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Just wait until all the new mortgages going to folks that can’t afford them with other folks subsidizing them.
Blackrock and Vanguard are going to own everything.
Many key markets (especially on the West Coast and Phoenix) are way over-valued. A 30% correction would be expected in the unemployment rate goes up in any significant manner. The price increases in the last two years are not reasonable nor supported.
If I were looking to buy, I’d wait until at least next Spring, otherwise you will overpay (significantly in some markets).
“People buy 400,000 dollar homes and new cars and toys for the weekend and go bust.”
Yep... And the rest of us pay for it. And this is why it will be an “everything” crash and full depression, not just a housing crash.
wait until all those adjustable mortgages double...
Most people decide how expensive of a house they can buy based on the monthly payments on a 30-year mortgage.
In 2021, 30-year mortgage rates averaged under 3%. This year they have averaged between 6% and 7%. It makes a big difference.
In 2021, a $400,000 mortgage would have cost you about $1,686 a month (for principal and interest only, not including taxes and insurance). This year, that same $1,686 a month will only pay for a $267,000 mortgage. A $400,000 mortgage will cost you $2,528 a month.
Real estate prices are going to continue to drop and drop hard. All that owner equity the article talks about is based on inflated real estate prices. All those high credit scores are based on high owner equity amounts. As real estate prices continue to drop it will have snowball effect.
While home foreclosures are a problem, they pale in comparison to the forthcoming crashing the commercial real estate market.
It's going to be amazing to watch how quickly demand can evaporate in the next recession.
“People buy 400,000 dollar homes and new cars and toys for the weekend and go bust”
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It literally takes my breath away thinking of anyone who is trying to purchase a home along with new vehicles and such. Cannot imagine it.
We get contacted by our local dealership about getting new vehicles and I advise them my beloved has told me I cannot even ‘look’ at vehicles.
Vehicles running more than what my house cost just blows my mind.
Add on top of that the inflated prices of houses???? Ugh.
It’s bubbling below the surface but car repossessions are way way up too