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We’re having what is considered a recession. Some call it a depression. We have millions out of work and housing has not dropped. If anything prices have increased due to low inventory. I just Closed on a refinanced loan on 30 year fixed to a 3.125 rate. I just missed out on a 2.85 Because I dd t get my application in and had to wait till Monday. I’m paying less for a 2400 sq foot house on 1/2 acre than most pay for a one bedroom apartment in a bad area. And i own it and my rent won’t go up every year. Even if housing craps out rents won’t drop.we saw that last time in the bubble. If anything rents went higher
This point right here.
So many people miss it when considering buying vs. renting. An apartment complex would laugh in your face if you asked them to rent-lock for 30 years. Even if you offered to sign a lease that long. Commercial leases can span more than one year but it is the exception rather than the rule to find residential leases in excess of 12 or 13 months. Many people find that, towards the end of their mortgage, they could not afford to buy their own home again at current market value. This is all the proof you need to get in while prices are affordable, because 5 or 10 years down the road, you may be priced out!
I see no real estate bubble per se that will cause a crash in real estate prices and sales. However, if the banking system seizes up, mortgages might be hard to get and few to none of the home buyers can pay cash. So that is a risk I see more likely than just a regular crash where buyers decide prices are too high and hold off on buying. The question of what is too high needs to be framed as compared to what. Compared to cost to find a lot and build a new house or compared to rent? Neither of these suggest a bubble to me
I'm siding with your aunt and figure about six to nine months from now. Depends on your area, of course. Our area depends on tourists coming here and spending tons, that's not likely to happen for the next few years so there will be a lot of folks out of work. At the moment, the out of work folk are getting unemployment plus additional federal money, but when that runs out things are going to be in a world of hurt. Which then means they can't pay mortgages and houses will be available.
If you're looking to buy a house, pick the area you want and then advertise that you are willing to buy a house. That may save you some $$$ and save the homeowner unable to make payments from getting their credit screwed up by a foreclosure.
I'm siding with your aunt and figure about six to nine months from now. Depends on your area, of course. Our area depends on tourists coming here and spending tons, that's not likely to happen for the next few years so there will be a lot of folks out of work.
I was going to say something along these lines. I think tourism heavy cities will likely have some sort of real estate impact as I can't see enough people feeling comfortable traveling anytime soon.
I think cities that aren't touristy are less likely to have a large economic impact on their real estate. I think the best bets for stable and increasing real estate prices are non-touristy cities that are in growing areas. I think those cities will just truck along.
Oh no, another gate keeper with his red herrings. Unless you have a PhD or 20 years of experience in an industry, you're not qualified to comment or hypothesize.
well, it doesn't take any PhD or industry experience to look 10 topics down
With the on-going forbearance, it's unlikely that there will be another RE downturn soon. And with the Feds backstopping the banks it's going to be a while before the housing market cracks.
However, if there's a second and bigger covid 19 wave, all bets are off because fatalities will force a flood of properties due to deaths and people fleeing the major cities.
there are 6MM homes sold a year. 200K deaths where the remaining people had to sell (no life insurance) would be 3.33% extra inventory.
With the on-going forbearance, it's unlikely that there will be another RE downturn soon. And with the Feds backstopping the banks it's going to be a while before the housing market cracks.
However, if there's a second and bigger covid 19 wave, all bets are off because fatalities will force a flood of properties due to deaths and people fleeing the major cities.
I agree with you on the Fed avoiding another crash. However, if the markets do go down, it will not be because of Coronavirus, it will be because of the protests. If these protests continue, they could destroy the economy.
I agree with you on the Fed avoiding another crash. However, if the markets do go down, it will not be because of Coronavirus, it will be because of the protests. If these protests continue, they could destroy the economy.
The pandemic caused the recession in February. Unemployment rate increased in January, then the pandemic hit. Tens of millions lost income.
The protests are not causing a recession or unemployment. Looters have destroyed some individual retail stores in certain cities, but nothing to affect the U.S. economy.
Because of the pandemic, where shopping at brick & mortar stores and going to theaters stopped, the bankruptcies are piling up and will likely be historical numbers of bankruptcies this year. Because of the pandemic.
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