Interest rates won’t affect a home overpriced by 100-200k. As for tiny homes, they’re nicely priced. But also reinforce developers who have increased their margins since covid. The data available online indicates that their material costs decreased, but they never adjusted their prices. As long as people are willing to overpay for homes, they will reinforce the overpriced home. However, there are only so many people who can afford ridiculous prices. Make sure to spend within your means
Why is real estate recurrently cheering for lower interest rates? Home prices are simply too high; to buy at high price only risks being underwater in the future. Would like to see a video specifically dedicated why real estate does NOT think house prices are too high, and why this is not causing unaffordability.
Thought the same, it should stay high imo until inventory catches up and list prices drop some more, but obviously that’s not how the economy works. Lower rates will simply attract more buyers which will push home prices higher again.
Because it doesn't matter what you think the price should be. It's all about supply and demand. Inventory is still low compared to the buyers willing to absorb it. Real estate goes up with inflation so even if you buy 'high' today, it will seem cheap in 10 years.
@@mguti090 Real estate pricing should be based on some concrete evaluation, such as what is the replacement cost of that structure. Real estate is our shelter, where we live, keep our clothes, raise our families. Real estate should not be treated like trading cards.
Lower rates would encourage buying homes, therefore many more homes would be build. Lower rates would stimulate the economy, and it would happen via the housing market.
@@jesse_- Buying a house at overpriced value is simply a set-up for disaster.. when the market goes down, the mortgage becomes underwater. Lower interest rates will help, houses priced according to their value will do far more to encourage the market. Late 1990's Bush Jr had same thought; stimulate economy through home construction; no one asked if we needed more homes; Las Vegas became overbuilt, contributed to market crash 2008.
I'm in SoCal Fontana, to be exact, I sure hope California will start building " Afforable housing" California is Hella High, bring those Afforable houses to Cali, TX already has dirt cheap homes, Geez Whiz 🤬😡
@royjohnson9043 What's the difference, maybe you can educate me on what I "want", have you seen California home prices😳? And Yes, I want "Afforable housing" like that house in the video 🤣
@@belizeanempress71 Affordable housing refers to S8 and HUD infrastructures. I get what you mean though . You would like to see home prices go down. What you don't see in that video are the insane property taxes they pay in texas (6th highest in the US). Also, it is in the middle of no where. You can buy more "affordable housing" if you move in the middle of no where in california as well.
Gentlemen, I bought my home in 2021 due to the great advice of picking a cheaper area to live. Being that I work remotely, it made sense to get a home in the High Desert. Has appreciated pretty well and I continue to listen cause one day I hope to get another home in Cypress, CA. Not sure why but it felt like home when I would go out there. Weird but that has always been the case when I go through there.
Interest rates won’t affect a home overpriced by 100-200k. As for tiny homes, they’re nicely priced. But also reinforce developers who have increased their margins since covid. The data available online indicates that their material costs decreased, but they never adjusted their prices. As long as people are willing to overpay for homes, they will reinforce the overpriced home. However, there are only so many people who can afford ridiculous prices. Make sure to spend within your means
I live in ct I brought in 20012🙌🏾
Why is real estate recurrently cheering for lower interest rates? Home prices are simply too high; to buy at high price only risks being underwater in the future. Would like to see a video specifically dedicated why real estate does NOT think house prices are too high, and why this is not causing unaffordability.
Thought the same, it should stay high imo until inventory catches up and list prices drop some more, but obviously that’s not how the economy works. Lower rates will simply attract more buyers which will push home prices higher again.
Because it doesn't matter what you think the price should be. It's all about supply and demand. Inventory is still low compared to the buyers willing to absorb it. Real estate goes up with inflation so even if you buy 'high' today, it will seem cheap in 10 years.
@@mguti090 Real estate pricing should be based on some concrete evaluation, such as what is the replacement cost of that structure. Real estate is our shelter, where we live, keep our clothes, raise our families. Real estate should not be treated like trading cards.
Lower rates would encourage buying homes, therefore many more homes would be build. Lower rates would stimulate the economy, and it would happen via the housing market.
@@jesse_- Buying a house at overpriced value is simply a set-up for disaster.. when the market goes down, the mortgage becomes underwater. Lower interest rates will help, houses priced according to their value will do far more to encourage the market. Late 1990's Bush Jr had same thought; stimulate economy through home construction; no one asked if we needed more homes; Las Vegas became overbuilt, contributed to market crash 2008.
I'm in SoCal Fontana, to be exact, I sure hope California will start building " Afforable housing" California is Hella High, bring those Afforable houses to Cali, TX already has dirt cheap homes, Geez Whiz 🤬😡
actually you don't want "affordable housing". Thats different than affordable prices and affordability depends on a numerous factors.
@royjohnson9043 What's the difference, maybe you can educate me on what I "want", have you seen California home prices😳? And Yes, I want "Afforable housing" like that house in the video 🤣
@@belizeanempress71 Affordable housing refers to S8 and HUD infrastructures. I get what you mean though . You would like to see home prices go down. What you don't see in that video are the insane property taxes they pay in texas (6th highest in the US). Also, it is in the middle of no where. You can buy more "affordable housing" if you move in the middle of no where in california as well.
I'd be all over that Lennar for 163k. New build 1000sqft Lennar homes are selling for 325k in my small rural Oregon town though.
land cost is big factor ,cost to build and fees and more fees
Lennar sucks I heard. The worst builder in Americq
@matthill2957 DR Horton is the worst builder. Austin is also very expensive.
@@glendacastillo6504Amen to that !!!
Seattle 550K
Gentlemen, I bought my home in 2021 due to the great advice of picking a cheaper area to live. Being that I work remotely, it made sense to get a home in the High Desert. Has appreciated pretty well and I continue to listen cause one day I hope to get another home in Cypress, CA. Not sure why but it felt like home when I would go out there. Weird but that has always been the case when I go through there.