The real problem with real estate, according to an economist
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- Опубліковано 28 вер 2024
- The housing market continues to deal with affordability challenges, prompting the Biden Administration to unveil new initiatives aimed at addressing this pressing issue. However, in an exclusive interview with Yahoo Finance, US Secretary of the Treasury Janet Yellen tempered expectations, emphasizing that "there's no silver bullet" when it comes to solving the housing affordability crisis.
To gain deeper insights, Middleburg Communities Chief Economist Brad Case shares his perspectives on the ongoing affordability dilemma affecting US homebuyers.
Case highlights two factors driving the current market dynamics: first, the surge in demand is pushing home prices higher; and second, the Federal Reserve has "limited" impact, noting "the solution is really at the local level."
"If you bring down interest rates, all that does is make house prices go up more and that wrecks affordability," Case explains, advocating for a different approach: "What you really need is a moderation in house prices and the only way to get that is supply growth."
Watch Yahoo Finance's full, exclusive interview with US Secretary of the Treasury Janet Yellen.
#youtube #news #realestate
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I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Prices are up and nothing is selling. Bad sign.
No one wants to pay 10,000 a month for a two bedroom apartment. They kept building these luxury apartment buildings instead of actual housing. No one is being because housing is no longer an investment because no one wants to buy it due to high cost. When the investors don't even want it, you know you have a real problem.
@@felixthecat2786 real estate investors like myself have completely left the market, and we wont be back until it makes sense again.
@@nickvin7447 Good. The people buying should not be investors anyways. It should be couples and families.
@@RajDeelish Couples and families are not special. Items are for sale for EVERYONE, if you don't like it, make more money.
Bunk. If nothing was selling housing prices would drop. Too many people not enough homes, as illegals are a major contributor to that. They take a home away from an American and crest a lot of demand for housing. If you voted for that side, you really have no right to complain about high housing costs.
There’s no “preference” for renting a single family house, there’s just no other option because it’s so expensive.
Not true. Renters are in for a rude awakening when they need to do their own repars and maintenance.
The United States government is allowing private equity to manipulate the home prices. Janet Yellen said the government could come up with a program to build these homes, and private equity would buy them all up before you even here about them...
THAT IS THE BIGGEST LIE!!! MANY PEOPLE DO NOT PREFER TO RENT MORE THAN BUY. (Why do you think demand to BUY homes is so intense right now???) There has been an increase in rent demand ONLY because the prices of single-family, starter houses (not rentals) have so wildly inflated + interest rates have FORCED a greater number of people to have to rent because they can't afford the inflated, price-gouged starter homes anymore! Most people would prefer to buy and benefit from owning real estate, probably just like the man reporting this "rental-preference" lie. The solution is for house prices to go back down. Lack of available houses is what's causing home prices to remain WAY OVERPRICED even above the value that most banks will appraise homes to be! And, many sellers are taking FULL advantage of this, inciting bidding wars on top of overpriced asking prices. They are doing it because the "market" of too few affordable starter homes available allows them to be this greedy. The truth is, the solution is to build more AFFORDABLE single-family, HOUSES (NOT glorified, "luxury" apartment-condo units) for people to be able to purchase If the supply of starter houses increase, sellers cannot pit buyers into bidding wars because enough homes/choices will be on the market that buyers will have other options and opportunities for home ownership, not be fighting over the too few options that are available now. I wish these sources would STOP THIS GASLIGHT REPORTING!
This needs fixed like yesterday. This is a huge issue.people are not happy with this.
Why are you asking Janet Yellen? She said inflation is transitory.
Nothing I hear when talking to young people without houses indicates they don’t want to have houses. What we do have this companies like Blackrock that manage peoples pensions that want to extract rent from young people as the economy shrink as a result of fall ing populations all over the world(I know the same people told you there was global warming also told me there was too many people. It’s going to be hard to believe either in a couple years.) bottom line, no one wants to pay rent that are twice with their older counterparts are paying for mortgages no matter how you spin it. It’s only good for real estate investors it’s not good for family formation, which is necessary to get the population back up, which is necessary if you want to maintain the economy at the level, it is now in the future.
They didn’t want houses when they were giving them away for 8 years after the GFC! That was when BlackStone stepped in to buy what was being auctioned off. They were right and their risk paid off double digets while the FOMC was holding real rates negative!
Now homes are increasing again and every bozo in the world can make 10 cents a click creating conspiracy theories about how good smart millenials were cheated by by dumb old people and “Wall Street”.
It is a HUGE world and there are houses rotting all over it! The young just all want a big leveraged bet on a place that is going up.
Look at every place in the US where housing is over 8X median incomes -then look at all the Air B&Bs! Every one of them is a household displaced, and all to make a few millennial billionaires!
Housing prices are directly correlated to inflation. The house is actually no more valuable than it was 70 years ago when you account for inflation and your account for the fact that modern homes are actually built better and have more amenities in them.
True for structures but urban land is inflated way up!
She has no clue!
YAY 🤪 🥃🔥
He actually gives zero advices, all he talked about are we already know lol
They should make a law that bands corporations from owning any rental real estate with less than eight units. This would stop them from buying up all the starter homes and guaranteeing that half of the millennials never have kids which will guarantee our economy tanks. Yes it will tank and will not be able to recover because the next generation will not only have to have 2.1 kids each, but they also have to have extra kids to make up for the previous generation and the kids at the previous generation would’ve had. The further you go down the road the harder it becomes just to get back to maintenance level population. go look at the countryside of Italy, which is full of empty houses or East Germany where they’re literally tearing down the houses because they’re all empty and you have Wolfpack taking over the highways. The problem is we’ve lost the baby making end of our population demographics, and once all the old people start dying off, you’re going to see how few people they’re actually are because the ability to reproduce those people for most of the world has already gone away. It is not too late for America, but it’s getting . places like India will have 20 or 30 years to change course while they watch what happens to Asia in Europe and most of Africa surprisingly. If you want to be part of the future, you have to show up. If you want social safety net like Social Security and pension systems you need actual people working providing products and services to put into that system and robots cannot consume. Capitalism does not work under a robot system as anyone will steal the technology to build their own robots and have all their production built on their own. Would leave everything alone 150 years everyone would probably grow their own food in their basements with farm bots and their clothing and their 3-D printers. Central isn’t going to let that happen central bank digital currency way to control you and enslave your children forever. Don’t forget to read the book book of revelation and Ezra 213.
To build because of unions, to rent because of gretty lanloards. Tax empty apartments and properties.
Build "cheap" housing with piss poor quality and you'll have "worthless" housing.....kinda like todays cars that are all junk after 5-10 years
money went to Ukraine instead of homebuilders !!!! imagine that
USA is benefiting so much more than Ukraine... I don’t think you understand what you are saying. Probably just repeating someone’s talking points
Interest tooo high
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@ryancihet555
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Guy with the glasses is gaslighting. There is demand for “affordable housing” no one wants to rent or stay in expensive luxury apartments. We have plenty of houses they are just tooo EXpensive, which is the point. Has anyone not played Monopoly?
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“Housing for regular people”. In my town there were “Knock downs” or 1200sf homes purchased to knock down and build 4 or 5000sf mc mansions. Pre GFC these peaked at ~$1.7M then after GFC nothing was built for 8 years they had just started doing some ~$800k homes then BOOM! They knock down 4 to 6 homes at a time to build one $17M home on spec. -and it sold!
What happens in a downturn? What does a town do when it is surrounded by unaffordable homes?
Ban hedge funds from buying single family homes
Hedge funds don’t buy single family homes so that would be a pointless ban.
@@MichaelChengSanJose Serious??? By last March (the most recent data available), hedge funds accounted for 27% of all single-family home purchases in the United States. The good news is Democrats have introduced a bill in both houses of Congress to ban hedge funds from buying and owning single-family homes in the United States.
We rather have affordable Taylor Swift tickets than housing. Please tackle the important issues first. The average person doesn’t care about cost of living according to our representatives.
Cause greed and bozos over paying
The existence/involvement of Realtors and NAR is the real problem with real estate. Unnecessary commissions to useless/uneducated agents skews home prices and flawed CMA’s skews home values.
Save your money and hire a flat rate real estate attorney who actually knows the law and can help you.
Thank you for the infomercial on why it is so much better to rent Mr Middleburg Communities… Cui Bono?
So in summary, we will own nothing & be happy....and eat ze bugs
Are the home builders price fixing? Inventory went up and prices also went up.
They are price fixing. There’s an app for landlords that uses an algorithm to maximize profit. The reason it isn’t collusion is because the landlords aren’t talking to each other but rather letting the app set the prices. Is collusion in another form.
No. Materials and labor also went up due to inflation, so home prices have to go up, regardless of inventory, or they would be making homes for a loss.
My prediction is that dropping interest rates 1% would do more to free up supply than increase demand.
Simple answer Fed buying MBS @2.5% interest rate.
That's exactly correct. You never hear any elected official or the financial media calling Powell out for that though.
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Government never had silver bullet because they do not how create one...😂...what they do just fix top layers only...not over all....this sucks if work with politics people...they not think to much...what their first thing was money how much can get....😂... funny just same as clown....
IN CHINA, REAL ESTATE GETTING CHEAPER
Build less expensive housing, both apartments and single family homes. Drop governmental fees for housing NOW!!!!
Janet Yellen will just recommend printing and wasteful spending.
This guy is full of shyt. Private equity firms are buying up all the starter and moderate homes because can pay cash for them. This guy is a salesman for the commercial rental industry.
You build more housing so that the equity firms can snatch them up charge outrageous rent with no maintenance so build away
End form 1031 exchange.
You will flood the market with houses 🤷♂️
Businesses are buying homes and renting them out and creatinga shortage. Smh. They forgot to mention that.
Yes we want smaller cheaper single homes with no HOA
Ever ever think about going into a house half-and-half with a partner that doesn’t pay any rent but keep shaking you down for money? Who would do this you ask?
Any one that joins HOA is doing this.
Any answer that isn’t flippers and investors is the wrong answer
Key is to build affordable housing not 500k+ Cookie cutter homes that we see, who is going to buy them?
Would the be buy able or just rentable? That's a big difference
We need affordable housing.
Zoning can be a problem at the local level.
Why is no one asking a builder what it costs to build a new home?
Lowest for cheap houses would be 150k the highest would be 300k+ if you ask me it’s the houses nobody wants but they are more likely to be good for temporary tenants
@@kjahmbanso Sounds like you are out-of-date. That’s what they were in 2019.
@@skyak4493 it depends if I drove that up to 350k minimal that’s why nobody can afford to buy them since it’s double that once it’s build because we talking about regular 3 beds 2 to 3 baths
@@kjahmbanso Maybe I don’t know just how cheap cheap can be but what I am seeing today is anything under $250k is not a house, it is a “unit”, only possible as 1 of and order for 20+ on one site. If a contractor will even talk to you about a $250k build it is because he knows you will spend more to get things done right or sooner.
@@skyak4493 yup I have sum relatives that build houses so I know but those tiny houses and mobile homes are as cheap as it gets 😂 that ain’t no build house so you right
Yep, every time idiots come out to say that the housing market is unsustainable, they’re proven wrong again and again. We’re no where near the unsustainable financing that drove the housing bust of 2008.
Housing prices are insane, but they’re covered by huge waves of cash. Few people are getting homes for 0-5% down as was common in the 2004-2006 housing bubble.
Yes, housing in distressed areas like Phoenix are not going to do well with climate change and will see huge migration out to safer areas, even if they’re far less affordable.
Home prices are insane a doctor the other day told me he bought his first home in Santa Ana for those who don’t know it’s ghetto af we don’t stand a chance at buying a home smh
Why is it so difficult to understand for some that if 80% of dollars in existence were printed since COVID then a double on housing is the least they should expect
He’s right about the development of housing driving up the cost of such a point where they only make houses for rich people. There is also a flood of money from Third World countries with a rich in those countries want aHe’s right about the development of housing driving up the cost of such an point where they only make houses for rich people. There is also a flood of money from Third World countries with a rich in those countries want a stable place to dump their money in the US has been that for years, though that may be Changing as it seems to be with Canada. Let people put whatever kind of insulation on their house they want and let them heat it with whatever they want to heat it with stop driving up the cost of roofing by Greeney policies and the cost of building a house will come down and they can actually afford to build a starter home. You can’t do this when land prices are hundred thousand dollars for a quarter of an acre value to get a return on investment to make it work since there is limited land in cities
What about Wall Street buying all the houses?
Not a real problem
Warren Buffett smashes the poor
Warren Buffett squeezes the poor until they can no longer afford to own
I don't think Warren Buffett cares much about you and me
Cares about money money money to hell with altruism
He's a bad Samaritan
Hedge funds are the real problem...ban them from buying single family homes
@@bobbyward2440 Wrong! By last March (the most recent data available), hedge funds accounted for 27% of all single-family home purchases in the United States. The good news is Democrats have introduced a bill in both houses of Congress to ban hedge funds from buying and owning single-family homes in the United States.
The problem is not a problem at all, but good sense, the older generation recognizes; owning a home is a smart store of value, versus; intangible stock or bonds that lose money and crapto that is but a wish for easy money. Yes, when interest rates rise, it is intended to slow the markets and that is just the way the economy is supposed to work.
There is no affordability crisis!! There are plenty affordable homes!! You just have to move
Southeastern real estate is being driven up in price by people abandoning the expensive cities. The expensive cities are expensive mostly because of immigration but certain California towns because of internal migration driven by technology companies especially San Francisco. Where you don’t see mass immigration you don’t see massive housing costs, they just snuck 1 million people into the country to prevent housing prices from tanking as the boomers start to die off. They don’t want you having cheap housing because it would make their bank go insolvent that immigration also drives down wages as well as housing cost. There are plenty of things like , cost of materials in houses and other building cost based on regulation that are driving the cost up, but if you look where the cost are growing up the most it is in the major cities or in places where people are fleeing the major cities. Show me I’m wrong . I’m not dissing immigrants. It’s a simple supply and demand proposition.
HIGHER PRICES PLEASE!!!!!! Cause I already have a house. LOL, why are higher house prices always Bad News in the media?? .. for 1/2, it's GREAT News!!