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National News See other National News Articles Title: we are witnessing the total obliteration of financial mobility for an entire generation. We are not just witnessing a housing crisis We’re at the breaking point, and the worst part? The people in charge don’t care. Mortgage applications have crashed harder than they did in 2008, yet the media tells us the economy is “strong.” Strong for who? Not for the young couples trying to buy their first home. Not for the families squeezed by rising costs. Not for anyone who wasn’t lucky enough to buy years ago. The reality is brutal: Home prices have surged beyond reason, and interest rates are locking people out of the market permanently. People are giving up, choosing to rent indefinitely, while investors scoop up homes in cash. US housing market is in historic decline, with homebuyer demand collapsing and costs at a 134-year high The US housing market is experiencing one of its most severe downturns in history, with mortgage applications plunging to record lows and home affordability reaching critical levels, according to Michael Eisenga, president and CEO of First American Properties. “We’re witnessing the biggest collapse of homebuyer demand in US history,” Eisenga stated in a recent analysis. Mortgage applications have dropped by 63% since their pandemic peak, surpassing the declines seen during the 2008 financial crisis. Compared to pre-pandemic levels, applications remain down by 52%. The current crisis is driven by a combination of soaring home prices and elevated mortgage rates. During the pandemic, record-low mortgage rates fueled demand, pushing prices to unprecedented levels. Today, those same homes are unaffordable for many buyers. For instance, a $400,000 home in 2019 with a 3.5% mortgage rate had a $1,796 monthly payment. That same home, now priced at $500,000 with a 7.26% rate, costs $3,416 per month—a $1,620 increase that many households cannot afford. Eisenga highlighted that while 7% mortgage rates are not historically abnormal, they are now compounded by home prices that are 80% above long-term averages. This has resulted in the highest inflation-adjusted housing costs in 134 years. Even during the 2008 housing crisis, price levels were not as extreme as they are today. The income required to purchase a median-priced home has surged to $114,900 annually—far above the median household income of $74,000. This growing affordability gap is locking many potential buyers out of the market. MacroEdge RESights @RESightsbyME Nashville total inventory for rent (Feb 2023) - 1,368 Nashville total inventory for rent (today) - 9,967 Includes single family, by owner, apartments, condos, town homes. #RESights #Zillow Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Horse (#0)
My kids are toast...
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