Valley Real Estate

dscher

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They are talking the Fed to start lowering rates if all goes well between now and then.
The inverted yield curve is key here. Since the beginning of 2000s cuts have been rapid because they are in response to economic recession, which the yield curve has predicted since that time. So, since that period, rate cuts are not a bullish event for the economy or markets in general. Contrary to popular belief.
 

Devilmaycare

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Mortgage for a 15-year is 6 1/2 and dropping.

30-year 7.25%, which is below the historical average.
Sorry, I messed up and attached the wrong tweet. I meant to use the first one in that thread (attached below) that listed the average mortgage and rent. $3300/2200 was what I was trying to comment on about the average family being able to afford it.

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Dback Jon

Dback Jon

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Sorry, I messed up and attached the wrong tweet. I meant to use the first one in that thread (attached below) that listed the average mortgage and rent. $3300/2200 was what I was trying to comment on about the average family being able to afford it.

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One of the big issues facing the country is the lack of what’s called the missing middle. Starter homes that are more basic and thus more affordable

Unfortunately, the profit margin is as high so these types of builds are a few and far between.

Look at the house 1500 ft.² basically a rectangle but well built from the 50s no frills, just a carport, basic architecture - there should be a big market for that at the homebuilders are not building that
 

Devilmaycare

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One of the big issues facing the country is the lack of what’s called the missing middle. Starter homes that are more basic and thus more affordable

Unfortunately, the profit margin is as high so these types of builds are a few and far between.

Look at the house 1500 ft.² basically a rectangle but well built from the 50s no frills, just a carport, basic architecture - there should be a big market for that at the homebuilders are not building that
Yup, and Blackrock and the like are buying up the ones that do exist. I hope that the bill to ban hedge funds from buying and owning single-family homes passes. I'm not holding my breath though.
 

dscher

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One of the big issues facing the country is the lack of what’s called the missing middle. Starter homes that are more basic and thus more affordable

Unfortunately, the profit margin is as high so these types of builds are a few and far between.

Look at the house 1500 ft.² basically a rectangle but well built from the 50s no frills, just a carport, basic architecture - there should be a big market for that at the homebuilders are not building that
Builders will build and make money based on what the economic conditions allow them to build. The strength of the consumer is all that matters. Not the size of home builds.
 

Ouchie-Z-Clown

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And that is a different story versus interest rates. After the housing collapse and 2008 a lot of building stopped and never has really caught up since. Combine with the number of people pouring into the valley. It equates to high prices.

There are still plenty of affordable houses in the country just not in Arizona
And housing price increase isn’t a new beast. I think about what my parents bought and sold each of their houses at going back to the mid 70s and it’s not that different percentagewise, I think. But wages haven’t kept up.
 
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