patrick.net

There is no rage quitter like a California equity snob quitter. I'm watching Santa Cruz with interest. A place three doors down in Santa Cruz, which is reasonably priced for what it is in California, hasn't sold for six months and it's staged very nicely.

All the above is evidence that the housing market is a monopoly...

Supply and demand does not exist...

"Why don't Americans save? You can always buy a CD here in low rate early 2010s and get a whopping 0.3% return. Doesn't that make you want to put your money to sleep for a year?"

Nothing is going on in the housing market. Sales of existing homes about 4 million. Half a percent lower than last year. Pre-Covid, sales were a touch above 5 million per year. There's still no inventory (about 1.4 million for sale. Pre-Covid, inventory was running about 2 million for sale). Inventory is up a whopping 7.5% from last year...so it only needs to increase another 45% roughly to get back to pre-covid inventory levels. Prices for houses sold up a touch over 1% from last year. 29 months of year over year price increases, but I wouldn't read too much into that considering how anemic the increases have been.

Overall, a whole lot of nothing.

https://www.msn.com/en-us/money/realestate/why-were-home-prices-still-climbing-last-month-despite-slowing-sales/ar-AA1SGuyy?pc=HCTS

MolotovCocktail says

Yep. Eventually life changes and reality will overwhelm the ability of stubborn homeloaners to list and de-list, stomp their feet, try to rent, be disappointed with that, and finally accept reality.

They are in the "I'm entitled to peak pricing! Home prices only go up!" phase.

And no, institutional ownership of homes is not a factor; the big boys have been selling off in slices since 2023 and are mostly concentrated in a handful of metro areas. Their total ownership of about 10% is less than "Mom and Pop" landlords (20-30%) and a tiny proportion to house and houseloan owners (over 60%)

The Houseloan owners are the most important segment, they are making big payments that if they stop, the bank will repo "Their" house. Yes I know about property tax, but the big one is the House Loan.

AmenCorner_AntiPanican says

I like a 6.2% interest rate. Good and normal.

People are too habituated, too addicted, too mentally enslaved to too low interest rates

You may be part of that "habituation" if you think 6.2% is normal. 6% is more like passbook savings while mortgages over the decades averaged more like 7.5 to 8%. And mortgages typically required a down payment.

Ceffer says

A place three doors down in Santa Cruz, which is reasonably priced for what it is in California, hasn't sold for six months and it's staged very nicely.

Well, they would get you as a neighbor.

https://x.com/onechancefreedm/status/2002164275041702380

MolotovCocktail says

https://x.com/onechancefreedm/status/2002164275041702380

What else needs to be known that proves our economy is totally managed? Especially all of the most important parts/industries. The ones EVERYONE needs.