Biden's inflation now hitting housing markets

[hislegacy]

Housing starts plunge 9.6%, raising recession fears

“Recession has come to the residential construction markets right on schedule as interest-rate sensitive housing is the first sector to turn down when soaring mortgage rates make it more costly for home buyers,” he added.

The news comes a day after a report indicated that homebuilder confidence fell for an eighth straight month.

The housing market index released Monday by the National Association of Homebuilders and Wells Fargo found that builders' confidence in the market for new single-family homes sunk 6 percentage points this month to fall into negative territory for the first time since a brief period at the start of the pandemic.​

 

[Fantine]

Housing rates have been skyrocketing, so a little cool off will help buyers and counteract the effect of interest rates.

 

[hislegacy]

Housing rates have been skyrocketing, so a little cool off will help buyers and counteract the effect of interest rates.

Thank you for your opinion.

The market is calling it a recession.

 

[comana]

The housing market has been in need of a cool down.

 

[Sparagmos]

Housing starts plunge 9.6%, raising recession fears

“Recession has come to the residential construction markets right on schedule as interest-rate sensitive housing is the first sector to turn down when soaring mortgage rates make it more costly for home buyers,” he added.

The news comes a day after a report indicated that homebuilder confidence fell for an eighth straight month.

The housing market index released Monday by the National Association of Homebuilders and Wells Fargo found that builders' confidence in the market for new single-family homes sunk 6 percentage points this month to fall into negative territory for the first time since a brief period at the start of the pandemic.​

Looks like housing starts are and have been higher under Biden than they were for Trump’s entire presidency. Is there something I’m missing here?
U.S. Housing Starts Data [2022]: Historical Charts & Statistics

 

[Desk trauma]

Looks like housing starts are and have been higher under Biden than they were for Trump’s entire presidency. Is there something I’m missing here?
U.S. Housing Starts Data [2022]: Historical Charts & Statistics

Yes: Biden!

 

[Blade]

I see someone is not listening to Washington and the left. Well duh there is no " inflation" remember? haha

GDP 2019 we were number 1. 2020 we were with covid as the world was yet we were still number one. Guess where we are today? 5th under Biden. Yes His team did this.

And the left just dumped 700+billion that we don't have. Even though just before this passed the Rep asked them to put in it that NO ONE making under 400k will have their taxes jacked up. Guess what? Every DEM said no to that. But odd on TV news networks (left) they come on saying and standing by the White House "if you make under 400k your taxes won't go up.

 

[durangodawood]

Housing prices were inflating massively.

Now they look to be cooling off and people complain about inflation?

 

[hislegacy]

Looks like housing starts are and have been higher under Biden than they were for Trump’s entire presidency. Is there something I’m missing here?
U.S. Housing Starts Data [2022]: Historical Charts & Statistics

Yup - the OP doesn't say anything about Trump. It does speak of the recession - that would be Biden's.

And..... you missed or chose to ignore this:

The housing market index released Monday by the National Association of Homebuilders and Wells Fargo found that builders' confidence in the market for new single-family homes sunk 6 percentage points this month to fall into negative territory for the first time since a brief period at the start of the pandemic.​

 

[Sparagmos]

Yup - the OP doesn't say anything about Trump. It does speak of the recession - that would be Biden's.

And..... you missed or chose to ignore this:

The housing market index released Monday by the National Association of Homebuilders and Wells Fargo found that builders' confidence in the market for new single-family homes sunk 6 percentage points this month to fall into negative territory for the first time since a brief period at the start of the pandemic.​

If housing starts in this recession are higher than at any point than they were under Trump they can’t be that bad.

Sounds like you read and posted a misleading article.

 

[LeafByNiggle]

Yup - the OP doesn't say anything about Trump. It does speak of the recession - that would be Biden's.

It is no more Biden's inflation than covid was Trump's pandemic. Current inflation is world-wide. It is higher than the US rate in Brazil, Spain, the UK, Poland, Netherlands, Myanmar, Sri Lanka, Turkey, Egypt, Argentina, and many others. Reasons are 1) after effects of pandemic relaxation 2) War in Ukraine 3) Supply chain interruptions. These are not caused by Biden or Democrats. If they did, only the US would be seeing it.

 

[Fantine]

Homebuilding may be a cyclical industry, but a slowdown in homebuilding doesn't necessarily mean a slowdown in the entire economy.

When the housing bubble cools off a little, there may be people on the sidelines who couldn't afford houses who now feel able to enter in. And new houses aren't the only homes people can buy. Without a huge demographic shift into one area, the existing homes offer plenty of choices for homebuyers.

 

[Hammster]

Homebuilding may be a cyclical industry, but a slowdown in homebuilding doesn't necessarily mean a slowdown in the entire economy.

When the housing bubble cools off a little, there may be people on the sidelines who couldn't afford houses who now feel able to enter in. And new houses aren't the only homes people can buy. Without a huge demographic shift into one area, the existing homes offer plenty of choices for homebuyers.

Exactly. Let’s say you work in construction and now can’t afford your mortgage. You sell at a lower price than you would otherwise, which is a great deal for someone else. Win!

 

[hislegacy]

Homebuilding may be a cyclical industry, but a slowdown in homebuilding doesn't necessarily mean a slowdown in the entire economy.

When the housing bubble cools off a little, there may be people on the sidelines who couldn't afford houses who now feel able to enter in. And new houses aren't the only homes people can buy. Without a huge demographic shift into one area, the existing homes offer plenty of choices for homebuyers.

The OP is NOT about the price of the house, but the price of a mortgage. What was affordable a 3% is not affordable at 9%.

 

[hislegacy]

Exactly. Let’s say you work in construction and now can’t afford your mortgage. You sell at a lower price than you would otherwise, which is a great deal for someone else. Win!

Then what do you do when mortgage rates are 300% higher?

 

[comana]

The OP is NOT about the price of the house, but the price of a mortgage. What was affordable a 3% is not affordable at 9%.

Which means home prices will come down and the market shifts from sellers market to buyers market.

 

[Hammster]

Then what do you do when mortgage rates are 300% higher?

I celebrate the success of the WEF.

 

[Fantine]

The OP is NOT about the price of the house, but the price of a mortgage. What was affordable a 3% is not affordable at 9%.

I agree, but if a home price falls 3% of x+$30,000 may not be that different from 9% (currently about 6%) of "X.")

 

[dqhall]

Then what do you do when mortgage rates are 300% higher?

Mortgages in the U.S. are 5%-6%, higher if you have bad credit. There are also problems with worker shortages, window shortages, etc. Windows are made in China and Germany where they have been experiencing difficulties.

In Florida people are waiting six months to have their roofs repaired. That was reported in a local Facebook group. Today I called around looking for someone to put up drywall after I got a company to remove water damaged drywall and treat dry rot. One kitchen and bath remodeler had a recorded message letting me know they are booked until the end of the year. A handyman’s recorded message said he is not taking new customers. One drywall guy answered the phone, he said he moved out of the area. Others did not return my call.

 

[hislegacy]

I agree, but if a home price falls 3% of x+$30,000 may not be that different from 9% (currently about 6%) of "X.")

Talk to a banker - 9% over 30 years VS 3% over 30 years.

Mortgage on a 200K home at 3% is

974.72 a month with 93,199.41 in interest paid.

Right now mortgages are at 5%

Your payment goes up to 1,230 and the interest you pay DOUBLES to 187,927.

Your opinion quoted just fell to pieces.

Look at what happens if it hits 9 % like some are forecasting:

That's right! at 9% you pay more in interest than you do for the house.