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Housing Prices in America

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On 3/14/2024 at 8:35 AM, tailingpermit said:

Maybe Ginnie and Fannie Mae should stop increasing maximum loan amounts every year.  

The loan minimums need to be increased to match the rising prices to purchase a new home as Fannie and Ginnie are basically meant for first time homebuyers.  The corporate investors are to blame for that.  We just had one of those buy up about 50 homes in Vegas, in one neighborhood, in one week. Basically blocking the entire area.  A cash purchaser is much more preferable than a FHA purchaser to the seller, even if the cash offer is lower than the FHA offer.

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On 3/19/2024 at 12:03 PM, Poorohman said:

The loan minimums need to be increased to match the rising prices to purchase a new home as Fannie and Ginnie are basically meant for first time homebuyers.  The corporate investors are to blame for that.  We just had one of those buy up about 50 homes in Vegas, in one neighborhood, in one week. Basically blocking the entire area.  A cash purchaser is much more preferable than a FHA purchaser to the seller, even if the cash offer is lower than the FHA offer.

FHA and Conventional loans are not specific to first time home buyers, only one program offers incentive for being such. 
 

Not necessarily, cash buyers can create even more hurdles than an FHA appraisal.  

 

 

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On 3/12/2024 at 11:02 AM, bornontheblue said:

Excuse me but I thought this was America. 800 square feet homes, SMDH 

Oprah Winfrey Reaction GIF

The 720 square foot, 1926 2BR 1BA cottage on a 2500 square foot lot next door to me sold for $1.3M last year. It is a great place to live though. Scores 94 on Walkscore.com. 

Thay Haif Said: Quhat Say Thay? Lat Thame Say

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Biden is a fing idiot.   His response to everything are government subsidies which increases demand and drives up prices.  From Reuters News:

Biden pushes plan to lower rents, blasts Trump in Nevada

U.S. President Joe Biden highlighted plans to lower housing costs during stops across Nevada on Tuesday, taking aim at high rents and blasting the policies of Republican challenger Donald Trump while using the former president's signature slogan.

 

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On 3/19/2024 at 9:31 PM, sactowndog said:

Biden is a fing idiot.   His response to everything are government subsidies which increases demand and drives up prices.  From Reuters News:

Biden pushes plan to lower rents, blasts Trump in Nevada

U.S. President Joe Biden highlighted plans to lower housing costs during stops across Nevada on Tuesday, taking aim at high rents and blasting the policies of Republican challenger Donald Trump while using the former president's signature slogan.

 

Same as student loan forgiveness instead of going after the ongoing root cause.  

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On 3/19/2024 at 10:31 PM, sactowndog said:

Biden is a fing idiot.   His response to everything are government subsidies which increases demand and drives up prices.  From Reuters News:

Biden pushes plan to lower rents, blasts Trump in Nevada

U.S. President Joe Biden highlighted plans to lower housing costs during stops across Nevada on Tuesday, taking aim at high rents and blasting the policies of Republican challenger Donald Trump while using the former president's signature slogan.

 

On 3/20/2024 at 1:55 AM, East Coast Aztec said:

Same as student loan forgiveness instead of going after the ongoing root cause.  

This is where Biden seems "old" sometimes...but at least he is even talking about it.  Trump has no idea this is even a problem.  Both are out of touch and don't really "get" high housing prices and student loan debt.  Their generation just never had this type of problem.  Biden is making a mistake by not making this an actual centerpiece of his campaign.

The problem politicians have is that just giving subsidies doesn't cause a fuss with the monied interests who make a killing on student loans and the housing market.  If he were to actually try to bring prices down, that would piss off a lot of boomers, real estate agents, and big banks.  If they just give out more loans or subsidies the suppliers just happily increase their prices and they can "punt" on the underlying problem while borrowers further mortgage their futures. 

Chat GPT tells me, "According to data from the Urban Institute, Fannie Mae, Freddie Mac, and the FHA collectively accounted for approximately two-thirds (around 66%) of all mortgage originations in the United States in recent years. "

The other problem we have is the average age of a home buyer these days is 49.  America's first-time and repeat homeowners are getting older (axios.com).  70% of home buyers didn't have a child under 18 living with them.  Yet the average size of a home in the USA is absolutely massive.  

Guys, we have a country where we have old people living in massive houses and where people with child-bearing age can't afford to live in a cracker box!

The incentives that are needed need to bring prices of housing DOWN or at least slow the growth.  The key is to NOT have the federal government involved in 66% of mortgages!  How are we allowing investors who already have a house or two to have additional federally backed loans?  Why are we not focusing our efforts on giving incentives for senior citizens to move out and right size to a reasonably sized house?  Why is there absolutely no pressure or pathways cleared for housing that is more modestly sized? 

I firmly blame the government and it catering to boomer interests for the price of housing and the cost of education.  It has and continues to be about the great intergenerational wealth transfer to them.  But at least we know Biden and Trump will never touch social security or medicare...while they leave younger people in the lurch.      

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On 3/19/2024 at 2:40 PM, tailingpermit said:

FHA and Conventional loans are not specific to first time home buyers, only one program offers incentive for being such. 
 

Not necessarily, cash buyers can create even more hurdles than an FHA appraisal.  

I didn't say anything about Conv loans.  Conv loans aren't federally subsidized, which is what this thread is about.  Also, no you cannot keep going to the FHA well to purchase property after property.  There is a waiting period as to when you are able to get another FHA loan.  And no, cash buyers are preferrable bc there is no appraisal or loan approval hurdles to jump thru.  So I have no idea what you are talking about there.

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On 3/20/2024 at 10:20 AM, Poorohman said:

I didn't say anything about Conv loans.  Also, no you cannot keep going to the FHA well to purchase property after property.  There is a waiting period as to when you are able to get another FHA loan.  And no, cash buyers are preferrable bc there is no appraisal or loan approval hurdles to jump thru.  So I have no idea what you are talking about there.

Conventional = Fannie Mae

There’s a “waiting period” for both FHA and Conventional loans, but it is up to the underwriter to enforce that - which most likely won’t. 
 

Always get a property appraised, cash or not.  

 

 

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On 3/20/2024 at 7:31 AM, tailingpermit said:

Conventional = Fannie Mae

There’s a “waiting period” for both FHA and Conventional loans, but it is up to the underwriter to enforce that - which most likely won’t. 
 

Always get a property appraised, cash or not.  

Conv is not govt subsidized.  That's why it's 20% instead of 3%.   There are in cases 5% conv loans.  But that is the bank choice.  There were actually 1% conv loans about 7 years ago.  Again, bank choice.  Sometimes Fannie or Freddie covers conv loans.

There is no waiting period on Conv loans either.  You can purchase up to 5 (or 6 I can't remember), at the same time.


Sorry dude.  I've been in the industry for 20 years.  I think you need to brush up a little.

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On 3/20/2024 at 7:55 AM, bornontheblue said:

So with the way realtors get paid now there numbers are going to diminish substantially no? 

 

Yes.  I always thought it was not right to make sellers pay the buyers agent fees.  It should have been decoupled long ago.  My guess is that it'll end up in some type of flat fee agreement to purchase based on price structures.  At the end of the day though, the sellers are still gonna pay 2% or 3% to list the home and the buyers are still gonna pay a nice fee for the buyer agent, so at end of day maybe each side saves 1%-2% or so, give or take.

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On 3/20/2024 at 9:05 AM, Poorohman said:

Yes.  I always thought it was not right to make sellers pay the buyers agent fees.  It should have been decoupled long ago.  My guess is that it'll end up in some type of flat fee agreement to purchase based on price structures.  At the end of the day though, the sellers are still gonna pay 2% or 3% to list the home and the buyers are still gonna pay a nice fee for the buyer agent, so at end of day maybe each side saves 1%-2% or so, give or take.

I heard it could raise the up front costs because the fees won't be baked into the sale any more 

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On 3/20/2024 at 8:05 AM, Poorohman said:

Yes.  I always thought it was not right to make sellers pay the buyers agent fees.  It should have been decoupled long ago.  My guess is that it'll end up in some type of flat fee agreement to purchase based on price structures.  At the end of the day though, the sellers are still gonna pay 2% or 3% to list the home and the buyers are still gonna pay a nice fee for the buyer agent, so at end of day maybe each side saves 1%-2% or so, give or take.

No, this was the most practical way to make transactions happen because the seller is more able to "afford" the commission and fees from the equity in their home. Buyer's are often cash strapped and this allowed many to buy sooner because they could use most of their cash for the down payment. The $$ were always "baked" into the market prices.

Also, I remember going though all of this about 25-30 years ago and I don't know why the 6% number is always sighted as some fixed rate. Sales commissions have always been negotiable and in the last 15-20 years, at least in northern Nevada, have usually been closer to 5%; 2.5/2.5% split between the agents and in the last 5 years or so, 4%.  There have also been "discount" options, such as "Help U Sell" and "Assist to Sell", available for at least 30 years.

The adoption of the internet has changed the RE biz dramatically, mostly in the way that buyers find homes they are interested in. My guess is that moving forward we'll see a lot more sales in which the buyers represent themselves. This change will certainly lower sales costs but may also lead to more potential legal problems: E.g. disclosures.

any thought @toonkee

personally, I'm glad I got out when I did, it was a great 36 year run

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On 3/20/2024 at 10:51 AM, Poorohman said:

Conv is not govt subsidized.  That's why it's 20% instead of 3%.   There are in cases 5% conv loans.  But that is the bank choice.  There were actually 1% conv loans about 7 years ago.  Again, bank choice.  Sometimes Fannie or Freddie covers conv loans.

There is no waiting period on Conv loans either.  You can purchase up to 5 (or 6 I can't remember), at the same time.


Sorry dude.  I've been in the industry for 20 years.  I think you need to brush up a little.

Conventional/Fannie Mae is not “government subsidized,” but the FHFA controls their conservatorship. Conventional loans have down payment options as low as 3%, you must be getting confused with portfolio lending. 
 

There is a waiting period, look up occupancy affidavit.  
 

You must be god awful at your job. 

 

 

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On 3/20/2024 at 11:55 AM, renoskier said:

No, this was the most practical way to make transactions happen because the seller is more able to "afford" the commission and fees from the equity in their home. Buyer's are often cash strapped and this allowed many to buy sooner because they could use most of their cash for the down payment. The $$ were always "baked" into the market prices.

Also, I remember going though all of this about 25-30 years ago and I don't know why the 6% number is always sighted as some fixed rate. Sales commissions have always been negotiable and in the last 15-20 years, at least in northern Nevada, have usually been closer to 5%; 2.5/2.5% split between the agents and in the last 5 years or so, 4%.  There have also been "discount" options, such as "Help U Sell" and "Assist to Sell", available for at least 30 years.

The adoption of the internet has changed the RE biz dramatically, mostly in the way that buyers find homes they are interested in. My guess is that moving forward we'll see a lot more sales in which the buyers represent themselves. This change will certainly lower sales costs but may also lead to more potential legal problems: E.g. disclosures.

any thought @toonkee

personally, I'm glad I got out when I did, it was a great 36 year run

How many female realtors did you bang in the bathroom at 90’s Remax Christmas parties?

 

 

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On 3/20/2024 at 9:03 AM, tailingpermit said:

How many female realtors did you bang in the bathroom at 90’s Remax Christmas parties?

No...but I did bang an escrow officer in the ladies room of Paul Revere's "Kicks" nightclub in Reno :banana:

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On 3/20/2024 at 12:10 PM, renoskier said:

No...but I did bang an escrow officer in the ladies room of Paul Revere's "Kicks" nightclub in Reno :banana:

80’s and 90’s were wild in the housing industry, I was just a kid but remember the parties.  

 

 

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On 3/20/2024 at 9:11 AM, tailingpermit said:

80’s and 90’s were wild in the housing industry, I was just a kid but remember the parties.  

yeah, it's just not the same anymore :oldman:

With so much of the business happening remotely, nobody really gets to know each other. When I started in 1985, we had well attended MLS meetings on Tuesdays and office meetings/tours on Wednesday. And then there were at least 2 or 3 big "Board of Realtor" events each year and a Chamber of Commerce "mixer" every month.

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