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they are totally frustrated . the supply of nice homes is very low and the homes she had put bids in on were lost in bidding wars where homes are going for premiums .
very few are selling their own homes at this point and looking to go bigger ... so the market is drying up ...if things show they are slowing down it is only because lack of supply .
Let the sellers squirm. They deserve it, with their ungodly gains by taking advantage of new home owners and others who just don't understand real estate.
What?! That makes zero sense..
It's not like there's some secret society of home sellers out there taking advantage of new home owners by jacking up prices. Homes are worth what people are willing to buy them for. If a home is listed for sale and there is a bidding war why is that the sellers fault?... It's supply and demand, You need to learn how economics actually work. I'm sure you blame the rich for all your problems too...
In my area houses are still going under contract in a week. As a first time buyer, I'm not really interested right now. I've been saving up for 8 years, and getting my credit up. Interest rates are low. But the thing is the prices are so high, we are a bit over 2007 pricing now which seems to me to say something is wrong. But lending is still quite strict.
I'm too spoiled since I saw what you could get back in 2010-2014 and what you can get now for that price is a DUMP compared to what you'd have gotten for the same price back then. Not worth messing with, IMO. I didn't save up 8 years to buy an overpriced dump.
Two things though as far as a drop in prices:
1) Many of those jobs that were lost (surely not all but I think many) are not jobs that paid enough to afford a mortgage, and even if so unlikely they'd pay for a mortgage for the kind of house you're probably looking for. So I think there will probably be less forbearance in that price range of a house.
2) This is a virus pandemic. Pandemics historically have lasted 1.5-2 years. We are in a recession, but don't expect world falls apart, banks go under, depression scenarios. Could happen, but not likely. Things will probably slow down for a while, but this pandemic won't be a decade long scenario or anywhere close to it, most likely.
So housing prices may not be affected as much from this virus in particular as much as possibly from a housing bubble that we were already going into, with this maybe being the catalyst. Again, lending is still far stricter than it was during the previous bubble.
Let the sellers squirm. They deserve it, with their ungodly gains by taking advantage of new home owners and others who just don't understand real estate.
Quote:
Originally Posted by ericp501
What?! That makes zero sense..
It's not like there's some secret society of home sellers out there taking advantage of new home owners by jacking up prices. Homes are worth what people are willing to buy them for. If a home is listed for sale and there is a bidding war why is that the sellers fault?... It's supply and demand, You need to learn how economics actually work. I'm sure you blame the rich for all your problems too...
Agreed. Sounds like sour grapes to me. Get back to me after you sell your own home well under market value because it's the right thing to do.
I'm not saying that prices aren't inflated in certain markets. And I do think it's a bit crazy to hear about houses going into 10 offer bidding wars hours after listing. But what is a seller supposed to do? If the market dictated pricing is unfair, how is one supposed to determine a fair price? They should be accepting tens or hundreds of thousands under market out of the goodness of their heart?
The same people crying foul on current market conditions are also the ones saying can't wait for the crash so I can swoop in and buy for pennies on the dollar. So it's wrong for sellers to leverage their position and cash in, but if the market crashes they're totally justified in leveraging their position and cashing in.
I don't judge either side. Sellers should get as much as they can. If a buyer can time the market and scoop up an amazing deal good for them. It's a little self-centered to believe your current position is the fair/noble one, and the other side is the greedy gluttonous enemy.
Last edited by simplechamp; 07-17-2020 at 07:45 AM..
In my area houses are still going under contract in a week. As a first time buyer, I'm not really interested right now. I've been saving up for 8 years, and getting my credit up. Interest rates are low. But the thing is the prices are so high, we are a bit over 2007 pricing now which seems to me to say something is wrong. But lending is still quite strict.
I'm too spoiled since I saw what you could get back in 2010-2014 and what you can get now for that price is a DUMP compared to what you'd have gotten for the same price back then. Not worth messing with, IMO. I didn't save up 8 years to buy an overpriced dump.
Two things though as far as a drop in prices:
1) Many of those jobs that were lost (surely not all but I think many) are not jobs that paid enough to afford a mortgage, and even if so unlikely they'd pay for a mortgage for the kind of house you're probably looking for. So I think there will probably be less forbearance in that price range of a house.
2) This is a virus pandemic. Pandemics historically have lasted 1.5-2 years. We are in a recession, but don't expect world falls apart, banks go under, depression scenarios. Could happen, but not likely. Things will probably slow down for a while, but this pandemic won't be a decade long scenario or anywhere close to it, most likely.
So housing prices may not be affected as much from this virus in particular as much as possibly from a housing bubble that we were already going into, with this maybe being the catalyst. Again, lending is still far stricter than it was during the previous bubble.
i dont understand why people make the statement that house prices are so overpriced now just because they are above the housing bubble in 2007. housing prices will always appreciate over time simply due to inflation. this is like saying "im not going to buy a house today because it was way cheaper in the 1990s, let me wait until it goes back to those prices then i will buy." we may see a small correction, but dont expect pricing levels to retract back to levels 10-15 years ago.
i dont understand why people make the statement that house prices are so overpriced now just because they are above the housing bubble in 2007. housing prices will always appreciate over time simply due to inflation. this is like saying "im not going to buy a house today because it was way cheaper in the 1990s, let me wait until it goes back to those prices then i will buy." we may see a small correction, but dont expect pricing levels to retract back to levels 10-15 years ago.
There are places in the country where current sales are what they sold for (or even less in a number of cases) 10-15 years ago. Baltimore comes to mind.
i dont understand why people make the statement that house prices are so overpriced now just because they are above the housing bubble in 2007. housing prices will always appreciate over time simply due to inflation. this is like saying "im not going to buy a house today because it was way cheaper in the 1990s, let me wait until it goes back to those prices then i will buy." we may see a small correction, but dont expect pricing levels to retract back to levels 10-15 years ago.
Adjusted for inflation they are close to 2007 prices.
There are places in the country where current sales are what they sold for (or even less in a number of cases) 10-15 years ago. Baltimore comes to mind.
People fleeing NYC are flooding North Jersey, Orange and Rockland Co NY. No idea how long it lasts.
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