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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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The housing market. 1
#27727099 - 04/09/22 10:30 AM (1 year, 9 months ago) |
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Recently mortgage rates spiked to 6.5% and are suppose to keep trending upward.
The fed is going to be raising interest rates .5% every 6 months to fight inflation.
The house I bought is up 3x in value over the last 6 years.
If I were to sell my house right now, if someone put 100,000 dollars down on it for their purchase, their mortgage would be 5,000 a month.
These prices seem far too insanely high.
Will this mortgage house of cards collapse?
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
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Loc: city of angels
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Re: The housing market. [Re: budmanman] 1
#27727158 - 04/09/22 11:08 AM (1 year, 9 months ago) |
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Well, the basic tenet of raising rates is to slow inflationary & expansionary economic forces, so naturally, the higher mortgage rates go, the "cooler" the housing market is going to get as the pool of potential buyers who can secure adequate financing will diminish. On the flip side, inflation is more or less universal across the economy, especially when driven by an undercurrent of rising energy costs (which are being exacerbated by the Russian/Ukrainian war), since almost everything has an energy component to its cost, from various points production to delivery.
Admittedly, wage growth tends to lag, and that will be the pinch point that slows the housing market. I wouldn't necessarily expect it to outright crash, although it will undoubtedly temper a bit, and could draw down if the Fed is too aggressive, which they almost have to be given how quickly purchasing power is diminishing, if they really want to put a lid on price expansion.
Bottom line is, it's good to be a home owner right now, as your equity is inflation resistant and should continue to track with price movement in the broader economy. If you've been a saver and sitting on piles of cash, these past couple of years have been an exceptionally painful period of time.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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SharaVabdas



Registered: 03/23/22
Posts: 489
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Re: The housing market. *DELETED* [Re: budmanman]
#27741830 - 04/19/22 11:06 AM (1 year, 9 months ago) |
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Post deleted by SharaVabdas
Reason for deletion: Shroomery is full of bigots and I'm leaving.
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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How did u manage to get 10k in debt just by moving out of a home?
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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kreg
Shoebox Enthusiast+

Registered: 09/14/21
Posts: 2,434
Loc: sloosination🏳
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Re: The housing market. [Re: budmanman]
#27741978 - 04/19/22 12:29 PM (1 year, 9 months ago) |
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Boomers raised housing prices- ok millionals, lets raise cocaine prices 🤷😏
Edited by kreg (04/19/22 12:30 PM)
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SharaVabdas



Registered: 03/23/22
Posts: 489
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Re: The housing market. *DELETED* [Re: budmanman] 1
#27741987 - 04/19/22 12:33 PM (1 year, 9 months ago) |
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Post deleted by SharaVabdas
Reason for deletion: Shroomery is full of bigots and I'm leaving.
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TheDirtFarmer
Identifies as Morgan Freeman



Registered: 04/07/22
Posts: 1,013
Loc: Mexican Canada
Last seen: 2 months, 13 days
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Housing markets are great if your a seller looking to rip off buyers right now. Being a buyer its terrible. At this point id have to spend my life savings on down payment and closing cost just to get the monthly payment low enough to be affordable. And thats a modest house. Now i could do what everybody in my area seems to be doing. Buy a 600sq ft 2br house you can barely breathe in for 80k, dump in 40k to remodel, and expect idiots to buy a tiny house for 4x what its worth.
Renting is even worse. They want as much in the run down ghetto areas as they do the nice areas. Looking like a good time to burn the rich and redistribute their assets.
Edited by TheDirtFarmer (04/19/22 06:22 PM)
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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Where I live condemned homes that need to be torn down go for 400k.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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TheDirtFarmer
Identifies as Morgan Freeman



Registered: 04/07/22
Posts: 1,013
Loc: Mexican Canada
Last seen: 2 months, 13 days
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Re: The housing market. [Re: budmanman] 1
#27742606 - 04/19/22 07:36 PM (1 year, 9 months ago) |
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I see your from communist california.
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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Washington state. Also communist.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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TheDirtFarmer
Identifies as Morgan Freeman



Registered: 04/07/22
Posts: 1,013
Loc: Mexican Canada
Last seen: 2 months, 13 days
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Re: The housing market. [Re: budmanman]
#27742678 - 04/19/22 08:09 PM (1 year, 9 months ago) |
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Whole U.S. will be like that if this keeps up.
Edited by TheDirtFarmer (04/19/22 08:11 PM)
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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I bought my house for 260kish 6ish years ago its rapidly approaching 1 million. I'm not sure what I'm suppose to do when you find yourself in this situation.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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ManianFH
living in perverty



Registered: 07/06/04
Posts: 14,741
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Re: The housing market. [Re: budmanman]
#27742866 - 04/19/22 10:21 PM (1 year, 9 months ago) |
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Depends on your needs. If you need a place to live, stay on it.
Chances it willl ever drop to at or below what you paid are slim. To any potential homebuyers the best advice I can give is to save up and wait out the cycle. As interest rates keep climbing there will likely be a supply change, especially in non metropolitan areas. Nothing goes up forever, at least that I know of
-------------------- notapillow said: "you are going about this endeavor all wrong. clear your mind of useless fear and concern. buy the ticket, take the ride, and all that.... " ChrisWho said: "It's all about the journey, not the destination."
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TheDirtFarmer
Identifies as Morgan Freeman



Registered: 04/07/22
Posts: 1,013
Loc: Mexican Canada
Last seen: 2 months, 13 days
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Re: The housing market. [Re: budmanman]
#27743655 - 04/20/22 01:24 PM (1 year, 9 months ago) |
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Quote:
budmanman said: I bought my house for 260kish 6ish years ago its rapidly approaching 1 million. I'm not sure what I'm suppose to do when you find yourself in this situation.
Hard situation. On one hand value will drop again eventually. On the other hand its a great hedge against inflation. If it were me id probably sell while its high, rent until prices drop, then hold the profits split up between different banks to keep it all FDIC insured and drop 300k on a new place when the market has cooled down.
That all hinges on having enough income to afford rent on a place that meets your housing needs without dipping into your profits though.
I talk some serious shit as a buyer but as a seller id rake in the cash and secure enough capital to make investments and build wealth.
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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I just worry that this place is like sanfransisco now and it's up only.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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budmanman
OTD Masterbater



Registered: 02/07/07
Posts: 17,974
Loc: PNW
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Re: The housing market. [Re: budmanman] 1
#27747621 - 04/23/22 03:59 AM (1 year, 9 months ago) |
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Well I am seeing strong evidence the housing market is about to tank, mostly from the interest rates I assume but I am seeing drastic price drops, I am talking substantial, its gonna snowball I can feel it.
-------------------- Everything I have ever said is total bogus bs I am full of crud therefore everything I say should never be taken literal. And I am mentally unstable.
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kreg
Shoebox Enthusiast+

Registered: 09/14/21
Posts: 2,434
Loc: sloosination🏳
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Re: The housing market. [Re: budmanman]
#27747728 - 04/23/22 07:08 AM (1 year, 9 months ago) |
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Quote:
budmanman said: Well I am seeing strong evidence the housing market is about to tank, mostly from the interest rates I assume but I am seeing drastic price drops, I am talking substantial, its gonna snowball I can feel it.
Sad thibg its too late for a lot of buyers who had to spend all their savings on their current living expenses, all this time. I hope Im wrong. I dont want to see the country fill up with empty abandoned condemned homes
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Hartford
Lawful Good



Registered: 11/27/19
Posts: 1,106
Loc: Tennessee
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Re: The housing market. [Re: kreg]
#27747775 - 04/23/22 07:48 AM (1 year, 9 months ago) |
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Sell your house an move to Tennessee, of course.
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TheFakeSunRa
Bitch Splitter



Registered: 03/01/05
Posts: 16,449
Loc: Dirdy SOUF
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Re: The housing market. [Re: budmanman]
#27747851 - 04/23/22 09:12 AM (1 year, 9 months ago) |
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Quote:
budmanman said: Well I am seeing strong evidence the housing market is about to tank, mostly from the interest rates I assume but I am seeing drastic price drops, I am talking substantial, its gonna snowball I can feel it.
It’s real. The new interest rates are good news for crackas that can pay ca$h
-------------------- [quote]Asante said: You constantly make posts thatr fling middle school insults at people you don't like mixed in with maladjusted psychopathic comments about wanting to beat up the other poster with a crowbar. You know how shit you are, you just don't give a fuck for precisely that reason. I disendorse you.[/quote]
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kreg
Shoebox Enthusiast+

Registered: 09/14/21
Posts: 2,434
Loc: sloosination🏳
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Re: The housing market. [Re: Hartford]
#27747855 - 04/23/22 09:17 AM (1 year, 9 months ago) |
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Quote:
Hartford said: Sell your house an move to Tennessee, of course.
Nope. We are full, stay where you are thanks. - the south east.
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