Based on this, I'd say CA is being affected more than any other state in the west.
Posted on 07/02/2022 9:12:22 AM PDT by Browns Ultra Fan
As The Fed raises rates in their attempt to wrangle inflation, we are seeing an about-face in the US housing market.
The pandemic-related Fed monetary stimulypto begat a housing boom that is careening to a halt as the fastest-rising mortgage rates in at least half a century upend affordability for homebuyers, catching many sellers wrong-footed with prices that are too high. It’s an astonishing turnaround. Just a few months ago, house hunters felt pushed to make offers within days, waive inspections and bid way above asking. Now they can sleep on it and maybe even shop for a better deal.
It doesn’t mean real estate is heading for a crash on the order of 2008. But when a market reaches these heights, even a drop toward normalcy will feel steep. And of course, a recession could make everything worse.
Dallas, Phoenix AZ and Las Vegas NV are leading in the price-slashing derby.
Is this the end for the home price bubble?
Or is the music over with The Fed tightening monetary policy.
(Excerpt) Read more at confoundedinterest.net ...
Kinda like that in the Reno market now. A few months ago houses were flying off the shelf at absurd prices. Now it’s gone kinda flat. But, new housing both single family and apartments are still being built. And, prices either to buy or rent are ridiculous. I don’t know who’s buying/renting. A friend of ours said the apartment she’s in(for years) just bumped her rent $200/mth with the new lease. Not much choice since all the other stuff is as high or higher. Yeah branDUHn, the economy is just roaring along. 😵💫🤬
there are winners and losers in real estate, as is true of other investments.
Someone such as me, who has owned the same house for 30 years, has seen my net worth skyrocket on paper, as the value of the house has skyrocketed. Any who have bought recently, may see themselves “under water” if values start declining. If someone has bought at today’s high prices, and has a mortgage based on those prices, could be hurt. Will we see a repeat of 2008 in housing?
It’s a rush to the exits!
I live in rural north central Texas. This year my property tax appraisal was up 20%. Last year it was up 20%. Year before that it was up 3%.
My home insurance has gone up in a similar fashion - just got this year’s bill - yikes!
That’s because house prices are inflated due to artificially low rates.
What goes up due to manipulation, will go down when the manipulation is reversed.
Whod’a think it?
“Any who have bought recently, may see themselves “under water” if values start declining. If someone has bought at today’s high prices, and has a mortgage based on those prices, could be hurt. Will we see a repeat of 2008 in housing?”
Maybe not quite that since they stopped doing liar and no doc loans, but there will definitely quite a few defaults. Prices could easily drop by half.
If the paper value of your home decreases, I’ll bet the taxes and insurance won’t.
Huh 20% or more annual housing price increases aren’t sustainable?!?
Who’d have thunk it…
Words to live by:
When a trend hits Pittsburgh, it’s just about over. Housing prices here started shooting through the roof here a year or two ago…. Now the crash comes.
Watched this over and over for 35+ years…
Housing, fancy cupcakes, etc etc. every single time
Don’t feel too bad, next door in CA, according to the map for this article, it indicates 6 cities or regions are down 20&...
Based on this, I'd say CA is being affected more than any other state in the west.
Water woes may be an equivalent or even greater factor in areas served by the water in rapidly draining Lake Mead.
There is one simple
Reason why these areas are slashing housing prices…people
Are not moving to these areas…they are moving out to smaller and more rural areas. Areas that are safer. Areas with lower taxes…areas with conservative and principled values…. Areas where leftists don’t rule….
The fact is that housing needs are ever increasing and fewer homes are being built. I do not expect a country wide major housing cost slash. This is a a not the same setup as 2008. This is going to affect and highlight areas people
Are desolately trying to leave that want a healthy and peaceful lifestyle.
I bought a home last year in an area where the prices were rapidly rising but we’re still reasonable. The prices were high because inventory was low.
Homes that go on the market here sell quickly, and yet there’s a home in the neighborhood that’s been listed for at least a month and hasn’t been sold. Even after a 5% reduction in price it’s still being listed for more than I paid for a bigger, newer home last year.
The prices are dropping because buyers aren’t acting irrationally anymore.
I thought the limit was 10%.
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