No one on this thread has even attempted to address the question of whether economic conditions (and unemployed borrowers) can sustain the current home prices. Someone explain to me how prices cannot collapse given the circumstances?
No one on this thread has even attempted to address the question of whether economic conditions (and unemployed borrowers) can sustain the current home prices. Someone explain to me how prices cannot collapse given the circumstances?
Ballouyert wrote:
No one on this thread has even attempted to address the question of whether economic conditions (and unemployed borrowers) can sustain the current home prices. Someone explain to me how prices cannot collapse given the circumstances?
I have no idea and nobody else does either on what’s going to happen. What I do know is that sky is always falling. We’ve had many many crises throughout history and everytime, people think this time, it’s different. However in the long term, housing prices go up. Stock market goes up in the long term. So, I’d rather be invested and be in for the ride. People who sit on the sideline tend to miss out and don’t gain the wealth.
If something really really terrible will happen, we’re all going to be screwed. It won’t matter if you have a house or not. We will all be screwed.
I’m still long on America.
buy for long term wrote:
Ballouyert wrote:
No one on this thread has even attempted to address the question of whether economic conditions (and unemployed borrowers) can sustain the current home prices. Someone explain to me how prices cannot collapse given the circumstances?
I have no idea and nobody else does either on what’s going to happen. What I do know is that sky is always falling. We’ve had many many crises throughout history and everytime, people think this time, it’s different. However in the long term, housing prices go up. Stock market goes up in the long term. So, I’d rather be invested and be in for the ride. People who sit on the sideline tend to miss out and don’t gain the wealth.
If something really really terrible will happen, we’re all going to be screwed. It won’t matter if you have a house or not. We will all be screwed.
I’m still long on America.
It's still pretty hot and competitive right now where I live in the right neighborhoods. It seems to defy all logic. I simply think the combo of low rates, low inventory, and still enough interested buyers with cash to splash. Most US urban areas are built for low density and until recently there were more people than ever that desired city living. More demand than the city was really built to handle at an affordable cost. Despite all the economic challenges at the moment, the housing market is some areas still is doing well. So if there still is enough demand and wealthy enough buyers, this little sector of the economy will continue to remain bouyant. That's my unscientific opinion.
But in my little neighborhood that is probably 75% gentrified, I'm noticing the higher end of the market is not selling nearly as quick as it was. The lower end in desirable neighborhodos are still flying off the shelves.
Ballouyert wrote:
No one on this thread has even attempted to address the question of whether economic conditions (and unemployed borrowers) can sustain the current home prices. Someone explain to me how prices cannot collapse given the circumstances?
Because it doesn’t matter if the current home prices can sustain.
Once you buy the house that’s out of your control.
People aren’t trying to sell the homes they have now based on that kind of speculation.
What matters is if you can sustain making the payments.
People generally keep their current pay rate or it goes up. So if you can afford it now, you should be able to afford it going forward.
Are you a renter afraid of this uncertainty or a home owner poised to sell as you you try to guess the top of the market so you can become a renter?
Just wait until mortgage forbearance ends. (over 9% of them are under it now.)
Who cares if someone "can afford" their monthly mortgage payment today when they could have purchased the same home at 50% the price a year later? Do you know how much interest you pay on a $500,000 house compared to a $250,000 house over the 30 years (even with a 20% down payment)?
Sure I also "bet on America" in the long run but I wouldn't make a foolish decision during an obviously precarious moment.
Ballouyert wrote:
Just wait until mortgage forbearance ends. (over 9% of them are under it now.)
Who cares if someone "can afford" their monthly mortgage payment today when they could have purchased the same home at 50% the price a year later? Do you know how much interest you pay on a $500,000 house compared to a $250,000 house over the 30 years (even with a 20% down payment)?
Sure I also "bet on America" in the long run but I wouldn't make a foolish decision during an obviously precarious moment.
Yes, in your hypothetical scenario of home price dropping by 50% next year, you should wait until next year. Or, maybe the following year where price will continue to drop. Or, if the price drops by that much, it may take a decade for the prices to come back up again so better to just rent forever.
You seem to know exactly what’s going to happen in the housing market so keep doing what you’re doing.
However, you really remind me of people back in March who had a lot of cash waiting to invest at the bottom of the stock market when Dow will go below 15,000 or down to 12,000, and then buy all the cheap stocks at that time! Then the prices never dropped to that low so basically missed out on a lot gains by trying to time the market and not jumping into the market afraid that the market will continue to drop.
What I’m saying is that the market, stock market or the housing market doesn’t go logically or impossible to time it correct every time. Best thing you can do is buy quality assets like stocks from great companies with great long term outlook or buy a house in great location and yiu think it’ll go up in value in the long run and commit to it.
But do as you please.
I bought my house that’s appreciated $200k in the last 5 years and I don’t plan on selling it bc of the current market condition where it might go down by 50% next year. It could, but my house is in great location so i believe it’ll work out in the long run.
sub sub elite local hobby jogger wrote:
buy for long term wrote:
I have no idea and nobody else does either on what’s going to happen. What I do know is that sky is always falling. We’ve had many many crises throughout history and everytime, people think this time, it’s different. However in the long term, housing prices go up. Stock market goes up in the long term. So, I’d rather be invested and be in for the ride. People who sit on the sideline tend to miss out and don’t gain the wealth.
If something really really terrible will happen, we’re all going to be screwed. It won’t matter if you have a house or not. We will all be screwed.
I’m still long on America.
It's still pretty hot and competitive right now where I live in the right neighborhoods. It seems to defy all logic. I simply think the combo of low rates, low inventory, and still enough interested buyers with cash to splash. Most US urban areas are built for low density and until recently there were more people than ever that desired city living. More demand than the city was really built to handle at an affordable cost. Despite all the economic challenges at the moment, the housing market is some areas still is doing well. So if there still is enough demand and wealthy enough buyers, this little sector of the economy will continue to remain bouyant. That's my unscientific opinion.
But in my little neighborhood that is probably 75% gentrified, I'm noticing the higher end of the market is not selling nearly as quick as it was. The lower end in desirable neighborhodos are still flying off the shelves.
Have you started to actually look at houses in person? It’s good to start going and seeing the houses and it even helps to drive to take a look at the outside of the houses to get a really good feel for it. Most houses, I can tell right away if I like it or not by driving by to see if I like the surrounding area and how the exterior looks. It just helps to really get a good feel of where exactly you want to live and what kind of prices that you’ll be paying. I did that for the last 2 houses that I bought and has worked out well so far.
buy for long term wrote:
sub sub elite local hobby jogger wrote:
It's still pretty hot and competitive right now where I live in the right neighborhoods. It seems to defy all logic. I simply think the combo of low rates, low inventory, and still enough interested buyers with cash to splash. Most US urban areas are built for low density and until recently there were more people than ever that desired city living. More demand than the city was really built to handle at an affordable cost. Despite all the economic challenges at the moment, the housing market is some areas still is doing well. So if there still is enough demand and wealthy enough buyers, this little sector of the economy will continue to remain bouyant. That's my unscientific opinion.
But in my little neighborhood that is probably 75% gentrified, I'm noticing the higher end of the market is not selling nearly as quick as it was. The lower end in desirable neighborhodos are still flying off the shelves.
Have you started to actually look at houses in person? It’s good to start going and seeing the houses and it even helps to drive to take a look at the outside of the houses to get a really good feel for it. Most houses, I can tell right away if I like it or not by driving by to see if I like the surrounding area and how the exterior looks. It just helps to really get a good feel of where exactly you want to live and what kind of prices that you’ll be paying. I did that for the last 2 houses that I bought and has worked out well so far.
Yea, I've looked at a couple and I usually do a drive through the 'hood before I actually schedule a showing for the house. I've lived here long enough that I know what any given neighborhood is going to be like without visiting. What's a key selling point for me is do I think that I will still like this house in 5 years? Because if I walk through and find the place uncomfortable in some ways, I know that I will look to sell in 2-3 years when the mortgage is potentially underwater.
Also to another poster, I'm renter looking to buy and not an owner trying to sell at the top of the market. I don't believe in trying to time the market perfectly but think more in terms of longer timelines.0
While time will tell what COVID does to the market, those who claim there’s a bubble are ignorant. Zero doc loans and sub-prime lending inflated prices in the early 2000’s....since recovery from the first meltdown those options have disappeared. If you don’t have the dough/income/credit (and proof of it) to buy, you simply can’t. I might wait to see what happens in the next 12 months before I made a purchase though.
This is a long (20 minute) video but worth it. You can skip to minute 12:25 if you'd like to see a forecast. He has already sold all of his investment/rental properties except for one.
I bought in the D.C. area, which is always going up regardless. At the end of the day, you still have equity and the tax deduction if you didn't buy a mansion. I know this isn't the case for everything, but for most people it's still one of the main ways to build wealth in this country.
All markets ebb and flow.....People ALWAYS need somewhere to live however. Real Estate will always be among the safest of investments, particularly if YOU don’t want to move back into your parents basement.
Bad Santa wrote:
While time will tell what COVID does to the market, those who claim there’s a bubble are ignorant.
This post will not age well.
jansportie wrote:
Bad Santa wrote:
While time will tell what COVID does to the market, those who claim there’s a bubble are ignorant.
This post will not age well.
No bubble, sorry to burst yours.
The tax deduction is gone for most home owners. Even for those who get it, the additional amount over their standard deduction is small.
scholar expert wrote:
The tax deduction is gone for most home owners. Even for those who get it, the additional amount over their standard deduction is small.
Ahhhh....more ignorant falsehood. Property tax(up to 10k) and mortgage interest (up to 750k)are tax deductible as always
Ignorant. 75% of homeowners no longer qualify since the standard deduction was raised.
scholar expert wrote:
Ignorant. 75% of homeowners no longer qualify since the standard deduction was raised.
I’m glad you agree. ??
No longer qualifying and taking the standard deduction are two different things.
No bubble? We've had interest rates so low for so many years, even during an economic expansion. Now we have mortgage forbearance and eviction moratoriums during a crisis. Perhaps your argument is that coronavirus and its economic impacts will be the primary driver of the upcoming crash, and therefore it won't be due to a bubble? Or is your argument that inflation will prop up the value of hard assets such as real estate? Or something else? Please, oh learned one, teach us.
RIP: D3 All-American Frank Csorba - who ran 13:56 in March - dead
RENATO can you talk about the preparation of Emile Cairess 2:06
Running for Bowerman Track Club used to be cool now its embarrassing
Rest in Peace Adrian Lehmann - 2:11 Swiss marathoner. Dies of heart attack.
Hats off to my dad. He just ran a 1:42 Half Marathon and turns 75 in 2 months!
Great interview with Steve Cram - says Jakob has no chance of WRs this year
