Author Topic: The Extraordinary Wealth Created by the Pandemic Housing Market  (Read 659 times)

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Offline WTTCHMN

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The Extraordinary Wealth Created by the Pandemic Housing Market

It’s a remarkably positive story for Americans who own a home; it’s also inseparable from the housing affordability crisis for those who don’t.

https://www.nytimes.com/2022/05/01/upshot/pandemic-housing-market-wealth.html

Offline Liar Loan

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Re: The Extraordinary Wealth Created by the Pandemic Housing Market
« Reply #1 on: May 02, 2022, 01:21:50 PM »
The Extraordinary Wealth Created by the Pandemic Housing Market

It’s a remarkably positive story for Americans who own a home; it’s also inseparable from the housing affordability crisis for those who don’t.

https://www.nytimes.com/2022/05/01/upshot/pandemic-housing-market-wealth.html

This is honestly a terrible thing for our society.

Home affordability is nearly the worst on record as mortgage rates spike

Homebuying affordability has not been this bad since July 2006, when rates were around 6.75%. Then, it took about 34% of the median income to cover the monthly mortgage payment, including principal and interest, for a home purchased with a 20% down payment.

As of April 21, that payment-to-income ratio had reached 32.5%. Historically, a ratio above 21% has caused the housing market to cool off, with the exception of the last two years. The pandemic has created an anomaly in the housing market, because demand is so high and supply is so low.

If rates were to rise just 50 basis points more or home prices were to increase just 5% more, home affordability would be the worst on record, according to Black Knight.


https://www.cnbc.com/2022/05/02/mortgage-rates-surge-as-home-affordability-nears-record-worst.html


Offline Compressed-Village

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Re: The Extraordinary Wealth Created by the Pandemic Housing Market
« Reply #2 on: May 02, 2022, 01:32:40 PM »
The Extraordinary Wealth Created by the Pandemic Housing Market

It’s a remarkably positive story for Americans who own a home; it’s also inseparable from the housing affordability crisis for those who don’t.

https://www.nytimes.com/2022/05/01/upshot/pandemic-housing-market-wealth.html

This is honestly a terrible thing for our society.

Home affordability is nearly the worst on record as mortgage rates spike

Homebuying affordability has not been this bad since July 2006, when rates were around 6.75%. Then, it took about 34% of the median income to cover the monthly mortgage payment, including principal and interest, for a home purchased with a 20% down payment.

As of April 21, that payment-to-income ratio had reached 32.5%. Historically, a ratio above 21% has caused the housing market to cool off, with the exception of the last two years. The pandemic has created an anomaly in the housing market, because demand is so high and supply is so low.

If rates were to rise just 50 basis points more or home prices were to increase just 5% more, home affordability would be the worst on record, according to Black Knight.


https://www.cnbc.com/2022/05/02/mortgage-rates-surge-as-home-affordability-nears-record-worst.html

Just rent and wait for a better time. :)

Offline Liar Loan

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Re: The Extraordinary Wealth Created by the Pandemic Housing Market
« Reply #3 on: May 02, 2022, 02:01:59 PM »
The CNBC article was written based on a late April rate of 5.11%.  Today we hit 5.55% so it's now actually the worst affordability of all time.  Worse than the 00's housing bubble.
« Last Edit: May 02, 2022, 02:15:29 PM by Liar Loan »

Offline sleepy5136

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Re: The Extraordinary Wealth Created by the Pandemic Housing Market
« Reply #4 on: May 03, 2022, 11:28:34 AM »
The Extraordinary Wealth Created by the Pandemic Housing Market

It’s a remarkably positive story for Americans who own a home; it’s also inseparable from the housing affordability crisis for those who don’t.

https://www.nytimes.com/2022/05/01/upshot/pandemic-housing-market-wealth.html

This is honestly a terrible thing for our society.

Home affordability is nearly the worst on record as mortgage rates spike

Homebuying affordability has not been this bad since July 2006, when rates were around 6.75%. Then, it took about 34% of the median income to cover the monthly mortgage payment, including principal and interest, for a home purchased with a 20% down payment.

As of April 21, that payment-to-income ratio had reached 32.5%. Historically, a ratio above 21% has caused the housing market to cool off, with the exception of the last two years. The pandemic has created an anomaly in the housing market, because demand is so high and supply is so low.

If rates were to rise just 50 basis points more or home prices were to increase just 5% more, home affordability would be the worst on record, according to Black Knight.


https://www.cnbc.com/2022/05/02/mortgage-rates-surge-as-home-affordability-nears-record-worst.html
Not gonna lie, this is definitely true. But do keep in mind that places like Hong Kong is far worse.

 

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