/biz/ - Business & Finance

>>57516801
>there are for sale signs everywhere

Housing inventory is at 20 year lows

>>57326633
Potential home equity isn't even taken into consideration

If you earn 10% with your cash through investments, while a potential mortgage rate is 6.5%, you take out the mortgage every time. You make minimum payments on the mortgage each month.

It's comical how many people don't understand this.

>>56794078
Because only the desperate are selling.

>>56589518
Sure you can. You just restrict inventory.

>>56518394
>forced to sell

Imagine thinking that homeowners will give up their affordable payments towards equity so that they can make an expensive rent payment.

Only retards rent.

>>56431607
People aren't going to sell their homes for a discount when they have monthly payments that are a fraction of what it would cost to buy or rent elsewhere.

The 2008-10 crash happened because 30% of mortgages issued in 2004-07 were adjustable rates and their payments went to levels that they couldn't afford, resulting in foreclosures.

That isn't happening now - rates have been so low for a decade that ARMs are only 5% of the mortgages issued since 2008. Foreclosure rates haven't even gone back to pre-COVID levels and are 10% of what they were in 2009-10.

Anyone who loses their job unexpectedly and somehow can't afford their mortgage payment can simply rent their property out - current rental prices will cover their mortgages and give them additional cash.

I look up property records of nearby homes that sell and it's always one of 2 groups - Boomers who are downsizing/retiring, or landlords converting their equity to treasury bills and taking the 5%. No one else is selling.

>>56418130
Because people locked up affordable payments for decades and have to give that up if they list their home for sale.

>>56204522
You need a massive increase in supply for 2008 to repeat.

People aren't going to give up their mortgages financed at 3%.

>>56061524
Inventory is half of what it was a decade ago, and a third of what it was when housing crashed in 07-08.

People all got cheap credit and not only don't need to sell, but now have an incentive to hold.

>>55888673
>I am seeing a lot more houses on the market

holy fuck i cant

everyone is an idiot

>>55817517
>we are in a bubble

Not a bubble. People bought with low rates and have mortgage payments they can afford.

There is an incentive for them to not pay off their mortgage, as they're sitting on rates that are lower than returns from treasury bills.

As a result, inventory is the lowest it's ever been. And you're not going to get people to sell.

>>55757600
>im a dumbass who ignores all data and goes off of what i "see"