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Housing shortage = smarter consumers?
Posted by Bear900/CA of CA on 7/22/21 1:13pm Msg #633711
"Perhaps consumers and lenders learned their lesson in 2008. And perhaps that lesson was: donít overspend and donít overextend or it all falls down." .... But I donít see this cooling as an indication of danger. I see it as an indication of a smarter consumer.

A smarter consumer? Bidding wars of 60, 80, 100k over asking price? Because they have to have That house? Were they smart when they paid double what a house is worth, or did they just happen to get smart when inventory evaporated? The lessen of overspending in 2008 was never learned and in fact has gotten worse.

The shortage of inventory existed long before any supply chain shortage. Demand for housing and willingness to pay exceedingly more than market value has created a feeding frenzy with the negative consequence of hyper-inflation. The rising cost of everything from land to building permits and now materials has stalled new construction. It didn't increase the intelligence of buyers.

It's hard to blame consumers looking to buy a home, but at what cost? When do we say enough is enough? At what point does one stop over-extending their credit and blowing through emergency savings (if they have any) and start doing without or with less?

For once some truth being reported:

http://www.latimes.com/business/story/2019-08-08/california-housing-shortage-home-builders#:~:text=Home%20builders%20are%20pulling%20back%20from%20new%20construction%2C,fewer%20than%20the%20same%20period%20a%20year%20earlier.

"Builders cited the high costs for land, labor, materials and government fees, as well as tariffs on myriad building products and appliances. Over the last year, they said, the potential profit on many new projects has shrunk to the point at which it doesnít make sense for builders or their financiers to take the risk."

Every other house in my neighborhood has a pick-up truck (or two) indicating construction related employment.
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Messages in this Thread
 Notary Work slowing in CA - Cathy Edmondson on 7/21/21 11:44am
 Re: Notary Work slowing in CA -  janCA on 7/21/21 12:59pm
 Re: Notary Work slowing in CA -  Cheryl Elliott on 7/21/21 1:46pm
 I just received this news clip on my phone from CNBC.com -  Cheryl Elliott on 7/21/21 4:45pm
 Re: I just received this news clip on my phone from CNBC.com -  janCA on 7/21/21 7:21pm
 Re: I just received this news clip on my phone from CNBC.com -  Cheryl Elliott on 7/21/21 9:21pm
 This morning's news clip from SoFi.com -  Cheryl Elliott on 7/22/21 7:51am
 Housing shortage = smarter consumers? - Bear900/CA on 7/22/21 1:13pm
 Re: Housing shortage = smarter consumers? - Luckydog on 7/22/21 1:50pm
 For those seeking tax free states, here's a 2018 article ... -  Yoli/CA on 7/22/21 2:12pm
 Re: For those seeking tax free states, here - Bear900/CA on 7/22/21 4:40pm
 Re: For those seeking tax free states, here - Luckydog on 7/22/21 6:13pm
 Re: For those seeking tax free states, here -  janCA on 7/23/21 3:02pm
 Re: For those seeking tax free states, here - Luckydog on 7/23/21 5:19pm



 
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