Social Bank boss says it’s not ‘that difficult’ to buy a home — and sparks a backlash

[panamaican]

That's part of the picture. Another problem is inventory. When interest rates hit bottom a few years ago, EVERYONE refi'd that could. So you have all these people with amazing mortgages that no way want to move and go from 3% to 7% or whatever. Which means those houses that would normally be on the market aren't available (even at inflated prices).

Not a problem if you have enough money.

 

[panamaican]

I meant for the majority of Americans. Of course people with enough wealth can do the things their wealth allows them to do.

Sure, I don't disagree with that. It's why the second half of my first post was that this speaker, the banker, is probably completely unaware of what the majority of people are dealing with since his industry pays enough money for their employees to only be minimally impacted by these things.

We have enough upper middle class people getting what they want to convince the power brokers that the problems of the lower and lower middle class aren't that serious. As Barack Obama said politicians gradually become influenced by the monied set because that's who you end being around most of the time. It skews their perception of the world.

 

[Rob Battisti]

Sure, I don't disagree with that. It's why the second half of my first post was that this speaker, the banker, is probably completely unaware of what the majority of people are dealing with since his industry pays enough money for their employees to only be minimally impacted by these things.

We have enough upper middle class people getting what they want to convince the power brokers that the problems of the lower and lower middle class aren't that serious. As Barack Obama said politicians gradually become influenced by the monied set because that's who you end being around most of the time. It skews their perception of the world.

Now look at big baller barry just living it up with the top 1%

 

[panamaican]

Now look at big baller barry just living it up with the top 1%

He's lived long enough to turn into the things he opposed.

 

[Bunk Moreland]

I don’t know why they just don’t move to a place with cheaper houses. Maybe another country? Italy? Greece?

 

[mkess101]

Not a problem if you have enough money.

Ha I mean yeah. If you have enough, you can just buy a lot and build and not care about cost.

The problem is those that would've been in the first time homebuyer mix previously, now aren't. And they are getting hit from multiple angles. Higher mortgage rates for them. And those higher rates capping mobility and locking people into their current homes.

I mean, I live in the suburban midwest. Average house in my neighborhood maybe $600-$700k? We have multiple friends that have always talked about how they'd like to have the experience of building a home. Household incomes of $350k+, and massive equity on their current homes so they could build no problem. But even they are like "Nope, we'll wait." They have mortgages like mine (15 year, 2.5% so close to interest free) and simply don't want to "pay up" to build. So these houses that would be on the market with lower rates, now aren't. Which pushes the prices on the homes that are available up, and squeezes out a lot of first time home buyers (even those who earn good $).

 

[IDGETKTFO]

I don’t know why they just don’t move to a place with cheaper houses. Maybe another country? Italy? Greece?

Exactly. If didn't already own my home, and didn't hate hour drives to stores, I could sell my house and buy 6-8 houses in a town an hour away from me.

 

[Renard]

I don’t know why they just don’t move to a place with cheaper houses. Maybe another country? Italy? Greece?

You're probably being flippant but the economy in both those countries is doing poorly. No jobs. Young people are leaving, not moving in. It's mostly retirees with money who move there, since they don't need to worry about the job market.

 

[Michaelangelo]

banker chick equivalent

 

[Michaelangelo]

wood be nice if the govt could regulate foreigners and corporations from mass buying properties

 

[panamaican]

Ha I mean yeah. If you have enough, you can just buy a lot and build and not care about cost.

The problem is those that would've been in the first time homebuyer mix previously, now aren't. And they are getting hit from multiple angles. Higher mortgage rates for them. And those higher rates capping mobility and locking people into their current homes.

I mean, I live in the suburban midwest. Average house in my neighborhood maybe $600-$700k? We have multiple friends that have always talked about how they'd like to have the experience of building a home. Household incomes of $350k+, and massive equity on their current homes so they could build no problem. But even they are like "Nope, we'll wait." They have mortgages like mine (15 year, 2.5% so close to interest free) and simply don't want to "pay up" to build. So these houses that would be on the market with lower rates, now aren't. Which pushes the prices on the homes that are available up, and squeezes out a lot of first time home buyers (even those who earn good $).

I understand the real estate market fairly well.

The point I'm making is that the banker's statement is true so long as we ignore the people side of the problem. There are houses on the market. There are realtors listing and selling those houses. There are banks and mortgage companies lending to anyone who can afford those houses.

The process of getting a house is not that difficult.

The process of having enough money to get that house is a different story altogether.

 

[D3thr0n3d K1ng]

Just need some bootstraps!

 

[mkess101]

I understand the real estate market fairly well.

The point I'm making is that the banker's statement is true so long as we ignore the people side of the problem. There are houses on the market. There are realtors listing and selling those houses. There are banks and mortgage companies lending to anyone who can afford those houses.

The process of getting a house is not that difficult.

The process of having enough money to get that house is a different story altogether.

Okay I get what you're saying and I agree up to a point. But framing it that way kinda makes it seem like that guy is so detached from reality that he believes the "process" is the hurdle, and not the actual economic realities. Like...does he actually think the complaints people have aren't directly related to the economic obstacles people now face (even as opposed to 5 years ago for example) in terms of buying homes? (The obstacles being all the stuff I mentioned).

Yeah, homes are being bought and sold. But far less than previously. All the #'s (residential building permits, new housing starts, etc) show it. Of course it varies depending on location, some spots are still red hot.

 

[panamaican]

Okay I get what you're saying and I agree up to a point. But framing it that way kinda makes it seem like that guy is so detached from reality that he believes the "process" is the hurdle, and not the actual economic realities. Like...does he actually think the complaints people have aren't directly related to the economic obstacles people now face (even as opposed to 5 years ago for example) in terms of buying homes? (The obstacles being all the stuff I mentioned).

Yeah, homes are being bought and sold. But far less than previously. All the #'s (residential building permits, new housing starts, etc) show it. Of course it varies depending on location, some spots are still red hot.

My point in my original post was that this guy works in an industry where the employees probably do not have the problems that we are discussing. So, from where he sits, it's not that difficult. Sure, houses are more expensive and mortgage rates are higher but that just means saving a little more or buying a smaller house.

He's not thinking about the people who can't even save a little bit or for whom the interest rates keep everything out of reach. It's a matter of perspective.

 

[mkess101]

My point in my original post was that this guy works in an industry where the employees probably do not have the problems that we are discussing. So, from where he sits, it's not that difficult. Sure, houses are more expensive and mortgage rates are higher but that just means saving a little more or buying a smaller house.

He's not thinking about the people who can't even save a little bit or for whom the interest rates keep everything out of reach. It's a matter of perspective.

True. I do think that's a disconnect that can be costly though. Part of holding a position like that is to have your finger on the pulse of society in general. Anyone can get a bit isolated, not saying he's alone but policy decisions get made sometimes by people that are a bit too sheltered from the life of the everyman.

Another way to put it would be that he's paid very well to keep in sight the prospects of the millions of people out there that are NOT paid like he is LOL.

 

[CantCucktheTuck]

It’s objectively harder to purchase a home in the United States right now.

prices are out of hand for the buyers.

 

[mkess101]

prices are out of hand for the buyers.

Not only prices though. Inflated prices but being able to lock a rate at 3% was doable for a lot of people. Esp with decent inventory available. 7% interest plus low inventory plus high home prices? Good luck to anyone that doesn't have a lot of $ to plunk down plus a good income.

 

[panamaican]

True. I do think that's a disconnect that can be costly though. Part of holding a position like that is to have your finger on the pulse of society in general. Anyone can get a bit isolated, not saying he's alone but policy decisions get made sometimes by people that are a bit too sheltered from the life of the everyman.

Another way to put it would be that he's paid very well to keep in sight the prospects of the millions of people out there that are NOT paid like he is LOL.

No he's not paid for that. He's paid to make money for the bank.

Banks don't mind high interest rates and lower house sales until those numbers dip low enough to affect total revenue. But you're mistaken if you think banks ever really cared about lending to the lower income brackets. They don't. They don't like it. The risk of default is too high so they're just fine with higher barriers to lending. Again, so long as total revenue doesn't take too big a hit.

 

[lifelessheap]

Flooding the West with tens of millions of illegal aliens to compete for housing and jobs should surely make housing prices GO DOWN, and wages GO UP.

That is how competition works? That is how supply and demand works?

Open borders hurt the poorest and most vulnerable, yet somehow Democrats support it. HuH..

 

[CatchnShoot]

lol... talk about being tone deaf.
UK housing market is BRUTAL.

If you want to rent a flat... sure, but if you want to buy a house??? Forgetaboutit.