Housing market's gonna crash
Comments
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^^^^^^^Call it trolling if you'd like but those houses that are soon to crash do have to reside somewhere so real estate is a big part of the overall equation. Just saying.
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Just sayin'.…
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If buyers can't afford it, the thing will sit on the market.
And the seller doesn't want to eat the loss. So then what?
There was about 8 years of that limbo around Memphis.
Are we ready for something like that to happen everywhere?
Dallas market pre-2008 didn't go crazy. This time, it was a
hotbed of crazy price hikes. I don't think they will be as lucky
this time around. And let's face it, Los Vegas is going to be
another blood bath.
"The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
So is Los Angeles… My wife and I were smart and bought in a fantastic neighborhood with great schools at the bottom of the market. We re-fied two years ago and took nothing out but reduced our term by 5 years at the same payment. We were up 700k on our purchase price but with rates like they are, our market value has slipped 100k since July.The Gear... Carver "Statement" Mono-blocks, Mcintosh C2800 Arcam AVR20, Oppo UDP-203 4K Blu-ray player, Sony XBR70x850B 4k, Polk Audio Legend L800 with height modules, L400 Center Channel Polk audio AB800 "in-wall" surrounds. Marantz MM7025 stereo amp. Simaudio Moon 680d DSD
“When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
How many flies need to be buzzing a dead horse before you guys stop beating it? -
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ken brydson wrote: »
Just sayin'.…
FWIW I paid 7 3/8% (it was an excellent rate at the time) for the life of my mortgage. It was far better than paying my much cheaper rent in the long run but some people just don't think long term. -
Yeah, it was either the 70's or 80's that a 7-8% mortgage was either good or the norm. People have been very spoiled the last decade with staggeringly low interest rates. I wouldn't be surprised if the rates keep going up, maybe even doubling and staying there for a very long time. Like, maybe a decade or more, just like back then.
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
Having the ability to take out a 30 year loan at between 2 to 3 percent interest is a sign there's something seriously wrong with an economy. It was only that way for so long because of the economic collapse around 2008 and the struggle to get out of that mess.
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Yeah, it was either the 70's or 80's that a 7-8% mortgage was either good or the norm. People have been very spoiled the last decade with staggeringly low interest rates. I wouldn't be surprised if the rates keep going up, maybe even doubling and staying there for a very long time. Like, maybe a decade or more, just like back then.
Tom
90s as well. We bought our house in 1996 through an FmHA loan with a variable interest rate, but capped at 7.25% for life. So @motorstereo you are not far off of that, though not sure when you bought?
I should add, my max monthly payment (without taxes or insurance) is capped at $741.
So, are you willing to put forth a little effort or are you happy sitting in your skeptical poo pile?
http://audiomilitia.proboards.com/ -
So I shouldn't complain about my 3.25% 15 yr fixed?Gustard X26 Pro DAC
Belles 21A Pre modded with Mundorf Supreme caps
B&K M200 Sonata monoblocks refreshed and upgraded
Polk SDA 1C's modded / 1000Va Dreadnaught
Wireworld Silver Eclipse IC's and speaker cables
Harman Kardon T65C w/Grado Gold. (Don't laugh. It sounds great!)
There is about a 5% genetic difference between apes and men …but that difference is the difference between throwing your own poo when you are annoyed …and Einstein, Shakespeare and Miss January. by Dr. Sardonicus -
Actually during the early 80's it was over 16%, early 90's they fell to about 10%. I can remember my father stating us kids would never be able to afford a house if something didn't change. I just locked in a 5.5% for 30yrs. Do to the astronomical property taxes in my city I couldn't go with a 15-20yr loan. I've never ever had a mortgage longer the 15yrs previously. My bank loan officer was stating how outrageously high they had become. I calmly look at him and stated my first mortgage was 8.3% so my 5.5% was super in the grand scheme of things. Of course he is only 30yrs old so he honestly had no idea how high they had been in the last decades.
Rocket mortgage history
vvvvvvvInterest rates reached their highest point in modern history in 1981 when the annual average was 16.63%, according to the Freddie Mac data.In the 1990s, inflation started to calm down a little bit. The average mortgage rate in 1990 was 10.13%, -
IIRC, our first mortgage (1982, give or take) was at 13.25%.
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I've seen rates as high as 9% during my tenure as a homeowner. At this point I am just happy I refinanced 18 months ago at 2.25% for 15 years. Not sure I will have that opportunity again in my lifetime.2 Channel Rosso Fiorentino Volterra II, 2 REL Carbon Limited, Norma Revo IPA-140B, Norma Revo DAC-2, Lumin U2 Mini, VPI Prime w/SoundSmith Zephyr MIMC, Modwright PH 150, Denon DP-59l w/Denon DL-301MKII, WAY Silver 3 Ana+ Speaker Cables, WAY Interconnect Cables, AudioQuest Niagara 7000 w/Dragon, WAY power cables for all other sources.
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I've seen rates as high as 9% during my tenure as a homeowner. At this point I am just happy I refinanced 18 months ago at 2.25% for 15 years. Not sure I will have that opportunity again in my lifetime.
That is great! I actually gave up a 2.5% loan that had no escrow for the taxes and insurance. If I kept it I couldn't live on $200 a month to pay bills, gas and food. It wasn't an easy decision, the current atmosphere I fully expected all that to continue to escalate. -
Tom[/quote]
90s as well. We bought our house in 1996 through an FmHA loan with a variable interest rate, but capped at 7.25% for life. So @motorstereo you are not far off of that, though not sure when you bought?
I should add, my max monthly payment (without taxes or insurance) is capped at $741.
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Early 1988 I bought mine which was at the peak of the condo bubble when condos were selling for as much as single family homes. That also was an interesting time in the housing market.
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That is great! I actually gave up a 2.5% loan... If I kept it I couldn't live on $200 a month to pay bills, gas and food. It wasn't an easy decision, the current atmosphere I fully expected all that to continue to escalate.
Male gigolo not paying as good as it used to? Damn!Gustard X26 Pro DAC
Belles 21A Pre modded with Mundorf Supreme caps
B&K M200 Sonata monoblocks refreshed and upgraded
Polk SDA 1C's modded / 1000Va Dreadnaught
Wireworld Silver Eclipse IC's and speaker cables
Harman Kardon T65C w/Grado Gold. (Don't laugh. It sounds great!)
There is about a 5% genetic difference between apes and men …but that difference is the difference between throwing your own poo when you are annoyed …and Einstein, Shakespeare and Miss January. by Dr. Sardonicus -
If you seen me naked you'd understand!!!
😂 -
Lol...the 420 workout
... and my body by bud....yeah, not a pretty site
All that matters is I can still shoot straight2-channel: Modwright KWI-200 Integrated, Dynaudio C1-II Signatures
Desktop rig: LSi7, Polk 110sub, Dayens Ampino amp, W4S DAC/pre, Sonos, JRiver
Gear on standby: Melody 101 tube pre, Unison Research Simply Italy Integrated
Gone to new homes: (Matt Polk's)Threshold Stasis SA12e monoblocks, Pass XA30.5 amp, Usher MD2 speakers, Dynaudio C4 platinum speakers, Modwright LS100 (voltz), Simaudio 780D DAC
erat interfectorem cesar et **** dictatorem dicere a -
I can definitely shoot straight! So I've still got that going for me😂😂
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https://www.realtor.com/news/trends/home-prices-expected-to-fall-even-if-no-recession/
Investment companies have basically come to a screeching halt. This will have a big impact on availability and demand.
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
I can't believe we're still pushing the "not inflation" and "not a recession" narrative.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
I can't believe we're still pushing the "not inflation" and "not a recession" narrative.
You mean like get vaccinated and stop the spread ..... Yea same people!
🤣🤣 -
No inflation here, just paying more for quality products and service- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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Well, my first home in the 80’s had a 12.5% fixed 30 year interest rate.
That was at a reduced rate as it was thru the VA.
I don’t think we’re done with rate hikes yet… -
The Feds flat out said they were going to do staged rate increases over the next 6 months and that was back at the end of June. If their timeline is accurate, they have two more hikes coming before the end of the year. Then they're going to reassess and see if more rate hikes are needed.
I heard a talking head on a news channel I was surfing past say that he would not be surprised if we hit 10% rates by next spring. That might be extreme but we haven't see inflation like this since the Carter administration and digging out of that is what led to the 12-13% rates.Post edited by Jstas onExpert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
Oh man, 10% not good.
Unless cd rates go up in relation to rates.
Remember my Pop getting 2 year cd’s @ 13%. -
Another.75 hike announced just a few minutes ago…The Gear... Carver "Statement" Mono-blocks, Mcintosh C2800 Arcam AVR20, Oppo UDP-203 4K Blu-ray player, Sony XBR70x850B 4k, Polk Audio Legend L800 with height modules, L400 Center Channel Polk audio AB800 "in-wall" surrounds. Marantz MM7025 stereo amp. Simaudio Moon 680d DSD
“When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
How many flies need to be buzzing a dead horse before you guys stop beating it? -
Link?
They usually raise rates on Wednesday, third week of month or so- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit. -
I think he's talking about this that popped up today.
It's not that it happened already just that the conditions are met for the Fed to say the next hike is necessary. It will likely happen in November. It's behind a pay wall, though. I saw a summary on an aggregator site but it's not worth linking to because it doesn't say much more than what I just wrote.
https://www.wsj.com/articles/inflation-report-seals-case-for-0-75-point-fed-rate-rise-in-november-11665667815
If it does happen, the Fed may hold off until after EoY to determine the next hike.Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you! -
I wouldn't be surprised if they raise every month until the beginning of the year and beyond.- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
