As interest rates continue to push for higher ground, homeowner applications have hit a 28 eight year low. First-time homebuyers made up the smallest share of sales last year at 26%.
Extremely tight inventory combined with high interest rates mean that the rich, those with high-paying jobs, lots of money, or rich parents, are the only ones that can afford to buy: From Bloomberg:
The average rate for a 30-year, fixed mortgage climbed for a fourth straight week, reaching 6.65%, Freddie Mac data released Thursday show.
The difficulties for first-time buyers have been escalating for years. During the pandemic boom, they were frequently squeezed out as they competed against people with cash and investors who frequently target starter homes. The typical household income for first-time buyers soared to as much as $90,000 in 2022 from about $70,000 in 2019. -Bloomberg.
This is happening in Cape Charles, and all up and down the Shore. Real estate has severely shifted toward homebuyers with higher incomes, and the rich, those with perceived superior financial pedigree. Without more inventory, which seems doubtful, this trend will continue.
According to Zillow, with mortgage rates at 7%, it would take around 10 years for an individual saving 5% of the median household every month to set aside enough for a 10% down payment on a typical home. And banks may be asking for more than 10% in the near future.
The inventory of entry-level homes is very, very low–the amount of cheaper properties is down 1.5% in January vs. the same time last year. Meanwhile, the supply for the most-expensive properties, you know 500k to $3 million has jumped 37%.
The bottom line is that home prices, driven up by the rich, have outpaced wages for almost all of the young and working class. The median age of first-time buyers has jumped from 29 in 1981 to 36 in 2022, the oldest in the National Association of Realtors’ records.
The Richie Rich’s of the world have always had an advantage. Historically, 1/3 of first-time buyers received money from relatives to cover the down payment. Freddic Mac reports that in 2021, over 40% of young homeowners listed a co-borrower, someone over 55.
Thanks to higher interest rates, a buyer purchasing a $400,000 home with 20% down on a 30-year fixed loan, the monthly payment, including principal and interest, is now roughly $230 a month more than it would have been a month ago. Compared with a year ago, when rates were in the 4% range, today’s monthly payment is about 50% higher, according to CNBC’s Diana Olick.
Oh well, just sucks to be this generation of entitled liberal socialists huh? Move to California, claim to have a slave great grandparent and get a home for free.
Yo Daddy says
You display the caricature of an uneducated backwoods racist with that ignorant statement. Crawl back under your rock and wait another 25 years to resurface.
Paul Plante says
Yo Daddy, you da man!
Stuart Bell says
Racism is an attitude that takes place in one’s head.
Discrimination is an overt act that takes place in the real world.
Do you know how completely ignorant you look calling someone a Racist?
You look like the urchin that cried Wolf one too many times.
Are you gonna tell us to like Watermelon over Cantaloupe or Fried Chicken over Boiled Chicken or maybe Tomatoes instead of Strawberries? Fool!
Hims Din Do Nuffins says
For almost 150 years the United States has been conducting an interesting experiment. The subjects of the experiment: black people and working-class whites.
The hypothesis to be tested: Can a people taken from the jungles of Africa and forced into slavery be fully integrated as citizens in a majority white population?
The whites were descendants of Europeans who had created a majestic civilization. The former slaves had been tribal peoples with no written language and virtually no intellectual achievements. Acting on a policy that was not fair to either group, the government released newly freed black people into a white society that saw them as inferiors. America has struggled with racial discord ever since.
Decade after decade the problems persisted but the experimenters never gave up. They insisted that if they could find the right formula the experiment would work, and concocted program after program to get the result they wanted. They created the Freedman’s Bureau, passed civil rights laws, tried to build the Great Society, declared War on Poverty, ordered race preferences, built housing projects, and tried midnight basketball.
Their new laws intruded into people’s lives in ways that would have been otherwise unthinkable. They called in National Guard troops to enforce school integration. They outlawed freedom of association. Over the protests of parents, they put white children on buses and sent them to black schools and vice versa. They tried with money, special programs, relaxed standards, and endless handwringing to close the “achievement gap.” To keep white backlash in check they began punishing public and even private statements on race. They hung up Orwellian public banners that commanded whites to “Celebrate Diversity!” and “Say No to Racism.” Nothing was off limits if it might salvage the experiment.
Some thought that what W.E.B. Du Bois called the Talented Tenth would lead the way for black people. A group of elite, educated blacks would knock down doors of opportunity and show the world what blacks were capable of. There is a Talented Tenth. They are the black Americans who have become entrepreneurs, lawyers, doctors and scientists. But ten percent is not enough. For the experiment to work, the ten percent has to be followed by a critical mass of people who can hold middle-class jobs and promote social stability. That is what is missing.
Through the years, too many black people continue to show an inability to function and prosper in a culture unsuited to them. Detroit is bankrupt, the south side of Chicago is a war zone, and the vast majority of black cities all over America are beset by degeneracy and violence. And blacks never take responsibility for their failures. Instead, they lash out in anger and resentment.
Across the generations and across the country, as we have seen in Detroit, Watts, Newark, Los Angeles, Cincinnati, and now Ferguson, rioting and looting are just one racial incident away. The white elite would tell us that this doesn’t mean the experiment has failed. We just have to try harder. We need more money, more time, more understanding, more programs, and more opportunities.
But nothing changes no matter how much money is spent, no matter how many laws are passed, no matter how many black geniuses are portrayed on TV, and no matter who is president. Some argue it’s a problem of “culture,” as if culture creates people’s behavior instead of the other way around. Others blame “white privilege.”
But since 1965, when the elites opened America’s doors to the Third World, immigrants from Asia and India–people who are not white, not rich, and not “connected”–have quietly succeeded. While the children of these people are winning spelling bees and getting top scores on the SAT, black “youths” are committing half the country’s violent crime–crime, which includes viciously punching random white people on the street for the thrill of it that has nothing to do with poverty.
The experiment has failed. Not because of culture, or white privilege, or racism. The fundamental problem is that white people and black people are different. They differ intellectually and temperamentally. These differences result in permanent social incompatibility.
Our rulers don’t seem to understand just how tired their white subjects are with this experiment. They don’t understand that white people aren’t out to get black people; they are just exhausted with them. They are exhausted by the social pathologies, the violence, the endless complaints, and the blind racial solidarity, the bottomless pit of grievances, the excuses, and the reflexive animosity.
The elites explain everything with “racism,” and refuse to believe that white frustration could soon reach the boiling point.
Stuart Bell says
“Sick of liberals trying to make you feel guilty about slavery? All you need to do is remind them of a few historical points:
All races kept slaves all throughout history.
Most of the American slaveships and American slave-markets were run by Jews. But no one blames modern Jews. Because if anyone today says anything was “run by Jews”, they’re immediately dismissed as a crazy anti-Semite, regardless of whether or not it’s true.
When the Trans-Atlantic slaveships docked at African slave-markets to buy slaves, they bought slaves who were already slaves. It was Arab Muslims and Black Africans themselves who captured members of rival tribes and took them to the coastal slave-markets to sell to the Whites and Jews. White people didn’t go into Africa and kidnap free black people. They barely needed to get off their ships to buy slaves, it was like buying McDonalds at a drive-through. The slaves were already at the slave-market in chains, ready to go.
In the 16th – 18th century, Africans enslaved 1.5 million White Europeans in the Barbary Slave Trade. African Muslims raided up the coastlines of Europe, particularly the British Isles but even as far as Iceland, kidnapping and enslaving White European Christians. The men were galley slaves, and the women were sex slaves. This was more brutal than working on a plantation or as a domestic servant.
Native Americans and Jews owned Black slaves too, but no one seems to assign a collective guilt to modern Native Americans and Jews for their slavery. In fact, Jews were the biggest slave-owners in America per capita.
Whites were the first people to stop slavery in modern times, whereas slavery still continues in Africa to this day. In Mauritania slavery was only made a punishable offense in 2007!
Less than 2% of Whites in America ever owned slaves
Only 5% of the black slaves transported across the Atlantic actually went to the modern U.S. Most in fact went to Latin America to serve Hispanic slave-owners. But we don’t look at modern Hispanics as evil slave-owners.”
Liberals have one color.
Greg Parks says
Asian countries for Asians.
Black countries for Blacks.
but White countries for everybody?
Anti-racist is a code word for Anti-White.