Think now's the time to buy? (Denver: real estate, insurance, mortgage)

[BarryK123]

Originally Posted by pikabike

Burial plot or cremation contract?

I read the text before the name of the poster and expected it would have been davebarnes

[2bindenver]

It is the time to get a will.

As far as housing, there are no in person showings. You can shop virtually and get into a contract so you can see it in person.

We need a balanced market before prices change. I think after 8 years of appreciation, the rate will slow to 5 or 6%. Most houses have equity, so we won’t see the short sale/foreclosure crisis of the recent past.

[Therblig]

Originally Posted by 2bindenver

Most houses have equity, so we won’t see the short sale/foreclosure crisis of the recent past.

This.

[alliance]

Originally Posted by Therblig

I really don't see housing being affected to any great degree or for any long-term. Remember, 2008 was all about a vast number of over-inflated mortgages. This crisis has almost no direct or unique bearing on the industry, and I suspect many supports and programs will come into place to keep people from losing their homes due to unemployment.

But I guess the circle (of vultures) always remains unbroken.

Possible scenario:

1. Unemployment persists longer than we think/hope, and the government is unable or unwilling to continue to pay the current level of unemployment and overall assistance to literally every segment of life as we know it.
2. Masses of people stop paying their mortgage, or intend to sell at what they believe it is worth.
3. Desperation puts a large number of houses on the market, hoping to sell at an amount they believe it is worth, or at least what they paid for it.
4. Fewer buyers due to mass layoffs and decreased confidence in holding/finding employment.
5. Massive swing in supply/demand with this influx in properties coupled with fewer buyers.
6. Subsequent cut in value which would leave sellers underwater.
7. Decision to sell at a loss. Or just walk away, leading to foreclosures.
8. Resulting upswing in inventory with large drop in prices = Great opportunity to buy


May or may not work out this way, but it is certainly a scenario we could see if this falls apart down the line. The longer we go before starting the recovery, the more difficult it will be to get back up and running for everyone (if at all), and the more likely we will have the scenario above. May or may not happen. But it is absolutely possible, and there is already lots of chatter within the real estate circles of how this could play out to their advantage. The hardship of a large number of people will leave a few with tremendous opportunities that will absolutely be taken advantage of.

Edit to add that some markets will be more resistant to this than others. Others will be demolished (see Vegas). But no one will be completely immune.

[davebarnes]

Originally Posted by BarryK123

I read the text before the name of the poster and expected it would have been davebarnes

I wish.
But, I did rep pikabike.

[pikabike]

Originally Posted by davebarnes

I wish.
But, I did rep pikabike.

I am quite sure you can think of other smartazz answers!

[Neditate]

https://www.thedenverchannel.com/new...ing-that-trend

[alliance]

Chase isn’t feeling too confident about the current real estate situation (meaning impact on borrowers and potential for lost jobs, not paying mortgage, subsequent cut in value to properties, etc) and preparing for a shift in the market to mitigate risk...


https://www.reuters.com/article/us-j...-idUSKCN21T0VU


Requiring a 700 credit score and 20% down will be significant. Anyone thinking this whole ordeal can’t have a significant impact on the real estate market is fooling themselves. If the banks are concerned, then that’s reason enough to take this seriously.

Not short term, obviously. The current market is still strong. But if this persists for a few months longer, then the impacts would be felt in 6-12 months. If all banks follow suit with these lending requirement changes, this alone will cut down on potential buyers and likely have a direct impact on an increase in inventory, or at least a suppression in increases in housing prices, and it could be seen relatively soon.

[2bindenver]

There are plenty of lending options. No one should use a big box bank.

A wf employee got 1/4 point drop on a conventional loan with 5 % down. When I asked him to apply at a local lender, he balked. Humor me, please. 1/2% lower and the fees on the gfe were $1,000s less.

[davebarnes]

Originally Posted by alliance

Requiring a 700 credit score and 20% down will be significant.

Half the population has a score over 700.