Great! Good news to fuel an already decent morning! Thanks
I’m still reading through all the news on it. I think it’s good for everyone except realtors. Housing cost have escalated quickly over the last few years and I’ve always found 6% non-negotiable. That’s been the issue. They are a monopoly in the market
The other thing that’s “artificially” driving housing prices up is the consistently constrained supply enforced by overeager zoning and labyrinthine permitting processes.
There are many things that caused the slow creep over the year. The last three years have sky rocketed the cost.
Historically homes are suppose to grow at the rate of inflation. Maybe slightly higher.
I wish both parties would team up to fight the rapid cost increase. Otherwise there will be a few generations who can’t own a home.
Thank Blackrock, and all the 401k/roth/retirement investment orgs for investing in Blackrock.
lol. Yeah I’ve seen the argument they buy so little they don’t influence the market. I call BS. When I was buying my third home. I kept getting beat out by them. It took my a year to finally lock down my home.
I think they are buying more in the low end to middle Market.
I’m sure there are many factors, but constructive (edit: constrictive) zoning plus rising population (ie rising demand) is itself sufficient to explain not only rising prices, but even accelerating price increases (since the demand curve isn’t linear).
That’s only one element, and it’s not everywhere.
In my city, it’s the opposite. They’re pushing for more home construction and less commercial.
Zoning issues is typical of blue states. California. Oregon has have heavy restrictions for legit reasons.
People don’t realize restrictions make sense. You can’t cram 50k people into an area without the sewage, water, roads, etc. there is a balance.
At one of my houses we have a restriction that each house must have 1 acre. It seems crazy till you learn most of that is an easement for electric and drainage. So while I have an acre. Most of it’s not useable. It’s just grass.
The other problem areas have with rapidly growing the population is all the infrastructure that has to grow with it. My area has added three schools in the last 5 years and are near capacity, tripled water and sewer capacity (some future proofing), are constantly widening roads. They’ve started slow rolling rezoning so they can catch up which has caused home prices to jump 10% more compared to the surrounding areas.
I’ve bought and sold several houses. It always seemed like the goal was to LIST your house. Then without doing any work that person got 3% of the total selling price.
