Quote from: RE on Apr 10, 2023, 03:14 PMBuy Low, Sell Lower.

https://markets.businessinsider.com/news/commodities/us-housing-market-unaffordable-mortgage-rates-home-prices-inventory-demand-2023-4

Housing is so unaffordable that banks are losing money for each mortgage they finance for the first time ever

RE

We are going to have to get a new furnace and I was conversing with a couple of estimators.  Home prices came up.  I said I don't know where people who can pay money for the houses in my neighborhood come from.  Houses are worth over a million here.  Can you believe it?

One of the dudes said it was Amazon and tech workers.  I added that the Chinese like the neighborhood.  Then I added but there are only so many tech workers and Chinese ex-pats though this is their preferred place.  Not enough to define a market.  People pumping slurpies at 7-11s and such at minimum wage have to outnumber people who can plop a million down on a cash offer by a mile.

I think it is time for the nonsense to end.  The guy I was talking to did not get my point about the numbers of rich people not being enough to support a market of a million for an average home. 

I looked into things.  Median net worth for Americans was only about $120K in 2019 and home equity accounts for a good chunk of that.  Meaning Americans don't really have a median worth of $120 K.

Average net worth is very high.  The 1% makes me look like a pauper compared to the national average but in reality, ignoring inflated house values, I'm close to the median worth for my age.

I think the housing market should have collapsed long ago.  Collapsed when it became unaffordable for average Americans.