[ARCHIVED THREAD] - The housing boom is ending... (Page 4 of 5)
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Quoted: Keep house, rent, profit. Quoted: Quoted: I can see being "upside down" as a problem if someone must move across country for a job or other compelling reason. Keep house, rent, profit. If home values drop enough for current buyers to be upside down, rent prices will also drop. No way they'd be able to ask enough in rent to make a profit. |
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Quoted: This guy knows what's up. Its easy to identify House poors. If they believe their property value going up is a good thing, that tends to show who has bitten off too much mortgage than they can chew, as arbitrary "inflated value" has been assigned to justify the rise in their property taxes. I fight against my assesment value every year. No I do not believe a place I bought outright 6 years ago is "worth" double/triple what I paid for it. No I will not be paying more for the town to piss away like drunk sailors in a brothel. Not my problem about Muh demandz Muh desirabilityz or added value from new construction. Whack the new houses with ny level property taxes if you must. Maybe sell the land you retards cling to as "parks" that aren't even used, that cost money to maintain. Stop putting in high maintenance medians in all the roads that require upkeep and prevent left turns so you have to go a 1/4 mile past your destination, make a U turn to get to where you're going like they do back home in jersey. I swear the retards that designed the roads here are from jersey. Pants on head retarded. Can't make a fucking left turn, but we can have Augustine grass with irrigation, goofy ass plants, trees etc that requires weekly trimming... don't forget the palms that have fronds that need trimming... Smart. Follows the same mindset as the retards that voted for it. But Muh appearancez doh!  How's the car insurance premiums skyrocketing look to you as traffic backs up to get into the u turn lane and someone gets rear ended in the shared fast lane/u turn lane? Or someone goes to swerve around that and broad sides someone in the middle/right lane? Or better/worse yet, granny tries to make a left/u turn, can't see around the dumb shit that's been planted, pulls out and gets the front end taken off the Buick/cadillac by someone in the fast lane?Who cares about logic and efficient roads... we've got property owners to bleed for more dumb shit! Muh roadz! They suck and you dipshits gladly fund it. But as long as it looks nice, I guess...Bitches about property taxes going up, and car insurance going up. Can't see the pants on head retarded roads the developers created are what's causing both to go up won't fight assesment and starve the beast. Won't dare to let the grass get above 4 inches, or do anything to plummet/stagnate assessed value. Priorities. Florida burbz are pants on head retarded. I especially crack up seeing the-Don't NY my Florida and Fuck Joe Biden flags/banners/bumper stickers. And the ones that sport em ironically support NYing their Florida for that sweet arbitrary property valuez doh Take a hit on property value going up? Hell no! They've got 200k+ outstanding on principle of a mortgage don't you know! How dare you imply suggest knee capping their only means to get out from under it breaking even/"making" a "profit" off of 4 walls, a roof, a place to rest their head, fill their gut, wash their ass... There's local pork to pay for, wasteful spending that needs tax $, pants on head retarded roads to overhaul for Muh looks > function/efficiency to maintain flow. Don't forget about Muh childrenz and the vacant parks that need upkeep... How dare you propose a profitable enterprise like an outdoor shooting range, dirt bike/ATV track/trail! Don't you know there's Muh noise ordinancez and that will attract the riff raff! While the "damn kids" all get fat soft and lazy cooped up inside living on video games, social media, etc... But we need that 5+/- acres for a well groomed, tax payer funded park doh. For the childrenz. Which they won't use. Because. Video games. Much logic. Very wise use of tax payer money. Don't ny Muh Florida now... Proceeds to do exactly as ny does. But at least has shit to show for it. Literally. Congested but nice looking roads. Making a 12 mile drive 45 minutes+ Vacant parks. Literally. Shit. To. Show. For. It. Don't forget those socialized services too! Just like ny has! It's too much to make a trip to the dump once a week. Got brodozers everywhere. So can't say but I'm not hauling garbage in the trunk of Muh econobox! Need that herby curby and wastepro garbage trucks to add more fuckery to impede the flow of traffic. Can't have a septic system. Need to be on the sewer. How dare you be independent and keep up maintenance of your own septic system... It's "better" to have the town install a grinder/pump that shits the bed once a month like clock work, and hold a monopoly on that, so you're dependent upon the towns utilities crew to shut the alarm off and fix it. How dare you drill a well and not be on the towns treated water?! But don't ny Muh Florida doh. I hate suburbia. If it weren't for the beer aids plandemic putting a monkey wrench in business, I'd be on 100+ acres in Okeechobee right now laughing in backyard hunting/shooting and ripping around on 2 strokes. But noooo... Did the right thing, made sure my guys were paid. Didn't apply for the free shit army funny money. Stuck in dah burbz surrounded by retards who are anxious to hear their property values went up 100k this past year on the granite/stucco false facade mcmansion, so the tax man can piss it away in "improvements"  Improvements my ass. Bitch about ghettos and trailer parks. Your fucking roads look like demolition derbies at a podunk County Fair but with high maintenance tropical shrubbery/trees/grass medians. Maybe it wouldn't hurt to have pothole ridden dirt roads... at least then the collisions would go down as the average non driving fuck doing 50+ down a residential street won't be able to finger fuck a cell phone. At least then maybe you'd be able to take a left turn without having to go a 1/4 mile past your desired destination to make a U turn across 2-3 lanes into the right lane...risking being T-boned, rear ended, front end tore off by a vaping flat brimmed 350Z/miata/bmw in the fast lane. Seems to work in Vero/Lakewood Park and out west. Shit. If the roads aren't to your liking there... just buy a snow plow and plow the roads you travel smooth. Don't need the tax man for something you can do yourself... but that would imply logic common sense and taking initative... Can't do that, that's the tax man's roads. Only he can hold a monopoly on that sort of thing... go be independent and capable somewhere else. There's dumb shit to waste tax payers money on. For appearances. To justify increased assigned/assessed value. Urban sprawl needs to stop. It attracts too many petty tyrants, busy bodies, dependent lemmings reliant on a tax payer funded adult in the room to maintain life as they know it, in exchange for higher property taxes/valuez so the house poors can get out from under a big mortgage. Pro-tip. Don't move to where people vacation and retire. Especially if you grew up with backyard hunting/shooting/dirt bike/quad/field cars/trail trucks/jeeps. Dah burbz ain't the bastions of conservatism as was projected here. Doing the exact same dumb shit liberal cityiots did to upstate ny. But don't ny Muh Florida doh. You described my area perfectly |
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Quoted: I guess it will be time to start looking for some cheap rentals when people begin to default on their mortgages because they don't want to pay $200k for a house worth $120K. Those short sales are a steal if you can get a good one. where are you seeing houses for 200K in Utah? 
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Quoted: This guy knows what's up. Its easy to identify House poors. If they believe their property value going up is a good thing, that tends to show who has bitten off too much mortgage than they can chew, as arbitrary "inflated value" has been assigned to justify the rise in their property taxes. I fight against my assesment value every year. No I do not believe a place I bought outright 6 years ago is "worth" double/triple what I paid for it. No I will not be paying more for the town to piss away like drunk sailors in a brothel. Not my problem about Muh demandz Muh desirabilityz or added value from new construction. Whack the new houses with ny level property taxes if you must. Maybe sell the land you retards cling to as "parks" that aren't even used, that cost money to maintain. Stop putting in high maintenance medians in all the roads that require upkeep and prevent left turns so you have to go a 1/4 mile past your destination, make a U turn to get to where you're going like they do back home in jersey. I swear the retards that designed the roads here are from jersey. Pants on head retarded. Can't make a fucking left turn, but we can have Augustine grass with irrigation, goofy ass plants, trees etc that requires weekly trimming... don't forget the palms that have fronds that need trimming... Smart. Follows the same mindset as the retards that voted for it. But Muh appearancez doh! How's the car insurance premiums skyrocketing look to you as traffic backs up to get into the u turn lane and someone gets rear ended in the shared fast lane/u turn lane? Or someone goes to swerve around that and broad sides someone in the middle/right lane? Or better/worse yet, granny tries to make a left/u turn, can't see around the dumb shit that's been planted, pulls out and gets the front end taken off the Buick/cadillac by someone in the fast lane?Who cares about logic and efficient roads... we've got property owners to bleed for more dumb shit! Muh roadz! They suck and you dipshits gladly fund it. But as long as it looks nice, I guess...Bitches about property taxes going up, and car insurance going up. Can't see the pants on head retarded roads the developers created are what's causing both to go up won't fight assesment and starve the beast. Won't dare to let the grass get above 4 inches, or do anything to plummet/stagnate assessed value. Priorities. Florida burbz are pants on head retarded. I especially crack up seeing the-Don't NY my Florida and Fuck Joe Biden flags/banners/bumper stickers. And the ones that sport em ironically support NYing their Florida for that sweet arbitrary property valuez doh Take a hit on property value going up? Hell no! They've got 200k+ outstanding on principle of a mortgage don't you know! How dare you imply suggest knee capping their only means to get out from under it breaking even/"making" a "profit" off of 4 walls, a roof, a place to rest their head, fill their gut, wash their ass... There's local pork to pay for, wasteful spending that needs tax $, pants on head retarded roads to overhaul for Muh looks > function/efficiency to maintain flow. Don't forget about Muh childrenz and the vacant parks that need upkeep... How dare you propose a profitable enterprise like an outdoor shooting range, dirt bike/ATV track/trail! Don't you know there's Muh noise ordinancez and that will attract the riff raff! While the "damn kids" all get fat soft and lazy cooped up inside living on video games, social media, etc... But we need that 5+/- acres for a well groomed, tax payer funded park doh. For the childrenz. Which they won't use. Because. Video games. Much logic. Very wise use of tax payer money. Don't ny Muh Florida now... Proceeds to do exactly as ny does. But at least has shit to show for it. Literally. Congested but nice looking roads. Making a 12 mile drive 45 minutes+ Vacant parks. Literally. Shit. To. Show. For. It. Don't forget those socialized services too! Just like ny has! It's too much to make a trip to the dump once a week. Got brodozers everywhere. So can't say but I'm not hauling garbage in the trunk of Muh econobox! Need that herby curby and wastepro garbage trucks to add more fuckery to impede the flow of traffic. Can't have a septic system. Need to be on the sewer. How dare you be independent and keep up maintenance of your own septic system... It's "better" to have the town install a grinder/pump that shits the bed once a month like clock work, and hold a monopoly on that, so you're dependent upon the towns utilities crew to shut the alarm off and fix it. How dare you drill a well and not be on the towns treated water?! But don't ny Muh Florida doh. I hate suburbia. If it weren't for the beer aids plandemic putting a monkey wrench in business, I'd be on 100+ acres in Okeechobee right now laughing in backyard hunting/shooting and ripping around on 2 strokes. But noooo... Did the right thing, made sure my guys were paid. Didn't apply for the free shit army funny money. Stuck in dah burbz surrounded by retards who are anxious to hear their property values went up 100k this past year on the granite/stucco false facade mcmansion, so the tax man can piss it away in "improvements" Improvements my ass. Bitch about ghettos and trailer parks. Your fucking roads look like demolition derbies at a podunk County Fair but with high maintenance tropical shrubbery/trees/grass medians. Maybe it wouldn't hurt to have pothole ridden dirt roads... at least then the collisions would go down as the average non driving fuck doing 50+ down a residential street won't be able to finger fuck a cell phone. At least then maybe you'd be able to take a left turn without having to go a 1/4 mile past your desired destination to make a U turn across 2-3 lanes into the right lane...risking being T-boned, rear ended, front end tore off by a vaping flat brimmed 350Z/miata/bmw in the fast lane. Seems to work in Vero/Lakewood Park and out west. Shit. If the roads aren't to your liking there... just buy a snow plow and plow the roads you travel smooth. Don't need the tax man for something you can do yourself... but that would imply logic common sense and taking initative... Can't do that, that's the tax man's roads. Only he can hold a monopoly on that sort of thing... go be independent and capable somewhere else. There's dumb shit to waste tax payers money on. For appearances. To justify increased assigned/assessed value. Urban sprawl needs to stop. It attracts too many petty tyrants, busy bodies, dependent lemmings reliant on a tax payer funded adult in the room to maintain life as they know it, in exchange for higher property taxes/valuez so the house poors can get out from under a big mortgage. Pro-tip. Don't move to where people vacation and retire. Especially if you grew up with backyard hunting/shooting/dirt bike/quad/field cars/trail trucks/jeeps. Dah burbz ain't the bastions of conservatism as was projected here. Doing the exact same dumb shit liberal cityiots did to upstate ny. But don't ny Muh Florida doh. |
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Quoted: If home values drop enough for current buyers to be upside down, rent prices will also drop. No way they'd be able to ask enough in rent to make a profit. How much someone owes on a home has no relation to what rent costs. More importantly, the "profit" from a long term rental generally comes from the long term real estate value appreciation and the substantial tax benefits of the mortgage interest and depreciation (yes -- your property market value can go up, while at the same time it is depreciating for tax purposes...this is why wealthy people invest in real estate). For most small investors, the monthly cash flow is very small after paying into long-term maintenance fund savings and dozens of other small amortized ownership costs. In the circumstance we are talking about, where it is a home that someone already owns and has been living in prior to deciding to rent out, many of the costs associated with buying an investment property don't even exist, so the rent required to break even is even lower. Also, when the housing market busts it is normally associated with an economic downturn, and in an economic downturn demand for rental properties goes up substantially. It is demand that determines rent amount, not the note for the mortgage, and there is not a direct link between the two so far as the renter is concerned. Bottom line, no, the drop of a rental house's market value does not make it a bad investment, either in the short or the long term. |
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I don’t think anyone knows what’s going to happen, even the experts don’t know. It seems to come down to inflation. If inflation gets too bad, the gov will have to raise interest rates too fast which would hurt home values. My guess is the FED raises rates slow and homes just go sideways for the next 5 years rather than a drop, but I don’t know. |
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Quoted: You described my area perfectly Quoted: Quoted: This guy knows what's up. Its easy to identify House poors. If they believe their property value going up is a good thing, that tends to show who has bitten off too much mortgage than they can chew, as arbitrary "inflated value" has been assigned to justify the rise in their property taxes. I fight against my assesment value every year. No I do not believe a place I bought outright 6 years ago is "worth" double/triple what I paid for it. No I will not be paying more for the town to piss away like drunk sailors in a brothel. Not my problem about Muh demandz Muh desirabilityz or added value from new construction. Whack the new houses with ny level property taxes if you must. Maybe sell the land you retards cling to as "parks" that aren't even used, that cost money to maintain. Stop putting in high maintenance medians in all the roads that require upkeep and prevent left turns so you have to go a 1/4 mile past your destination, make a U turn to get to where you're going like they do back home in jersey. I swear the retards that designed the roads here are from jersey. Pants on head retarded. Can't make a fucking left turn, but we can have Augustine grass with irrigation, goofy ass plants, trees etc that requires weekly trimming... don't forget the palms that have fronds that need trimming... Smart. Follows the same mindset as the retards that voted for it. But Muh appearancez doh! How's the car insurance premiums skyrocketing look to you as traffic backs up to get into the u turn lane and someone gets rear ended in the shared fast lane/u turn lane? Or someone goes to swerve around that and broad sides someone in the middle/right lane? Or better/worse yet, granny tries to make a left/u turn, can't see around the dumb shit that's been planted, pulls out and gets the front end taken off the Buick/cadillac by someone in the fast lane?Who cares about logic and efficient roads... we've got property owners to bleed for more dumb shit! Muh roadz! They suck and you dipshits gladly fund it. But as long as it looks nice, I guess...Bitches about property taxes going up, and car insurance going up. Can't see the pants on head retarded roads the developers created are what's causing both to go up won't fight assesment and starve the beast. Won't dare to let the grass get above 4 inches, or do anything to plummet/stagnate assessed value. Priorities. Florida burbz are pants on head retarded. I especially crack up seeing the-Don't NY my Florida and Fuck Joe Biden flags/banners/bumper stickers. And the ones that sport em ironically support NYing their Florida for that sweet arbitrary property valuez doh Take a hit on property value going up? Hell no! They've got 200k+ outstanding on principle of a mortgage don't you know! How dare you imply suggest knee capping their only means to get out from under it breaking even/"making" a "profit" off of 4 walls, a roof, a place to rest their head, fill their gut, wash their ass... There's local pork to pay for, wasteful spending that needs tax $, pants on head retarded roads to overhaul for Muh looks > function/efficiency to maintain flow. Don't forget about Muh childrenz and the vacant parks that need upkeep... How dare you propose a profitable enterprise like an outdoor shooting range, dirt bike/ATV track/trail! Don't you know there's Muh noise ordinancez and that will attract the riff raff! While the "damn kids" all get fat soft and lazy cooped up inside living on video games, social media, etc... But we need that 5+/- acres for a well groomed, tax payer funded park doh. For the childrenz. Which they won't use. Because. Video games. Much logic. Very wise use of tax payer money. Don't ny Muh Florida now... Proceeds to do exactly as ny does. But at least has shit to show for it. Literally. Congested but nice looking roads. Making a 12 mile drive 45 minutes+ Vacant parks. Literally. Shit. To. Show. For. It. Don't forget those socialized services too! Just like ny has! It's too much to make a trip to the dump once a week. Got brodozers everywhere. So can't say but I'm not hauling garbage in the trunk of Muh econobox! Need that herby curby and wastepro garbage trucks to add more fuckery to impede the flow of traffic. Can't have a septic system. Need to be on the sewer. How dare you be independent and keep up maintenance of your own septic system... It's "better" to have the town install a grinder/pump that shits the bed once a month like clock work, and hold a monopoly on that, so you're dependent upon the towns utilities crew to shut the alarm off and fix it. How dare you drill a well and not be on the towns treated water?! But don't ny Muh Florida doh. I hate suburbia. If it weren't for the beer aids plandemic putting a monkey wrench in business, I'd be on 100+ acres in Okeechobee right now laughing in backyard hunting/shooting and ripping around on 2 strokes. But noooo... Did the right thing, made sure my guys were paid. Didn't apply for the free shit army funny money. Stuck in dah burbz surrounded by retards who are anxious to hear their property values went up 100k this past year on the granite/stucco false facade mcmansion, so the tax man can piss it away in "improvements" Improvements my ass. Bitch about ghettos and trailer parks. Your fucking roads look like demolition derbies at a podunk County Fair but with high maintenance tropical shrubbery/trees/grass medians. Maybe it wouldn't hurt to have pothole ridden dirt roads... at least then the collisions would go down as the average non driving fuck doing 50+ down a residential street won't be able to finger fuck a cell phone. At least then maybe you'd be able to take a left turn without having to go a 1/4 mile past your desired destination to make a U turn across 2-3 lanes into the right lane...risking being T-boned, rear ended, front end tore off by a vaping flat brimmed 350Z/miata/bmw in the fast lane. Seems to work in Vero/Lakewood Park and out west. Shit. If the roads aren't to your liking there... just buy a snow plow and plow the roads you travel smooth. Don't need the tax man for something you can do yourself... but that would imply logic common sense and taking initative... Can't do that, that's the tax man's roads. Only he can hold a monopoly on that sort of thing... go be independent and capable somewhere else. There's dumb shit to waste tax payers money on. For appearances. To justify increased assigned/assessed value. Urban sprawl needs to stop. It attracts too many petty tyrants, busy bodies, dependent lemmings reliant on a tax payer funded adult in the room to maintain life as they know it, in exchange for higher property taxes/valuez so the house poors can get out from under a big mortgage. Pro-tip. Don't move to where people vacation and retire. Especially if you grew up with backyard hunting/shooting/dirt bike/quad/field cars/trail trucks/jeeps. Dah burbz ain't the bastions of conservatism as was projected here. Doing the exact same dumb shit liberal cityiots did to upstate ny. But don't ny Muh Florida doh. You described my area perfectly 
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Quoted: If home values drop enough for current buyers to be upside down, rent prices will also drop. No way they'd be able to ask enough in rent to make a profit. It depends on the property. High end stuff will suffer; but the rents in those properties is to high for most people. Properties on the lower end of the scale will do just fine as those who lost their homes will be looking for a cheap place to live. |
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Quoted: I'll be selling in a few months. Old rambler on a sub-dividable lot in one of the hotter markets in the nation. I certainly don't expect a lessening in value right now. Is it your primary residence or a second property? The complication of selling while in a hot market is where are you going to go/buy after you sell? Unless you are moving somewhere else (or downsizing) where you can preserve the profit/equity on the home you sold, it is essentially a zero sum game. |
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Quoted: Is it your primary residence or a second property? The complication of selling while in a hot market is where are you going to go/buy after you sell? Unless you are moving somewhere else (or downsizing) where you can preserve the profit/equity on the home you sold, it is essentially a zero sum game. Quoted: Quoted: I'll be selling in a few months. Old rambler on a sub-dividable lot in one of the hotter markets in the nation. I certainly don't expect a lessening in value right now. Is it your primary residence or a second property? The complication of selling while in a hot market is where are you going to go/buy after you sell? Unless you are moving somewhere else (or downsizing) where you can preserve the profit/equity on the home you sold, it is essentially a zero sum game. That’s what you want if your trading apples to apples. Zero sum. If other goals are in mind, then your apples and oranges. Exiting and holding the equity can create risk… If everyone was an expert at timing the market, everyone would be a billionaire. |
| I’m up 20% since last year when we bought. I may sell and sit out the market for 2 years for a stint in Korea. I just need to determine how to use the equity I walk away with. Undeveloped acreage is still reasonably priced. We are going to start looking for our retirement location and maybe buy some land wherever that ends up being. |
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Quoted: Back in 2008, a lot of houses were owned by speculators, “flippers”. I don’t get the sense that it’s the same today, but actual comparisons would be interesting. Loans never got as Ninja. A lot of single family homes are now owned by Air BNB short term rental flippers. |
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Don't forget to budget the $1000 plus a month tax bill.
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Quoted: The boom in the housing market won't be ending until the inventory levels increase. Here in Arizona the supply is far from normal levels. There's going to have to have a big increase in inventory levels before things change in the RE market here in Arizona. Or until China releases a variant that kills off a significant portion of the population. |
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Quoted: Boise, believe it or not, is the town that everyone watches as being the hottest market in America. Now that markets are stabilizing, and homes are staying on the market longer and longer, what's next? Lots of people will be stuck in houses that will be worth substantially less than they paid for them. Balloon goes *pop*. Yup that’s when many walk away and file bankruptcy. Then the shit really hits the fan. Saw that last go round out here in the valley |
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Quoted: 2008 crash was before I was in the housing market. I understand they were giving loans that people could not afford. Did the defaults on those loans cause the crash? I don’t see the loans as the issue this time around, what does the value of your home matter compared to your ability to repay? I owe $300k if my house is worth 500 or 900, right? Or is it a snowball of housing crashes, jobs decline, income declines and it compounds? In a nutshell they were giving $400k loans to people who worked a MCD as a cashier. They couldn't pay for long . |
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Quoted: In a nutshell they were giving $400k loans to people who worked a MCD as a cashier. They couldn't pay for long . Quoted: Quoted: 2008 crash was before I was in the housing market. I understand they were giving loans that people could not afford. Did the defaults on those loans cause the crash? I don’t see the loans as the issue this time around, what does the value of your home matter compared to your ability to repay? I owe $300k if my house is worth 500 or 900, right? Or is it a snowball of housing crashes, jobs decline, income declines and it compounds? In a nutshell they were giving $400k loans to people who worked a MCD as a cashier. They couldn't pay for long . That is only the first piece, the 2x4 that is holding up the Empire State building. The crux was that the banks and markets had $1b gambling on assets worth ~$50m. |
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I'm still finding realtor business cards stuck in my front door asking about selling our home. We paid $260k in 2007 for a 2600 Sq ft with full unfinished basement. Similar homes in our subdivision sold for $450k recently. And they don't have a basement.. The realtor business cards have notes on the back stating they have buyers for $475k+. Wife brought up one time about possibly selling. I asked her what are we going to buy in this crazy market. She agreed not to sell. We have put a lot of work into this house including just adding a enlarged deck with a roof. |
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If your house is now worth way more than you paid, think about opening a HELOC. It’s good to have that level of funds immediately available at a set interest rate for any catastrophic emergency. ETA: We’re still booming here. I don’t see it changing until interest rates go up, which I doubt will be happening any time soon. There is also a very palpable sense of people trying to move their money into inflation proof stuff imo ETA: FWIW I just had mine appraised and it came back 2% lower than Zillow’s online estimate. |
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Quoted: Prices will stabilize and then appreciate as normal. This. New construction starts are still down, cost of construction is sky high and won't be dropping any time soon. With inflation officially at 5+% (and probably a fair bit worse than that in reality), I do not expect prices to drop at all. You will see some houses not move and cut prices as the market flattens out. Some sellers are greedy and listed based on continued rapid price increases and are now overreaching. They'll cut 5-10% to fall in line with recent sales, and the house will move. |
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Quoted: Adjustable Rate Mortgages given out to financially illiterate people was a big part of it. You can default real quick when you lose your job and your mortgage payment suddenly skyrockets. And don't forget the dual-loan setup. One for the mortgage, one for the down payment, so zero money down. |
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Quoted: And don't forget the dual-loan setup. One for the mortgage, one for the down payment, so zero money down. Quoted: Quoted: Adjustable Rate Mortgages given out to financially illiterate people was a big part of it. You can default real quick when you lose your job and your mortgage payment suddenly skyrockets. And don't forget the dual-loan setup. One for the mortgage, one for the down payment, so zero money down. Its unlikely the crash will be similar this time. Without good data on the quality of mortgages currently being written its difficult to know but one thing is certain with house prices on a near vertical curve there's a lot of house poor people out there. The job market hits the skids and a lot of people will be in trouble. |
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I really don’t think there is a bubble this time and so there will be no pop. Price rise will normalize/slow for bit but in most places they aren’t going to drop. All the people who decided to “wait till the market to cool” are going to end up paying the same or more anyways (or just keep renting like dweebs). |
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Quoted: Its unlikely the crash will be similar this time. Without good data on the quality of mortgages currently being written its difficult to know but one thing is certain with house prices on a near vertical curve there's a lot of house poor people out there. The job market hits the skids and a lot of people will be in trouble. Quoted: Quoted: Quoted: Adjustable Rate Mortgages given out to financially illiterate people was a big part of it. You can default real quick when you lose your job and your mortgage payment suddenly skyrockets. And don't forget the dual-loan setup. One for the mortgage, one for the down payment, so zero money down. Its unlikely the crash will be similar this time. Without good data on the quality of mortgages currently being written its difficult to know but one thing is certain with house prices on a near vertical curve there's a lot of house poor people out there. The job market hits the skids and a lot of people will be in trouble. Yeah, even a solidly written mortgage is only as good as the industry providing the homebuyer's income. |
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I work in the mortgage industry and we're still as busy as ever. It's stabilizing because of the last 2 years of extreme low rates starting to go back to where they should be. I sold my house in a couple days and most houses in my area don't stay on the market more than 72 hours. Either way I bought a place in the country where I can work from home and not be bothered and can watch the world burn from the peace of my own land. |
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Quoted: Boise, believe it or not, is the town that everyone watches as being the hottest market in America. Now that markets are stabilizing, and homes are staying on the market longer and longer, what's next? Lots of people will be stuck in houses that will be worth substantially less than they paid for them. Balloon goes *pop*. Ehhh, the balloon goes more like a helium balloon that slowly drops over time. Buyers are being priced out to the point that even though they can afford more house they don’t want to pay $xxxxxx over what they could have bought for a year or two ago. |
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Quoted: Boise, believe it or not, is the town that everyone watches as being the hottest market in America. Now that markets are stabilizing, and homes are staying on the market longer and longer, what's next? Lots of people will be stuck in houses that will be worth substantially less than they paid for them. Balloon goes *pop*. One can only hope. I'm looking forward to scooping up a few rental units. Housing is insane. Bought my house for 400k 4 yrs ago. Worth close to a mil now. In the eastern part of the state. |
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Quoted: Yup that’s when many walk away and file bankruptcy. Then the shit really hits the fan. Saw that last go round out here in the valley And if they'd just kept on with life...stayed in the house, kept working, and kept paying down the mortgage, today they'd be sitting on a lot more equity at either the last "top" or the last "bottom". There's no reason to "walk away" when house values take a crap and there's every reason to stay in it. |
