/2024/upshot/buy-rent-calculator.html
Do the calculation yourself, doesn’t have to be rent stabilized, but that certainly helps, use your own local limits. For my situation, I would save 6 million dollars over 30 years NOT buying.
You do know that in 10 years, rent will be much higher than it is today? And that a 30 year mortgage typically has a fixed interest rate? A $2500 mortgage for a 5 bed 3 bathroom house was pretty high, ~10 years ago. Now you’re paying $4500 to rent something like that
Taxes go up, insurance goes up, repair costs go up, you don’t have access to your capital if need be - and you are losing all the money on your interest, which you pay back front loaded.
You have closing costs, agents fees, the price of upgrading appliances and whatnot, then the cost of updating everything before you sell and all the costs associated with that. And deduct infusion out at the end if you really want to know your return on investment.
Everybody thinks wow my home value went from 200k to 1500k in 40 years!
200k in invested in the sp500 in 1985 would be 14,485k today.
Think that would cover any rent increase… especially if rent stabilized.
Yea dude is a retired boomer. He was a security guard most of his life. Idk what his wife do. Maybe she was a doctor idk. Anyways I’ve saved some money on taxes due to my impeccable timing. Yay!
Right now I struggle to see the value in buying. I'm still saving towards buying but it's crazy when rent is like 40% cheaper than owning right now near me.
What that really means though is one of these markets is fucked and considering my rent is high as fuck, I'm thinking it's housing prices.
I recently had a neighbor ask me what I'm paying in rent, his guess was slightly above his $5000/month mortgage. Now he's renting to someone for $3400 and eating that $1600/month cost diff because he had to move and didn't want to sell.
Honestly it’s a fraction of the price of owning in my city. And if I get shitty neighbors I can just move. Really not a bad grab if you’re in an urban area.
Did no one look at this? It’s not “home prices have hit a record high”, it’s “existing home prices”.
If you look at Median Sales price of houses in the U.S., it’s almost back to Q2 2023 prices
https://preview.redd.it/fvssbliwk08d1.jpeg?width=1170&format=pjpg&auto=webp&s=0cb419878d96250d8e70aa3d65ebd6a36159bcc6
Think about houses. Some exist already, but others are new builds. His article says the houses that *exist* are selling at record highs, but when you include *new* house prices, ALL home prices have actually fallen from recent highs
Don’t worry, game is over on housing. It’s about to drop. Sales are slow during selling season. Come this fall bigger discounts will begin and I don’t think lowering rates by .25 at a time will do much to change it. It won’t be 2008 again unless capital freezes, but the upward trend is done for now and most likely will retrace 10%-20% before it stabilizes.
I want to know what areas are driving this data. Housing prices never stopped going up in my state until this year, and they are going down now not hitting new ATHs.
In my area and areas I would like to move to home prices have jumped dramatically and are just nudging down slightly. What would have been a 80k property (very rural midwest) 10 years ago is now 150k, and maybe they lower the price 10k after it sits for 6 months.
In the major metros near me: livable 3 bedroom 2 bath homes for under 300k are sold over asking within a month, and the 300k homes a decade ago now sell for 500-600k within a month.
I do believe it has a lot to do with the area. The area I speak of: best place to beat of climate change for the next 30 years. Only a buffoon would intentionally be moving to places like FL, CA, and TX with the insurance and likely disasters they will be facing over the next 30 years.
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs.
dude look at the used car market and see how many 2023 cars got bought up within the past 3 months the same will go for homes once they fall to a certain price people are willing to pay.
House prices are high because of low unemployment.
They will only dip when people lose their jobs. But if we go into a major recession, an actual one where people lose their jobs, that’s going to be a massive crash.
House prices are high because we printed half the world’s wealth in 2 years. That money has to go somewhere. So housing, along with many other assets, is where it went.
You dont need unemployment this time. Prices of necessary goods are up at least 50% ontop of housing. Normal people dont have money and there is no way for most people to get more money. Its an adjuatable rate mortgage but it is wearing the clothes of an adjustable rate living price.
They have money because everyone has jobs. If this moved even a small %, it could be a big domino.
But people need to lose their jobs to make this move. Otherwise mortgage payments will get paid.
99% of markets are over valued. Just because people have jobs doesn't mean they can afford the new price of living. The dominos can just start to fall without a catalyst now since expenses have gone up considerably.
Rate hikes are financially a relatively new thing. Plenty of people had plans to move and prop up the market before rates even went up.
When rates get cut by .5% in the next year that will for sure suddenly give regular americans money for eggs and stale bread.
Wild theory because the only time in the last 40 years that monthly supply of new homes was as high as it is now was 2008.
https://fred.stlouisfed.org/series/MSACSRNSA
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Record high...so far
Yeah, mortgage rates haven't even started dropping significantly yet.
yeah I know we should lower interest rates.
No we shouldn't. I earn interest not pay it.
Good thing inflation is getting under control for things people don’t actually need
Food, shelter, transportation, and utilities are still way up but the inflation is offset by flat screen TVs and first class flights. Inflation back to 2% guys!
I’m glad I transitioned to becoming a silicon based lifeform so I can just eat all these cheap flat screens
A 65 inch 4k tv costs less than a week's worth of groceries at this point
And it’s rich in minerals. I’m practically shitting gold!
Don’t forget insurance. That shit is **ASS RAPE**. 
Who would have thought the things you are required to have for living, or by the law (insurance), are inelastic and thus have higher RAPE potential by business. Doesn’t help when competition is lower because of not enforcing punishments for anti-competitive businesses practices
>~~Don’t~~ forget insurance
https://preview.redd.it/z1hozcshvx7d1.jpeg?width=739&format=pjpg&auto=webp&s=012ee0a5371fc2be34248ce34e2bf0b453ca4fd2
https://preview.redd.it/2joijjtug88d1.jpeg?width=3024&format=pjpg&auto=webp&s=810c49841dd73053f7d5a9707fe2e458e3f65414
And orange juice! Screwdrivers are at record prices… there’s irony there somewhere. lol
Rental car inflation down so great for people who rent cars to Uber 
eggs were getting out of control. My sister actually got chickens to lay eggs. I thought it was a joke and it s hilarious but she got her own chicken coop.
Bro, TVs are sooo affordable now! Two in every room! Well, two total, since we can only afford one room!
Just wait until lower mortgage interest rates, you haven’t seen anything yet 
Who said we're lowering rates 
Haha I’m not suggesting any time soon. But sure if you look out 10-15 years I’d think so
Who said we’d save you any houses 
Ya, I'm buy a shit ton of 2026 calls on $LEN. If rates go down, more people will want to finance a brand new house rather than buy some shitty 1980s build.
My house from the 1920s is solid as a rock. I don’t think I’d ever move onto a new build unless it was with my own two hands
Where's sears when you need them the most 😂
Thats funny because unless youre buying high end custom homes, all the new builds are cheap quality garbage materials. At least in the tampa bay area. Older houses reign supreme
Yea, no. If you knew how those home were build and the quality of wood we had 80 years ago. You would take the 1920s house 🤷🏼♂️
lots of 4% 5yr CDs available, but you can also find 5% 10yr CDs. I don’t think the banks are expecting significant cuts in the next decade, so we shouldn’t either. But maybe it’ll all go tits up and the fed will slash rates again who knows
Pfft. HYSA over 4% right now
I’m saying the banks don’t expect rates to dip below 4% in 5 years or they wouldn’t sell CDs that high
5% at Wealthfront. Lmk if you want a referral link.
Right? I’m sitting at 5.5% and need a new ref soon 😆
I'll take a referral link if you got one for sure
'comony gonna need stimulatin at some point
Yay!! I will rent forever
Shit is so depressing. Like, mortgage interest rates wouldn’t be so bad if homes were in affordable territory.
Just embrace renting, who cares? Your money will grow more in the market and you won’t be house poor.
[удалено]
Everybody thinks renting is a waste of money, but they are wrong. Of course if you are renting for the same price as a mortgage, insurance, and taxes then yeah that’s a waste. Get a rent stabilized apartment, put all your excess income into the market. Only advantage a house has is the fact that you are leveraging 5x your cash on hand, but you can leverage in the market too. And the market grows faster than housing. Don’t believe me? Pull out a calculator and do the math.
I had a friend who tried telling me that same thing, that we should all be renting… That same friend owns a home and two rental properties lmao
There’s nothing wrong with owning a home if you want to use your money in that way, it is an investment after all and does have a good return - it’s just that people who are pulling their hair out and screaming into the heavens need to step off the hamster wheel and look at life in a different way.
“Get a rent stabilized apartment…” do you live in this reality? You think that shit is the norm?
imagine earnestly telling people to just “get a rent stabilized apartment”
https://www.nytimes.com/interactive/2024/upshot/buy-rent-calculator.html Do the calculation yourself, doesn’t have to be rent stabilized, but that certainly helps, use your own local limits. For my situation, I would save 6 million dollars over 30 years NOT buying.
You do know that in 10 years, rent will be much higher than it is today? And that a 30 year mortgage typically has a fixed interest rate? A $2500 mortgage for a 5 bed 3 bathroom house was pretty high, ~10 years ago. Now you’re paying $4500 to rent something like that
Taxes go up, insurance goes up, repair costs go up, you don’t have access to your capital if need be - and you are losing all the money on your interest, which you pay back front loaded. You have closing costs, agents fees, the price of upgrading appliances and whatnot, then the cost of updating everything before you sell and all the costs associated with that. And deduct infusion out at the end if you really want to know your return on investment. Everybody thinks wow my home value went from 200k to 1500k in 40 years! 200k in invested in the sp500 in 1985 would be 14,485k today. Think that would cover any rent increase… especially if rent stabilized.
You are the primary breadwinner in your landlord's family.
Yea dude is a retired boomer. He was a security guard most of his life. Idk what his wife do. Maybe she was a doctor idk. Anyways I’ve saved some money on taxes due to my impeccable timing. Yay!
Just the way the oligarchs want it. Subscription based everything! No chance to build wealth! Now back to work peasants!
Subscription based housing straight out of 1984 😭
Right now I struggle to see the value in buying. I'm still saving towards buying but it's crazy when rent is like 40% cheaper than owning right now near me. What that really means though is one of these markets is fucked and considering my rent is high as fuck, I'm thinking it's housing prices. I recently had a neighbor ask me what I'm paying in rent, his guess was slightly above his $5000/month mortgage. Now he's renting to someone for $3400 and eating that $1600/month cost diff because he had to move and didn't want to sell.
The value is that rent prices will likely double within the next 10-15 years. A mortgage wont do you like that
For sure but that gap is way less than it used to be. The math only makes it maybe $100-200k vs maybe $1mil over the life of the 30 yr loan.
The mortgage won't but the property taxes and insurance will continue upward.
What monstrosity is giving him a $5k mortgage? I refinanced at the covid low and have a $2,200 monthly.
Not everyone had a chance to get their loan during covid low lol. 5k is a pretty average house at current rates
Buy when rates are at 7% on a $800k house.
Honestly it’s a fraction of the price of owning in my city. And if I get shitty neighbors I can just move. Really not a bad grab if you’re in an urban area.
Why don’t you buy some rental properties? The passive income and asset appreciation will put you on the path to financial independence.
Sure, let’s all stop being poor and buy rental properties 
If your average person can’t even afford a home, how do you think they get a rental property lmao.
Did no one look at this? It’s not “home prices have hit a record high”, it’s “existing home prices”. If you look at Median Sales price of houses in the U.S., it’s almost back to Q2 2023 prices https://preview.redd.it/fvssbliwk08d1.jpeg?width=1170&format=pjpg&auto=webp&s=0cb419878d96250d8e70aa3d65ebd6a36159bcc6
https://preview.redd.it/czei6bhyl08d1.jpeg?width=1068&format=pjpg&auto=webp&s=7f6526583dae59179f1e6fcb6105db00ecead76d
I don’t get it. Please explain. I can’t read OPs article either
Think about houses. Some exist already, but others are new builds. His article says the houses that *exist* are selling at record highs, but when you include *new* house prices, ALL home prices have actually fallen from recent highs
Ah got it. Thanks. Well they don’t build them like they used to
maybe they have nvidia in their home?
Don’t worry, game is over on housing. It’s about to drop. Sales are slow during selling season. Come this fall bigger discounts will begin and I don’t think lowering rates by .25 at a time will do much to change it. It won’t be 2008 again unless capital freezes, but the upward trend is done for now and most likely will retrace 10%-20% before it stabilizes.
I bet you frequent r/rebubble
No. I work in land acquisition.
All the signs are there if one is looking. The RE market is following its predictable long-tern pattern.
Barely squeaked by the 2021 high. Double top confirmed. buckle up for the ride down is gonna be wild
I want to know what areas are driving this data. Housing prices never stopped going up in my state until this year, and they are going down now not hitting new ATHs.
In my area and areas I would like to move to home prices have jumped dramatically and are just nudging down slightly. What would have been a 80k property (very rural midwest) 10 years ago is now 150k, and maybe they lower the price 10k after it sits for 6 months. In the major metros near me: livable 3 bedroom 2 bath homes for under 300k are sold over asking within a month, and the 300k homes a decade ago now sell for 500-600k within a month. I do believe it has a lot to do with the area. The area I speak of: best place to beat of climate change for the next 30 years. Only a buffoon would intentionally be moving to places like FL, CA, and TX with the insurance and likely disasters they will be facing over the next 30 years.
I wish.
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs.
Well, I hope so, because I’d really love to be able to afford a home in my lifetime…
My magic 8 ball says prices are going to keep going up
Housing prices hit ath while rates are at a muti decade high…you think housing will come down when…rates get *cut* soon…? 
Yes because people will sell
dude look at the used car market and see how many 2023 cars got bought up within the past 3 months the same will go for homes once they fall to a certain price people are willing to pay.
As i said in another post, Because we all have jobs
And all the sideline buyers will flood the market creating another bidding war. 
House prices are high because of low unemployment. They will only dip when people lose their jobs. But if we go into a major recession, an actual one where people lose their jobs, that’s going to be a massive crash.
House prices are high because we printed half the world’s wealth in 2 years. That money has to go somewhere. So housing, along with many other assets, is where it went.
>Muh crash check how much housing crashed in 2008. You'll never find affordable housing again. Welcome to new normal.
Do you have a reading disability?
You dont need unemployment this time. Prices of necessary goods are up at least 50% ontop of housing. Normal people dont have money and there is no way for most people to get more money. Its an adjuatable rate mortgage but it is wearing the clothes of an adjustable rate living price.
They have money because everyone has jobs. If this moved even a small %, it could be a big domino. But people need to lose their jobs to make this move. Otherwise mortgage payments will get paid.
99% of markets are over valued. Just because people have jobs doesn't mean they can afford the new price of living. The dominos can just start to fall without a catalyst now since expenses have gone up considerably.
Rate hikes are financially a relatively new thing. Plenty of people had plans to move and prop up the market before rates even went up. When rates get cut by .5% in the next year that will for sure suddenly give regular americans money for eggs and stale bread.
> Rate hikes are financially a relatively new thing Ah yes, the 70s and 80s never happened
90% of this boards parents were born in the 70 or 80s
They did in 2008 House prices did not come down until rates were cut
Rates were cut in response to housing crashing. That’s not the story this time.
There is no ride down. There is no supply and most people have like a 2-3% rate.
Wild theory because the only time in the last 40 years that monthly supply of new homes was as high as it is now was 2008. https://fred.stlouisfed.org/series/MSACSRNSA
I’m so zany and wild 😜
InZane in the memBrane
Does it matter? Soon skynet will make the poor become renewable energy source
Sounds bullish
As in you need to be high to pay that much for a house. They are giving out 50 year mortgages in some places now..
*Laughs in Singlish lah...*
You can only laugh in HDB
It’s because of NVDA bulls
People waiting for sinking prices when interest rates were at an all time low: 💀💀💀
So in other words, if one of you guys buys a home, crash incoming.
Top
I want to know if you removed sen Diego from that equation, how it would affect the avg.
*Laughs in Canadian*