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OT: American Politics

A subsidy program is certainly positive if it's used in conjunction with increasing supply. Good thing that Harris's team recognizes that. The 25k subsidy is only part of her policy idea.
 
zeke said:
please proceed.
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Sure. So if I'm a 1st time buyer like Wayward then I now have new buying power I didn't have before.

This will:

1. Introduce more buyers to the market
2. Increasing the buying power of the buyers

So, considering that home prices are still hovering at an all-time high, what do you think this infusion of demand and buyer power will do to those home prices?

Where will the high number of sellers come from to offset this demand? People are clinging to their covid low interest rates knowing that they'll never get that opportunity again.

Now, add in the fed decreasing rates and that adding more fuel to the demand side. Plus, that introduces people (demand) who buy homes as purely an asset to hold and rent out.

The first time I heard that proposal from Kamala I was at a loss. It only made sense if it came from someone who has no idea the costs for food and shelter of an every day person and the state of the housing market.
 
Wayward DP said:
how?

and the fed is independent from government, currently. it's your guy Trump that wants to change that, so that monetary policy can be controlled for political reasons. doesn't that concern you?
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I don't believe it acts independently as is (if the economy is so fantastic why did they do a 50bps cut??????). I'd actually like to abolish the fed as some smart people advocate for.
 
FlyGuy said:
Sure. So if I'm a 1st time buyer like Wayward then I now have new buying power I didn't have before.

This will:

1. Introduce more buyers to the market
2. Increasing the buying power of the buyers

So, considering that home prices are still hovering at an all-time high, what do you think this infusion of demand and buyer power will do to those home prices?

Where will the high number of sellers come from to offset this demand? People are clinging to their covid low interest rates knowing that they'll never get that opportunity again.

Now, add in the fed decreasing rates and that adding more fuel to the demand side. Plus, that introduces people (demand) who buy homes as purely an asset to hold and rent out.

The first time I heard that proposal from Kamala I was at a loss. It only made sense if it came from someone who has no idea the costs for food and shelter of an every day person and the state of the housing market.
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can you do this again, if housing supply is increased in conjunction with the $25k first homebuyer rebate or whatever it is called?

and also, even ignoring that, as a homeowner, isn't that a good thing for you? you'll get more when you sell, so your asset has increased?
 
FlyGuy said:
I don't believe it acts independently as is (if the economy is so fantastic why did they do a 50bps cut??????). I'd actually like to abolish the fed as some smart people advocate for.
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economists all over the place were calling for rate cuts because of how the economy at large was performing, before the 50 pt cut in September...

and who are the smart people who have advocated for abolishing the fed?
 
FlyGuy said:
(It's not).

(Try asking someone in the 18-30 demographic about how much they are able to save and how they're able to live right now)

(Spending $500 on groceries every week and not being able to afford a house or childcare is not fantastic).
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Maybe don't buy avacado toast
 
FlyGuy said:
Sure. So if I'm a 1st time buyer like Wayward then I now have new buying power I didn't have before.

This will:

1. Introduce more buyers to the market
2. Increasing the buying power of the buyers

So, considering that home prices are still hovering at an all-time high, what do you think this infusion of demand and buyer power will do to those home prices?

Where will the high number of sellers come from to offset this demand? People are clinging to their covid low interest rates knowing that they'll never get that opportunity again.

Now, add in the fed decreasing rates and that adding more fuel to the demand side. Plus, that introduces people (demand) who buy homes as purely an asset to hold and rent out.

The first time I heard that proposal from Kamala I was at a loss. It only made sense if it came from someone who has no idea the costs for food and shelter of an every day person and the state of the housing market.
Click to expand...

let me see if i can explain this differently.

Let's say you raise the price on your home by $25k.

How much would a purchaser's down payment increase?
 
Wayward DP said:
can you do this again, if housing supply is increased in conjunction with the $25k first homebuyer rebate or whatever it is called?

and also, even ignoring that, as a homeowner, isn't that a good thing for you? you'll get more when you sell, so your asset has increased?
Click to expand...
How is housing supply going to be increased? It's not like we've been lacking for new home constructions. It's at the same level as 2018. April 2022 was the highest housing starts since mid 2000's and that still didn't cool off home prices.

Sure, I'll get more, but am I able to afford to move and buy a new home? I can afford down payment, that's not been an issue, but monthly cash flow/costs is, especially with costs of childcare and groceries. That may or may not prevent me from moving, and so thus supply perhaps goes down even more, driving prices higher.
 
FlyGuy said:
It is something of the last 4 years, at least in the US.

When I bought my first home in 2018 it was a 1000sqft brick ranch built in the late 50’s. I got it for 245K. That same home I sold for 345 almost 1.5 years ago and it’s now able to be sold at 400+ according to Redfin/zillow estimates. It’s stupid. When I was looking in 2018 the homes wern’t outrageous like they are now.
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But why has housing gone up so much? Pure monetary inflation accounts for about a 20% increase in prices on more or less everything across the board, so 245 becomes ~300K, so an obvious and significant increase that quickly. Where is the other 100K coming from?

Illegal immigration isn't a compelling explanation. A relatively small percentage of the total population, the vast majority of whom exist on the bottom end of the earnings scale simply don't distort a market as large as the housing market. The math doesn't math.

But who has the money to distort what was a ~30-35 Trillion dollar market at the time you bought your home?

www.redfin.com

Investors Bought 26% of the Country’s Most Affordable Homes in the Fourth Quarter—the Highest Share on Record

Elevated home prices and mortgage rates, along with sluggish rents, have made low-priced homes increasingly attractive to investors
www.redfin.com www.redfin.com

1730750058160.png

But fixing that is probably socialism or something. Democrats keep getting screamed at when they try to do a socialism on anything.
 
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