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@contradevian

Housing Remains A Dead End

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Posting this as it seems to sum up my thinking about the UK market. Worrying that $200 a month gets you $200k of debt and yet there are relatively few takers:

http://ibankcoin.com...ins-a-dead-end/

In real dollar terms from the point of view of a consumer, 1% is just not that much money. <$100 a month per $100,000 of mortgage. If that's all it took to crush the market, then what does that reveal about the market? In fact, I'd think if people were in a good position to support housing, the yield rise should be driving home sales as consumers try to lock in rates before they go up another 1%.

The housing recovery will hinge on a wage recovery for young Americans. Household formation needs to get back on track – but for the moment, as my multifamily REITs are signaling, renting is a favored option against homeownership among this generation. Household formation among the youngest citizens continue to opt for leases over mortgages

This comment seems to get it, as over 50% of US sales are cash buyers

Echoing my comment on the thread a few days ago, I think this year's housing bull market is for people with cash money. I think most ordinary folks would be hard pressed to come up with conventional or FHA down payment, especially since it has to be seasoned.
Edited by aSecureTenant

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