Home prices, and therefore the American Dream, are the most “unaffordable … in history,” according to the latest data.
“Home prices hit a new record in June amid an ongoing housing shortage, even as high mortgage rates continued to push affordability out of reach for millions of Americans,” reports Fox Business.
The report adds, “Prices increased 5.4% nationally in June when compared with the previous year,” which is only down slightly from “the 5.9% pace recorded the previous month.”
“The upward pressure on home prices is making this the most unaffordable housing market in history,” Bright MLS’s chief economist told Fox. “First-time and moderate-income home buyers, in particular, increasingly are being left out of the housing market.”
The policies of the Harris-Biden administration and Democrats in general are the sole cause of this disaster.
First off, Democrats are against building new homes, most especially single-family homes. What Democrats really want is what they call “density,” which is forcing us all into studio apartments in their lousy cities. This makes us easier to control, and they make no secret of it. Their reasoning is based on the ludicrous idea that cities are better for the environment. What a lie. If you want to see filth, grime, trash, and lousy air and water, move to a city. If you want to see clean streets, clean water, clean air, and a true love for nature, head out to rural America where Trump voters live.
Housing is scarce because Democrats do everything possible to make building a new home unaffordable by way of insane environmental regulations.
Then!
On top of scarce housing, Democrats like Kamala imported some 30 million illegal immigrants to compete with American citizens for housing. Of course that drives up the price.
The other problem is that Harris and Biden set a plague upon all of us with the worst inflation in most of our lifetimes. Biden slashed domestic energy production, which exploded energy prices, which raised the cost of everything. Harris and Biden spent like drunken sailors, I’m talking trillions of dollars, which cheapened the dollar and exploded prices.
This makes it even more expensive to build a home, which increases the cost of every home.
Then!
To try and tamp down this record inflation, interest rates went up. This caused two traffic jams in the housing market.
The first is that the under-three-percent, 30-year mortgage rates during the Trump years more than doubled under Harris-Biden to as high as 7.5 percent. They now sit somewhere around 6.5 percent, but that is still more than double. And, believe it or not, a jump in a 30-year mortgage rate from just under three percent to 6.5 percent almost doubles what you will end up paying for the house over those 30 years and almost doubles your mortgage payment.
Additionally, those high mortgage rates have decreased the number of homes available on the market. Most people who sell their homes are looking into buying another home. Well, if you bought a home at a three percent interest rate, you are more likely than not to wait until rates decrease to that amount before you sell and buy again.
Buying your own home is the American Dream. Owning a house is almost always a great investment and once it’s paid off, as long as you keep up with the property taxes, it is all yours. That ownership makes retirement a reality. Finally, you have something of value to fall back in an emergency, to pass on to your heirs, or to pay for assisted living in your old age.
Without a home, you are owned by the government and your landlord. It’s serfdom.
People like Kamala Harris want us all to be her serfs.
John Nolte’s first and last novel, Borrowed Time, is winning five-star raves from everyday readers. You can read an excerpt here and an in-depth review here. Also available in hardcover and on Kindle and Audiobook.