Moneymoney

Tue Feb 13, 2018, 11:24 AM

Home Prices in Two-Thirds of U.S. Cities Hit Records

February 13, 2018, 10:00 AM EST Updated on February 13, 2018, 10:23 AM EST

Home prices jumped to all-time highs in almost two-thirds of U.S. cities in the fourth quarter as buyers battled for a record-low supply of listings.

Prices for single-family homes, which climbed 5.3 percent from a year earlier nationally, reached a peak in 64 percent of metropolitan areas measured, the National Association of Realtors said Tuesday. Of the 177 regions in the group’s survey, 15 percent had double-digit price growth, up from 11 percent in the third quarter.

Home values have grown steadily as the improving job market drives demand for a scarcity of properties on the market. While prices jumped 48 percent since 2011, incomes have climbed only 15 percent, putting purchases out of reach for many would-be buyers.

The consistent price gains “have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation,” Lawrence Yun, the Realtors group’s chief economist, said in a statement. “However, the shortage of new homes being built over the past decade is really burdening local markets and making homebuying less affordable.”

more...

https://www.bloomberg.com/news/articles/2018-02-13/home-prices-in-two-thirds-of-u-s-cities-have-hit-record-highs

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Reply Home Prices in Two-Thirds of U.S. Cities Hit Records (Original post)
RCW2014 Feb 2018 OP
Fiendish Thingy-BC Feb 2018 #1
bernt-toast Feb 2018 #6
Fiendish Thingy-BC Feb 2018 #7
bernt-toast Feb 2018 #8
Fiendish Thingy-BC Feb 2018 #9
bernt-toast Feb 2018 #10
Tovera Feb 2018 #2
RCW2014 Feb 2018 #3
turquoise Feb 2018 #5
Tovera Feb 2018 #11
def_con5 Feb 2018 #4

Response to RCW2014 (Original post)

Tue Feb 13, 2018, 11:34 AM

1. Rising interest rates should put a damper on that

And hopefully bring the market back to historic norms.

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Response to Fiendish Thingy-BC (Reply #1)

Tue Feb 13, 2018, 01:21 PM

6. Better that salaries catch up

Homeowners lost a shitload in 08, and when Geithner used us to "foam the runways" for the banksters, it was *all* homeowners who were pulverized, not just the cheaters.

Crushing us again just as we're about to recover our main retirement nest egg would be just plain wrong.

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Response to bernt-toast (Reply #6)

Tue Feb 13, 2018, 02:53 PM

7. Yup, agreed wages need to catch up

That’s why I don’t trust politicians who take money from, or staff their administrations with banksters.


But putting one’s retirement funds into a single asset is a high risk strategy regardless.

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Response to Fiendish Thingy-BC (Reply #7)

Tue Feb 13, 2018, 03:59 PM

8. All baskets were under simultaneous attack...

For me, my pension fund was raided by Carly Fiorini/HP when they bought dec. Iirc in 2000. High tech crashed then 911, so cash savings went to survival through unemployment and then to retrain for health care career, which was based on a pack of lies.

And for me, war of words morphed into outright civil war starting in August 2000 and has continued ever since.

House and about half the pension fund (now ira) is all that is left, along w/student loans needed to finish the worthless lab tech degree.

I'm past trying to "plan" for anything because everything and everyone is a pack of lies and corrupt to the core.

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Response to bernt-toast (Reply #8)

Tue Feb 13, 2018, 05:14 PM

9. Sorry to hear of your misfortune

Are you a medical technologist?

My wife is a medical technologist, and I wouldn’t call her degree “worthless “

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Response to Fiendish Thingy-BC (Reply #9)

Tue Feb 13, 2018, 07:41 PM

10. Lab tech

Field is shrinking, not growing 14%/yr, which was what gov employment stats claimed.

Hospital labs consolidating into chains plus increasing #s of rapid bedside tests. And local hospital hr flat out lied to 2 of us about salary range, inflated it 30%.

State University claimed 100% employment for its grads. Half my class couldn't even get interviews. For those of us who did, all was part time per diem, most just 2 days/week. In a class of maybe 100, only 1 got a full time job at graduation. Many of us went back to old jobs. I did, and had to go back to starting level pay. I ended up with lower hourly income, but working more hours to stay afloat, plus unpayable student loans.

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Response to RCW2014 (Original post)

Tue Feb 13, 2018, 11:35 AM

2. It's insane here in Portland.

I've been looking at emigrating (no, that's not a Trump thing...), and I'm absolutely blown away by the fact that housing in Tokyo is actually more affordable than Portland. Sure, you can easily spend millions there, but ordinary homes are less expensive. They're smaller, because that's just how they make them in Japan, but less expensive on average than Portland (to say nothing of SF or NYC).

Home ownership moving steadily out of reach for more and more Americans is an unsustainable trend, as are all such trends in which the average person's wages don't keep up with costs. We've been stumbling down that fatal path for many years now, and it will NOT end well.

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Response to Tovera (Reply #2)

Tue Feb 13, 2018, 11:40 AM

3. 2007 all over again. Wash, rinse, repeat... all the stars are lining up for another blowout.

Just the way the cyclical economies work.

IMO, it is an absolutely horrible time to buy a house at these price levels.

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Response to RCW2014 (Reply #3)

Tue Feb 13, 2018, 01:03 PM

5. Yes.

If we're correct, we should sell soon, hold onto the cash until the crash bottoms out, then buy two equivalent homes with the same money and rent one out. Or trade up. I'm not much of a gambler, though.

I remember reading about California around 2009. Real estate agents were renting buses to take their clients from one foreclosed and empty home to another. Awful.

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Response to RCW2014 (Reply #3)

Tue Feb 13, 2018, 08:11 PM

11. Yeah, I could see a "correction" coming.

That's going to be painful for some folks... =/

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Response to RCW2014 (Original post)

Tue Feb 13, 2018, 11:41 AM

4. But

Wasn't the tax cut supposed to destroy home prices, cause they limited the deduction to $750k.

Prices can't be going up.

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