And the Fed goes up another .75%.

[Maggot]

Fed's Powell says too soon to speculate over rate hike pause​

https://financialpost.com › pmn › business-pmn › feds-...



32 minutes ago — NEW YORK — Federal Reserve Chairman Jerome Powell cautioned Wednesday against any sense the central bank will soon move to the sidelines ...

 

[Lightning8]

I have multiple friends in the real estate business who keep reminding people that mortgages at high interest rates are still better then renting! Suspect they are just whistling as they walk through the graveyard.

 

[Short-bus]

Dave Ramsey is saying to buy anyway as well. If rates drop, refinance, if they don't, you have the best rate, blah blah blah.

What were rates when poopypants took office again? Yeah....that's what I thought. Fuck Joe Biden.

Branden

 

[_Windrider_]

Dave Ramsey is saying to buy anyway as well. If rates drop, refinance, if they don't, you have the best rate, blah blah blah.

What were rates when poopypants took office again? Yeah....that's what I thought. Fuck Joe Biden.

Branden

It’s always better to buy at a higher interest rate and a lower price. But what we haven’t seen yet is a price correction that is parallel with the rate hikes. Valuation is still way high. I wouldn’t buy yet. We haven’t come close to seeing the real estate bust that is coming b

 

[BytorJr]

It’s always better to buy at a higher interest rate and a lower price. But what we haven’t seen yet is a price correction that is parallel with the rate hikes. Valuation is still way high. I wouldn’t buy yet. We haven’t come close to seeing the real estate bust that is coming b

You sir, are 100% spot on.

 

[eca7891]

It’s always better to buy at a higher interest rate and a lower price. But what we haven’t seen yet is a price correction that is parallel with the rate hikes. Valuation is still way high. I wouldn’t buy yet. We haven’t come close to seeing the real estate bust that is coming b

1000% this.

 

[The D]

Unfortunately, rates are still only a quarter of what they should be. Thanks a lot, you blood sucking vampires

End the fed

 

[Ric O'shay]

Yup....this Appraiser is fixing to get a lot of range time.

 

[Bigfatcock]

I’m waiting for prices to fall before buying some more rental properties. Interest rate doesn’t real matter too much because I can pass a lot of that onto renters if I decide to finance. I can refinance lower later, but rent only goes up.

I have my eye on some turnkey properties in nice neighborhoods with good schools.

 

[MrBlond]

2 year lead time between money supply and inflation or interest rates and recession. All economists agree on this, no idea why the Fed is in the dark.

 

[E. Bryant]

 

[Gwak2006]

View attachment 7990012

I literally lol'ed

 

[E. Bryant]

I literally lol'ed

I'd have a lot more respect for the Fed if JPow talked like that.

 

[E. Bryant]

 

[Bigfatcock]

JPOW broke some hearts today, lol.

 

[Schroedernd]

My parents bought a home in '79 I believe at around 7% Interest rate and never bitched about it or refinanced.....

 

[Dingodog]

I work on the construction end of one of the hottest housing markets in So Cal. Meter permits are starting to slow. Mark out tickets are going quite and developers are talking about getting off their bonds and completing projects for close out. It will be about another 6-9 months before people realize how bad the recession is that is coming.

 

[D̷e̷v̷i̷l̷D̷o̷c̷A̷Z̷]

My parents bought a home in '79 I believe at around 7% Interest rate and never bitched about it or refinanced.....

Not at 10x their annual income.

 

[BytorJr]

Not at 10x their annual income.

Herein is one of the big problems. Heck, when I got my loan, not too long ago, they were very picky on my income to loan ratio. Seems now you can, as you say, borrow 10x or more higher than annual income. Historically that was < 4. And it blew up last time at around 5. Many defaults.

I still have to think people are on ARMs to afford some of this stuff; as I am seeing a LOT of bigger homes being put on market.

 

[Bigfatcock]

Herein is one of the big problems. Heck, when I got my loan, not too long ago, they were very picky on my income to loan ratio. Seems now you can, as you say, borrow 10x or more higher than annual income. Historically that was < 4. And it blew up last time at around 5. Many defaults.

I still have to think people are on ARMs to afford some of this stuff; as I am seeing a LOT of bigger homes being put on market.

ARMs are popular again…for retards.

It’s literally the same movie as 2008. Oh well, I’m ready to buy some stuff.

 

[Baron23]

Fuck Powell. He absolutely parroted the "inflation is transitory" bullshit as a political accommodation to Depends wearing Biden and the libtards.

So, he missed the opportunity to start bringing rates up until it was a fucking inflation crisis and now he and his merry band of assholes are standing on the brake pedal and we are the ones who are going to pay for his fuck up.

I hope he gets a good case of scabies...a really good case. And maybe a jigger in his nut sack. Yep, he pain will still not be as bad as what he has inflicted on the populace and in particular retired guys like me who must take distributions from our account to live on.

 

[VVhoisJohnGalt]

ARMs are popular again…for retards.

It’s literally the same movie as 2008. Oh well, I’m ready to buy some stuff.

It’s going to be different than 2008. There are a lot of us out there holding on to capital waiting for prices to drop on multi family stuff. So I’m thinking the income producing properties will lag behind single family and new build. Income properties are not purchased with emotion…typically.

All the lead indicators are pointing towards a massive crash in pricing…BUT I think that might already be built into pricing. I’m still a believer in market efficiency even with the fed meddling as much as they do. So my bet is a slow and steady downward pressure on pricing.

The other reason I think it won’t be “crashing” and just slow downward pressure is current inventory of duplex/single family income properties are all locked at 2.75-3.5%. When you look at selling and 1031 exchanging into another property you will be paying the extra 4%ish juice. Doesn’t make sense…so those properties will all be long holds. And the flipping market isn’t robust enough to provide inventory to pull those long holders out.

Personally I’m hoping for a huge crash and I will be able to load up on heavily discounted properties…but that is probably just a pipe dream. There is enough liquid capital waiting to keep prices propped up over the next couple years.

 

[BytorJr]

It’s going to be different than 2008. There are a lot of us out there holding on to capital waiting for prices to drop on multi family stuff. So I’m thinking the income producing properties will lag behind single family and new build. Income properties are not purchased with emotion…typically.

All the lead indicators are pointing towards a massive crash in pricing…BUT I think that might already be built into pricing. I’m still a believer in market efficiency even with the fed meddling as much as they do. So my bet is a slow and steady downward pressure on pricing.

The other reason I think it won’t be “crashing” and just slow downward pressure is current inventory of duplex/single family income properties are all locked at 2.75-3.5%. When you look at selling and 1031 exchanging into another property you will be paying the extra 4%ish juice. Doesn’t make sense…so those properties will all be long holds. And the flipping market isn’t robust enough to provide inventory to pull those long holders out.

Personally I’m hoping for a huge crash and I will be able to load up on heavily discounted properties…but that is probably just a pipe dream. There is enough liquid capital waiting to keep prices propped up over the next couple years.

I can see this side of the coin. However, I'm guessing a LOT of younger folks are already way over-extended. Housing in particular, not so much corporate property for sure. I've said for years, no way you're 30 years old, have a 750k-1000k house (when 4 years ago the avg price of house was 40% of what they are today in my area), with a new (aka less 2 years old) BMW M3, BMW X5M, F250, Phoenix bass boat and a "Gator" with 3 children. Not unless everybody has a rich daddy who's just giving kids money. Have to be up to eyeballs in debt. Thus, I think a lot of these people bought on ARM because they didn't go through 2007 or the S&L crisis.

 

[Schroedernd]

Not at 10x their annual income.

Well my dad passed last year, but he was disabled from the railroad and my mom a baker when they bought the house. They have never made more than 40k a year combined in their entire lives. They didn't belive in credit cards and paid cash for used cars an anything they needed. The house was a substantial amount to them on a fixed income back then....

 

[Emerson0311]

It’s always better to buy at a higher interest rate and a lower price. But what we haven’t seen yet is a price correction that is parallel with the rate hikes. Valuation is still way high. I wouldn’t buy yet. We haven’t come close to seeing the real estate bust that is coming b

I think it will start in mid February and become obvious and admitted by everyone by July 1st.

 

[Maggot]

I think it will start in mid February and become obvious and admitted by everyone by July 1st.

About time we run out of diesel fuel.

 

[D̷e̷v̷i̷l̷D̷o̷c̷A̷Z̷]

Well my dad passed last year, but he was disabled from the railroad and my mom a baker when they bought the house. They have never made more than 40k a year combined in their entire lives. They didn't belive in credit cards and paid cash for used cars an anything they needed. The house was a substantial amount to them on a fixed income back then....

I think a lot of us are doing this or trying to do this.

It’s difficult to be prudent when the system is heavily reliant on manic moves and ignoring consequences.

 

[Lightning8]

I can see this side of the coin. However, I'm guessing a LOT of younger folks are already way over-extended. Housing in particular, not so much corporate property for sure. I've said for years, no way you're 30 years old, have a 750k-1000k house (when 4 years ago the avg price of house was 40% of what they are today in my area), with a new (aka less 2 years old) BMW M3, BMW X5M, F250, Phoenix bass boat and a "Gator" with 3 children. Not unless everybody has a rich daddy who's just giving kids money. Have to be up to eyeballs in debt. Thus, I think a lot of these people bought on ARM because they didn't go through 2007 or the S&L crisis.

I am waiting for deals on 4x4 trucks, side by sides, etc. just like 2008. Bought big house in foreclosure in Atlanta area 2008 and sold it last year at near top of market to retire in rural middle GA. This feels very much like 2008!