Mike C

Ideas are like rabbits. You get a couple and learn how to handle them, and pretty soon you have a dozen. John Steinbeck #Quote

Which style is your favourite?

The Magnolia house was a Sears kit home, 1918 For nearly 30 years, people could order a piece of the American dream through the mail. A buyer could leaf through a Sears, Roebuck and Co. catalog, choose a house and mail in the order. In time, a railroad boxcar would chug into town, carrying a ready-to-assemble house — complete with nails and a 75-page instruction book. Most of the house kits came in a single box car. The model, named the Magnolia, sold between 1918 and 1922. Throwback Thursday 🔙 🕒 🔥!!

My friend just called me freaking out. I “inspired” him to buy a cabin & land in rural US to make memories. He did. I told him REPEATEDLY to visit in person before he closes, but he trusted a realtor for pics/videos. Closed last month, just flew out from CA to visit & take in the sights & sounds of being in nature. He pulled up to the gate for his new 100 acre parcel, got out of his car and said the smell about knocked him over. Come to find out, the 200 acre parcel next to him is a giant private pig farm. One of the biggest mistakes you can make in buying real estate is not putting your own eyes on whatever you’re buying. This one is going to be a hard lesson for him.

Median age of first-time a homebuyer in 1955: ~30 Median income for 30-year-olds in 1955: ~$2,800 ($33,850 inflation adjusted) These homes cost ~2.6-2.8x the median income of a median first-time homebuyer in 1955 ——— Median age of first-time homebuyer today: ~40 Median income for 40-year-old today: ~$62,000 Median cost of 3BR 1BR single-family homes in in mid-cost markets (Indianapolis, Milwaukee, etc): ~$400-500,000 (7-8x There income of a median first-time homebuyer) ——— Federal taxes paid by median home buyer in 1955: ~$110-130 ($1,300-1,500 inflation adjusted) Federal taxes paid by median home buyer today: ~$10,200 ——— Annual cost of healthcare for median homebuyer family in 1955: ~$100-125 ($1,200-1500 inflation-adjusted) Annual cost of healthcare for median homebuyer family today: ~$35,000 (often paid in part by employers w/money that could otherwise go to higher wages/salaries) ——— First-time homebuyer today buyers today are ten years older, and they take on mortgage debt that is a much higher % of their income, which has hardly increased since 1955 when we factor inflation, healthcare, tax burden, and childcare expenditures (since the typical home buying family in 1955 had one parent working, while affording a mortgage today typically requires two incomes). Unlimited access to virtual entertainment is the only reason we’re not experiencing political turmoil on an unprecedented scale.

An American Housing ad from 1955. Depressing.

MARKET MOVERS: Even though the U.S. real estate market has posed significant challenges for potential buyers, some parts of the country have seen increasing home values. Here are the top 10 metros where home prices have surged the most since 2019: 📍Knoxville, TN — +86% 📍Fayetteville, AR — +84.5% 📍Charleston, SC — +81.3% 📍Scranton, PA — +78.4% 📍Syracuse, NY — +77.6% 📍Portland, ME — +75.7% 📍Rochester, NY — +75.2% 📍New Haven, CT — +73.8% 📍Charlotte, NC — +73.1% 📍Chattanooga, TN — +72.9%

In the 1950s, an average working class man could buy this house, support motel guests and a stay-at-home mom.

The median age for home buyers has risen to an all-time high of 59, up from 47 in 2019, per BI.

Warren Buffett's Berkshire Hathaway and Zillow say mortgage rates can't fall enough for Americans to afford a home, per FORTUNE

Minimalist living room.

Home sales are headed for their worst year since 1995, per Redfin

Not even a 0% interest rate would make a typical home affordable in New York, Los Angeles, Miami, San Francisco, San Diego, or San Jose, per Zillow.

Reasons why people are backing out of home deals, per Redfin:

Electricity costs in the US

73% of Americans think it’s a bad time to buy a house, per Fannie Mae.

"As homeownership slips out of reach, more lower-income Americans are investing in stocks," per WSJ.

Mortgage rates in the US have dropped to 6.17%, falling for the fourth straight week, per Reuters

"About 56,000 U.S. purchase agreements were canceled in August, representing 15.1% of homes that went under contract. That’s the highest share for August deals falling through in records dating back to 2017," per FORTUNE