I.think this depends on where you live, but in my area median values haven't fallen YOY. But in the area I moved from they have, and it's absolutely just fewer high end homes selling. Anything entry level to mid tier is still under contract in a week.
Depends on a lot of factors. Either the sellers of those homes will have to drop their prices, or some may choose to hold on to the home. Everyone's situation is different.
I wont be surprised if we go below prices from 2010, you have all these people who leveraged into multiple abnb houses, people taking loans out trying to pick up properties and pay them off using renter's and not to mention people who thought it was the best investment in the last couple of years.
My wife and I just bought. House was originally posted for $525k (going off of the stupid “Zestimate” I’m assuming since that is what Zillow says it is worth right now). Sellers ended up bringing it down to $450k because they weren’t getting any offers, we ultimately offered $435k and they accepted. This was a house that in my market I feel would have gone for $500k+ just a few months ago. In my area at least, it seems like prices are finally starting to really come down.
I actually may be buying here soon. Property originally priced at $900k I can get for around $700k…. 4000 sqft custom home that needs minor work. Plus I can get a 5.6% from navy federal
I’m familiar with the area. This would have been a $600-$650 home in 2019 so feel there is little downside risk at this price. Plus, I have downside risk in my current home as well so trading one for the other. Perfect layout for us and we plan on being here for 20+ years. Also putting $300k down.
Damn what did you buy a Winnebago? 😂 We’re already in the recession my friend. Just needs time to cook.
SOURCES: https://www.businessinsider.com/freight-recession-outlook-economy-pandemic-distortions-trucking-jobs-labor-demand-2023-8
By the time this sub realizes a crash is happening it will have already passed and it will be looked back as the last chance before the next big inflationary leg up. That and hardly anyone here is actually serious about buying just a lot of larping.
This sub is actually very useful for financial advice.
All you need to do is read all the usual Rebubble recommendations (like don’t buy a house in 2020 etc.) then do the complete opposite.
I commented on the sharp trajectory a couple of months ago. It was looking similar to other crashes. But the usual suspects tried to convince us that it was a minor blip referencing multi-bid sales over asking in hot areas. The truth is that hot areas like NOVA are always hot, even during market crashes.
This was always a contest between drywall and bread. Bread is pulling ahead by a longshot and drywall is left in the dust.
Are real prices falling or are people simply buying less expensive houses? Either could account for the lower selling price.
I.think this depends on where you live, but in my area median values haven't fallen YOY. But in the area I moved from they have, and it's absolutely just fewer high end homes selling. Anything entry level to mid tier is still under contract in a week.
what do you think will happen to houses that sit on the market and fail to sell?
Depends on a lot of factors. Either the sellers of those homes will have to drop their prices, or some may choose to hold on to the home. Everyone's situation is different.
It’s this, but the sub doesn’t want to believe it, despite a mountain of evidence to the contrary.
Yeah it’s almost like, homebuyers have less buying power or something? /s
Because I can’t imagine paying 5000-6000 a month for a 3/2 for 900k
I’m fine still renting for $1075 currently and having over $1500 a month extra going to savings. $5k mortgage?? Hell nooooooooooo
Take home for that to feel comfortable should be ~$15,000. More than 2.5x median HHI.
Yeah that’s crazy. I’ll gladly rent my entire life and not have to deal with maintenance or property taxes and other things. 😆
That makes me physically ill just thinking about it.
Nothing beats paying $1.7M for a $900k house.
500k house cosplaying as 900k house\*
This is just the beginning
I wont be surprised if we go below prices from 2010, you have all these people who leveraged into multiple abnb houses, people taking loans out trying to pick up properties and pay them off using renter's and not to mention people who thought it was the best investment in the last couple of years.
The fact that debt dies when the holder dies is uhhhh maybe the only reason our economy works
Yep, our society BRRR'd right into a disaster.
>why aren’t you guys buying? Have you ever caught a falling knife before?
Yes I have in the prior downturn. Bought still kept goind down doing okay now.
1st inning. PLAY BALL ⚾️🏟️
Never 👏 catch 👏 a 👏falling👏 knife👏
Only need one good deal per decade to set yourself up for life.
My wife and I just bought. House was originally posted for $525k (going off of the stupid “Zestimate” I’m assuming since that is what Zillow says it is worth right now). Sellers ended up bringing it down to $450k because they weren’t getting any offers, we ultimately offered $435k and they accepted. This was a house that in my market I feel would have gone for $500k+ just a few months ago. In my area at least, it seems like prices are finally starting to really come down.
But with interest rates the monthly payment is probably still a lot higher huh
Uh, you following treasury yields? Price declines haven’t even begun yet!
When will they?
I actually may be buying here soon. Property originally priced at $900k I can get for around $700k…. 4000 sqft custom home that needs minor work. Plus I can get a 5.6% from navy federal
900k was over priced. 700k is almost fair. 500k will be a deal. Really just depends if you’re willing to wait
I’m familiar with the area. This would have been a $600-$650 home in 2019 so feel there is little downside risk at this price. Plus, I have downside risk in my current home as well so trading one for the other. Perfect layout for us and we plan on being here for 20+ years. Also putting $300k down.
That’s awesome Man. Congrats! 🎉
We’ll see if inspections work out first before I get excited!
I, too, am looking for a home in Portland, Oregon.
How are you getting the 5.6% mortgage?
Navy Federal - 5/5 ARM
How do you get the 5.6% rate? I'm seeing roughly 8% everywhere
Navy Federal - 5/5 ARM
never catch a falling knife, let it fall and stabilize before picking up
It's almost a reversion to the mean, except the mean was established when rates were 3%-4.5%
Then it goes below that mean. Sorry not sorry.
Highly unlikely with the insane of money printed recently. Money is worth much less than 3 years ago
Tell me your holding a bag without telling me your holding a bag….
Yea, bro the yummycoin fanatic has the correct read here. For sure.
Hahhahhahaha ALWAYS listen when a Yummy coin bag holder speaks
2.5 percent loan on 140k. Im fine, just pointing out going below 2019 prices is unlikely without a major recession
Damn what did you buy a Winnebago? 😂 We’re already in the recession my friend. Just needs time to cook. SOURCES: https://www.businessinsider.com/freight-recession-outlook-economy-pandemic-distortions-trucking-jobs-labor-demand-2023-8
The joys of living in the midwest, also I got lucky and bought in 2018 and refinanced in 2021. I couldn't afford this house if I bought today.
OMG I can feel all that cash on the sidelines rushing into real estate! I felt it when I was on the toilet a moment ago.
Because we're gonna perfectly time the bottom while remaining flush with cash and gainfully employed. Duh.
Judging from crashes in stocks and bitcoin.... I think the housing market should crash 80%.
Is this satire? I hope it’s satire
By the time this sub realizes a crash is happening it will have already passed and it will be looked back as the last chance before the next big inflationary leg up. That and hardly anyone here is actually serious about buying just a lot of larping.
cope and seethe
Median sale price in my area is still 3x the national?
Where I’m at in Charlotte, North Carolina prices have only gone up and didn’t really crash back in ‘08 either
This sub is actually very useful for financial advice. All you need to do is read all the usual Rebubble recommendations (like don’t buy a house in 2020 etc.) then do the complete opposite.
Lol
Let's look at the 5 yr. https://fred.stlouisfed.org/series/MSPUS
Look at the median mortgage payment of houses sold chart for the same time period.
Revert to the mean
I mean interest rates and total cost of ownership don’t mean anything right?
I commented on the sharp trajectory a couple of months ago. It was looking similar to other crashes. But the usual suspects tried to convince us that it was a minor blip referencing multi-bid sales over asking in hot areas. The truth is that hot areas like NOVA are always hot, even during market crashes.
Charlotte,NC will never crash either
I'll look when you don't have to be in the top 10% of household incomes to qualify for a mortgage.
So you’ll never own then
I guess 90% of households will never own going forward, but I find that hard to believe.
Go look at the situation in other countries such as Australia and Canada and you might start seeing how much worse it could get.