- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Homebuilders cancelling contracts to sell for more on market
Posted on 3/29/22 at 5:24 am to Hou_Lawyer
Posted on 3/29/22 at 5:24 am to Hou_Lawyer
quote:
Many scumbag builders out there. Do your homework. Also, check the local dockets to see if they've been sued before.
Good advice. We hired a well known builder in St. Tammy and he’s nothing more than a used car salesman. Some of these guys have ZERO integrity.
0
Posted on 3/29/22 at 7:52 am to fallguy_1978
quote:
This will collapse like all bubbles eventually do. It's impossible to predict when but it will happen.
It's starting to feel about like 2006 with regards to home prices.
It's different. Blackrock and the like own 1 out of every 4 houses being built today. If the bubble does collapse due to legitimate homeowners being unable to pay their mortgage, the taxpayers will be forced to bail Blackrock out while they lose their own homes, which Blackrock will gobble up in foreclosure.
In 10 years, companies like Blackrock will be able to set the rent market in every major city.
Posted on 3/29/22 at 8:25 am to LSUFanHouston
I don't know if you have looked at mortgage rates recently but as of 3/25/22:
30 year fixed conventional: 5.304%
30 year fixed FHA: 5.095%
15 year fixed conventional: 4.266%
I locked in 3.25% in December to refinance and get rid of PMI. Glad I did it then. Its only going to go up with the Fed raising rates over the next year or two to fight inflation. I think 7%-9% will become the new normal again.
This coupled with high home prices will help lower some of the demand and cool down these insane prices. However, I think it will be 5-10 years before the housing supply reaches a point that its at equilibrium with the demand. We really just didn't build many houses for years after 2008.
Gen Z wont be homeowners till 35. Meanwhile the number of people and/or companies becoming landlords or Air BNB owners will only increase, increasing the wealth gap and eliminating alot of the middle class. If you watch tiktok or see youtube ad trends, a ton of them are click here or follow me to see how to earn passive income with real estate. Well that comes at the cost of first time homebuyers when supply is this low. You'll essentially have a whole generation of people in the neo-feudalism system that will be forced to rent for a large portion, if not most, of their life
Its a cluster, but those are just my observations and predictions.
30 year fixed conventional: 5.304%
30 year fixed FHA: 5.095%
15 year fixed conventional: 4.266%
I locked in 3.25% in December to refinance and get rid of PMI. Glad I did it then. Its only going to go up with the Fed raising rates over the next year or two to fight inflation. I think 7%-9% will become the new normal again.
This coupled with high home prices will help lower some of the demand and cool down these insane prices. However, I think it will be 5-10 years before the housing supply reaches a point that its at equilibrium with the demand. We really just didn't build many houses for years after 2008.
Gen Z wont be homeowners till 35. Meanwhile the number of people and/or companies becoming landlords or Air BNB owners will only increase, increasing the wealth gap and eliminating alot of the middle class. If you watch tiktok or see youtube ad trends, a ton of them are click here or follow me to see how to earn passive income with real estate. Well that comes at the cost of first time homebuyers when supply is this low. You'll essentially have a whole generation of people in the neo-feudalism system that will be forced to rent for a large portion, if not most, of their life
Its a cluster, but those are just my observations and predictions.
Posted on 3/29/22 at 8:44 am to BRbornandraised
quote:
You'll essentially have a whole generation of people in the neo-feudalism system that will be forced to rent for a large portion, if not most, of their life
It's going to be interesting to see what kind of social policies and laws are enacted by Gen Z when they hold political power.
Posted on 3/29/22 at 8:48 am to Vlatket
quote:260k is barely a starter home right now
Bruh we talking the south not the Bay Area. Median income is like 50k. 260k is most definitely expensive for that area. Most can’t even afford it. Add it the high Texas taxes and good luck keeping up with the payments.
Posted on 3/29/22 at 8:51 am to GreatLakesTiger24
quote:Even in shitty areas, that is how high prices have gone.
260k is barely a starter home right now
Posted on 3/29/22 at 9:36 am to wadewilson
quote:
Blackrock and the like own 1 out of every 4 houses being built today.
To be clear to all of you suggesting these companies "own" these homes, you would be incorrect. They are asset managers, the people who invest with Black Rock, Black Stone, etc....are the owners. Those people would be anyone with a pension, 401k, etc.
Posted on 3/29/22 at 9:37 am to wutangfinancial
quote:this has kind of been my take for a couple years (i don't necessarily agree with "This is not an unaffordability problem")
You are observing the degradation of our education system. This is not an unaffordability problem.
decent people want to send their kids to good schools. there are less and less good school districts, which inflates housing in those areas even more.
Posted on 3/29/22 at 9:40 am to Scruffy
quote:New homes in Pearl River of all places are approaching $300k. Unreal. You'll be surrounded by trailer parks and 50 year old neglected homes but that's what people are paying right now. Completely absurd.
Even in shitty areas, that is how high prices have gone.
Posted on 3/29/22 at 9:42 am to Horsemeat
quote:
You'll be surrounded by trailer parks and 50 year old neglected homes but that's what people are paying right now
Sounds like many places in Louisiana, actually.
Posted on 3/29/22 at 9:45 am to Horsemeat
quote:im curious at what some of the nicer homes cost in some of those neighborhoods on the MS coast. the ones with 1/4-1/2 acre lots filled trailers, 4k square feet houses, slum lord apartments, normal houses, etc
New homes in Pearl River of all places are approaching $300k. Unreal. You'll be surrounded by trailer parks and 50 year old neglected homes but that's what people are paying right now. Completely absurd.
Posted on 3/29/22 at 9:51 am to LSUFanHouston
These companies can only burn so many people before no one wants to do business with them.
Posted on 3/29/22 at 9:55 am to GreatLakesTiger24
quote:
m curious at what some of the nicer homes cost in some of those neighborhoods on the MS coast. the ones with 1/4-1/2 acre lots filled trailers, 4k square feet houses, slum lord apartments, normal houses, etc
350K+
Just got a house in D'Iberville for 310K, 3000 sqft, on 3.5 acres.
Most of the other houses were smaller, less acreage and wanted at least 330K.
Posted on 3/29/22 at 9:59 am to hubreb
quote:
To be clear to all of you suggesting these companies "own" these homes, you would be incorrect. They are asset managers, the people who invest with Black Rock, Black Stone, etc....are the owners. Those people would be anyone with a pension, 401k, etc.
Oh, thanks. I'm sure that will be comforting to the homebuyer that has to deal with a deliberately inflated market.
Posted on 3/29/22 at 10:15 am to wadewilson
quote:
Oh, thanks. I'm sure that will be comforting to the homebuyer that has to deal with a deliberately inflated market.
you can blame the Federal Reserve for that. Keeping interest rate artificially low with quant easing made the IRR of return on a pool of rental properties competitive with other fixed in come assets. Once rates rise, they will no longer be competitive.
Posted on 3/29/22 at 11:56 am to hubreb
quote:
To be clear to all of you suggesting these companies "own" these homes, you would be incorrect. They are asset managers, the people who invest with Black Rock, Black Stone, etc....are the owners. Those people would be anyone with a pension, 401k, etc.
I know you are trying to be cute, but...
1) Significant chunks of those funds are owned by the managers
2) Very few 401(k) plans offer Blackrock hedge funds as an investment option
3) Some of this is owned by pension plans, however, the pension plans are required by their plan documents to pay certain benefits... so it's not like individual retirees are seeing any added benefits from this ownership.
Also... at what point does mass control of single family housing start to look at bit like... communism? The ownership may be different but the result is the same.
Posted on 3/29/22 at 12:02 pm to LSUFanHouston
quote:
Also... at what point does mass control of single family housing start to look at bit like... communism?
In this case its crony capitalism.
This post was edited on 3/29/22 at 12:31 pm
Posted on 3/29/22 at 12:10 pm to GreatLakesTiger24
quote:
decent people want to send their kids to good schools. there are less and less good school districts, which inflates housing in those areas even more.
This is a great point. And it’s a self repeating cycle too. Districts with a lot of educated well off people tend to be have the best schools for one reason or another. I’d even switch that to say the very best districts are the ones with the FEWEST poor people.
Williamson County Tennessee, immediately south of Nashville, is a prime example. Best district in the state. Houses within the county are $300k or more higher than equivalent homes within Nashville/Davidson County and the surrounding areas. The Median household income in Tennessee is 53k. Williamson is the only county in the state with a MHI over $75k and it is $113k and increasing. Anyone new moving in will need $150k at a bare minimum to buy a house now. Probably closer to $200k to get something that doesn’t need a pile of renovations. All this means more and more money targets this one spot and prices out more and more people.
It also helps that this district ended remote school almost a year before the loonies across the line in Nashville.
This post was edited on 3/29/22 at 12:20 pm
Posted on 3/29/22 at 12:17 pm to wadewilson
quote:
In thus case its crony capitalism.
You are correct.
And just like Communism, it is a ruling class, with everyone else getting worse off by the day.
Posted on 3/29/22 at 12:21 pm to NOLAVOL16
quote:
This is a great point. And it’s a self repeating cycle too. Districts with a lot of educated well off people tend to be have the best schools for one reason or another. I’d even switch that to say the very best districts are the ones with the FEWEST poor people.
I don't think too many people are moving large distances for schools... but when they move for work or other reasons, they want to end up in a district with good schools.
This is why Katy ISD has exploded.
But it used to be that the fact that there was so much land out there, and so many builders, kept price increases in check. The number of kids enrolled might have been growing by 5-8 percent per year... but housing prices rose slowly because there was always enough supply to meet the demand.
Demand hasn't really increased... but supply has decreased... so now you are seeing wild price rises out there as well.
Page 10 of 11
Popular
Back to top
Follow TigerDroppings for LSU Football News