Home prices jumped nearly 20% in February, but slowdown may be coming, S&P Case-Shiller says

[reflechissez]

Ah, I actually was referring to you there, with respect of course.

So, let me just touch on this:

How do you reconcile the loss of security in owning one's property outright, precluding foreclosure in a personal economic downturn? Can I assume the funds invested would be the 'insurance policy' to pay the mortgage during financial hardship?

You know, I can't argue with this in concept.

Without asking you to show your work, can I assume you've run the numbers in test scenarios, showing the numbers actually do work? IOW, this is hard numbers proven, rather than simply conceptual?

There are no "numbers" to run. At different points in life, people have different priorities. Younger people/families are asset-light; priorities are saving (retirement, emergency fund, major purchases), insurance, tuition, etc. The last thing they need is a mortgage made higher by a 15-year term. Having a paid-off house without adequate retirement savings doesn't help. If someone has enough cash flow to do it all, more power to them; I'm agnostic at that point.

 

[EMNofSeattle]

Home prices jumped nearly 20% in February, but slowdown may be coming, S&P Case-Shiller says

Home prices continued to surge higher in February, but rising mortgage rates may make that kind of growth unsustainable in the months ahead.

www.cnbc.com

--

But hey, "a slowdown may be coming"! Right?

--

20%! Hard to believe. And 30% in Phoenix, Tampa, Florida, Miami, etc.

Who would have the guts to buy in this market?

My fiancée and I are getting married in September and we were talking about today just buying a plot of land in the community in WA I used to live in, because we could easily get a buildable plot for 75K to 120 and then just sit on it for a few years until builders are less busy.

 

[EMNofSeattle]

Plus, rent is too damn high.

What do you expect when the government is allowing a million people a year to move in legally and another million to illegally move here every year? Imagine building a brand new Manhattan every two or three years, that’s immigration policy and the left called Donald Trump a racist for trying to solve this problem. Rent in major areas will only get higher until we get smart like the 1920s and impose a Moratorium on new arrivals

 

[Plasmaball]

What do you expect when the government is allowing a million people a year to move in legally and another million to illegally move here every year? Imagine building a brand new Manhattan every two or three years, that’s immigration policy and the left called Donald Trump a racist for trying to solve this problem. Rent in major areas will only get higher until we get smart like the 1920s and impose a Moratorium on new arrivals

That's not the problem

 

[EMNofSeattle]

That's not the problem

Lol. How’s it not? Two million people a year need to live somewhere. They’re not all living under bridges. Apparently you think adding millions into short markets has no effect on rents? Lol get real.

America is like 3 million units short right now and we’re still admitting a million people legally and failing to deport tens of millions here illegally.

 

[BahamaBob]

Home prices jumped nearly 20% in February, but slowdown may be coming, S&P Case-Shiller says

Home prices continued to surge higher in February, but rising mortgage rates may make that kind of growth unsustainable in the months ahead.

www.cnbc.com

--

But hey, "a slowdown may be coming"! Right?

--

20%! Hard to believe. And 30% in Phoenix, Tampa, Florida, Miami, etc.

Who would have the guts to buy in this market?

In many areas, people are trapped. Because rent is going up even faster.

 

[BahamaBob]

My fiancée and I are getting married in September and we were talking about today just buying a plot of land in the community in WA I used to live in, because we could easily get a buildable plot for 75K to 120 and then just sit on it for a few years until builders are less busy.

In most places you can't do that. Most places will make you start construction within a year. In addition, I don't know about where you live but here almost all the lots are contractor owned. They will not sell the lot; you need to sign a building contract.

 

[Parrish]

The trend where I live was $50-350,000+ over appraisal. They were selling. This week according to MSL it has dropped about half that.

 

[BahamaBob]

Get ready for the next shock. Housing values everywhere are up nearly 50% since in the last year or so. The next move is for the local governments to reassess your home and increase the taxes accordingly. I currently pay about 70K annually in property taxes on my home. It is now worth twice what it is assessed for. Even if they drop the mill levy, I expect to be paying another 30K after the new assessment.

 

[Plasmaball]

Lol. How’s it not? Two million people a year need to live somewhere. They’re not all living under bridges. Apparently you think adding millions into short markets has no effect on rents? Lol get real.

America is like 3 million units short right now and we’re still admitting a million people legally and failing to deport tens of millions here illegally.

3 million short because.....its not illegals

 

[EMNofSeattle]

3 million short because.....its not illegals

I included legal immigrants which I think should be heavily reduced on that.

And in fact it is. Shortage is a difference between supply and demand in favor of demand. If there was the same supply and less demand then prices would be lower.

We can look at Canada’s insane home price appreciation. A recent population survey in Canada showed Canadian citizen women are having virtually no children, like 70% of Canada’s population growth is immigration, and their housing market is appreciating into the millions of dollars every year.

 

[BahamaBob]

3 million short because.....its not illegals

So answer his question, where are they housing all these illegals. There are over 10 million of them in the country now. Do they live in cardboard boxes?

 

[Bullseye]

So glad my kids are well settled in homes. If you aren't a homeowner now......good luck!

Yeah, a place down the street just went on the market - I took a little walk to grab one of the fliers on the For Sale Sign - $875,000!. It's a tad bigger than mind and has an "upgraded kitchen". This is crazy. Still, I'd bet by the weekend it'll be sold.

 

[Callen]

Yeah, a place down the street just went on the market - I took a little walk to grab one of the fliers on the For Sale Sign - $875,000!. It's a tad bigger than mind and has an "upgraded kitchen". This is crazy. Still, I'd bet by the weekend it'll be sold.

It is totally nuts!

 

[Cope]

It is totally nuts!

I finished building my house in July. In January of 21 it appraised for 1.5M. After closing in July, it appraised for 2.4 million.
I came really close to selling it before moving in.

 

[ApersonLIKEallOFyou]

Never a better time to purchase! In fact, it's so good you can pay extra to get a lower rate for two whole years before your payment goes up in a fairly significant way. For perspective, on a $300,000 mortgage amount your payment goes up just under $300 a month beginning in the third year. 2007 called and they want their bubble recipe back.

 

[lurchadams]

Home prices jumped nearly 20% in February, but slowdown may be coming, S&P Case-Shiller says

Home prices continued to surge higher in February, but rising mortgage rates may make that kind of growth unsustainable in the months ahead.

www.cnbc.com

--

But hey, "a slowdown may be coming"! Right?

--

20%! Hard to believe. And 30% in Phoenix, Tampa, Florida, Miami, etc.

Who would have the guts to buy in this market?

I'm retiring in San Antonio. I can't afford a house in Seattle. The median price is closet $1 million.

 

[Plasmaball]

So answer his question, where are they housing all these illegals. There are over 10 million of them in the country now. Do they live in cardboard boxes?

It's a red herring.
So no I won't.

 

[Metric Mouse]

That is cheap,

1850 above here is 430 k

Right?

Plus closing costs, wave inspection and 30 day close, if you want to have a shot, here.

 

[BahamaBob]

Right?

Plus closing costs, wave inspection and 30 day close, if you want to have a shot, here.

With the recent rise in interest rates, be prepared to pay a lot more. It also looks like it is headed up even more.

 

[Chomsky]

I'm retiring in San Antonio. I can't afford a house in Seattle. The median price is closet $1 million.

Pretty amazing, to be honesy.

 

[multivita-man]

Never a better time to buy a home...if you want to be underwater in a year or two, lol