No One Can Afford to Buy a House

On episode 110 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Jeremy Grantham to discuss: being the "Bubble Historian", Inflation, Modern Valuations, the Four most Dangerous Words, Tesla, Real Estate, Impact Investing, and much more! Including a few extra words of wisdom.

Listen to podcasts from The Compound:

Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here:

#investing #mortgage #housingmarket

[DanglesforDays]

Im feeling this right now. I live in Colorado and with the interest rates a 600k house comes out to $3800-$4200/month.

[gsyl]

A major factor we never hear about in housing inflation is the AirBnB market. Corporations and private investors have been buying up the single-family homes with cash and low-rate loans for years. Those homes have and continue to be removed from the market, eliminating the supply for new homeowners and fueling the inflation of housing prices. Increasing interest rates is not the tool for that fight (it only hurts the new homeowners who can't pay with cash). It appears the Fed understands that, at least to the extent that they haven't continued to increase rates in the recent months.

[HansDryden]

He said it exactly right, we'll pay more when we can afford to and we'll pay less when that's all we can afford. The housing markets not going anywhere unless jobs numbers drop and people start missing rent/mortgage payments.

[HolyElkGaming]

Yes buying a house isn't affordable but there are other cities that exist besides Toronto and London contrary to the belief of their residents 😉

[Vanguard-cu]

...and, today's stock market!!! And, the US Debt!!! ...and working people saving less than $20, 000 after 20 years, and...I didn't vote for him, but I hope Trump and the "smart" guys have better answers than bankruptcy!

[perretti]

And we (DNC & GOP) allow foreigners to buy property and sit on it, which most countries do not allow for this reason. Plus we (DNC & GOP) allow investment corporations to buy single family houses in bulk rescuing supply and increases cost. Plus the same banks won’t give single families any slack when competing for the same properties they are buying up.