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This Bullshit is Economics???? Housing diseconomics
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Two points here,

I have an active contest proposal

I would like to illustrate that RIs don't have to be hard or time consuming, even if this doesn't get a Sufficient

This Bullshit is Economics???????

1) For millennial and Gen Z homebuyers, purchasing a starter home may be a thing of the past.....

They report that 40% of last years buyers plan to live in the purchase house 16 years or more. There is absolutely no mention of any previous survey results and thus absolutely no support for the thesis of the article.

2) But the concept of buying an entry-level home that quickly appreciates in value so you can sell it after about five years seems to have gone out the window, Jessica Lautz

Appreciation is a market-wide phenomenon. If both your "starter home" and your "upgrade home" double in price that is still a larger absolute increase in the "upgrade home" and the payment differential between your "starter home" and the "upgrade home" increases. Upgrading is about changes in your situation, not market wide appreciation.

3) That’s mostly because those who were able to purchase homes last year likely locked in a low mortgage rate, she says. The average rate for a 30-year fixed mortgage was around 5.7% on June 30, 2022,

As the second sentence shows they weren't locking in low rates.

4) “Unfortunately, many potential sellers have ghosted the market this spring, concentrating buyer demand on the few listings that do come to market and fueling price growth, especially for more affordable and well-presented houses,” Jeff Tucker, Zillow senior economist

Unfortunately, sellers of existing homes who otherwise would have sold (if interest rates were lower) would have represented both a buyer and a seller. Without more information about composition effects we have no idea how existing homeowners not swapping house impact the aggregate parameters of the aggregate markets.

5) Zillow defines a starter home as one that usually has one to two bedrooms, one bathroom, around 750 square feet to 1,250 square feet of space and is usually located in a suburb.

This is just something that I am to Houston to understand.

6) But it’s becoming harder to find such homes......Only about 11% of homes sold in the first quarter of 2023 were priced below $300,000, per the U.S. Census’

Nothing here tells us whether this is something about starter homes not being available or all homes increasing in price.


There, I've still got 15 minutes in my lunch break.

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A new Church's Chicken != Economic Development

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1 year ago