10/07/2023
Is this a good time for Buyers to buy homes? I’m not going to pretend to understand this whole article, but I’ve copied and pasted a very interesting portion for your review. Thank you.
Yegor Beljovkin  for another timely financial update.
“Here is one societal problem we’re dealing with and will continue to deal with until something breaks. Affordability. This is a super complex topic but lets look and see how the last 3 and a half years did us in. September of 2018 we had a median price here of $305,000. Rates back then were around 4.5%. Principal and interest with 0% down would be roughly $1,545. September of 2021 our median price was $445,000. Rates were around 2.75%. Your payment would be around $1,816. Today the median price is $478,000. Mortgage rates are like 7.25%. Your payment is $3,260. That doesn’t include taxes, which went up about 40% in 2 years or insurance which keeps breaking it’s own records.
I know it’s not very Realtorly of me to say this but we need a crash. We need prices to crash, we need to flush out bad debt, we need the economy to take a pretty severe reset. Because if we continue this policy of kicking the can down the road we’re going to end up in a system where the middle class is a long forgotten memory, where the rich own all the assets, and the poor are willing to work for scraps. Like in third world countries. I would rather suffer through a recession or even depression than live in a country where all opportunity is stripped from the working class.
A man smarter than me named Fyodor Dostoyevksy wrote this in a book:
“In the end they will lay their freedom at our feet and say to us, Make us your slaves, but feed us. Man is tormented by no greater anxiety than to find someone quickly to whom he can hand over that great gift of freedom with which the ill-fated creature is born.”
It resonates. Make good choices. Real estate is for the long haul. You own a piece of the planet, keep that in perspective. ”
