The Housing Market Horror Story: Why Prices Must Fall!
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boy, we got ourselves some pretty spooky housing statistics I want to share with you here. I am first day of fall. yes. I got a lot, a lot of kids in our neighborhood and Halloween decorations are going up. So we’re going to do some, I mean, this is much scarier. Okay. Scary any Halloween decorations scarier than going to those little pop-up stores there. What are they called? Spirit? Anyway, okay.
According to Fannie Mae calculations, it would take one of three things or a combination for affordability, housing affordability, to get back to where it was between 2016 and 2019. One, the median price of a single family home would need to fall 38%.
to $257,000 from September’s $414,340. Either that or median household income would have to rise more than 60 % to $134,500.
or the mortgage rate would need to fall to 2.35%.
anybody’s the only the most plausible one out of the three would be for the housing values to drop by 38%. And again, you could force that hand could force that hand very quickly, quite frankly, if you, you know, did a few things that we’ve discussed here on the program and going after corporate ownership of homes, there’s a myriad of things that most certainly could be done. I would welcome that.
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Welcome that. But boomers wouldn’t. No, we have to, here come the boomers once again, everyone’s favorite generation. Yeah, three quarters of boomers, 73 % say they value stability in their community over affordability for younger generations to move in. Meanwhile.
59 % of boomer homeowners would vote for a political candidate who prioritizes protecting home values, even if it meant fewer people could afford homes.
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boomers, that’s their thing. Again, it never affects a client. It’s one of the things at Markowski Investments, when it comes to putting together people’s entire financial portfolio snapshot, whatever you want to call it, I don’t recommend people to consider their primary residence as even an asset.
Again, it’s more of an installment plan purchase. It really is. That’s how I look at buying a primary home. Everybody’s like, woo, look at my house going up in value. my house. OK, that’s great. OK. I guess if you sell it, but you’ve got to move somewhere. certain states make it a little bit more difficult to making your current property tax being potable somewhere else. Taxes are involved. All the money that you spent on the house. I’ve gone over this plenty of times.
here on the program. We don’t like to consider that. You want to keep that outside. Without a doubt, it would be beneficial. Beneficial for housing prices to come in line with reality, because they’re so far out of whack at this point time. Nobody thinks you’re going to see median household income jump all of a sudden by 60%. And if that was the case, what would happen?
They’d be talking all sorts of stuff about wage inflation. Then what would happen to interest rates? They would skyrocket. my God, inflation, got to get wage inflation here. Mortgage rates going down to 2.35%. Yeah, that could happen if the government pulled a Luca Brazi with the lending industry and forced this and got involved and started subsidizing. But then again, okay.
That wouldn’t work either if you really think about it. Because if mortgage rates dropped to 2.35%, what would everybody do to their homes? That would price them, they’d make it more expensive. You would have to, if the government forced to hand mortgage rates down like this, even if they didn’t, you would have to also put a cap on what people could sell homes for. You understand the problem here? This big steaming pile of excrement that we’re dealing with, yeah, that’s…
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all comes from our government spending more money than we should in printing too much money. That’s actually what would solve the problem. Getting our fiscal house in order would help. Watchdog on wallstreet.com.
