Still Hot, Hot, Hot! US Existing Home Sales Fall -2.4% MoM In April, But Median Price Is 14.85% YoY And Inventory For Sale Remains MIA (Fed Stimulypto Still Helping Housing Bubble)

Confounded Interest ^ | 05/19/2022 | Anthony B. Sanders

[winterystorm]

It will slow down when rates hit 16%. That was what I paid back in early 1980 for my first home.

I have never seen rates so low as the past few years. People are spoiled.

Of course homes back in the early 80’s were not quite as expensive but wages were not as high either.

[AnotherUnixGeek]

I sold my house (3 blocks from Apple HQ) in April. Waiting for the current bubble to burst before I buy more property (this time in TX). I give it till end of summer.

[dragnet2]

I think home prices in places like CA, will decline, as they have been ultra bloated and inflated for many years. While other states that have been approaching CA prices for the past few years, will be much less affected.

[entropy12]

Exactly right. Buyers can lock in mortgage rates for 60-90 days. Housing is in bubble. It will melt like butter in a hot pan after parents have bought the house based on where the kids will go to school in Fall.

[entropy12]

That is not what happened in the previous housing crash in 2010-11. Every state had significant price declines.

[dragnet2]

In CA a 65 year old cookie cutter home with 1500 sq ft in a average or below average neighborhood, will run you about $750,000...lol

Everyone knows CA home prices have been ridiculously inflated/bloated for decades. A better/newer home in Texas, AZ, or Oregon will run you about 550k. Which of these two will be the most affected in an big economic shakeup? I'd bet the least expensive will fare much better in this scenario.

[entropy12]

Yes, because price drops are usually percentage based.
a 750K house will drop more in dollar numbers than a 550k house.

My only point was, almost all areas will be affected when housing bubbles burst.

[dragnet2]

They all will, I agree, but in the land of super bloated home prices like CA, I think they’ll be the most dramatically affected as opposed to other states where prices are much more reasonable. I could be wrong, but we’ll see.

[entropy12]

for sure. Just same as over-valued stocks drop more than value stocks during bear market.

[peggybac]

Just think about selling and moving (if desired) to another state with that money. You could live off the sale of the home forever. Wouldn’t that be nice!

[gunsequalfreedom]

Loans are getting hard to come by. Even with 50% down, some lenders are not qualifying buyers.

[Georgia Girl 2]

Inventory in our area is extremely low. Prices still escalating. We sold Mom’s house across the street in January and now it looks like ours will go for about $20,000 more.