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SD Realtor
ParticipantEccen it is not worth fretting over. Note the last line. 13% fewer properties this year and 32% less then May 05. That means that as the total number of property sales goes down, the median becomes even less meaningful as it is prone to be pulled in different directions due to the smaller sample size.
Essentially median information is not worthwhile to get all bound over right now. Focus on the sales volume.
SD Realtor
ParticipantCapeman I like your response. It is well thought out and makes sense. What you wrote is the point I am trying to make. That in a very high interest rate environment there are likely to be many challenging aspects to life in addition to cheaper home prices. Like everyone else I want housing to become affordable. Yet when I see people saying things like yay I can’t wait until rates are sky high so I can afford a home, it just kind of seems to me that those statements are being made without much thought.
SD Realtor
ParticipantCapeman I like your response. It is well thought out and makes sense. What you wrote is the point I am trying to make. That in a very high interest rate environment there are likely to be many challenging aspects to life in addition to cheaper home prices. Like everyone else I want housing to become affordable. Yet when I see people saying things like yay I can’t wait until rates are sky high so I can afford a home, it just kind of seems to me that those statements are being made without much thought.
SD Realtor
ParticipantPD I think that is the biggest misconception we keep seeing over and over again here, (on Piggington), is that the Fed controls rates. The fed controls the overnight rate, not the rates set for bond yields…never has… never will.
SD Realtor
ParticipantPD I think that is the biggest misconception we keep seeing over and over again here, (on Piggington), is that the Fed controls rates. The fed controls the overnight rate, not the rates set for bond yields…never has… never will.
SD Realtor
ParticipantI could not agree more. Traditionally the months with the highest number of recorded sales are April, May and June. So if you take market time and escrow period into account, this implies you want to be on the market by mid February.
SD Realtor
ParticipantI could not agree more. Traditionally the months with the highest number of recorded sales are April, May and June. So if you take market time and escrow period into account, this implies you want to be on the market by mid February.
SD Realtor
ParticipantPerry –
I think that you conveniently omit that effect of high interest rates on corporate spending as well as commerical and small business lending. Not to mention other capital investments. Also you are promoting an inflationary environment. I am not saying this is not needed but I just am saying that there will be other ramifications that nobody seems to mentioning or considering.
Yes I heartily agree that a tight money supply will help week out undesireable consumerism. That is fine and is necessary. However I do not agree that a broad swath saying high interest rates are good, should be made without contemplating other ramifications.
Yes we all want a housing market that is affordable. A previous post was made that was VERY correct about how the real rate of inflation has been hidden and that is very true. So that is starting to unwind and it is necessary that it does.
SD Realtor
ParticipantPerry –
I think that you conveniently omit that effect of high interest rates on corporate spending as well as commerical and small business lending. Not to mention other capital investments. Also you are promoting an inflationary environment. I am not saying this is not needed but I just am saying that there will be other ramifications that nobody seems to mentioning or considering.
Yes I heartily agree that a tight money supply will help week out undesireable consumerism. That is fine and is necessary. However I do not agree that a broad swath saying high interest rates are good, should be made without contemplating other ramifications.
Yes we all want a housing market that is affordable. A previous post was made that was VERY correct about how the real rate of inflation has been hidden and that is very true. So that is starting to unwind and it is necessary that it does.
SD Realtor
ParticipantAN relatively speaking yes if you look at the long history of rates then yeah the 8-9% range is perhaps tolerable…
So yes theoretically speaking your statement makes sense. However we don’t live in the theoretical world. Frankly I think that as a country we are in a much more precarious situation now, then we were 30 years ago when rates went through the roof. I think it could be alot more of a problem now, then it was then.
SD Realtor
ParticipantAN relatively speaking yes if you look at the long history of rates then yeah the 8-9% range is perhaps tolerable…
So yes theoretically speaking your statement makes sense. However we don’t live in the theoretical world. Frankly I think that as a country we are in a much more precarious situation now, then we were 30 years ago when rates went through the roof. I think it could be alot more of a problem now, then it was then.
SD Realtor
ParticipantI am glad you would love that capeman. By the way… gather a couple of friends then pick one of them. Because that friend would be the one losing his job. Also find a couple more friends who want to borrow some money to start a small business. The tell them that they most likely will pay interest rates that will crush their business plan.
So once again, what you may wish for may happen… just make sure you have an understanding about the basic economic engine of how things work because alot more things get affected in an interest rate environment hovering in this double digit strata other then housing.
The amount of contraction is something people who were not around in the late 70s or early 80s just do not think about.
SD Realtor
ParticipantI am glad you would love that capeman. By the way… gather a couple of friends then pick one of them. Because that friend would be the one losing his job. Also find a couple more friends who want to borrow some money to start a small business. The tell them that they most likely will pay interest rates that will crush their business plan.
So once again, what you may wish for may happen… just make sure you have an understanding about the basic economic engine of how things work because alot more things get affected in an interest rate environment hovering in this double digit strata other then housing.
The amount of contraction is something people who were not around in the late 70s or early 80s just do not think about.
SD Realtor
ParticipantI would say that anyone hoping for double digit interest rates is asking for alot more then just low housing prices because if rates are up in the double digits, we will be having alot more to deal with then just housing topics.
Be careful what you ask for.
SD Realtor
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