Friday Update October 22, 2021
608 again! That's the number of homes available. Maybe I should buy a lottery ticket or something, same exact inventory level as last week. 1002 closed units so far in October so even if you're terrible at math and use credit cards to pay off other credit cards, you know that's not enough for a balanced market. Median price month to date at 440k, average at 508k. No crash in pricing. Steady as she goes into winter.
Rates are coiling upward. The Fed is expected to taper off their bond buying in the near future and those expectations are gradually pushing rates up. 10 year T notes at about 1.65% today after briefly touching 1.7%. Mortgage rates fairly steady but trending slightly up. Nothing drastic.
As I discussed before I think a gradual increase in interest rates will further contribute to our low inventory. People are going to be hesitant to sell their houses with cozy payments to move into much more expensive homes at higher rates.
So I know I'm kind of a pessimist but if I was a renter right now I probably would not bank on things getting any easier in the future. To be completely honest its because nobody actually gives a shit about you or your misfortunes. That's how capitalism mixed with a healthy dash of fascism works. I know that's gonna sting and I'm not saying it because I think its good, or fair, I'm just saying it becausse its true.
206 years ago a bloke by the name of Nathan Rothschild famously said the following words:
"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls the British money supply controls the British Empire, and I control the British money supply."
Now you substitute British Empire for US and substitute Nathan for the Federal Reserve. Otherwise it is the exact same principle.
I'm not going to do a deep dive today into how inflation works and why it is not by accident that we're going through it. Just embrace the suck and do your best to benefit from it. You benefit by taking out loans at fixed rates the value of which gets dimished over time. You hold hard assets, income producing assets if at all possible. You do all this with complete and total disregard for what your broke ass friends tell you, because they're broke and will likely continue to be broke.
Today the Federal Budget deficit came in a 2.77 Trillion dollars, second only to last year's fantastic shit show. Do you think the government is going to default on their obligations and look like the incompetent fuckwits that they are? Or do you think they're going to fund this rolling idiocracy with more debt strapped to your childrens' futures all while padding their pockets and the pockets of their corporate sponsors? That last part is what makes it fascism by the way, I know a lot of people like to use words like Communism, Fascism, Socialism etc but they don't actually know the meaning. Fascism is the marriage of corporate interest and politics, we have mastered fascism in the United States.
So in summary guys. Money is a made up concept controlled by a handful of people who genuinely do not care about your existence. Controlling cash flowing assets is one sure way to protect yourself from the volatility of the world around you. Refusing to accept this reality and hoping for the government to come help you is incredibly stupid.
If you're thinking about buying or selling and don't mind blunt truths give us a call.
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