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Here in Southwest Florida, prices have only continued to increase and show no signs of stopping. There are quite a few homes in my area that were originally sold in the 100's a few years ago, and now they are going for $350,000 or more. These are all older homes constructed during the 50's-80's.
On the hand in Tuscaloosa, Alabama, there are quite a few homes that were priced in the upper 200's a few years ago and have actually dropped to the lower 200's. What could be going on?
It’ll crash hard AF, just wait and see. Go back and look at forums like this in 2006-2008, everyone was doing the same dumb stuff. “Better get into the market now before you’re priced out”
It’ll crash hard AF, just wait and see. Go back and look at forums like this in 2006-2008, everyone was doing the same dumb stuff. “Better get into the market now before you’re priced out”
Lol THIS. People have such short memories. 2006 and 2007 forums sounded exactly like the ones today. “Never, impossible, not gonna happen!” And then BOOM! This market is being artificially supported and inflated in so many blatantly obvious ways. I personally can’t wait for the “panic selling” to begin.
“Ah eff, need to get back to work.”
“Ah, eff mortgage forbearance is over.”
“Ah eff, interest rates going up.”
“Ah eff, NEED TO SELL NOW!!!”
It’ll crash hard AF, just wait and see. Go back and look at forums like this in 2006-2008, everyone was doing the same dumb stuff. “Better get into the market now before you’re priced out”
I haven't heard anyone say that, actually.
The reason for the bubble then was questionable loans for marginally qualified buyers who got in over their head.
The reason for the bubble now is an artificial scarcity of rural homes on the market, because there's a pandemic, and an influx of people fleeing the city with cash in their pocket.
It's not the same at all.
It will level off, because the pandemic will fade, and sellers who have been on the fence about wanting germy people in their house may decide they want in on these prices and put their hat in the ring.... And people who thought they could leave the city and work from home might find they can't... But that should be more of a flattening of the curve (where have we heard that before, right? ) than a bubble burst. It's certainly not a "crash hard AF".
is). What do you do with the post-tax proceeds? You don't buy more equities, because of course the idea was to move money out of the market. Do you put it in bonds? Do you put it in real estate? Many people decide to buy another house (or upgrade to a more expensive house) in order to return the percentage of the total invested in real estate back to its original number using that post-tax cash generated from selling a portion of the equity portfolio, and do so using the cash rather than leveraging it via a mortgage.
A newbie question here: So say I decided to pull a million from my stock portfolia to put in real estate. Why would I pay cash for two or three houses, instead of getting mortgages on ten of them? As you point out, mortgage rates are really cheap.
Interestingly, the Biden administration wants more people in houses so the FHA is loosening standards in how high student loan debt is weighted when applying for a mortgage. It's also lowering credit requirements.
It has to do with income driven repayment loans. Recap of article: If you have $200,000 in student loans, it was assumed your repayment was 1% or $2,000/month. However, borrowers are entering into income-driven repayment plans where they might only have to pay $300/month (because of your income) and the balance is forgiven after 20-25 years.
I used a loan simulator and if I had $200,000 in loans, $50,000/year, 5% increases in income per year, I'd pay between $257-803 until 2041. I'd pay off 116,888 and 185,666 would be forgiven.
Thanks for the link, no issue reading it. Yeah, let's have people with $200k student debt buying houses so that it's another loan on their already heavy backs. I'll be shocked if they don't default on one or both.
Quote:
Originally Posted by cowboyxjon
Here in Metro Denver, Colorado, not really. I'm not in the market, but I keep an eye on it. I live in a neighborhood that isn't fancy, but it's on the west side of town (closer to the foothills) and inventory is low. The last couple of houses to sell in my neighborhood have sold for $100K+ over asking, which is crazy. I've seen a few minor price reductions for homes that have sat on the market for awhile, but nothing that indicates a slowdown here.
Similar for my area. It's the most sought after development in my town where only a few homes go on the market each year. My realtor neighbor will post in our FB group that she has a buyer, is anyone interested in selling? Total win for both.
She told me a house sold for $100k more then usual. The homes were built starting in 2005 until about 5 years ago. homes started between $400k and up to $600k. Then came 2008, they made 2 new models in the $285k range. For the $400k house, people were getting about $300. COVID hit, no one wanted to move, prices started rising. The last house she closed was about $450k which is what the seller originally paid.
Quote:
Originally Posted by Lockdev
Anyone else seeing prices start to fall?
Starting to see it quite a bit here in Virginia. Houses are starting to sit and even have price cuts.
Feeling very 2008 with people asking a ton, but nothing is moving.
Could it be due to this is typical for your area this time of the year? My selling market is hottest in February and March. That's when most list and sell houses. I'm hearing from realtor.com that May is a hot selling market.
Quote:
Originally Posted by jayd42
Aren't there supposed to be a lot of evictions / foreclosures coming with the eviction moratorium ending at the end of June?
I've been saying it for close to a year that once the mortgage moratorium ends there are going to be foreclosures hitting the market to bounce prices back.
Hot off the press is an article I caught yesterday. A lady that was interviewed wants her bank to add the payments to the back of the loan. I'll be surprised if they do that. We had ours on hold a few months, BOA wants that money in addition to the mortgage payment. When we originally put it on hold, they never said what the terms would be.
....more than 2 million homeowners are behind on their mortgages and risk being forced out of their homes in a matter of weeks, a new Harvard University housing report warns.
Most of the homeowners at risk of foreclosure are either low-income or families of color, said researchers who published the 2021 State of the Nation's Housing report. Congress has dedicated $10 billion to help homeowners get caught up on payments, but it's unclear if that funding will make it to families before mortgage companies begin sending out foreclosure notices, researchers say.
More than 7 million homeowners took advantage of the foreclosure moratorium passed as part of the Coronavirus Aid, Relief and Economic Security Act last spring.... ....As of March 2021, most of those homeowners have started repaying lenders and some are even up to date with their lenders. But that leaves about 2.1 million still behind on their mortgages, researchers said.
Of that number, about 325,000 homeowners have a Federal Housing Administration loan and are behind at least 60 days. They are most likely people of color, the U.S. Department of Housing and Urban Development said Wednesday.
King, 51, a staff member at the Tuscaloosa Housing Authority, fell behind on payments.... She now owes $4,200. ...has only been able to pay her normal monthly mortgage amount—no more.
...she's willing to tack on five payments at the end of her home loan. "I actually would prefer a deferment,"...
Thanks for the link, no issue reading it. Yeah, let's have people with $200k student debt buying houses so that it's another loan on their already heavy backs. I'll be shocked if they don't default on one or both.
Similar for my area. It's the most sought after development in my town where only a few homes go on the market each year. My realtor neighbor will post in our FB group that she has a buyer, is anyone interested in selling? Total win for both.
She told me a house sold for $100k more then usual. The homes were built starting in 2005 until about 5 years ago. homes started between $400k and up to $600k. Then came 2008, they made 2 new models in the $285k range. For the $400k house, people were getting about $300. COVID hit, no one wanted to move, prices started rising. The last house she closed was about $450k which is what the seller originally paid.
Could it be due to this is typical for your area this time of the year? My selling market is hottest in February and March. That's when most list and sell houses. I'm hearing from realtor.com that May is a hot selling market.
I've been saying it for close to a year that once the mortgage moratorium ends there are going to be foreclosures hitting the market to bounce prices back.
Hot off the press is an article I caught yesterday. A lady that was interviewed wants her bank to add the payments to the back of the loan. I'll be surprised if they do that. We had ours on hold a few months, BOA wants that money in addition to the mortgage payment. When we originally put it on hold, they never said what the terms would be.
LOL.
As if the banks want to get aggressive so they can own and flip real estate.
As if the banks can and will take houses overnight on July 1.
As if banks have never done mortgage modifications.
As if a great many people don't have forbearance extension options.
As if the Biden administration won't step in in some fashion, if deemed necessary.
Lol THIS. People have such short memories. 2006 and 2007 forums sounded exactly like the ones today. “Never, impossible, not gonna happen!” And then BOOM! This market is being artificially supported and inflated in so many blatantly obvious ways. I personally can’t wait for the “panic selling” to begin.
“Ah eff, need to get back to work.”
“Ah, eff mortgage forbearance is over.”
“Ah eff, interest rates going up.”
“Ah eff, NEED TO SELL NOW!!!”
What do you mean “get back to work”? Like get back to work at all? Or get back to the office? The ones not working at all aren’t buying houses. If you mean get back to the office sure that may help prices in rural areas, but could increase prices near the cities.
I think mortgage forbearance ending will help prices, but mostly just because I bet some people will just cash out on their equity gains by selling and paying what they owe that way and adding some supply to the market. I read that a lot of people in forbearance didn’t actually need it, so I’m not sure there will be any big flood of foreclosures and the ones that do go into foreclosure will be a slow process before they actually hit the market.
I’d like to think higher interest rates will help, but since a lot of the current increases seem to be related to supply, I’m not so sure, since people likely won’t be too tempted to sell since they probably already refinanced so don’t want to have to pay these high prices to get another house on top of then paying a higher interest rate.
What do you mean “get back to work”? Like get back to work at all? Or get back to the office? The ones not working at all aren’t buying houses. If you mean get back to the office sure that may help prices in rural areas, but could increase prices near the cities.
I think mortgage forbearance ending will help prices, but mostly just because I bet some people will just cash out on their equity gains by selling and paying what they owe that way and adding some supply to the market. I read that a lot of people in forbearance didn’t actually need it, so I’m not sure there will be any big flood of foreclosures and the ones that do go into foreclosure will be a slow process before they actually hit the market.
I’d like to think higher interest rates will help, but since a lot of the current increases seem to be related to supply, I’m not so sure, since people likely won’t be too tempted to sell since they probably already refinanced so don’t want to have to pay these high prices to get another house on top of then paying a higher interest rate.
It's not going to happen overnight for sure but it will be interesting to see what happens and when.
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) than a bubble burst. It's certainly not a "crash hard AF".
