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Is the Fed killing the housing market?

Posted on 5/5/22 at 12:35 pm
Posted by L1C4
The Ville
Member since Aug 2017
13193 posts
Posted on 5/5/22 at 12:35 pm
Mortgage rates continue to climb but housing prices are not dropping, plus there is a shortage of houses.

It's going to be harder for people to afford a mortgage loan.
Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 5/5/22 at 12:58 pm to
quote:

It's going to be harder for people to afford a mortgage loan.


Which will correct prices.

They will probably level off in most of the hot markets because its still a supply and demand thing.

People who were paying 200/sq foot + in shite hole places to live are probably f-ed though.
Posted by 3nOut
Central Texas, TX
Member since Jan 2013
28936 posts
Posted on 5/5/22 at 1:43 pm to
private investment firms removing inventory for the foreseaable future and all cash offers from out of staters are killing the housing market.

my town expects 7000 new homes in the next 6 years. most are going to be duplexes or DR Horton cookie cutters, not real neighborhoods.
Posted by armsdealer
Member since Feb 2016
11511 posts
Posted on 5/5/22 at 4:05 pm to
Institutional investors aren't getting mortgages...

They are manipulating the market, when the market is being manipulated it can't be controlled.

Posted by LeGrosChat
Bangladesh
Member since Feb 2016
399 posts
Posted on 5/5/22 at 10:05 pm to
If you trust the government, just talk to the American Indians. They got hosed by the government.
So, yes, the Fed artificially lowered rates in response to the Great Recession in 2008-2009, and now are way too late in raising rates.
Posted by ColdDuck
BR via da Parish
Member since Sep 2006
2767 posts
Posted on 5/6/22 at 7:58 am to
I hope so for the Florida condo market, but everyone is paying cash and condos are up 25-50% after swapping out a couch and fresh paint.
Posted by Rize
Spring Texas
Member since Sep 2011
15811 posts
Posted on 5/6/22 at 8:03 am to
quote:

I hope so for the Florida condo market, but everyone is paying cash and condos are up 25-50% after swapping out a couch and fresh paint.


I might scoop one up if there’s a big crash like 08.
Posted by Billy Blanks
Member since Dec 2021
3809 posts
Posted on 5/6/22 at 9:35 am to
quote:

It's going to be harder for people to afford a mortgage loan.


Amazing time to own rental property. There will be some people with good incomes who will opt to rent a nicer place vs buying a dump
Posted by buckeye_vol
Member since Jul 2014
35239 posts
Posted on 5/6/22 at 3:36 pm to
quote:

Amazing time to own rental property. There will be some people with good incomes who will opt to rent a nicer place vs buying a dump
Seems like an amazing time to own a rental property, if you bought it 2+ years ago.
Posted by go ta hell ole miss
Member since Jan 2007
13629 posts
Posted on 5/6/22 at 4:17 pm to
quote:

I might scoop one up if there’s a big crash like 08.


There will not be a crash like ‘08 in the Florida condo/beach market. There is still massive demand and even more demand waiting if things go down. Money from around the country is still pouring in to the Florida condo/beach market and will be for at least the next decade.

I am with you and wish it would just go back to 2018 prices, but I don’t see it happening and no market indicators do either
Posted by sawtooth
Baton Rouge
Member since Jul 2017
3588 posts
Posted on 5/6/22 at 6:24 pm to
It’s just starting. Why are people so impatient?

Wait for it…..
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41208 posts
Posted on 5/6/22 at 7:10 pm to
they are definitely trying

Posted by ronricks
Member since Mar 2021
6862 posts
Posted on 5/6/22 at 8:48 pm to
quote:

They will probably level off in most of the hot markets because its still a supply and demand thing.


Instead of seeing 22% year over year gains it will be 9%. Prices aren’t going anywhere until the inventory problem is sorted. Higher rates means less people selling. Inventory is forecasted to be lower in Q3 and Q4 than it is now. Think about that for a minute.
Posted by burke985
UGANDA
Member since Aug 2011
24631 posts
Posted on 5/6/22 at 8:52 pm to
quote:


my town expects 7000 new homes in the next 6 years. most are going to be duplexes or DR Horton cookie cutters, not real neighborhoods.


Yeah those DR Horton homes are trash they have a few neighborhoods going up off 22 going toward Hammond in my area they will pretty much give a house to anybody with half arse decent credit and a 50 dollar deposit.
Posted by OccamsStubble
Member since Aug 2019
5021 posts
Posted on 5/7/22 at 9:21 am to
Did the Fed print money between 2008 and now, increasing debt from 10.7T to 30T? If yes, then yes.

But the damage isn’t linear between 2008 and now, it’s a bubble, they knew it would blow, they just didn’t care.

Posted by buckeye_vol
Member since Jul 2014
35239 posts
Posted on 5/7/22 at 11:50 am to
If you all think that’s s bubble (it’s not, at least not like the mid 2000s), wait until you see what’s happened to Canadian home prices:

Posted by AUViclic
Member since Jun 2013
144 posts
Posted on 5/7/22 at 2:53 pm to
quote:

they knew it would blow, they just didn’t care.


Not only is this wrong but its worse. They think they can manipulate the currency with no consequences.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
30590 posts
Posted on 5/7/22 at 3:38 pm to
Median Income is due to come up after decades being relatively flat
Posted by SlidellCajun
Slidell la
Member since May 2019
10436 posts
Posted on 5/7/22 at 6:11 pm to
They’re trying to avoid a crash by raising rates incrementally which is the right thing to do

Cool it off to save it
Posted by arcalades
USA
Member since Feb 2014
19276 posts
Posted on 5/7/22 at 6:21 pm to
quote:

Wait for it…..
this right here. people type like it all happens in 48 hrs. the cost of inflation takes a little time.
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