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Thread: economic riddles : housing

  1. #1

    Default economic riddles : housing

    a day ago read on ZH that lumberprices soared but mortages tightening which is disturbing. What is more disturbing is that july housing rocketed but buyers rather reluctant to buy. What does one make out of these contrdictional vectors?

    On the one hand construction boom on the other hand demand low due to financing restrictions. Conclusion? I guess people with lots of spare money invest in a out of big towns areas and pay cash. I have not yet seen a map where exactly the new housing boom is happening, but am curious to see such a map. If one sells a 15 million mansion for 10 million and constructs a 2 million mansion somewhere else he still has a lot of money left.

    Is like there are big population treks happening. The taxmustard prepared by redplaces makes the rich sneeze...I guess.

    Golitiki2+++

  2. #2

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    While the stock market is being inflated by free money, lots of folks are looking for hard assets to park their capital during these uncertain times.

  3. #3
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    Corona has caused a Boom for Rural areas ..
    Both Land and Vacation / Get away areas.
    (Not that they want u$ there but everything's a trade-off now isn't it)

    The exitis out of NYC for example has been well documented ..
    Lose a few 100k on sale to buy another in more rural.
    Plenty out there that it's simply chump change for ..
    The Green Acres Effect.
    https://www.youtube.com/watch?v=umS3XM3xAPk

  4. #4
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    I was reading the lumber issue was due to supply chain interruptions. google lumber supply inturruptions causes issues. it is like change or toilet paper. not a real market issue

  5. #5

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    Quote Originally Posted by DBCooper View Post
    While the stock market is being inflated by free money, lots of folks are looking for hard assets to park their capital during these uncertain times.
    Big Money Moving around in a BIG Way.
    x3

  6. #6

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    Quote Originally Posted by Bobmhey View Post
    I was reading the lumber issue was due to supply chain interruptions. google lumber supply inturruptions causes issues. it is like change or toilet paper. not a real market issue
    yes i read that too, but then i also read that july was a housebooming month but mortgages offers tight, how does that rime if not free money is constructing?

    Golditiki2+++

  7. #7

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    Some ordinary people I know bolted for the country, looking to live off grid, generator, wood stoves, they have no idea what they are doing. Housing is one of the few things that is relatively stable. Even though forbearance is hiding housing problems as many layoffs will affect the dynamic.

    We really need to wait out the POTUS election cycle.

    I see many moving vans around rental areas. People are moving around to cheapen living expenses, or find new jobs, only helpless people sit around waiting to be evicted.

    Some flight to suburbia if people can work remotely with their career from here on out then definitely. I know some in IT who moved to suburbia and WFH years ago now. Cities are a little (ok maybe allot) crazy, even my city known by fortune as the best in nation to raise a family in a state thought to have some of the best schools, but some of the highest property taxes in the nation.. Turning into gang warfare like all the rest. Ten years ago shootings anything were rare, now they are daily, it's not like Chicago where everyone turns their heads to it (including the police), they still track down the offenders, how can anyone hide, video cams are everywhere now. But our cops are relentless here, unfortunately our new LGBT mayor doesn't like cops so the cops are like you go girl, they are trying to recall her.

    Back to housing, we need to keep in mind that interest rates are practically negative and housing averages 6% per year, RE investors are likely out in force and licking their chops besides.

  8. #8
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    Quote Originally Posted by everything1 View Post
    Back to housing, we need to keep in mind that interest rates are practically negative and housing averages 6% per year, RE investors are likely out in force and licking their chops besides.
    Not to mention the Covid related Bankruptcies .....
    Bankers .. They WILL GET IT ALL .... And Via their Magical Enslaving Fiat.

  9. #9
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    Quote Originally Posted by GOLDnSILVERchips View Post
    Corona has caused a Boom for Rural areas ..
    Both Land and Vacation / Get away areas.
    (Not that they want u$ there but everything's a trade-off now isn't it)

    The exitis out of NYC for example has been well documented ..
    Lose a few 100k on sale to buy another in more rural.
    Plenty out there that it's simply chump change for ..
    The Green Acres Effect.
    https://www.youtube.com/watch?v=umS3XM3xAPk
    And today …….
    Urban Exiles Are Fueling a Suburban Housing Boom Across the U.S.
    https://www.bloombergquint.com/busin...-swarm-suburbs
    "Green Acres is the place to be"

  10. #10

    Default

    I knew that the housing Market was booming before the numbsr came out. I was looking to buy A house during this Covid nonsense and noticed that all the cheaper homes had been bought up. Usually you can find A bunch of them in my area. I was suprised to fine none! Someone is snatching them up in all surrounding areas. The Only thing to be had is overpriced Urban area homes that you would be A fool to buy.

    What makes me angry is I have done the right thing. Frugal living and savings. Savers are so screwed in this economy.
    Last edited by jjmcwill; 08-22-2020 at 07:31 AM.

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