"Is Biden-omics going to cause another major reset on housing prices? Where millions will suddenly find themselves 'under water'? We will have to wait and see."
John and Mindy bought their very comfortable three-bedroom rambler about ten years ago. It is small, but the price was right, and they got a good deal on their mortgage rate. When the rates were at their lowest, they refinanced and got a 2.7% 30-year mortgage. They were in great shape - that is, until John's business unit moved to the other side of town. They then decided, it would be a good idea to move about 25 miles closer to where John worked.
Flash forward to Biden-omics. Joe Biden became president and had a friendly Congress. He starts spending money like a mind numbed moron. He took the fine economy that Trump had built and destroyed it. Pretty soon, all that spending led to inflation. Inflation, which had been barely a squeak during Trump, now was roaring once again. Soon the Fed stepped in and jacked up interest rates. Next thing you know, we once again have mortgage rates hovering around 8 percent.
Back to John and Mindy. After some house hunting, they found a few houses which fit their needs. But holy smokes! That inflation thing brought on by Biden-omics sure juiced up the prices! What was a $300,000 house just a few years ago, was now selling for $500,000. But the real shock came when they decided to talk to a realtor.
The first meeting with the realtor was a cold slap of reality. Not only were "they out of the game" for a half million-dollar split home on 1.5 acres of land, but the best interest rate also they could get was 6.9%. Sadly, the realization of their situation started to sink in. They needed to stay where they are, and have John take a huge commute through city traffic every day. Just like that, thanks to Joe Biden, they were stuck.
Right now, real estate is a mess. Commercial real estate has scads of vacant buildings. Why? That is another Biden/Democrat mess. Nobody wants to work downtown anymore, due to crime. The Democrats have de-funded the police, and any crook who gets caught, is set free by a Soros funded DA. Result - most major cities have a dystopian look to them. Welcome to three years of Biden-omics and Biden policies.
Housing? We have a lot of people just like John and Mindy who are "stuck". By the way - if you are feeling pretty good about your paid-up house, have you thought who is going to buy it? All those appreciated dollars now have your house worth a pretty penny. And now with an interest rate of 6.9% finding a prospective buyer, good luck on that one!
Is Biden-omics going to cause another major reset on housing prices? Where millions will suddenly find themselves "under water"? We will have to wait and see. Maybe everyone just needs to sit tight until next year when we get a normal president who can reverse all this Biden nonsense. In other words, sit tight and keep your fingers crossed.
No comments:
Post a Comment