House prices should be stable at the house payment being 30% of the median income. Also, in the purchase price of a rental, the monthly rental should be 1% of of the purchase price. Considering inflation, insurance prices going up 200 to 400% and tax's going up, the 30% of the median income is pushing it.
This is another consideration. With that long of a mortgage, especially amortized, it takes forever to build equity. In that regard, you’re functionally just renting a home from the government/lender, but with more personal liabilities. That’s my knee jerk reaction anyway.
there will be housing crash and it does tend to be cyclical, about every 18 years on average and the rents tend to go down in a downturn which tey are in many areas in the us, so a downturn is likely coming, how fast? depending on the economy, can take 1 2 3 years who knows or if a ceazy stagflation develops then prices can go to the moon , who knows, nobody, but unsustainable prices cannot go on forever, either prices come down, mortgages go down or incomes spike its a simple math
Great insights here. Thanks for the comment! Do you think there's a difference between a crash and a correction? In my opinion, a crash is very sudden price reductions of 20%+. While this may happen in some markets, I think the majority of the US will experience more moderate housing price corrections over the next couple years of maybe 10% or so.
House prices should be stable at the house payment being 30% of the median income. Also, in the purchase price of a rental, the monthly rental should be 1% of of the purchase price. Considering inflation, insurance prices going up 200 to 400% and tax's going up, the 30% of the median income is pushing it.
Well said!
Keep doing what you are doing because you are not alone your journey 👍
Thank you!!
Amazing content
Thanks! Glad you're finding value in it! Let me know if there's anything you'd like me to cover.
If Govt issues 40Yr/50Yr Mortgages??
This is another consideration. With that long of a mortgage, especially amortized, it takes forever to build equity. In that regard, you’re functionally just renting a home from the government/lender, but with more personal liabilities. That’s my knee jerk reaction anyway.
ITR Economics model suggest 2026...
I'll have to look into that more! Thanks for sharing!
there will be housing crash and it does tend to be cyclical, about every 18 years on average and the rents tend to go down in a downturn which tey are in many areas in the us, so a downturn is likely coming, how fast? depending on the economy, can take 1 2 3 years who knows or if a ceazy stagflation develops then prices can go to the moon , who knows, nobody, but unsustainable prices cannot go on forever, either prices come down, mortgages go down or incomes spike its a simple math
Great insights here. Thanks for the comment! Do you think there's a difference between a crash and a correction? In my opinion, a crash is very sudden price reductions of 20%+. While this may happen in some markets, I think the majority of the US will experience more moderate housing price corrections over the next couple years of maybe 10% or so.