While this is true our fixed rate mortgages mean we’ve got more exposure to a banking crisis. How much is that 3% paper the banks are sitting on worth now?
Who knows what time frame you picked. Home builder stocks are higher than they were in 2020. Some are reporting yr-yr revenue and profit growth. It’s far from the doom and gloom. Even a 25% drop isn’t crazy. SPY hit 25% correction this year.
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From what I heard, only Lennar is in possible financial trouble, the rest of the builders are in pretty good financial condition. The article specifically cited Lennar and then generalize to all builders. I think article is misleading readers.
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No way. That never happens.
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House prices will continue to rise in the long run. Everyone talks about affordable housing but the government has no intention to make housing costs go down. In fact they keep raising their fees . It now costs over $100k per house is fees and development costs before a shovel is put in the ground. EDH is one of the few places left where houses are actually being built. The fire department is requiring a 14 % increase. About $5000 for a typical house for bullshit fees. Starter new homes cost over $800k. Average costs are over $1.5m. These are on postage stamp lots with no landscaping. Figure an additional $20-$100k. Folsom is also a huge development area with 15,000 new homes being built and planned with similar fees. All south of Highway 50
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This would be funny if it weren’t sad. Look where the 77k in fees are supposed to go.
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I believe that’s just the new fee too. It doesn’t even include the costs for the 40+ permits. The city bills $400+/hr to review each one of those too. Permitting has become a huge revenue source for cities. People don’t realize it, since developers are usually the ones paying them. It’s all built into the price of her housing though.
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Is it the government or the lawsuit culture of the people? Remember the government is elected from the people😉
Money don’t grow on trees. Someone’s gotta pay for the cheap/subsidized housing.
Her problem is that she didn’t realize she has crossed over to the “have” class from the “have-not” class by choosing to become a developer, so she now needs to deal with problems that only affect the “have” class which weren’t of her concerns before. She should be happy about that. Paying more taxes and fess is a privilege.
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Most people are completely unaware since they don’t directly pay the fees and permits. People don’t think about or research that type of stuff.
Meanwhile Messi made history.
Well deserved win. 90% of world was rooting for Argentina to win, 90% of the rest 10% were praying for France to lose.
May be this will stop the economic collapse.
No they don’t. In a free market supply increases to meet demand.
It depends on what you mean by money. If you mean FIAT currency then money does grow on tree literally. It has nothing to do with demand or economic growth. Look at Argentina or Venezuela. They keep growing their money supply by 50% per year, are their economies growing at that rate, not really. Weimar republic is a prime example. FIAT currencies including USD can be printed at the whims of politicians and government so there are no rules or theory.
No need to print money to build houses.
The real cause of high RE prices and homelessness.
Liberals and progressives
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Didn’t the homelessness start when Reagan cut the funding? My understanding is every grp has contributed to the problem
Remember the 50% price drop I predicted for Bay Area. Well, we are already half way there. In some areas in Nov, price dropped by 11% from Oct. At this pace, its a matter of few more months.
That’s a Red herring. The drug abuse of the last 50 years after Reagan was governor is a major contributor to homelessness. People kick druggies out if the house. But then there is nowhere for these loosers to go because of the shortage of affordable housing.
None of these problems are solvable by the government . Politicians just say I feel you pain… they have no interest in fixing crime drugs homelessness. They don’t solve anything they just create problems like current inflation crisis. The housing shortage was started in the 70s and being getting worse every year since
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“Coming out of the pandemic, [mortgage] rates were very low, people wanted to buy houses, they wanted to get out of the cities and buy houses in the suburbs because of COVID. So you really had a housing bubble, you had housing prices going up [at] very unsustainable levels and overheating and that kind of thing. So, now the housing market will go through the other side of that and hopefully come out in a better place between supply and demand,” Powell said.
JPow wants to crash the property market. Continue to hold cash 
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3 weeks old story. In paywall. Papa Powell has mentioned RE bubble and price crash openly in Q&As too. Still people deny.