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US housing starts surge to 9-year high in October
Topic Started: Nov 17 2016, 10:09 AM (165 Views)
Alt Right PEPE
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US housing starts surge to 9-year high in October

http://www.cnbc.com/2016/11/17/us-housing-starts-oct-2016.html
"Be polite, be friendly. But have a plan to kill everyone you meet." Gen Mattis
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Thanks Obama!
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Robert Stout
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This is a normal reaction to the belief that prices will go up........... :dunno:
Jesus can raise the dead, but he can't fix stupid
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George Aligator
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wilmywood8455
Nov 17 2016, 12:11 PM
Thanks Obama!
Housing starts are driven by mortgage rates which depend, ultimately, on the Treasury bond interest rate. The October boom was predicated on what then seemed the certainty of President Hillary.

On the reasonable assumption that the Republican Congress will give President Trump at least a piece of what he says he wants in tax cuts and infrastructure spending (a gift that is going to require some arm-twisting on Ryan and the fiscal conservatives) we are in for significant inflation and corresponding increase in Fed rates to banks.

If you are thinking of buying a house, now would be the time.
Conservatism is a social disease
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PATruth
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Housing prices are a function of supply & demand and interest rates. The lower the rates, the higher the prices, the higher the rates, the lower the prices. Many feel the artificially low rates have created an asset bubble, both in the stock market and in real estate. If and when rates do go up people will be more likely to pull their money out of the stock market. People will also qualify for a lower mortgage amount and therefore a lower priced house. This doesn't effect millionaires because they can pay cash, it does however effect the poor middle class schmuck in his $250K McMansion. Recessions are cyclical and quite honestly we are due. I suggest caution.
"No. No he won't. We'll stop it."
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George Aligator
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PATruth
Nov 17 2016, 02:59 PM
Housing prices are a function of supply & demand and interest rates. The lower the rates, the higher the prices, the higher the rates, the lower the prices. Many feel the artificially low rates have created an asset bubble, both in the stock market and in real estate. If and when rates do go up people will be more likely to pull their money out of the stock market. People will also qualify for a lower mortgage amount and therefore a lower priced house. This doesn't effect millionaires because they can pay cash, it does however effect the poor middle class schmuck in his $250K McMansion. Recessions are cyclical and quite honestly we are due. I suggest caution.
I agree with my old colleague that the leading indicators are pointing to a recessionary swing before the end of Trump's first term. Caution is always advisable if you have more wealth than you need immediately; however, the incoming president does not seem to be thinking cautiously. His interest seems to be in rapid and spectacular transformation of some of the basics of the American economy. His past activities show a rollercoaster pattern of windfall and bankruptcy which, if translated to the national stage would mean chaos and catastrophe. I hope PATruth still has those Krugerrands stashed under his mattress.
Conservatism is a social disease
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BuckFan

There is a tightening of inventory for housing here in Central Ohio so prices have been going up One of the problems is that there is a lack of workers, especially skilled workers like carpenters, plumbers and electricians, to work on all the projects. One article in the local paper questioned the ability to handle a Trump funded infrastructure surge because of the lack of labor.
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Demagogue
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BuckFan
Nov 17 2016, 04:35 PM
There is a tightening of inventory for housing here in Central Ohio so prices have been going up One of the problems is that there is a lack of workers, especially skilled workers like carpenters, plumbers and electricians, to work on all the projects. One article in the local paper questioned the ability to handle a Trump funded infrastructure surge because of the lack of labor.
We don't have that problem here in Florida. Still plenty of housing available and limited need for new construction unless you just want something new.

As for laborers, we have too many of those also. Maybe we can send you the ones we don't want. English will probably be their second language and none of them will have a license but they all say they know how to do the work...
People sleep peacefully in their beds at night only because rough men stand ready to visit violence on those who would do them harm.
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