This Time ON… IS MY WEALTH VALORIZABLE OR IS IT ALL JUST FICTITIOUS CAPITAL.
I saw this on twitter https://twitter.com/nickgerli1/status/1673774695693385728/photo/1
I wonder if this will have a measurable effect on the price of housing on the west coast.
housing prices are already on their way down. when people can no longer pay the absurd mortgages they’ve taken on, we’ll see a wave of foreclosures.
I kind of feel like its not ever going to get better, atleast in places where people want to live.
Not likely. I feel like the pandemic shuffling people into different metros turned capital on to real estate investing in areas that were previously overlooked as being not worth their time. That combined with the constant news drum beat about rising prices has every little small business real estate ghoul in these areas trying to suck up as much as they can to flip for a profit. As long as demand outstrips supply, it’ll continue.
Houses have further become Pokémon cards for the wealthy to trade, a correction is a sale for these ghouls.
It depends heavily on the market. Prices have come down in some areas, but the desirable places to be (like where I am) aren’t seeing much change. Prices near me have just stopped increasing, but are still double what they were in Q1 2020.
In terms of affordability, it’s actually worse now due to the interest rates being what they are. On top of that, fewer people are selling because if they jump from one mortgage to another, they’ll get killed with the higher rate. For an average house in my area, the rate hike increases the monthly cost of a mortgage by like $800 and that’s for some starter home from the 70s or something.
for sure. people talk about current rates being a return to “normal” (aka the late 80s/90s), but all i can do is look at the amortization schedule of a 30 year loan and think, “wow, what a shitty deal!” probably because wages are so much crappier and home prices are also much higher than they were in those years.
wow not in California unfortunately
