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Adding this: it isn't doing me any good. I'm not selling so all it has done for me is to raise my property taxes. I just got reappraised by the tax man and everything is about $50,000 more than last year. My son's house was reappraised for $100,000 more than last year.
......Now, for sale signs appear - and stay. I drive past same signs for few weeks now..........
The For Sale sign doesn't mean the house is still on the market. Many agents leave them up until after escrow closes because it is good advertising for them and they will get phone calls and new clients off that sign.
My son bought a house with a long escrow and even though the house was already sold, the listing agent left the ad up for the entire four months showing that they had the house available. They must have received hundreds of calls inquiring about that house and could convert some of those callers into clients (Sorry, that one is no longer a available but I have another one I can show you). My son bought that house before it even hit the listing service, so it was never available, but the listing agent got four months of advertising off of it anyway.
I finally had to go remove the sign when I bought my most recent house. I called and called and called the RE office, to no avail. I cut it up and then it fit in the garbage can...
Been thinkin' about putting a "For Sale" sign out there, just for the heck of it! (Give the neighbors something to celebrate, too!) Might even advertise "POOL" too. (Too bad I don't have a pool, LOL!)
List a phone # to someone I don't like, maybe, LOL!
After the last crash, there were private lenders offering 15 year fixed at 10 5/8, with 30% down, and 30 points... yes, 30. Seems crazy, but consider people were paying 20k for houses, where the previous owner/borrower had a mortgage for 150k...at about 6%, but even if it was 0% the shark bait is much better off. Anyone with a mortgage has the potential to default, often strategically. Down-payment is still the best indicator of potential for default. That is why the FHA system is so vulnerable. 20% down would have kept the six hundred pound gorilla in his cage decades ago.
Well yeah, if you have a junk-ish loan then yeah I could see being underwater causing issues.
But if you bought in recently with an affordable mortgage payment and don't need to sell/move anytime soon what's the issue with technically being underwater? I'll immediately contradict myself and say I think there is a chance that with today's prices, the eventual and and recovery might be on such a long timeline that lots and lots of people would be selling at a loss (i.e., eventually most people move).
Everyone’s first friend Tom? Lol. My buddy grew up with him here in San Diego and last I heard he’s living in LA.
Are you certain everyone paid cash? Did you look on the MLS or ask them all personally? The reason I ask is I know some ultra wealthy people and they all have mortgages because they can make more off their money than having it tied up in a house. I’ve actually talked to them about it. Credit is cheap, especially when you’re wealthy. Why tie up a few million when you can make a guaranteed return multiple times of what you can borrow it at?
There is no right answer, of course, and it has to do with your personal risk tolerance and attempting to have your total portfolio on the Pareto-efficient frontier (if this last statement doesn't make sense to you, just ignore it). .
Exactly true. I remember my dad telling me pay off your house because you will always have a place to live. That was the plan I was on. Our current mortgage paid off in 4 years. I would have accelerated but at 2.875%, why?
And when deciding what level of mortgage to take out on our new house, I wanted lower but I understood the concept of leverage and the fact that inflation allows us to pay off the loan with cheaper $$ than $$ now. So we balanced in between those two. I know if my husband retires/gets laid off, we could pay it off. But I definitely had to overcome the pay off your house ASAP mentality.
First, this warning: ANECDOTES AHEAD! NOT HARD DATA!
I have two friends (well, one is a sibling), who live in areas where sales exploded during COVID with a bunch of WFH buyers leaving major metros. In this case, Boston and NYC.
They've said the frenzy reached the peak around Feb/Mar, and since then--partly due to seriously depleted inventory--it's slowed notably. And my friend used to be a small-time flipper so has some ties to the RE world in his area and he's hearing agents starting to talk about buyers' remorse fueled by a growing pressure to return to in-office work.
All of the above seems feasibly logical, and maybe there'll be some price relief if there's a bit of a sell-off in some areas?
I think we will see a lot of suburban homes up in the next year or so. As you said, people fled with WFH and now either need to go back to the area, or they moved just far enough away that the commute will be bothersome and entice a move back.
The other trend we could see is people reeling from companies reducing salary based on their new location and cost of living. They may have been sitting pretty on a NY salary in the middle of nowhere, but now that they will receive the local adjustment, they'll be living beyond their means.
Yeah, doubtful. We are moving to Florida in 3 weeks. I will let you know if they reduce our pay.
It's interesting that the same people who think no matter where you live, you should still pay super high taxes think you should get a pay cut if you move to a lower COLA.
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