Posted on 08/10/2022 8:42:25 AM PDT by millenial4freedom
The Fannie Mae Home Purchase Sentiment Index (HPSI) decreased 2.0 points in June to 62.8, its second-lowest reading in a decade, according to their latest report. Surveyed consumers continue to express pessimism about homebuying conditions, with only 17% (down from 20%) of respondents reporting it’s a good time to buy a home, while the percentage of consumers who believe it’s a “Good Time to Sell” fell from 68% to 67% this month.
(Excerpt) Read more at themreport.com ...
Let’s see;
We are entering a RECESSION and with the low IQ people sending Billions more to Ukraine, and increasing taxes both on US Citizens, as well as energy imports, it will only get worse.
Inflation is currently at 9.1%, and the low IQ crowd’s answer to this is to raise interest rates more.
We have Supply Chain issues, so building materials are not only more expensive, but are taking longer to get there.
And we are only now beginning to Foreclose on homes that have not had payments made on the for 2 years, due to COVID and Congress’s Foreclosure prohibitive measures. If you don’t pay a home payment for 2 years, why would you begin now?
The housing market, just like the car market - is going to crash by the end of this year, or beginning of next. I would not be buying at this point in time.
Is this an oversimplification?
All part of the Brandon Administration’s “booming” and “skyrocketing” ecomony.
Why?
Market value $300,000
Mortgage $110,000
If a purchasing power retaining interest rate is say 8%, not all that has to paid monthly.
One could pay at the rate at 6% and let the 2% be added to the mortgage balance.
There were FHA 245 mortgages in the 1980s.
You are buying a house today, that has a value of $300,000; your mortgage at whatever rate is now locked in for 30 years.
If the Biden Depression hits, as many suspect it will, houses will flood the market due to job losses. So there is a risk that in a year that house has a market value of $150,000 due to a housing collapse. If you lose your job, and have to sell your home; you will need to bring whatever you are underwater with, plus real estate and transaction fees to closing.
The bank doesn't care if your home isn't worth what you borrowed, you MUST pay the difference out of YOUR pocket.
This happened in the last bubble, people who bought $1+ Million homes when the market was surging, and banks were giving loans out to people who didn't qualify for such homes; found themselves with multi-million dollar loans, on a home that was now worth less than half of what they owed on it. So, they declared bankruptcy and lost their homes completely. Banks such as Well Fargo were predatory, and essentially stole homes from people across the nation.
People in the real estate biz know the same thing you do; foreclosure numbers have been manipulated by companies but its gonna happen. No more covid rules. Price drops already and this even before the foreclosures start. The amount of reported late payments are 7x they were a year ago. One can already see Wall st, banks, and companies slowly adjusting for this.
They say asking someone in real estate if its a good time to buy is like asking an alcoholic if its a good time to have a drink.
Take the Redfin CEO ffs. His company has recently laid off 8% of its workforce and company stock has dropped a whopping 70% plus. And yet, this shyster is doing interviews; denying there is a recession, making false claims about the market being stable and buyers coming back to lower inventory. The numbers show the opposite. Realtor.com is not much better. Opendoor is also having to adjust.
Bump
Not a Real Estate professional. Just aware of the warning signs that things are gonna go bad in a very serious manner
There are very people on the interwebs pointing out another bubble. different from 2008, but there is a bubble.
We are looking to buy lakefront in September.In Pa.
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