Housing market crash incoming?

[Oblivian]

What current issue? We have 2 generations that can't afford to buy houses. Tons of overpriced houses are just sitting.

https://www.dailymail.co.uk/news/ar...market-prediction-crash-Great-Depression.html

Where are you located? Exact opposite problem around most of the US - low inventory. Bidding wars are going on, escalation clauses, etc.

 

[lsa]

Where are you located? Exact opposite problem around most of the US - low inventory. Bidding wars are going on, escalation clauses, etc.

based on his name, I am gonna guess Oregon.

 

[Oregonmma]

Where are you located? Exact opposite problem around most of the US - low inventory. Bidding wars are going on, escalation clauses, etc.

Vancouver, WA now but I lived in Portland, OR for most of my life. I look at houses every now and then and damn near everyone I look at has a price decrease of around $30-40k within the past few months

 

[Oblivian]

Vancouver, WA now but I lived in Portland, OR for most of my life. I look at houses every now and then and damn near everyone I look at has a price decrease of around $30-40k within the past few months

Exact opposite around here and most of the US which is why prices are so high. Interest rates being so high have cooled things slightly here because some can't afford, but there are still enough surplus of buyers to keep the prices "inflated" (at least in my eyes). Here's the thing though: rent prices have skyrocketed with it along with construction costs. There aren't really options. We just got a quote for renovations at over $150k. Everything is ridiculously expensive.

 

[TeTe]

Here in San Diego the market has gone down a little bit, but rest assured when rates come down it's hitting all time highs again.

 

[Streeter]

Would love the rates to come down I'm at 6.5 buying my current house last May . Had I bought 6 months sooner would be paying like 3.1. .


Biden intrest rates are killing buying a house and buying a car is worse. Intrest rates are way to high. Maybe an econ whiz on here knows why they decided yo make it hell on everyone buying a car or house this last year?

 

[TeTe]

Would love the rates to come down I'm at 6.5 buying my current house last May . Had I bought 6 months sooner would be paying like 3.1. .


Biden intrest rates are killing buying a house and buying a car is worse. Intrest rates are way to high. Maybe an econ whiz on here knows why they decided yo make it hell on everyone buying a car or house this last year?

They made it hell to cool inflation. The goal being 2 percent instead of eight or whatever it was at after covid. The first thing the fed does is Jack up the prime rate to discourage spending... spending goes down the idea is that prices will have no choice but to drop. It's not a president thing at all honestly.

 

[Oblivian]

Would love the rates to come down I'm at 6.5 buying my current house last May . Had I bought 6 months sooner would be paying like 3.1. .


Biden intrest rates are killing buying a house and buying a car is worse. Intrest rates are way to high. Maybe an econ whiz on here knows why they decided yo make it hell on everyone buying a car or house this last year?

I don't think we'll see rates below 5% for a long time. I'm not even that old, but I'd consider 6% fairly normal. The <4% was ridiculous.

 

[WarHawk]

Remote work has changed the real estate demand.

 

[chardog]

I've heard speculation but these articles are popping up now more than ever.

how when inventory is so low? Mortgage applications are dropping, but still relatively high, even if it drops, you will have opportunities, trust me. The crash of 2008 had two bottoms, it's kind of like the stock market, it bottomed 2010, two years after the initial motion, then again in 2012? something to that effect, and yes, I got in and now my property is not only paid off, but worth about 2.5x what I paid for it. The biggest mistake was paying off the house too soon instead of buying more property....... I have five kids and had to make sure they have a roof on their head, hence I did what I did.

 

[RoastBeast]

Would love the rates to come down I'm at 6.5 buying my current house last May . Had I bought 6 months sooner would be paying like 3.1. .


Biden intrest rates are killing buying a house and buying a car is worse. Intrest rates are way to high. Maybe an econ whiz on here knows why they decided yo make it hell on everyone buying a car or house this last year?

Because the US government (and most of the world governments) caused inflation due to scamming us on covid. They knew from early on that the virus was not a danger to anyone other than senior citizens or people with serious comorbidities and instead of just protecting those in danger, they shut down the supply chains and kept people out of work. The workforce isn't made up of a bunch of senior citizens and extremely unhealthy people so when the supply chains slowed down and the government pumped trillions into the economy through stimulus packages, it caused a ton of inflation. The remedy was to bump up interest rates to slow inflation.

Unfortunately all of this has bad and lasting effects on the lower and middle class while either hardly affecting or being downright profitable for the upper class.

 

[Bornstarch]

Here in San Diego the market has gone down a little bit, but rest assured when rates come down it's hitting all time highs again.

San Diego is now one of the go-to places for the migrants. They're being bussed in by the tens of thousands non-stop. The housing market over there is going to go down the drain.

 

[method115]

Vancouver, WA now but I lived in Portland, OR for most of my life. I look at houses every now and then and damn near everyone I look at has a price decrease of around $30-40k within the past few months

I can only speak for Texas but things are still going great here. The only people I see dropping the prices on their house are people trying to ask for outrageous amounts of money. One guy near my dad is trying to sell his house for 400k. My dad says it's the same as his house for the most part and it's worth 300 max and even that would be asking for to much.

 

[Streeter]

I don't think we'll see rates below 5% for a long time. I'm not even that old, but I'd consider 6% fairly normal. The <4% was ridiculous.

Not normal for me man. I bought my first house in 02 still had 4.6 Intrest rates. The 3% force few years was low even for my generation I admit. Maybe 6 is the new normal sadly.

 

[blackheart]

What current issue would cause the housing market to crash? Lower interest rates would cause the market to go up.

I don't see anything on the horizon that would cause the housing market to crash. I can see it dipping but not all that much.

Stay off tiktok. You're a grown man for Christ sake.

I've been seeing that mortgage defaults are going up quite dramatically.

The only thing I can see crashing the housing market is exactly that - systemic mortgage defaults. Wages have obviously not kept up with housing prices. Housing prices cannot go up infinitely. So if we have a situation where mass defaults are happening due to lack of affordability, we could see a housing collapse similar to 2007/8.

 

[TeTe]

San Diego is now one of the go-to places for the migrants. They're being bussed in by the tens of thousands non-stop. The housing market over there is going to go down the drain.

Going down the drain huh? Tell me you know nothing about this city without telling me you know nothing.

 

[GSP_37]

At some point, people need to refuse to pay over $1 mil for an old tear down piece of shit property, especially in shitty area where countless retards fire explosions daily and shake your house and damage your car. You also got retards repeatedly honking their horns really early in the morning.

 

[My Spot]

Where are you located? Exact opposite problem around most of the US - low inventory. Bidding wars are going on, escalation clauses, etc.

And local government zoning.

 

[Contempt]

Most western countries have high immigration to prop up their economies and more people are coming in than housing being built. There are only two things that I can see that could conceivably crash the housing markets.

1) Massive increase in unemployment, people up to their necks in debt and unable to pay their mortgages causing many people to sell at the same time.
2) Boomers already own most of the properties, them dying off in large numbers (as they will) and the market being flooded with all these properties. (this is much less likely)

There are other super unlikely scenarios but they aren't even worth listing TBH.

Either way, a crash will just mean the already rich and corporations will just buy up the stock and wait for prices to rebound.

 

[Contempt]

It does seem like a house of cards, but there also seems to be some sort of external force manipulating things.

logically it should have collapsed already.

Cost of living thru the roof

Homelessness rising

Loans harder to get and at high interest rates limiting buying power

Real estate continuing to soar.

How's that work?

There is a force manipulating it, it's called mass immigration.

You simply bring in more people than you build housing which pushes the price up through the roof.

Additionally, plenty of countries have advantages tax arrangements around housing speculation.

As long as the economy doesn't entirely tank, it is nearly impossible for housing prices to drop significantly.