Current US Housing Market (loan, collection, credit, purchase)
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I've heard stories of houses not appraising for enough, and borrowers wiping out their savings in order to make up the difference. So the banks are paying attention, I'm just not sure how much, or if these were just a few cases.
One house I know of sold for $125k more than it was bought for 9 months ago....
In these pandemic times, I would say many saving accounts diminished. But they very well could be using every source they have to buy one. Which goes into my thoughts on panic buying.
Now here's another. What if it crashes, like it very well could. Are we going to see 2008 all over again?
As some have probably already figured, I'm waiting it out.
In these pandemic times, I would say many saving accounts diminished. But they very well could be using every source they have to buy one. Which goes into my thoughts on panic buying.
Now here's another. What if it crashes, like it very well could. Are we going to see 2008 all over again?
As some have probably already figured, I'm waiting it out.
And many savings accounts grew as people couldn't spend money going out to eat, taking vacations etc
On top of that you have the stock market making all time highs
I posted this in why are interest rates so low thread and I think it applies here too!!
Sadly because of this ponzi scheme economy all based on stupid outrageous fast rising of home prices to keep it going and unfortunately this time make it sustainable by not building enough homes and tightening lending just enough so 2008-2009 does not happen again while still being too lose with less than 15-20% down mortgaging in addition to stupid low interest rates at at the expense of future generations who will be drowning in more mortgage debt. And on top of that possible school debt as well unless they chose vocational school and make a decent living.
Its all about the stupid obsession the media wants to portray us into thinking fast rising home prices is a good thing when in reality it is awful. Flat home prices are the best balance for both buyers and sellers a like. I do not get why the government and many do not understand this. No one should be punished by seeing their savings erode who wants to save for a good down payment or full cash purchase on a home by home prices going up so fast from 2010-2013 levels because of stupid low interest rates, HELOCs, and less than 15-20% down mortgaging!!
If home prices went up fast anyways with 15-20% down required, normal interest rates instead of stupid low rates, HELOCs did not exist/were banned, then that is just unfortunate good old supply and demand even if it punishes hard working frugal savers who want large down payment or cash purchase.Yeah no doubt there is some of that good old supply and demand, but the HELOCs and little to 0 down and stupid low rates have played a large role as well.
Plus greedy construction companies backed by government and zoning laws in lots of areas.
Makes me throw up seeing Rocket Mortgage commercials stating people would run to look everywhere through the walls if they were told there was money in their house. All it is is a stupid commercial for HELOCs which is not real money and same dumb a*** mindset and products available to treat home as a flippin ATM instead of a place to live which keeps the ponzi scheme of outrageously high home price increasing fast and going at the expense of future generations which is disgusting.
Nothing was learned from 2008 except lets patch the rules and take away 0 documentation loans and such. The same HELOCs and mindset of treating a home as an ATM machine and almost nothing down with cheap and easy credit is still there this time with all rules in place to make sure fast appreciating home prices stick instead of come crumbling down sadly unlike 2008-2009.
Reality is, HELOCs and stupid low interest rates and less than 15-20% down loans should have been banned to never see the light of day again starting 2009. Instead all they did was make documentation and income verification much more strict and everything else is the same or worse as before 2008. At least interest rates were actually much higher before 2008.
Its all a stupid scheme to please home construction builders and those who own multiple properties. Dorks.
In these pandemic times, I would say many saving accounts diminished. But they very well could be using every source they have to buy one. Which goes into my thoughts on panic buying.
Now here's another. What if it crashes, like it very well could. Are we going to see 2008 all over again?
As some have probably already figured, I'm waiting it out.
Well there are also those that have done very well. The work from home people selling and upgrading would be a push. I haven’t been to the bar in ages. The savings on my bar tab in the past year would probably finance a fixer upper in a bad part of LA.
I have an existing home. Sure we can get more for it but to move up, like we are trying to do, still costs more than it used to. Houses are going for way more than they should be. Now if you are downsizing, that's a different story and now is the time to act on it, but for the most part, people are trying to move up. But other than help from family members as Bill has mentioned, where is the money coming from?
So far no one has addressed the banks. Are they letting people over extend themselves again?
I think a lot of it IS downsizing. People that have been thinking about it, are realizing that NOW is the time.
I don't think banks are overextending. Remember that people have a LOT of extra savings now after a year of not traveling or eating out...whatever. LOTS of extra cash in the bank. Burning holes in the pockets.
I posted this in why are interest rates so low thread and I think it applies here too!!
Sadly because of this ponzi scheme economy all based on stupid outrageous fast rising of home prices to keep it going and unfortunately this time make it sustainable by not building enough homes and tightening lending just enough so 2008-2009 does not happen again while still being too lose with less than 15-20% down mortgaging in addition to stupid low interest rates at at the expense of future generations who will be drowning in more mortgage debt. And on top of that possible school debt as well unless they chose vocational school and make a decent living.
Its all about the stupid obsession the media wants to portray us into thinking fast rising home prices is a good thing when in reality it is awful. Flat home prices are the best balance for both buyers and sellers a like. I do not get why the government and many do not understand this. No one should be punished by seeing their savings erode who wants to save for a good down payment or full cash purchase on a home by home prices going up so fast from 2010-2013 levels because of stupid low interest rates, HELOCs, and less than 15-20% down mortgaging!!
If home prices went up fast anyways with 15-20% down required, normal interest rates instead of stupid low rates, HELOCs did not exist/were banned, then that is just unfortunate good old supply and demand even if it punishes hard working frugal savers who want large down payment or cash purchase.Yeah no doubt there is some of that good old supply and demand, but the HELOCs and little to 0 down and stupid low rates have played a large role as well.
Plus greedy construction companies backed by government and zoning laws in lots of areas.
Makes me throw up seeing Rocket Mortgage commercials stating people would run to look everywhere through the walls if they were told there was money in their house. All it is is a stupid commercial for HELOCs which is not real money and same dumb a*** mindset and products available to treat home as a flippin ATM instead of a place to live which keeps the ponzi scheme of outrageously high home price increasing fast and going at the expense of future generations which is disgusting.
Nothing was learned from 2008 except lets patch the rules and take away 0 documentation loans and such. The same HELOCs and mindset of treating a home as an ATM machine and almost nothing down with cheap and easy credit is still there this time with all rules in place to make sure fast appreciating home prices stick instead of come crumbling down sadly unlike 2008-2009.
Reality is, HELOCs and stupid low interest rates and less than 15-20% down loans should have been banned to never see the light of day again starting 2009. Instead all they did was make documentation and income verification much more strict and everything else is the same or worse as before 2008. At least interest rates were actually much higher before 2008.
Its all a stupid scheme to please home construction builders and those who own multiple properties. Dorks.
I think a lot of it IS downsizing. People that have been thinking about it, are realizing that NOW is the time.
I don't think banks are overextending. Remember that people have a LOT of extra savings now after a year of not traveling or eating out...whatever. LOTS of extra cash in the bank. Burning holes in the pockets.
I agree people have saved a lot, but enough to Over Pay $100,000 to $200,000 more for a house than it's actually worth? Basically speaking.
Another important factor that we need not forget. Real Estate Taxes.
The more a house is worth, the more they are going to Tax people on it. Another thing wrong with this inflated market. Maybe this is part of their devious plan?
Some of the RE Taxes out there even recently were almost a Mortgage payment.
During the last economic pandemic the government wisely gave all its free recovery money to its cronies in the banking system. Those cronies either sat on it or promptly sent it overseas where it inflated asset prices beyond the reach of ordinary citizens there.
This time though the government loaded its trillions of dollars of free money onto helicopters and dumped it out across the country to everyone and anyone. If wildly inflating asset prices are an indication that may have been a two-edged sword.
Maybe in retrospect it would have been better to target the helicopter dumps to those who really needed it rather than to one and all in an attempt to buy votes.
Either way the cue that it's time to switch from Buy! Buy! Buy! to Sell! Sell! Sell! will be when the helicopters are grounded until the next economic pandemic and the free money spigot is turned off.
I agree people have saved a lot, but enough to Over Pay $100,000 to $200,000 more for a house than it's actually worth? Basically speaking.
Another important factor that we need not forget. Real Estate Taxes.
The more a house is worth, the more they are going to Tax people on it. Another thing wrong with this inflated market. Maybe this is part of their devious plan?
Some of the RE Taxes out there even recently were almost a Mortgage payment.
What it is worth, is what someone is willing to pay. And the average home has not increased to that degree.
If you are talking the homes that are higher priced, well an extra 100k is not really that big a deal.
The median existing single-family home price was $334,500 in March 2021, up 18.4% from March 2020.
The market was goosed by the government this year, hence the wackiness. I would NOT buy a home unless you really have a good reason to flip things around like kids on the way or something.
1. The stalled all foreclosures - limiting potential supply
2. Dropped rates to rock bottom
3. Gave people PPP loans and other economic stim - savings rate is way up
4. Supply chain disruptions
These are all going away this year or next, so what's going to the market when things callibrate when 4 things boosting prices go away?
I don't think we're at 2007 again, but at a minimum it should be a better time to shop or build next year, even if prices stay high, options should increase. There is so much uncertainty though, from a demand side as well, what happens when boomers retire, will remote gain hold out permanently? These things could shift a lot, maybe seniors will downsize to condos faster and people will move once it's a permanent WFH option instead of a "you might be coming back".
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