Wall Street Journal still unwisely telling everyone now is not the time to buy a home
Posted by John Reed on
WSJ’s home buying hater Nicole Friedman is still on the job. Today’s front page article laments that the number of homes sold went down. Is the WSJ mainly a periodical read by home builders? Nope. It is mainly read by the 80,000,000 home OWNERS, not the nation’s 412,020 home builders.
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She says unit sales are down because of “stubbornly high interest rates:” 6.96% now she claims. “Stubbornly?” She is anthropomorphizing the mortgage market? I think those rates are set by a Fed trying to knock down inflation. Do homeowners want inflation knocked down? I am sure they like appreciation in their home’s values—a big number. And I am sure they do not like egg and gasoline prices—small numbers—going up. Nicole Friedman apparently identifies more with would-be homeowner renters struggling to make ends meet. The percentage of those who subscribe to the WSJ is, I suspect, zero.
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Friedman says 6.96% is a “high” mortgage rate. Compared to what? When I bought my first duplex in 1969, I paid 7.25%. In the years from 1967 to 2002, rates were almost always ABOVE 7%. I do not know how old she is. I suspect she is a wet-behind-the-ears kid who thinks mortgages were not invented until she wanted one.
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https://fred.stlouisfed.org/series/MORTGAGE30US
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The home information that WSJ readers care about is current home values. As usual with a Friedman article, the price information is buried near the end of the article—paragraph 18. the national median home price in December 2024 was$404,400, 6% more than December 2023. But Friedman wants you to focus on the “stubbornly high rates” and the lower unit sales. Be unhappy. Abandon your dream of buying a home. “Now is not the time to buy a home.”
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Yes, it is. I have been buying residential homes since 1969. Every time I bought one, everyone was saying, “Now is not the time to buy because [insert woe-is-me whining of the moment].”
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When interest rates were 3% in 2021, I think Friedman was saying to wait to buy because there were too many bidders on each home. At that time, my son and I looked at three homes, bid on two and got the second one we bid on. That was when every home got 30 bids. What was my trick? I bid higher on the third house. Duh. We got a 2.95% mortgage on that one.
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Buy a home with a mortgage.
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https://johntreed.com/collections/real-estate-investment/products/an-american-principal-residence-is-the-most-advantaged-investment-on-earth-maximize-yours
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