plus points, if you consider the LATAM market, not only USA.
t.Mexican fag
>5% more houses projected to hit the market
>home value is expected to slow growth, gee i wonder why..
>smaller homes are showing more increase in stock, because millenials cant afford bigger houses.
>interest rates going up
>less adquisitive power
Fucking real state is in a bubble, and (YOU) cannot tell me otherwise, unless you do so in wich case please explain.
it's called real estate but it's not actually real
>live in kiwiland
>average house price is over a million dollarydoos
>average salary is 56k
fug bros
And boomers, and shit have the audacity to call us lazy and shit, fucking boomers i swear.
government steps in and gives them monopoly money to prevent it from popping, as they know once the bubble pops the economy will spiral into a worse version of the great depression. i think 1/3 of my country's economy (canada) is literally from real estate kek the west is no longer a serious player
So what now? literally most of us are and will be priced out of owning a home until things actually get t a normal level and the bubble pops¡
The problem here is that land/property is like the only investment that most boomers actively tie their money up in so the gov knows they have to keep it going up. Most boomers know nothing about stocks (outside of kiwisaver which is our equivalent to a retirement account) let alone crypto or anything like that.
The whole global clown economy has to come crashing down sooner or later though, just a matter of how long before it does and how violent it's going to be. I'm expecting great depression 2.0
its only because rates are low
there is no functional difference between a house that costs 500k with mortgage rates with 5% or a house that costs 600k but mortgage rates are 3% (math is wrong but u get point)
because both monthly payments are the same. does that make sense to you? that is why it is so cheap
It's popped already, but the ripples are pretty slow. You'll have a full meltdown by late this year.
*i mean, housing is so expensive. but it's not when you actually think about it
also inflation is insane right now, everyone is getting huge pay increases and getting richer from stock market mooning and such
plus inflation is insane, if you take out a mortgage and inflation rises 20%, your house effectively costs 20% less to pay off now
I agree, that's why a part of me wants to see a great depression 2.0.
It'll suck but at least after several years things could have shifted such that you'll be able to realistically buy your own place and have a decent standard of living. Far better than things continuing and
>you will own nothing and you will be happy
being our future instead.
you literally need to build your own. shomes imho are the best way to address this. good luck finding a plumber or electrician to help you they are all booked solid working on all the houses boomers bought with ppp money.
% more houses projected to hit the market
And they'll cost 25% more to make
>>home value is expected to slow growth, gee i wonder why..
>>smaller homes are showing more increase in stock, because millenials cant afford bigger houses.
Not in decent urban/suburban areas
>>interest rates going up
Barely, and well below inflation
>>less adquisitive power
wut
No, i dont think you are getting it,
Now, USA has LOW AF rates even after "higher rates announced" so they can "wait a little longer" but the core problem is there
For example here in Mexico Banks can get you as low as 9% rates per year in best case scenario....
so yeah, rates are "relevant" depending on the country but, the base price is actually equally important, specially the more the core value and core price have a bigger spread to the point, the price of an asset (house in this case) is no longer causated or correlated with the intrinsec value.
it'll happen at the end of this year + two more weeks :)
My area is reaching new highs and it's not even April yet
>The higher the inflation the lower your house actually cost to pay
HOLY SHIT, HOW DID A FUCKING LITERAL RETARD GOT IN HERE?
INFLATION MEANS THAT YOU LOSE THE ADQUISITIVE POWER OF YOUR FIAT IN QUESTION
¿CHEAPER? ¿ARE YOU FUCKING TROLLING?
your fiat denominated debt gets inflated away faggot. so its easier to pay off
>So what now?
Rent.
>your fiat denominated debt gets inflated away
>so its easier to pay off
¿huh? faggot do you even math?
No, it does not get easier to pay off because even if you "lock" a interest rate for the 20 year period, the value of the asset(home( unless it actually pops (like it should) will keep "going up" and you will simultaneusly will need more money to buy it, because inflation makes your money WORTHLESS, a 40% inflation means, if something costed 1 usd before, now you would need 1.4$ to buy the exact same shit, because your money is less valuable(in the case of fiat), now to that add the "appreciation" of real state yoy and you get..... more expensive housing, and a people with less adquisitive power , wich in turn leads to less people being able to buy a home.
Proof of this is that rn the average age of a home buyer in US was like 45 y/o or something like that.
T
Ah yes, the renting wage cage wich never or very rarely allows you to actually have a flat...
>30% of income is recomended in rent or housing in order to have a superhabit to actually save
>even renting right now usually takes more than 30% reaching in most cases even 50% of a persons income, to rent in an usually small and deprecated shit hole
you know, if my parents had a house in a place i could actually work in, i would move the fuck there and avoid paying rent all together.
Unironically it seems like the only if not the most viable option for most young people(me included) rn