Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are retired and paid cash for our home,now Biden wants to question where the money came from as I heard this AM.,free country??He still has the $600 hanging out there.
We are retired and paid cash for our home,now Biden wants to question where the money came from as I heard this AM.,free country??He still has the $600 hanging out there.
Outside of remote areas that took off during Covid, I don't see it.
Unlike the 2008 housing crash, the people who bought over the past 5-6 years could afford it and have mostly fixed rate loans, and the people who bought over the past 5-10 years have a metric ton of equity in their homes and won't give that up easily. And at least in my area, a lot of people own their homes outright.
You might see a slowdown where you see modest appreciation or stagnation or even a small decline in average selling prices, outside of massive job losses I think you're okay as long as you bought in a good location with a healthy local economy.
Yes, and lest we forget the 75% of people with a mortgage that refinanced under 4%. They will not be switching houses and incurring a 5-6% loan. They'll be remodeling instead.
Mid 30's as well here. Family of 4. We went from 2500ft2 to 3000ft2. I'm not beholding to 3000ft2 homes but we liked this one, location and lot too and could afford it. When house shopping for our first house even the ones on the smaller side were at least 1300-1400ft2 3 bed two bath homes. Feel 1000ft2 might be a bit too small for a family.
I can't imagine raising a family of 4 (or 3) in that small a space. Mid 30s and single here, and my place now is 2400ft2 spread over 3 stories. I work from home permanently though so space is a priority. I could probably get away with about 2000ft2 but I can't possibly imagine going below that.
How many people will have an issue if home prices go down 20%? Unless you bought in the last 12-18 months it probably would mean at worst you are about where you were when you purchased it. In some markets you'd still be up. Housing sales volumes have been low due to lack of inventory so you don't even have that many homes that would be truly underwater.
Basically housing prices have to crash a lot more to cause some real issues. Foreclosures could tick up a bit, some banks may tighten lending standards which will be fuel for all the crash baby crash crowd, but its just doesn't seem likely to go the way some are hoping/praying/wishing for.
And lets not forget housing is held during times of inflation because rents are going up but most mortages are fixed. About the only thing that could hurt housing values from a macro sense is deflation, not inflation. Housing values may not keep up with inflation's growth, but they will keep up better than cash and many assets so owners will hold onto their cheap mortgages.
We are retired and paid cash for our home,now Biden wants to question where the money came from as I heard this AM.,free country??He still has the $600 hanging out there.
They upped it from $600 to $10,000 about a month ago.
I'm not sure where the housing market is going but here are some of the tid-bits that I believe are fact:
There's a housing shortage (supply is low). Homebuilders got whacked in 2007 and are cautious to ever overbuild again. Furthermore, there is greater margin if the demand exceeds supply so they have an incentive to not overproduce...I'm not suggesting there is collusion per se.
Rental housing construction is growing faster than SFR/condo construction. More homes are being built, but proportionally fewer houses are being built that are for sale.
Input costs are higher. Materials, labor, and land acquisition costs have rapidly grown and those costs are passed to the buyer/renter.
The Fed has signaled tapering and is expected to reduce its bond buying while raising rates in the future. This should make borrowing more costly and all things being equal, real estate values should decrease.
As of 12/2/21, 8M mortgage owners seeked COVID relief, 4M of those owners are current on their mortgage, and 2M have sold or refinanced while rates were down. There are 264K mortgages in the program that are delinquent; 38K foreclosed. An estimated 300K lower priced homes are expected to come to market in late Spring 2022 if no new programs are created. Information was from Diana Olick's report from CNBC.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
