DawgTalkers.net Forums DawgTalk Palus Politicus Home sales nearing 2008 levels

https://www.linkedin.com/news/story/home-sales-nearing-2008-levels-5808444/

Home sales nearing 2008 levels
Share
By Emma W. Thorne, Editor at LinkedIn News
Updated 1 hour ago


Home sales are expected to drop to their lowest rate since the 2008 recession, thanks to skyrocketing mortgage rates, reports The Wall Street Journal. The pace of sales won't increase much in 2024, says a Redfin economist, as the mortgage rates aren't expected to budge much either. Record home prices and limited inventory of existing homes compound the issue. The housing slowdown could have a wider effect on the economy, with consumers spending less on furniture and appliances; plus, fewer homebuyers means more renters, and rising rents could further stymie the Federal Reserve's push to lower inflation.


The average rate on a 30-year fixed mortgage topped 7.5% last week — an increase of about half a percentage point since August.
Purchase mortgages dropped in September to their lowest levels since 1995, per the Mortgage Bankers Association.
Nearly 40% of recent homebuyers under age 30 received family money to help with their down payments.

Add in the looming commercial real state bubble burst many expect, these are interesting times in RE.

well, corporations decided to buy up single family homes like crazy, as well as individual investors (domestic and foreign) helping to make this country a renting society.

obviously the only way to solve this problem is to cut their taxes and deregulate them further. so i dunno what the problem is, this is what people voted for.

The commercial market is struggling because companies are still allowing their workers work from home. Nobody left to fill the offices. Damn you Biden!

Oh crap good point, pit. And the people are screwing over these poor victimized corporations by being just as productive working remote as their are in the offices the companies have leased.

All while the corporations are saving huge coin not paying for office space as well as all of the utilities and overhead associated with it. Efficient capitalism. Something the right would normally applaud.

I don't know that corp's are saving huge money just yet. You know what leases are, right?

Most leases in the business world are for periods of 3-10 years.

Now, if the corp owns a building, they might save a tiny bit in utilities, for example.

It would seem rather obvious that many of them are. Even according to your own claim. The big increase in working from home began back in mid 2020 and peaked in October of 2020. That was a full three years ago and even longer in some cases. Many of them didn't just sign a brand new lease in 2020. So you would have every business that signed a three year lease in 2020 plus a large number of businesses who were partially into their lease before 2020.

And yes, I know what a lease is. I also understand enough to figure out that many of those leases have expired over the past three years.

You do know that a lot of leases expire over the course of three years, right?

I know that you don't know what you think you know. But, oh well.

So in other words, no legitimate response to what I posted. Thanks.

https://www.statista.com/statistics/1393957/commercial-property-rental-average-lease-length/ Again, .........eh, nevermind.

The standard term for commercial properties for lease is typically three to five years, but some tenants need a longer lease term.

https://www.rweiler.com/blog/key-points-commercial-property-for-lease-in-columbus-ohio/

What you are referring to is long term leases which usually last between 5-10 years.....

Standard and long-term leases are common in commercial real estate. Long-term lease agreements range from five to 10 years.

https://commercialonebrokers.com/commerical-lease-lengths-how-long/

The last link provides an entire breakdown of both short and long term leases and what you should consider in arriving at the decision to sign and for how long.

Again....... eh, never mind.

Interesting, you already forgot why the home sales dropped to that level in 2008 didn't you?

No, I saw first-hand why it happened. I purchased my house in the middle of that chaos.



Currently, we are doing with a 22-year high interest rates (another rate hike looming) + inflation = torch and pitchforks to home sales.

No surprises here. The prime lending rate is at 8.5% now. All of these chain-reaction dominoes play out over long periods.

On the upside, it's gonna get worse before it gets worse.

No surprise.... inflation and housing bomb a few years ago caused housing prices to over-inflate... unfortunately, they haven't come back down... so now you have over-inflated values plus higher interest rates.... so people can't afford to move.... I feel like housing prices are over-valued, but not sure if they will drop or not.... hoping interest rates drop in 2024, but doubt they do.... no surprise that purchasing has dropped.....

They'll drop if and when we get a new President that lowers the tax burden on his citizens. Drills for oil and lowers the prices at the pump. A couple pretty easy moves could go a long way to help the economy and help get inflation down. Biden is reason #1 and reason #2, and reason #3 why inflation is high.

lol, either Biden is slow and hiding in the basement, or he’s a bond level villain implementing the perfect scheme.

You conservatives need to pick a lane.

It's a catch-22 as well. In either event, I feel bad for the home buyer - especially the first time home buyer. On one hand, the house prices are high because there is no inventory, because nobody wants to sell in the current climate. Why move when prices and interest rates are both so high? On the other hand, there is still a lot of demand, so if people were to put their homes up for sale, there'd be an influx of new sellers, but also an influx of buyers, not to mention that the private equity groups are still snapping up houses last time I checked as well.

That house that's being built across the street from me right now I think is listed for $719K. It does have a nice view and is decently-sized, but 2.5 baths and no finished basement. Probably would have sold in the mid-$400K-$500K range pre-COVID.

There's a difference between conservatives and extremists. You replied to an extremist.

https://www.linkedin.com/news/story/offices-amp-up-real-estate-stress-5806396/

Offices amp up real estate stress
Share
By Jake Perez, Editor at LinkedIn News
Updated 4 hours ago


Higher interest rates and hybrid work keep taking a heavy toll on commercial real estate, Bloomberg reports. The collective value of distressed properties in the U.S. neared $80 billion in the third quarter, a 10-year high, according to MSCI Real Assets data. It cited office spaces as a "driving force" of this distress, accounting for 41% of the total. Apartment buildings made up about another third, though MSCI indicated that sector is sturdier. Still, the report suggested the pain could worsen, as more properties border on distress due to defaults or struggles to fill vacancies.