270,000 homebuyers who bought in 2022 are underwater on their mortgage (how much, federal government, federal)
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.
There was a scarcity mindset that developed among people when the supply chain issues hit. I noticed it not just with video cards but vehicles, homes, and other avenues. Combine the inflation we saw with that lack of supply and it's almost like human beings are wired to want something more when they can't get it easily. This is an obvious part of our genetic makeup.. we get grass is always greener syndrome, and want what we can't have.
So when supplies were short and liquidity was around from the stimulus, people said "take my money!" and threw it at these assets overpaying for them. People at work were taking out 401K loans to the tune of $50,000, lots of people. 20 somethings paying $1250 for a 6700XT video card... similar situation. I find it fascinating. Long run holding an asset is better than holding cash, but this assumes they can afford their payments and perhaps put a decent amount down.
I don't believe we are going to see a recession simply because everyone is predicting one, and the herd is usually wrong. Of course there is more global instability right now than in the past, with authoritarian dictators on the rise, including among progressives in western nations. It's also become trendy for youtube content creators to talk about how they might be "cancelled" for saying the wrong thing. Thanks, lefties.
Gonna pat myself on the back for a minute here and say that we bought our house (first time buyers in our late 40s) when we did - in the middle of the year of the lockdowns, 2020 - precisely because we saw ALL of this coming. The exodus from cities driving up rural prices, the rising interest rates, the inevitable crash in prices... we saw it all as soon as the public accepted the lockdowns and businesses were forced to close their doors. I think the thing which pushed us over the edge and made us start looking was the first round of 'stimulus' or whatever they called it. Can't shut down like 20% of the economy and blow that kind of cash and not pay the price. Bought a house big enough for the whole family, should things go bad for them economically and the kids come home, acreage, running water on the property, solar, chickens, indoor + outdoor gardens... Grew up in Los Angeles and had a career in tech. I'm not what you'd call a country boy, but I do want to survive what's coming as comfortably as possible.
We did the same. We closed the end of February 2019. Moved from 1000sqft house on a postage stamp lot in a suburb of Detroit, 40 miles north into a 2100sqft home on two acres. Got the home below market value, since the previous sale fell through. Timing is everything. And even though I know it really doesn't matter since this will be our last house, it was nice to see the value steadily rise...well until the last 4 or 5 months. I'm seeing values starting to decline. We are a long ways from being underwater, and even if it did get that bad, we are in it for the long haul.
I guess if you are in it for the long term it does not matter. But last time we had inflation like this it took a decade to get under control. Going to be a lot of pain out there.
Until one sells or has to sell underwater won't matter. especially if they bought a house to live in long term. If they want to take a home equity loan out it might be an issue. For now it's a loss that didn't happen yet
Until one sells or has to sell underwater won't matter. especially if they bought a house to live in long term. If they want to take a home equity loan out it might be an issue. For now it's a loss that didn't happen yet
True, but it is still nice to see something someone owns or is making payments on increase in value.
Location: In a city within a state where politicians come to get their PHDs in Corruption
2,907 posts, read 2,067,166 times
Reputation: 4478
Quote:
Originally Posted by christiner81
I've been trying to buy for over a year now and prices where I live are holding strong. 450k for a (fixer) starter home...very depressing. I have a considerable down payment but the inventory is awful.
And unless inventory improves, in some places dramatically, prices won't be coming down much. It'll just be a frozen market.
Chicagoland inventory is down 50% compared to the same time in 2019.
Had an e-mail from Zillow sayign they still think prices in my zip code will go up 2.7% in the next year even as they’re forecasting declines in other zips I monitor, but then I live in a place where the federal government causes a huge distortion of normal market forces.
142 million housing units in the U.S. vs 270k....hmmm?
The U.S. is also short by roughly 5 million homes.
Why are you comparing homes to buyers ?
Makes no sense.
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.
