Comments by "worn down" (@worndown8280) on "New Homes SLASHED $196,000 (Lennar in BIG TROUBLE?)" video.

average mortgage is already in the 7's for people with average credit scores in the US. Only about 20% of people who have 800 credit scores qualify for the going rate loans. A lot of people forget that.
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@mariopaul8413 You would get close to the listed rate, buy you would probably have to shop around a bit. The Fed rate is going to go up around 200pts before the end of the year. So if anyone who is going to buy, and need a mortgage, they need to keep that in consideration.
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@ilikecontent2327 I cant really improve my credit score (humble brag)
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Yea you will need to see a 38% price correction to get back to that level
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@CaptainCaveman1170 So you are telling me demand will be the same when the boomers, who currently own 44% of all single family housing, die, and no one is living in that house? You wont even be able to rent them for a decent ROI, you could just buy bonds and not deal with the hassle. I dont think a lot of folks understand what the demographics and demand is going to look like going forward. But that wasnt my question. Why question was is there data that states how many people want into the housing market, if so how many? That will tell you if our current level of homes is anemic or where it should be. But I do understand your position on price point vs demand.
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@CaptainCaveman1170 why would they invest in depreciating assets with diminishing roi? There are easier ways to make money. Most of these investment funds haven't been through a single downturn. I don't think many of them will survive this recession. But with populism on the rise, you are probably right about the legislation. California is already banning foreclosures and evictions.
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@CaptainCaveman1170 it was only roi positive because of the near zero interest rates though. Those are never coming back.
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@CaptainCaveman1170 I would point you to the Phoenix market for whats in store for the rest of the US. Rental rates are dropping and vacancies are through the rood. Corporate REITs are losing their shirts there. Small timers too. When locals cant afford the rent prices, they crash. You cant pay more than you make. And when these companies go to refi, REITs always do short term adjustable rate financing because it increases the ROI, they will need to raise rental prices, which are already falling. It will spread, especially after the mid terms.
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@ilikecontent2327 This is true, but im 47. when I was 23, my credit score was low. I was never a credit risk, just didnt have much credit before getting my first house at 23. First time home buyers usually have lower credit for that reason.
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Question, have there been any recent polls or studies that show how many Americans who dont own homes want to buy? Why is it assumed that the demand for homes in 2022/2023 is the same as in 2018? The oldest Millennials are outside the family creation range which is generally the main reason people buy homes in the first place. The next generation, the zoomers is so small it wont even make up half the numbers of millennials. So should we assume that demand for housing is the same? It certainly wont be going forward. Just wondering what industry data says on this?
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@CaptainCaveman1170 a land lord does. Even more so when the asset he is renting, in this case real estate, is not gaining in value.
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@CaptainCaveman1170 You do understand that as everything devalues, the people who have money invested in these REITs will need their money back to make margin calls right? As the boomers retire and retirement and pension plans have to pay out the money they put in REITs will be pulled out to make payments. The majority of these companies wont be in business in 5 years. And even if the other ones that survive buy up all their assets it still wont be as bad as it is now. This will improve. I promise.
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