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From today’s Wall St Journal:
‘The meteoric growth of home prices has made some lenders reluctant to take on first-time home buyers or others they view as slightly risky.'
From today’s Wall St Journal:
‘The meteoric growth of home prices has made some lenders reluctant to take on first-time home buyers or others they view as slightly risky.'
So this should slow things down a bit.
hmmm... I doubt they're turning away anyone putting down 20% and doing a conventional 15 yr or 30 yr loan? Don't underestimate the number of high income, high credit, low debt individuals who haven't bought a house until WFH showed them that they need a bigger place
From today’s Wall St Journal:
‘The meteoric growth of home prices has made some lenders reluctant to take on first-time home buyers or others they view as slightly risky.'
So this should slow things down a bit.
So you think the lenders will issue denial letters to applicants that state "we have an inkling that lending to you would be slightly risky, so we are not going to be able to approve you"??
That's not how it works.
There are parameters in place. A borrower either meets them or doesn't. Doesn't matter if they are 1st time homebuyers or 5th time homebuyers.
Market has been distorted for a while due to change in asset ownership. Pension funds are buying up homes. They own very few bonds or fixed-income investments now.
Someone on reddit wrote up an analysis on Quicken Loans. It’s starting to feel like a bubble rather than a boom. The question is when it’ll burst (probably right after I buy a house lol)
The house I'm living in now has gone up in price about 70% since I bought it in 2017, according to Zillow. I know Zestimates are for entertainment only, but something is happening regardless. The figure doesn't even account for the improvements I made, which would probably more than double the value.
The Zestimate increasing over $20K in one month shows a bubble may be here.
FWIW, I live in a poor state with several established industries getting established here, like film, Amazon and Facebook, so maybe not. I don't know. Expanding employment opportunities are the best reasons for r.e. to become more valuable.
Someone on reddit wrote up an analysis on Quicken Loans. It’s starting to feel like a bubble rather than a boom. The question is when it’ll burst (probably right after I buy a house lol)
That's a pretty interesting read. Some of it was over my head but sure doesn't paint a very nice picture.
One of the main things I gathered is that they are assuming most of the people utilizing mortgage forbearance allowed by COVID relief legislation will default and go into foreclosure. I'm wondering if that will really be the case? I wonder what percentage of people in forbearance really can't pay their mortgage, and what percentage did it for other reasons (stack money in savings, pay off debt, buy new jetskis, etc).
Soon America will be like Potter's Field, with only a few wealthy owning property, most renting. Investors (i.e. cash buyers) are swooping up properties too quickly and jacking them up too much after 'renovating'. BUY if you can, even if it is an ugly little house. Gone are the days of working hard and 'saving' for your house. Your job won't get you there - you have to invest in RE and that may mean starting very small, like a sh*tty house in a bad neighborhood.
I live near St. Pete and you would believe what some of these homes are going for that are practically in the ghetto.
Soon America will be like Potter's Field, with only a few wealthy owning property, most renting. Investors (i.e. cash buyers) are swooping up properties too quickly and jacking them up too much after 'renovating'. BUY if you can, even if it is an ugly little house. Gone are the days of working hard and 'saving' for your house. Your job won't get you there - you have to invest in RE and that may mean starting very small, like a sh*tty house in a bad neighborhood.
I live near St. Pete and you would believe what some of these homes are going for that are practically in the ghetto.
Sure it will. You just can't live on the coasts. Home ownership is there if you're willing to move inland.
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