Coincides perfectly with the shadow bank bailout
Wonder is “home ownership “ includes some individuals/ entities that shouldn’t be included?
Another article showing concern in the housing market- yet the author may have lacked critical thinking
- Thread starter GON
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Coincides perfectly with the shadow bank bailout
Wonder is “home ownership “ includes some individuals/ entities that shouldn’t be included?
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Well, I could see if that were the case then it could show up oddly. But what bank(s) owns 2.8M homes. Blackrock supposedly owns 80,000 "officially" at least.
That was a good point, I saw it but just left it alone for no other reason than because.
I figured it was interest rates and all kinds of crazy stuff with Covid... (we need to keep in mind the Fed was doing every shady thing possible to keep the economy moving along, as well as mass hand outs to the public, Fed buying mortgage securities driving rates down. ect.
Just quickly this morning I found this =
Covid-19 caused a recession. So why did the housing market boom?
The pandemic has seen soaring home prices and record housing insecurity.
www.vox.com
BTW - I see as of today anyway, the west coast has been hit hard with price reductions and a slowing market while the east coast remains hot.
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I truly believe that part of this boom is no different than people left and right driving Suburbans and Grand Wagoneers (I'd love to myself) and not being phased by $6000 down and $900/mo. to lease a middle of the road car.
YOU CAN'T TAKE IT WITH YOU
Which is different thinking than in our parents' days.
Our parents thought, when we pass away, our assets go to three places.
Our heirs.
Charity.
A taxing authority.
Today, the mentality seems to be let's live it up and actually owe when we pass on lol
I just smile when I see people brag about what zillow or realtor.com shows their house being worth, or even what a neighbor who moved away got. They rarely brag about how much equity they have of that number. I'd suspect that those who have a lot of equity don't even share it
Example, my buddy's employer is flying 100 people to the super bowl on a chartered jet. I told him, instead of doing that, how about providing better healthcare to the 10,000 employees
YOU CAN'T TAKE IT WITH YOU
Which is different thinking than in our parents' days.
Our parents thought, when we pass away, our assets go to three places.
Our heirs.
Charity.
A taxing authority.
Today, the mentality seems to be let's live it up and actually owe when we pass on lol
I just smile when I see people brag about what zillow or realtor.com shows their house being worth, or even what a neighbor who moved away got. They rarely brag about how much equity they have of that number. I'd suspect that those who have a lot of equity don't even share it
Example, my buddy's employer is flying 100 people to the super bowl on a chartered jet. I told him, instead of doing that, how about providing better healthcare to the 10,000 employees
I suspect you are correct.
Is your buddy one of the other 10k employees, or one of the 100 on the chartered jet? My guess, his response will depend on which group he is in.
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He's not on the jet. But he got an 8% increase (that's well above avg) and a 5 figure bonus (again more than average), and has told me over the years how lousy his healthcare is as he does a HSA. I've told him at the time I was in the same boat, however, this is chosen by the employer. They have on purpose priced the PPO out of your reach and steered you into the HSA. Other observation, people don't stay at that co. despite free daily catered lunches and unlimited sick (he has a colleague who is out 6 days per month sick). none of it is anything but bragging. Paying 90% of employees' healthcare and not saying anything is the old way. Same thing with housing, people didn't look up other peoples' home values nor brag about their own like they do todayIs your buddy one of the other 10k employees, or one of the 100 on the chartered jet? My guess, his response will depend on which group he is in.
Today you can do that while on your couch watching TV, just scrolling Zillow. Since it's now all but public knowledge, I'm not sure one if one is bragging or not if they talk about their home's increase while at the water cooler. It probably is bragging, but it's still kinda public knowledge now.
Social norms do change with time, sometimes for the better, sometimes for the worse, sometimes between. Talking about house prices might be in that middle. To look at it differently, no one thinks twice talking about what they paid for a car, right? They might not like admitting to what they lost on a trade in (depreciation), but, usually they will admit to that. What's the difference here between cars and houses? Just shiny objects that most need/want/lust after, something else to talk about around the water cooler.
Unlimited sick and paying 90% of healthcare? It's been a while since I job shopped, but isn't that a decent perk?
8% increase plus 5 figure bonuses, sounds like they work their people hard. Not sure if the pay matches the expectations, which may be why people are leaving. That said, pay like that, if they aren't striving to stash it away while they can, then leave when something better comes up (or they burn out), no one's fault but their own.
People maxing out on their credit cards is one of the first things you should see before a housing crash:
So we went from $850B to %950B. 12% increase. Isn’t that close to inflation over that time? wondering if this isn’t to be expected, and not a harbinger.
He's not saying they pay that...he said "that's the old way...". He said the PPO option is so expensive all the empoyees at that company pretty much are left with choosing the HSA option.
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we went from $750B to $950B in 18 months. Likely the concern is the slope of the curve, not the absolute number.
Yep.
Lots of red flag warning signs that many are ignoring. Things would get very bad if all foreclosures were to be allowed to take place and people kicked out of property.
Looks like average 30 yr rates are now over 6%.
GON
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DH,
Very good points. Not sure the government will allow foreclosure on a macro basis now or in the foreseeable future. And people foreclosed have little options for post foreclosure housing, so I suspect they will find a way to stay in the home they currently live in.
“ We want to save you from inflation, so we’ll increase interest rates until you get laid off”.
It sounds a lot like “ We had to destroy the village in order to save it”
It sounds a lot like “ We had to destroy the village in order to save it”
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There is something wrong in this thread with the terminology.
HSA is not a health plan. HSA is a Heath Savings Account to save money to pay health care related costs.
HMO, PPO are health plans. Most companies offer a varying degree of how high you would like your deductible to be of which you can use money from your HSA to pay if you wish.
HSA is not a health plan. HSA is a Heath Savings Account to save money to pay health care related costs.
HMO, PPO are health plans. Most companies offer a varying degree of how high you would like your deductible to be of which you can use money from your HSA to pay if you wish.
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Video should start at the appropriate time.
He calculates affordability by taking the percentage of average household income it would take to make payments on the average house using current average interest rates and compared back 20 years or so. Spoiler alert - its jumped the shark.
He calculates affordability by taking the percentage of average household income it would take to make payments on the average house using current average interest rates and compared back 20 years or so. Spoiler alert - its jumped the shark.
The video title is "Terrifying meltdown" ... but it's anything but. More like a minor correction on the tails of RE hyperinflation of the past few years. And I do mean hyperinflation. Here in central Texas, I'm still getting $500K+ cash offers for my house I bought for $235K 4 years ago.
The correction is never the problem. The price inflation leading up to it is the real problem.
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