this post was submitted on 15 Aug 2024

55 points (93.7% liked)

Housing Bubble 2: Return of the Ugly

330 readers

189 users here now

A community for discussing and documenting the second great housing bubble.

founded 7 months ago

MODERATORS

[email protected]

Harris to Propose $25,000 Assistance for First-Time Homeowners (www.bloomberg.com)

submitted 3 months ago by [email protected] to c/[email protected]

15 comments fedilink hide all child comments

top 15 comments

sorted by: hot top controversial new old

[–] Zipitydew 12 points 3 months ago (2 children)

Would get priced in. We need to catch up on supply. Not continue juicing demand.

[–] [email protected] 5 points 3 months ago* (last edited 3 months ago) (1 children)

It's not for all buyers - only first time home buyers. Makes it bit harder to get as explicitly priced in

I had also read elsewhere that Harris is also looking at policies to increase housing supply too

[–] [email protected] 3 points 3 months ago

It will still drive up prices.

[–] [email protected] 4 points 3 months ago* (last edited 3 months ago) (1 children)

$25k isn't "juicing demand" having kids and not planning that they would idk become adults is.

We're not just going to build more houses and fix this. Developers build houses to make profit so they make specifically 5+ bedroom homes on small lots devoid of character in a sea of grass. The same homes that first time buyers can't afford and typically don't want as much because fewer people are having kids.

Next we'll say giving tax cuts makes food more expensive because it increases demand. Quick, get Illinois on the phone real quick, removing food taxes will just increase demand and make food more expensive!!11!!

[–] [email protected] 2 points 3 months ago (1 children)

The most infuriating part of it is all the white trim. Go ahead, build a house no one can buy, but at least make it look tasteful. I mean come on!

[–] [email protected] 1 points 3 months ago

That's certainly a close one for me but I think the destruction of older 2-3 bedroom homes to remodel or build a new ultra minimalist home devoid of color.

They really don't make em' like they used to.

[–] [email protected] 8 points 3 months ago (1 children)

Here's the thing though: $25k ain't nothing when every house around me is a million dollars.

[–] [email protected] 7 points 3 months ago (1 children)

25k in assistance could mean the down payment on a $250k house. And there are some places going up that are in that range. It might not be perfect, but it's an adequate start.

[+] [email protected] -11 points 3 months ago* (last edited 3 months ago) (2 children)

Ah yes, because we all buy houses on credit, because we absolutely must be beholden to a bank until the end of time.

All of these things are band aids, not solutions.

Edit: and I don't know where you live, but a $250k house simply does not exist here.

[–] [email protected] 5 points 3 months ago* (last edited 3 months ago) (1 children)

https://i.imgur.com/V6jySjE.png

I mean, Florida is a pretty fucking expensive place....and I picked right smack dab in the middle of a decent sized city.

And yes, a majority of people buy their homes on credit. Only something like 1/3rd of home buys are cash; and it's usually investors/foreign entities in those cases.

They have brand new block homes; not wood construction -- going up about 5 miles away for $230k; 2br 2ba, about 1400sq ft. There's a waiting list, sure - but if you want a 250k house, you can find it.

[–] [email protected] 0 points 3 months ago* (last edited 3 months ago) (1 children)

It is important to follow data as opposed to anecdotes.

https://fred.stlouisfed.org/series/ASPUS

[–] [email protected] 2 points 3 months ago* (last edited 3 months ago) (1 children)

It's important to follow data. It's also important to realize that it's possible to buy houses below the average. Your first house doesn't have to be an "average" house. You're competing with boomers who have multi-million dollar houses which drive that average way up. The average price of houses doesn't give you ANY data about the floor of that value.

There can be, (and are) houses which are in the 250k range, and houses in the 750k range, which would still allow your "average" data to shine through, and for 250k houses to still be available. Your rebuttal is weak.

[–] [email protected] 1 points 3 months ago (1 children)

You are missing the point. $250k houses exist. I bet you could even find a $100k house. Maybe even a free house.

None of that means jack regarding the experience the average person will have looking for and affording a house. Edge cases are not the norm.

[–] [email protected] 2 points 3 months ago* (last edited 3 months ago)

Those are not edge cases. My mother is a real estate agent and they are fucking everywhere. EVERYWHERE across the USA.

It's not an edge case whatsoever. You're cherrypicking data points that aren't even the right datapoints, and going "AH HAH! GOTCHA!". Go ask a real-estate agent to check MLS for you. There's plenty. There's also plenty of multi-million dollar houses too; which drives up the average. This is pretty high-school maths level stuff my guy. You know what the word "average" means. You know there are tops and bottoms to those averages, and in order to have those - there can't just be 1 house at 250k and 10m at 1M because then the average wouldn't be the 500k you're posting "proof" of. I'm sorry that reality doesn't match your preconceived notions, but that's how the chips fall. If you wanted to buy a house, you could -- but you're making excuses why you can't, and then going "I've tried nothing and I'm all out of ideas!!!"

Have you even talked to a real estate agent? -- ever? Like EVER EVER? Sure, you're not gonna get a 200k house in the middle of San Fran; you couldn't before this mess started anyways. THAT is an edge case. But literally look 25 miles outside of any major city and you'll find them everywhere.

[–] [email protected] 3 points 3 months ago

If one wants to buy a hous with cash, they need to save up for it while being beholden to a landlord. Might as well use that money to pay off a mortage.