Posted on 05/01/2023 11:08:27 AM PDT by ChicagoConservative27
Foreclosure notices ticked up nationwide in the first quarter of the year with more than 65,000 properties beginning to go through the process.
There were 36,617 new filings in March, which marks the 23rd consecutive month with a year-over-year increase in foreclosure activity, according to a recent report from ATTOM. They were up 3 percent from the previous quarter and 29 percent year-over-year.
Housing downturn: Home seller profits at two-year low: report
Yet economists say housing market conditions are different from the 2008 housing crash partly due to enormous equity homeowners gained in their homes in recent years and overall higher credit scores.
(Excerpt) Read more at thehill.com ...
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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.
Unless there’s an actual bust, it will take longer than 1 year to deflate the housing bubble. We’ll see but a lot of people are in their homes with low 30 year fixed rates. If they can make the payments they are fine unless they have to sell.
One of the reasons housing prices aren’t declining faster is simply that there isn’t a big supply of homes available. Simple economics. When the rates were very low and the government was handing out money (Californians during Covid were collecting $1000 a week in unemployment - $600 from the feds and $300-$400 from the state). Not bad for a small blue collar family. Housing prices went straight up when the economy was shut down... go figure.
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.
I’d say the market needs a 25-30% correction.
Indeed then now own 80.000 rental homes and climbing.
Wonder if they own more land then Ted Turner did.
It’s bubbling below the surface but car repossessions are way way up too
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