Moral imperative for a housing crash... and permanent devaluation

[ygolo]

https://www.visualcapitalist.com/mapped-days-of-work-to-afford-a-monthly-mortgage-by-state/

It's worse near certain economic centers.

https://www.visualcapitalist.com/the-salary-needed-to-buy-a-house-in-americas-10-wealthiest-towns/#google_vignette

Note: Only three of these exist outside of the SF Bay area. A lot of the "non-wealthy" locations become unaffordable too.

If it takes pretty much the whole month for a mortgage (and rents tend to be priced right up to the mortgages), what's left for healthcare and education, let alone food?

Now you know why:
-single people have roommates or live with their parents,
-almost every couple has to be dual income, even when one might be too sick to work and should be focusing on recovery.
-inflation can have people stressed enough to not worry about politics, even though it could bring about the end
-why silicon valley can't afford to stay competitive

 

[ygolo]

If we think some places in the US are bad, here's the comparison to Australia:

The U.S. Housing Market vs. The Australian Housing Market - A Wealth of Common Sense

A closer look at Australian housing prices.

awealthofcommonsense.com

I still think that affordable housing near where there are jobs will go a long way to diffusing the internal strife.

 

[ygolo]

 

[Tomb1]

It is still a seller's market. I believe because the inventory is so low. I just flipped a house, bought in mid-November and sold in early February. The house sold for 75,000 over asking price on the first weekend, all contingencies waived and a 23-day closing timeframe to beat out the March 1st mortgage payment which is about 4,000. However, to get the house, I had to also overpay and outbid others over asking price...I paid 55,000 over asking. The house before that one I sold in September I got 65 over asking with inspections waived on the first weekend of open houses and again to get the house I myself had to pay 60 over asking. That said, my houses were purposely priced low to ignite bidding wars, but even with both houses, the houses sold at least 15k over the market comparables....the initial highest offers were right at the market comparables but how much they were really willing to pay was over the "realistic expectations" of my realtor. (She's a beast of an agent but gets too stuck on market comparables)

 

[ygolo]

It is still a seller's market. I believe because the inventory is so low. I just flipped a house, bought in mid-November and sold in early February. The house sold for 75,000 over asking price on the first weekend, all contingencies waived and a 23-day closing timeframe to beat out the March 1st mortgage payment which is about 4,000. However, to get the house, I had to also overpay and outbid others over asking price...I paid 55,000 over asking. The house before that one I sold in September I got 65 over asking with inspections waived on the first weekend of open houses and again to get the house I myself had to pay 60 over asking. That said, my houses were purposely priced low to ignite bidding wars, but even with both houses, the houses sold at least 15k over the market comparables....the initial highest offers were right at the market comparables but how much they were really willing to pay was over the "realistic expectations" of my realtor. (She's a beast of an agent but gets too stuck on market comparables)

I'm curious. Would you be able to make up on volume, the revenue you might miss out on if there was a lot more affordable housing?

 

[ygolo]

There are a lot of forces. But making it illegal for people to have good housing near the economic centers in the country are just one section of the issue.

There's also a strong push for making it illegal to switch work to industries that can pull people up also. It's just dawning on me the dynamics of all of this. I may post on my thoughts about the culture of criminalizing upward mobility and the social forces that cause that.

 

[Tomb1]

I'm curious. Would you be able to make up on volume, the revenue you might miss out on if there was a lot more affordable housing?

I don't think an increase in affordable housing would affect me as much because of the type of buyer pool I target, who want some luxury and have the disposable income to pay for it and in the areas of the houses I choose....and as a general rule I reject offers backed by FHA (federal housing assistance) mortgage loans because of the high inspection hurdles. Don't get me wrong, an increase in affordable housing would have some trickle effect on me some way, somehow but not in any major way I don't think. I lose revenue more if I choose a hard-to-sell house, try to go cheap on materials, have a carpenter who does mediocre finish work, spend money on renovations that don't matter, things like that...