Posted on 12/31/2022 8:42:14 AM PST by patriot torch
There is a hidden housing crash happening right now as you watch this video. While many seem to be ignoring the obvious, the real estate market has entered into crisis mode and what awaits us in 2023, is a disaster that could be worse than what we saw in 2008. While many remain skeptical due to some conflicting reports, fresh new data is pointing to a troubling future.
(Excerpt) Read more at youtu.be ...
are these properties that you have your eye on, on the market?
What? Less buying when interest rates increase? Say it ain’t so! /s
This is a great time to buy if you can. You can always refinance when interest rates come down to sane levels.
I get a dozen offers on my house every week. But I am debt free and don’t want to move.
“are these properties that you have your eye on, on the market?”
Yes. On the market. I haven’t checked Zillow for history, but we’ve been watching one for about eight months, and the other for about six months. A few minutes ago I found out that it was taken off the market yesterday. Not sold, but the listing was pulled.
There’s a good chance things will pick up in a couple weeks. The holidays probably grind things to a standstill.
if properties are languishing on the market (6-8 months qualifies) then it’s only a matter of (short) time that prices reflect the lack of demand. Keep waiting them out; you’ll win.
“Keep waiting them out; you’ll win.”
What we think. We’re not desperate, so no biggie.
I get supply and demand. Are you sure about some of those assertions? Inflation, both on materials and labor, must still be a significant factor in keeping prices high - even if not at the levels previously seen. There’s still a housing shortage too, at least from my view (Michigan).
I can honestly say that I have never considered a house as an investment. It is to live in and enjoy. It needs to be warm in winter, cool in summer, dry in the rain, safe, solid and in an area relatively free of crime and blight. Though not an investment there is no sense being stupid and losing money. What others think of the amenities is of no consequence to me. That it has curb appeal and is marketable is important. I don’t want any millstones when I get ready to move. These have been my criteria for nearly 50 years through 7 houses and have always served me well.
To each his own but the current trends in ever more outlandish houses with all manner of fru fru such as coffee bars, iceboxes in the pantry, outdoor kitchens (nice but not essential)are just cost.
Houses are seldom an investment to be happy with but there are exceptions. Not many things have been good investments of late except betting on failure.
Realtors have done a remarkable job of building a myth that they make a handsome profit from
Always living below your means will generally serve you well.
The government paid “fair market value” as they determined. Not the out of control real estate market. I barely had enough for the down payment on the new house. It was only a few bucks more than the assessed value. I paid 36k and got 56k (six year later) from our glorious government overlords. The same properties that weren’t taken in that neighborhood were selling close to 500k when I lost mine and are now in the 800k to 1 million range.
“Whoa cowboy! Read my comments. I wasn’t “bitching” (in your parlance). Quite the opposite.
Homeowners need not fear. Homeowners have a place to sleep and eat. People who own their homes or have fixed rate mortgages are unaffected by a volatile market. If you didn’t own a home, you’d have to pay rent somewhere. And that rent keeps skyrocketing. Those who own homes have a lot of positives going for them.”
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Count me as another that thinks you are bitching, protests aside.
A homeowner can be a person that either owns a home with no mortgage or co-owns his place with a bank. There is a big difference between the two.
If the homeowner is actually a co-owner with a bank and loses his income stream because the overall economy is in the toilet, then he has a lot to worry about, fixed rate APR notwithstanding.
But the bigger problem ahead for the real estate market is the impending consumer debt bubble which is about to make it’s presence known. Anyone who follows the RE market knows that the current market inventory is skewed in favor of either high end new construction homes or second (vacation) homes. A lot of the available inventory is actually surplus homes being disposed of to reduce personal liability exposure.
You must know this is a problem because you are not stupid but you seem to imply that all is well once the homeowner signs his mortgage paper. A 3.5% 30 year fixed APR on a home that is 45% of the homeowners income is going to be a disaster waiting to happen, plain and simple.
In short we in the USA seem to be incapable of living below our means and determined to make consumer debt the backbone of our financial planning. We are in what I think is the calm before the storm. Time to batten down the hatches, get out of debt, save some money for a rainy day. Buy opportunities galore are in the future but if the prospective buyer has 30% of their income tied up in Visa Payments, they will be watching train pass right on by.
Homes have been selling below assessed value in my neck of the Upstate NY woods for a while now.
Prospective buyers don’t want to assume confiscatory annual property taxes in the high four to five figures.
Used cars aren’t crashing here in the PNW. 20 year old trucks still command 10s of thousands.
Quick scan on craigslist
1993 Ford F350, $28,000
1997 Ford F350 4x4 Diesel, $48,000
2002 Ram 2500 4x4, $43,000
2004 Honda CRV, $17,000
2000 Toyota Tundra, $27,000
I hope the prices crash here. But they aren’t
Frankly, I’d be happy to see my taxes go down. I’m not interested in selling right now.
And some have just been sitting there for many, many months...
I thought about selling my home now that prices have skyrocketed but realized I’d have to buy another house at the same inflated price.
“You can always refinance when interest rates come down to sane levels.”
Dangerous gamble—very dangerous.
If inflation is here to stay (and there are many reasons to believe it may be) the high interest rates could be there for a decade or longer.
The “suck” B silent....
People forget 1976-79.
This is nothing compared to the disaster Jimmy Carter and one party rule dropped on America.
Cities and counties now have really no case to argue against the state determining how they run things. In the past the state would use carrots (If you build Section 8 housing we'll give you grants, etc.) Now they're using sticks.
Obama/Biden(really still Obama) even tried (or succeeded?) in nationalizing housing policy so at some point even the states won't be able to decide their fate.
And you can believe the RINOs are all for national housing policy as this would benefit the big builders, REITs, and investment firms like Blackrock.
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