The real problem with real estate, according to an economist
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Published 2024-06-25
To gain deeper insights, Middleburg Communities Chief Economist Brad Case shares his perspectives on the ongoing affordability dilemma affecting US homebuyers.
Case highlights two factors driving the current market dynamics: first, the surge in demand is pushing home prices higher; and second, the Federal Reserve has "limited" impact, noting "the solution is really at the local level."
"If you bring down interest rates, all that does is make house prices go up more and that wrecks affordability," Case explains, advocating for a different approach: "What you really need is a moderation in house prices and the only way to get that is supply growth."
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All Comments (21)
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I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
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I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
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Guy with the glasses is gaslighting. There is demand for “affordable housing” no one wants to rent or stay in expensive luxury apartments. We have plenty of houses they are just tooo EXpensive, which is the point. Has anyone not played Monopoly?
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Our economy is afflicted by uncertainty, housing troubles, foreclosures, global shifts, and the aftermath of the epidemic, all of which contribute to instability. To restore stability and drive growth, all sectors must urgently address rising inflation, slowing GDP, and trade disruptions.
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What do you think sets xAIGK apart from other projects? It seems to be dominating discussions lately
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Coinbase, OKX and Binance will list xAIGK very soon. We do not have much time left
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Yes we want smaller cheaper single homes with no HOA
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People want to rent from private equity owners. What a lie
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Prices are up and nothing is selling. Bad sign.
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Ban hedge funds from buying single family homes
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There’s no “preference” for renting a single family house, there’s just no other option because it’s so expensive.
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“Housing for regular people”. In my town there were “Knock downs” or 1200sf homes purchased to knock down and build 4 or 5000sf mc mansions. Pre GFC these peaked at ~$1.7M then after GFC nothing was built for 8 years they had just started doing some ~$800k homes then BOOM! They knock down 4 to 6 homes at a time to build one $17M home on spec. -and it sold! What happens in a downturn? What does a town do when it is surrounded by unaffordable homes?
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We rather have affordable Taylor Swift tickets than housing. Please tackle the important issues first. The average person doesn’t care about cost of living according to our representatives.
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The United States government is allowing private equity to manipulate the home prices. Janet Yellen said the government could come up with a program to build these homes, and private equity would buy them all up before you even here about them...
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Thank you for sharing xAIGK💗 I really appreciate it
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An irrationally exuberant investment mindset among home buyers. That's the problem, plain and simple.
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The existence/involvement of Realtors and NAR is the real problem with real estate. Unnecessary commissions to useless/uneducated agents skews home prices and flawed CMA’s skews home values. Save your money and hire a flat rate real estate attorney who actually knows the law and can help you.
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Home prices are insane a doctor the other day told me he bought his first home in Santa Ana for those who don’t know it’s ghetto af we don’t stand a chance at buying a home smh
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My prediction is that dropping interest rates 1% would do more to free up supply than increase demand.
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Are the home builders price fixing? Inventory went up and prices also went up.
