[jimjamuser]

Originally Posted by MandoMan

Your source, Forbes, actually says “ A chilly scenario for the U.S. economy, in which interest rates climb as high as 8% as the effects of the unprecedented monetary policy taken to combat inflation take hold, is still very much on the table, according to JPMorgan Chase CEO Jamie Dimon. . . .

“Coupled with Dimon’s concerns about the potential for “stagflation,” a recession characterized by lingering high inflation, he warned interest rates could soar to “8% or even more,” a far cry from the already 22-year high rates of over 5% and going against conventional wisdom of a looming decline in rates (U.S. interest rates have not been 8% or higher since 1990).”

Note that “conventional wisdom,” which tends to be more accurate, disagrees with his position. Note that he doesn’t say that this WILL happen, but COULD happen if monetary policy LEADS TO “stagflation,” which it hasn’t yet and probably won’t. Note that the monetary policy he is talking about is set by the Federal Reserve Bank, and the White House has NO SAY over that policy. If Trump is elected, the Fed will keep on doing whatever it thinks best with the same people making the decisions.

I believe that the Fed is doing a good job and making wise decisions, even if they aren’t the decisions many of us with less expertise would prefer. Dimon is charismatic and powerful, but he has made many predictions over the years that didn’t come true, as well as many that did.

A very good post.

[Randall55]

Originally Posted by Cuervo

If history is any roadmap in a free-market society price will increase as demand increases.
If demand decreases so will prices, but I do not see that happening in the near future, unless there is some unforeseen major even.
There are no more nickel candy bars.

In the Villages, home prices are decreasing and MANY are sitting on the market for months. Too many look at what the Developer is doing and construe his good fortune means good fortune for all. Not true! The minute you close on your new home, you are now living in a preowned. At this time, preowned homes are not seeing large profits. Most are lucky to break even. The one exception seems to be larger homes with pools. These types of homes are seeing huge profits. Cookie cutter homes, patio villas, and courtyard villas are not. Buyers for these types of homes are choosing to buy new because new homes are cheaper. Why pay someone more for the same model?

[margaretmattson]

Originally Posted by Randall55

In the Villages, home prices are decreasing and MANY are sitting on the market for months. Too many look at what the Developer is doing and construe his good fortune means good fortune for all. Not true! The minute you close on your new home, you are now living in a preowned. At this time, preowned homes are not seeing large profits. Most are lucky to break even. The one exception seems to be larger homes with pools. These types of homes are seeing huge profits. Cookie cutter homes, patio villas, and courtyard villas are not. Buyers for these types of homes are choosing to buy new because new homes are cheaper. Why pay someone more for the same model?

Even the prices of new homes are dropping. Hundreds of Lake Denham and Dabney home prices were reduced. Some as much as $50,000. Moultrie Creek is in high demand but not certain this will remain the case. Many Villagers are buying those homes creating a false market. When they try to sell, will it be difficult? Things have changed quite considerably since the post Covid craze.

[Mleeja]

The interest rate is having a big effect on the real estate market. I have a home I am involved with selling. If we could have gotten it on the market last July or August it would probably be sold. Now, it is just languishing on the market with the price going down.

[jimjamuser]

Originally Posted by Wondering

Most of the time Jamie Dimon is full of hot air. He was a big part of the mortgage collapse of 2008. If you are worried about the federal deficit, you should have thought about that back in 2017 with the big tax cuts for billionaires.

All true !

[jimjamuser]

Originally Posted by Cuervo

If history is any roadmap in a free-market society price will increase as demand increases.
If demand decreases so will prices, but I do not see that happening in the near future, unless there is some unforeseen major even.
There are no more nickel candy bars.

I would think that demand for houses would be INCREASING because of the increasing population of the US (both Legal and ILLEGAL). This demand would mean increased prices. That problem could be overcome IF ZONING laws were liberalized to allow small houses, domed houses, and houses built on assembly lines as is done in Europe.

[Jayhawk]

Originally Posted by Randall55

Why pay someone more for the same model?

Crown molding, no carpet, enclosed lanai, upgraded countertops and cabinets, landscaping, painted driveway, epoxy garage floor, close-by retail, established neighborhood, no construction traffic, location, location, location, just to name a few reasons.

Some prefer new. For those who don't care, these things may be part of the consideration.