The Housing Recovery Is an ~Illusion~

Heidi Moore explains! (“Affordability and home ownership are far more closely correlated than interest rates and home ownership. Interest rates may make mortgages more expensive, but they don’t affect the underlying price. That price is what drives people away.”)

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2 Comments / Post A Comment

deepomega (#22)

Yeah. The inventory is basically nonexistent now, which means the prices are driven up more by competition between buyers rather than any sort of recovery. And when over half the home purchases in California this year have been cash offers, it’s pretty clearly helping investors, not the people who actually, you know, live in a house.

shannowhamo (#845)

We just bought our first house (in Dallas, TX) where the market has been bananas, so it was hard to get a house for any kind of steal AND we didn’t have great credit so our interest rate is higher than average (although, as this report handily points out, still lower than average even just a year ago.) Still, there are still “affordable” houses to be found around here (this is completely subjective but I consider affordable to be under $150,000 which comes out to be less than the rent we’re paying on a fairly nice 2 bedroom apartment) but we also had no choice but to get an FHA loan (with it’s built in insurance payment) and we had to get down payment help from my parents. I don’t know if this infor is interesting to anyone but the moral of my story is that it’s no wonder people have trouble buying, it is a PROCESS even before you start talking about actual $$$.

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