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re: What are ‘insane’ prices?
Posted on 6/15/22 at 1:37 pm to bod312
Posted on 6/15/22 at 1:37 pm to bod312
quote:
Who is to say the MSRP is the fair market value of the vehicle? Is it equally as insane when people pay $5-10k below the MSRP?
Well, if that is the true FMV, why wouldn’t the automobile producers establish that as their (revised) MSRP, and why are some auto producers now coming down on dealers (to the point of threatening to take away their franchises) who they’ve accused of price gouging customers? In cases where it’s a relatively small percentage, that’s one thing. But jacking up the price 20+% on an average car gets people’s attention.
Especially with larger, high volume dealers, there are rebates and incentives that are passed along to customers. Those dealers do sometimes pass those price reductions along to well qualified customers.
2
Posted on 6/15/22 at 1:49 pm to Jag_Warrior
quote:
Well, if that is the true FMV, why wouldn’t the automobile producers establish that as their (revised) MSRP
I don't know why the manufacturers have not updated the MSRPs more. My guess would be that the FMV is very volatile right now and probably fluctuates a lot from location to location. The MSRP is a national value and they probably don't want to the reduce the MSRP whenever the FMV drops more inline with historical values/expectations assuming the supply chain issues get resolved.
This post was edited on 6/15/22 at 1:50 pm
Posted on 6/15/22 at 1:53 pm to weagle99
It's not so much a dollar amount as it is a sudden spike in everything across the board coupled with a dumping stock market. That is insane.
Posted on 6/15/22 at 1:54 pm to weagle99
$5.99 for a mexican pizza
Posted on 6/15/22 at 1:54 pm to TigerDeBaiter
from taco bell
Posted on 6/15/22 at 1:55 pm to TigerDeBaiter
quote:
$5.99 for a mexican pizza
Just for the pizza or the meal? Seems normal for meal, seems insane for just the pizza.
Posted on 6/15/22 at 2:07 pm to weagle99
many multiple % higher than an item was just a few short months ago.
for example.
"its ok Karen, i know you paid $ 2.00 for gas last november, but bidenflation is good for everyone i dont care how insane these prices are. whats another 100 % increase?"
for example.
"its ok Karen, i know you paid $ 2.00 for gas last november, but bidenflation is good for everyone i dont care how insane these prices are. whats another 100 % increase?"
Posted on 6/15/22 at 2:11 pm to fjlee90
quote:
Someone bought my 300k home for nearly 450k today. They even thanked me.
BlackRock appreciates your dedication to the Great Reset agenda
Posted on 6/15/22 at 2:12 pm to weagle99
Financing 20,000 over sticker on a truck, for 7 years and 4%.
Posted on 6/15/22 at 2:12 pm to SlowFlowPro
A Cadillac Escalade costs almost as much as my 3,000 sq ft house did
Posted on 6/15/22 at 2:14 pm to Jag_Warrior
Dealerships are filthy for the most part they will take advantage of every aspect of an uninformed customers sale.
Posted on 6/15/22 at 2:17 pm to bod312
quote:
Just for the pizza or the meal? Seems normal for meal, seems insane for just the pizza.
just the pizza
Posted on 6/15/22 at 2:55 pm to REB BEER
quote:
It was $30 not long ago.
But you didn't think $30 was insane, did you? It was more than $100 now.
Posted on 6/15/22 at 3:23 pm to weagle99
$10 for your momma
Posted on 6/15/22 at 3:59 pm to PhiTiger1764
quote:
Home Values were pretty consistent since the 08 crash as a ratio to median household income.
Given the inability of employers to fill jobs at current pay levels, whose to say the median income doesn’t rise to make this ratio closer to what it had been?
Posted on 6/15/22 at 4:12 pm to deltaland
quote:
BlackRock appreciates your dedication to the Great Reset agenda
I sold to a real person.
Not a bright one, but a real one.
Posted on 6/15/22 at 4:15 pm to Dawgfanman
quote:
Given the inability of employers to fill jobs at current pay levels, whose to say the median income doesn’t rise to make this ratio closer to what it had been?
I suppose this could bring it down slightly. The median household income they are using is $67,521 (2020).
The housing data lags by 4 months. So the chart is showing a 7.9 ratio as of Feb 28, 2022.
This would mean the average home price is at about $533k. To get the ratio down to a 6 (which would still be high), the median household income would need to be about $88k. I don’t think we are anywhere near that.
So yea, bubble.
Posted on 6/15/22 at 4:23 pm to PhiTiger1764
Is the chart showing average (mean) or median home price? $533k isn't the median home price based on any data I have seen or heard. It is also weird to use 4 month old home prices but 2 year old wage data but availability of data obviously plays a part. If wages and houses are increasing at an accelerated rate the ratio would spike because the recent changes of wages are taken into account but houses are not. I have more questions than answers after looking at the chart.
The FRED data shows Q1-2022 median sales price of $428,700 which would be 6.3 times the $67,521.
FRED Data
On a side note, it does seem crazy that it is already almost $430k. I was still thinking it was $375k which was early 2021 numbers.
The FRED data shows Q1-2022 median sales price of $428,700 which would be 6.3 times the $67,521.
FRED Data
On a side note, it does seem crazy that it is already almost $430k. I was still thinking it was $375k which was early 2021 numbers.
This post was edited on 6/15/22 at 4:28 pm
Posted on 6/15/22 at 4:32 pm to bod312
It is using average home price and median income.
The sources are cited but as I stated earlier even if median household income is near $90k we are at elevated ratios..
I can see how the purchasing of homes by Blackrock et al can be leading to this increasing ratio, but it is still troubling.
ETA: Average price 2022 Q1 $507,800
The sources are cited but as I stated earlier even if median household income is near $90k we are at elevated ratios..
I can see how the purchasing of homes by Blackrock et al can be leading to this increasing ratio, but it is still troubling.
ETA: Average price 2022 Q1 $507,800
This post was edited on 6/15/22 at 4:38 pm
Posted on 6/15/22 at 4:34 pm to PhiTiger1764
quote:
The sources are cited but as I stated earlier even if median household income is near $90k we are at elevated ratios..
But how does it reconcile using near term data for housing and long term data for income? If we see an significant increase in wages and housing, based on the time delay factors the ratio would spike. If it is comparing late 2020 wages versus 2022 housing, then it is not surprising at all that the ratio is spiking. If it used 2022 wages how would that impact the ratio?
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