Mortgage rates back to 7%

[Afro]

Why do people completely parrot this lazy thinking?


Don't pay property tax and just pay sanitation, fire department, road-pavers, water treatment, etc., out of your own pocket - whenever you need it?

In many municipalities you can see exactly where your property tax is going. Do our scummy politicians skim off the top? of course they do, but that's the price we pay for needing others to govern for us.

Not lazy, a matter of perspective.

You said it yourself, in many municipalities. Not all.

Some folks pay all that tax and still have to dodge potholes down their road.

Some skim way more than others, making potholes the least of your worries/problems.

 

[Afro]

maaan that shyt is crazy. swear its by design they don't want us to come up. so happy I bought when I did. But shyt aint right at all. I wouldn't be suprised in the future if employers provide shelter

Already happening.

You got small towns that rich folk buy houses in and the locals can't afford to live in the town they were born in.
So their employer subsidies their apartments

 

[2stainz]

homelessness byke

 

[Remote]

 

[Remote]

Everything’s fine

 

[Conjiggle]

Everything’s fine

Stats are skewed. Before you analyze the decline, you first have to consider the fact that investor purchases skyrocketed over the two previous years (2021 & 2022). Hedge funds & large companies paying cash for properties at the rate they were during that period was never going to last.

In Atlanta, for example, many zip codes during 2021-2022 saw investors responsible for approximately 50% of the home purchases. One of the major reasons a lot of individual buyers missed out on homes during that period is because they couldn’t compete with the cash offers made by these major investors.

49% decrease sounds major, but it isn’t as drastic as it is being reported once you understand the activity prior to those unicorn years.

 

[Remote]

Stats are skewed. Before you analyze the decline, you first have to consider the fact that investor purchases skyrocketed over the two previous years (2021 & 2022). Hedge funds & large companies paying cash for properties at the rate they were during that period was never going to last.

In Atlanta, for example, many zip codes during 2021-2022 saw investors responsible for approximately 50% of the home purchases. One of the major reasons a lot of individual buyers missed out on homes during that period is because they couldn’t compete with the cash offers made by these major investors.

49% decrease sounds major, but it isn’t as drastic as it is being reported once you understand the activity prior to those unicorn years.

Look at the graph.
You notice anything odd and familiar about it?
You should.

 

[Conjiggle]

Look at the graph.
You notice anything odd and familiar about it?
You should.

The primary thing that stands out on that graph to me is the increase in investor purchases between 2020 and 2021.

Based on the graph, we haven’t seen an increase of that magnitude before. So to my original point, it is natural to see a historical decrease after experiencing a historical increase. It is the market balancing out.

Truth be told, these hedge funds getting out of the home buying market is actually to the real estate market’s advantage. Homeowners were tired of seeing their owner occupant communities turn into investor rentals. And home buyers now have a fair opportunity to actual purchase homes without competing with cash rich companies.

 

[Json]

Stats are skewed. Before you analyze the decline, you first have to consider the fact that investor purchases skyrocketed over the two previous years (2021 & 2022). Hedge funds & large companies paying cash for properties at the rate they were during that period was never going to last.

In Atlanta, for example, many zip codes during 2021-2022 saw investors responsible for approximately 50% of the home purchases. One of the major reasons a lot of individual buyers missed out on homes during that period is because they couldn’t compete with the cash offers made by these major investors.

49% decrease sounds major, but it isn’t as drastic as it is being reported once you understand the activity prior to those unicorn years.

But I think the problem is the trend. These investors don’t think rates are going back down anytime soon or that the fed won’t keep raising even if it’s not as aggressive.

This was the main problem people were saying with these investment, hedge funds. it wasn‘t costly to just sit on these properties even if they never filled them with tenants immediately.

 

[Conjiggle]

But I think the problem is the trend. These investors don’t think rates are going back down anytime soon or that the fed won’t keep raising even if it’s not as aggressive.

This was the main problem people were saying with these investment, hedge funds. it wasn‘t costly to just sit on these properties even if they never filled them with tenants immediately.

These major investment firms purchased homes by the millions to leverage the future value, not the interest rates at the time. Those were cash purchases. We are unlikely to see 2/3/low 4% rates again. That was an anomaly. These firms knew that. Again, the general public is praying for rates to get that low again. Investment firms aren’t.

Rates increasing has no bearing on the major investors desire to purchase homes. They are playing with cash. They saw home values about to increase and took that as an opportunity to jump in and ride the wave up. They also saw that rental rates were on the rise.

What would be more concerning is if these major hedge funds started trying to offload their properties in bulk.

 

[getmoney310cpt]

These major investment firms purchased homes by the millions to leverage the future value, not the interest rates at the time. Those were cash purchases. We are unlikely to see 2/3/low 4% rates again. That was an anomaly. These firms knew that. Again, the general public is praying for rates to get that low again. Investment firms aren’t.

Rates increasing has no bearing on the major investors desire to purchase homes. They are playing with cash. They saw home values about to increase and took that as an opportunity to jump in and ride the wave up. They also saw that rental rates were on the rise.

What would be more concerning is if these major hedge funds started trying to offload their properties in bulk.

People waiting for that will hold they breath forever

 

[Json]

These major investment firms purchased homes by the millions to leverage the future value, not the interest rates at the time. Those were cash purchases. We are unlikely to see 2/3/low 4% rates again. That was an anomaly. These firms knew that. Again, the general public is praying for rates to get that low again. Investment firms aren’t.

Rates increasing has no bearing on the major investors desire to purchase homes. They are playing with cash. They saw home values about to increase and took that as an opportunity to jump in and ride the wave up. They also saw that rental rates were on the rise.

What would be more concerning is if these major hedge funds started trying to offload their properties in bulk.

That doesn’t make sense. Their future value is partly dependent on the interest rates. They are buying in bulk at a low rate so the future value is high.

Those investments do depend on interest rates. They want to rent those properties out. they aren’t trying to pay the taxes on these indefinitely.Why else would they have bought heavily in the biggest moving locales Vs just some random small town?

Rates have been under 4% for over a decade. There’s are entire generation of graduating business classes that don’t know what investing above 4% looks like.

I agree, they are just in a holding pattern. They haven’t unloaded those properties. Like I said, they are waiting to see how far the fed takes its rate hikes.

 

[Conjiggle]

People waiting for that will hold they breath forever

Facts. A lot of people in the market are operating on “hope” as opposed to actuality.

 

[Stuntone]

Thank goodness i paid my house off during Covid. This shyt is insane.

Right. Paid mine off early 2022. It's small and in the hood somewhat, but it's mine.

 

[Remote]

These major investment firms purchased homes by the millions to leverage the future value, not the interest rates at the time. Those were cash purchases. We are unlikely to see 2/3/low 4% rates again. That was an anomaly. These firms knew that. Again, the general public is praying for rates to get that low again. Investment firms aren’t.

Rates increasing has no bearing on the major investors desire to purchase homes. They are playing with cash. They saw home values about to increase and took that as an opportunity to jump in and ride the wave up. They also saw that rental rates were on the rise.

What would be more concerning is if these major hedge funds started trying to offload their properties in bulk.

My friend…you’re so close…

These people are over-leveraged. A LOT.



A LOT.

Like maybe you’re not getting it.

They’re over-leveraged a lot dude.