Economy The great housing market crash of 2022

Exactly. What I see happening is what already happens here in Texas. States setup a program that gives first time home buyers their down payment. It's the program I used and the salary cap was reasonable. It was above the average pay for Texas but not so high that your just handing it out to people who can save up with some discipline. I just barely was able to make the program and we had to leave my wife (gf at the time) off the loan.
Yeah, there's a program like that on a national scale that works with Bank of America to make no down payment loans possible, so long as the borrower can manage the monthly payments. And if someone can afford to save up the down payment, the program will let people buy down their interest rate instead. I've sat at closings where people are buying $400k houses with 0.5% rates on the loan.
 
whaaaaatttt
It's a difficult program to get through. They don't rely on credit scores so much as they rely on what your income is. That means the home buying process takes longer with them because they require significantly more paperwork to substantiate the buyer's income and they only approve what is affordable.

People have dropped out of the program because they want to be approved for larger loans. And people do miss out on houses because the program won't approve an extra 10% to help you win a bidding war. But, to my way of thinking, if the buyer is patient those ultra low interest rates or no down payment scenarios are fair trade offs.
 
I feel bad for people that didn't refi. I went from 3.75 to 2.6 and was paid two grand.
 
Author details “Turnings” or “Cycles” in American history. 80 year “institutional cycle” and 50 year “socio-economic cycle”. Both of these cycles will hit at the same time during the 2020s. There will be huge upheaval and political restructuring during this time. We’ll be on the brink of collapse and, in his estimate, we will pull through stronger than before.

He details each cycle, what led to each and how they impacted America. He wrote in the book a major crisis will kick it off, but never imagined something as big as Covid — which in a later addition he said forwarded the timescale 5 years at least.

He detests Technocrats and paints them as the main institutional structure which needs to be changed. He also claims Millennials will be the ones to carry us through the crisis. I think he puts wayyyyy to much faith in that generation.
Eh millienials are what, late 80-early 90s babies? Probably a good generation as they were born right before technology exploded and understand the mix of the past traditional values and the current state of the world we live in. Not our fault the generations before us fucked the country and we have to fix it.
 
It's a difficult program to get through. They don't rely on credit scores so much as they rely on what your income is. That means the home buying process takes longer with them because they require significantly more paperwork to substantiate the buyer's income and they only approve what is affordable.

People have dropped out of the program because they want to be approved for larger loans. And people do miss out on houses because the program won't approve an extra 10% to help you win a bidding war. But, to my way of thinking, if the buyer is patient those ultra low interest rates or no down payment scenarios are fair trade offs.
what program is this? is it only for 1st time buyers?
 
My question is where is all this headed? Housing prices are out of control, mortgage rates, gas, food, etc. Stocks, 401ks, retirement accounts are crashing. Everything. Where are we headed?
 
My question is where is all this headed? Housing prices are out of control, mortgage rates, gas, food, etc. Stocks, 401ks, retirement accounts are crashing. Everything. Where are we headed?

For some tough times ahead for many people. We will get through it like we always do. This isn't the first time we've been here and it wont be the last.
 
For some tough times ahead for many people. We will get through it like we always do. This isn't the first time we've been here and it wont be the last.

How much have housing prices increased in the last 20, 30, 40 years versus wage increase cross-referenced with inflation? Someone has probably already posted these at some point, but I seem to recall something like a 400% increase in housing prices? What is inflation at now? 8%? 10%? As far as I know, most employees are lucky to get a 5% raise each year but that doesn't seem to keep up with housing prices and inflation?

So basically everyone is going to become dead poor one day? Or each generation becomes more and more poor?
 
what program is this? is it only for 1st time buyers?
NACA.
https://www.naca.com/

It's not just for first-time buyers but it is only applicable to your primary residence. So they won't approve you for a second home or a rental property. And they do check that you're living there for at least 3 years because they don't want flipping. That 3 year time period is adjustable if someone has a job change or some other life event that necessitates moving. But I just do title closings for them in my state, the details of the program are better explained by them.

I should add it's not a low income only program, almost anyone can participate. I think the max is around $1 million.

EDIT: The loans can be construction loans so you can still pick up a fixer upper and get the construction costs rolled into it.
 
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Come on. The big players don't give a fuck about renting houses. Look at the last housing market crash.

this is their new model tho, even outlets like Bloomberg and wall street journal talk about it. As commercial real estate is losing value and/or not having renters as people now work from home and/or small businesses closed cause of COVID, they are switching to their new model, trying to change America into a rental based housing economy.

I posted a bunch of links from bloomberg, wallstreet journal, and other mainstream outlets talking about this.
 
How fast do you think banks can actually foreclose on a home? It takes months for that process to happen. People can sell their houses in days. At most you wait a week or two.

I think the situation you are describing is very rare and unlikely to happen. Who owns a home but doesn't understand it's worth money right now? How many people can possibly fit into that category? It has to be so few it's not even worth talking about.

Well, the point of this thread is the increase in foreclosures. And the point of my comments in this thread is about the contrast between 2008 and now.

Why would there be so many foreclosures right now if people could just sell them?
 
Keep in mind high housing depletes disposable income because property taxes rise. We paid 350k, but are going to be assessed at 550k just two years later. Yikes. Just more money to government.
 
Why would there be so many foreclosures right now if people could just sell them?

When you say so many what data are you looking at exactly? The data I just looked up didn't seem that much different than normal. In fact from what I saw foreclosure rates in the US seem to have been doing down for the past decade so having them go back up a bit would be pretty normal. Not sure when the eviction moratorium went away but I would imagine foreclosures would go up sometime after that. Having a government backed loan gives you about 6 month leeway I believe.

https://www.statista.com/statistics/798766/foreclosure-rate-usa/

https://www.attomdata.com/news/market-trends/foreclosures/attom-q1-2022-u-s-foreclosure-market-report/#:~:text=Foreclosure starts increase in all,percent from a year ago.
 
I havent had a lot of time today but did I just hear mortgage rates are headed up again?
 
When you say so many what data are you looking at exactly? The data I just looked up didn't seem that much different than normal. In fact from what I saw foreclosure rates in the US seem to have been doing down for the past decade so having them go back up a bit would be pretty normal. Not sure when the eviction moratorium went away but I would imagine foreclosures would go up sometime after that. Having a government backed loan gives you about 6 month leeway I believe.

https://www.statista.com/statistics/798766/foreclosure-rate-usa/

https://www.attomdata.com/news/market-trends/foreclosures/attom-q1-2022-u-s-foreclosure-market-report/#:~:text=Foreclosure starts increase in all,percent from a year ago.

I was looking at TS numbers and articles. The moratorium ended recently which is the numbers TS is posting about and the spike you're referring to.

I'm looking into theories on why the housing market is white hot but we have, not only foreclosures, but a spike in repossessions.

What's your theory?
 
I was looking at TS numbers and articles. The moratorium ended recently which is the numbers TS is posting about and the spike you're referring to.

I'm looking into theories on why the housing market is white hot but we have, not only foreclosures, but a spike in repossessions.

What's your theory?

I made this as kind of an extension of the Inflation thread, which I commented in a lot on and constantly bumped it. But, as things seem to be accelerating with the economy now shrinking, gas and inflation going up even further now with all these sanctions and shit, the effects from COVID

So there is a number of things all interconnected. But they only stopped this foreclosure stall towards the end of last year.. so of course there is lag behind for cause and effect. Now that people have been having to pay for a few months, it is all catching up. And keep in mind, these are foreclosures so they were already delinquent for at least a couple months, no?

it is just another perfect storm of ongoing economic policy and regulation by the establishment.

I see some arguing here that this is different because the banks will only benefit from this. I literally made this exact point almost a year ago, when they were talking about lifting this fire closure and rent eviction policy, and people said I was crazy for suggesting such…. This is a post from July last year and just look at what I was saying and who said I was wrong…. Well, what is happening and who seems to be right?

Good news if you're an investment firm trying to buy up a bunch of properties to force people to rent for the rest of their lives, rather than be able to buy homes

"lets close businesses again, so small businesses finally die, giving way to the big corporations like Amazon to control those markets indefinitely. Just in time to kick people out of their homes so they can be bought up by big corporations so the younger generations will never be able to be home owners. This way they can be forced to have cheap products from China delivered to where they are renting for the rest of their lives.... but at least there are no mean tweets!!"







https://www.bloomberg.com/news/arti...icked-as-kamala-harris-s-top-economic-adviser

 
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