Quote:
Originally Posted by Chick Webb
Hard to argue with that. At this point even the middle-class consumer has been crushed, and (as I demonstrated in the stock mkt tips thread) they have now run out of their Covid cash. Auto loan and credit card delinquencies are rising rapidly. Rates are so high that the home builders can't eat enough of the costs to lower their prices further, so (as you observed) their homes sit empty.
The $4T that the Dems printed while they controlled both sides of congress will, to an extent, keep the economy from completely crashing. The unions will keep inflation higher than the Fed wants, though, so rates aren't going to come down any time soon. Once the layoffs start, and they will, home prices will drop as sellers who are forced to move face a lack of demand at 2021-2 prices.
If you don't believe me, it's even happening here in coastal CA. Two homes on the most desirable (read, stable) cliff in Capitola haven't sold, even though they've been on the market more than a minute. Of course, they're $10 and $15 million, but that shouldn't stop anybody. 
Here's one 4410 Opal Cliff Dr, Santa Cruz, CA. |
Do you think they would take 400K for that home? I am a buyer then
Quote:
Originally Posted by M-technik-3
The Fed said they expect a recession by them trying to get inflation back down to 2%. The need unemplyment numbers to go up as well. This will cool the market but we will be back in a 4 year recovery mode.
Builder does not want to budge because the are priced at low end as we know how much materials cost these days. Can't believe the country is still moving as well as it is but a major reset is coming. I feel it will be worse than the 07 crash.
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In those new construction 400k homes, they "claim" they only have 15k to give... not sure what 15k to give means... i guess that means they need that to 15k make 50%+ margin... because absolutely no one is building those houses with land for over 250k... so I think the greedy expectation will need a wild reset or we will be stuck w a dead market for years. No transactions = everyone fails including realtors, builderes, buyer, sellers etc...