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[Vicetrailia]

The market is cooling down. Better sell your home now if you see it as an investment vehicle. But for the people who actually want to live long-term I think you aren't panicked to buy anymore, and that the buyers market will come back. It just won't be what we saw in the 2008 era of a buyers market. Prices will be high, but the craze is fading.

But where I live in the PNW housing will always be fucked.

 

[Melon Husk]

Look how well this aged back from 2006....Real-estate fucking Nostradamus shit
dude was only off + - a few years or so depending on market.

SO save up, or go FHA loan in 2026-2028, live in that for 2 years with PMI if you go FHA and sell that in 2030-2032 to move into a bigger home to sit on til 2036.
I still think we are headed for some crazy recession where, today its baby formula, tomorrow it will be some other major shortage, and eventually we will get to the meatflation/meat-pocalypse

Yes, well, the problem is recency bias. The data here only goes back to 1988, which isn't very long ago in grand scheme of things. Interest rates have been falling since 1970s-1980s. That trend broke this year. If it stays broken, this pattern cannot repeat as projected. Epic post from 2006 though, he really earned that name.

 

[LordCBH]

I’ve accepted that I’ll never be able to own a home despite making more than my parents did when they were my age.

 

[MachRc]

I know we all feel the same sentiment right now that we all foresee some minor correction coming.. most likely some sort of small correction to maybe 2018 prices.. OR not..
I mean who can really predict the future...but it is a terrible idea to buy when interest rate is high AND home prices are high right?




I still remember when two of my friends, sold their homes in 2014 -2015 thinking the market was going to tank back then too and rented.
To find out that the market just went higher and higher and their previous homes were again sold by the new owners for almost double the price(not that it matters as new homes are double in price too).
One friend rented until like last month and gave in and purchased extremely expensive home( he could afford it)
My other friend ended up divorcing and havent really heard form him again since.

 

[StreetsofBeige]

I dnt know how true it is, but some report came out a few days ago saying 18% of Canadian home owners risk defaulting on their mortgage if rates keep going up.

Rates are still historically low and that 5.2% stress test is supposed to weed out people before getting a new/renewal mortgage to begin with.

Right now with the rate hikes, my rate is 2.4%. It'll probably be 3% soon with another hike. That is still a good low rate. Not as good as 2%, but still good. It's not like 15-20 years ago were paying 5%+.

And these fuckers might be deadbeating killing the market. Some fuckers got to know when to buy a home and when not to. Getting approved for a mortgage is one thing. Being able to pay for everything even if rates go up is another thing. It's like half the people expect their rates to stay the same and as soon as it goes up 1%, it's bankruptcy city.

 

[pramod]

I dnt know how true it is, but some report came out a few days ago saying 18% of Canadian home owners risk defaulting on their mortgage if rates keep going up.

Rates are still historically low and that 5.2% stress test is supposed to weed out people before getting a new/renewal mortgage to begin with.

Right now with the rate hikes, my rate is 2.4%. It'll probably be 3% soon with another hike. That is still a good low rate. Not as good as 2%, but still good. It's not like 15-20 years ago were paying 5%+.

And these fuckers might be deadbeating killing the market. Some fuckers got to know when to buy a home and when not to. Getting approved for a mortgage is one thing. Being able to pay for everything even if rates go up is another thing. It's like half the people expect their rates to stay the same and as soon as it goes up 1%, it's bankruptcy city.

You actually got an adjustable rate? Why would you do that?

 

[Phunkydiabetic]

Nobody knows what will happen but over time home prices have always gone up.

Every year for the past 30 years everyone thinks "it cant get more". But it does.

At some point there must be some max threshold where money taps out (even for rich people), but it keeps chugging.

If you can afford a place to own, I'd still look into it assuming you can float it without risk (you got a table job and money on the side in case something goes wrong). If youre not rich enough to ever afford a mortgage to own, then you got to rent or move to a super cheap city where everything is 50% or more cheaper. They are there, but up to you if you want to live and work there.

If you buy a home in the maritimes, it's literally 50% cheaper than Toronto. Even more if you compare rich to rich neighbourhoods.

Bruh, the east coast is looking mighty enticing right now..

 

[StreetsofBeige]

You actually got an adjustable rate? Why would you do that?

I always do variable. For the past 20 years, it's lower than fixed every year. When I renewed my mortgage recently, fixed rates were already high at almost 3%. I missed out, since it seemed anyone who did a fixed last year was the time to do it. I'm also thinking about moving (I move every 5-6 years). And breaking a fixed is lots of penalty fees.

When I renewed, my variable mortgage was at 1.15%. But after 1.25% of hikes I'm now at 2.4%. I'm hoping there's just one hike left to bring it to 3% and that's it.

 

[Amory]

We finally managed to buy a house back in February that was well within our budget. For the town, I think we got a pretty good deal and there weren't a lot of other bidders. It's not a dream house or anything, but it's big enough to grow into as we start our family, and there are things to address that will ultimately increase the value of the home overall.

My advice for anyone looking to buy now is to not sweat small stuff. I have a friend that picks apart every little thing in houses they go to see, and usually whatever he's bitching about can be easily changed or updated in a weekend. Kitchens and bathrooms sell houses, right? Well, be willing to buy a house with imperfect kitchens and bathrooms. Especially if it's cosmetic issues. Don't go into a house with dealbreakers in your head. That's not to say just accept anything, obviously, but keep an open mind and recognize that once you settle in, little things won't bother you too much. Plus as you make updates, you're just paying yourself down the line when you eventually sell.

All that said, interest rates are scary high these days. Refinancing down the line will be an option, but who knows when rates come down. It's a tough decision whether to pull the trigger.

 

[p_xavier]

I always do variable. For the past 20 years, it's lower than fixed every year. When I renewed my mortgage recently, fixed rates were already high at almost 3%. I missed out, since it seemed anyone who did a fixed last year was the time to do it.

When I renewed, my variable mortgage was at 1.15%. But after 1.25% of hikes I'm now at 2.4%. I'm hoping there's just one hike left to bring it to 3% and that's it.

I always lost money with variable compared to fix, even if historically you're right it's better. I'm at 1.74% fixed 5 years until September 2025. I'm at a 20% debt ratio and don't understand how can anyone do 42% without having any other life than paying for your house.

 

[Deleted member 1159]

I always lost money with variable compared to fix, even if historically you're right it's better. I'm at 1.74% fixed 5 years until September 2025. I'm at a 20% debt ratio and don't understand how can anyone do 42% without having any other life than paying for your house.

58% of a lot of money can be much more than 80% of less money

 

[p_xavier]

58% of a lot of money can be much more than 80% of less money

Which would still leave you with much more money for other spending. Anyways, housing in Canada is an immigration ponzi scheme. It sucks for both new and existing residents. One of the lowest density country in the World has nearly the highest priced housing? WTF is that logical.

 

[Chronicle]

My younger sister just bought her apartment..errr condo for 620k. She had to bid 20k over asking in late April 2022. I told her to wait two years until prices cool but, I got, " YoU'rE NeVeR HAPPY FOR Mee~H!"!!!!

My nextdoor app is full of people that are upset ADU have gone up in their hood...
as "investors", some foreign, are buying homes then building two story ADUs to house more people while destroying other's views and privacy since the laws have gotten so lax due to housing crisis.
My mainland Chinese neighbor went from growing weed in the garage(I smoke weed) to housing the Chinese communist army "students" on work visas.
They have 8 cars parked around the neighborhood, EIGHT, none in their driveway, and none in their garage as a someone that is in the Triads lives in there.

My neighbor up front, bought their home, no down VA loan, for double what I paid my home for(previous owner Mr Joe told me, he cashed the fuck out and retired to the desert), and now three families are living there, they atleast park four cars in driveway and two in front of their house.
Just this morning when I moved my trashcans since all these cars limit me from placing them in front of my own house they again had 2 trashcans, completely overflowing. This is every week..

zoomed from my nest doorbell camera

As you can see one of them, hit my mailbox. Atleast they left a note apologizing. Because I would have gone ape shit.




Even with all these stressful ass first world problems....
I am glad I dont have to deal with this crazy ass market and I feel so lucky that I have a roof over my head.
Jesus fuckign christ.

20k is two years rent. In that time you'd have your own dpace and can start building h equity.

 

[Raven117]

Prices will come down. How much is anyones guess. But it’s coming.

Between the interest rate and inflation, people just can’t afford to buy over priced homes.

(Also, buying a home is not the only way to build equity… having super cheap rent and investing in the market long term will net better returns anyway… and be more liquid…. Present market conditions not withstanding)

 

[Dr.Guru of Peru]

20k is two years rent. In that time you'd have your own dpace and can start building h equity.

lol where is 20k two years rent?
Thats like 8-10 months anywhere nice.

 

[Grildon Tundy]

I’ve accepted that I’ll never be able to own a home despite making more than my parents did when they were my age.

Never say never!

142 1st St, Quinwood, WV 25981 | Zillow

142 1st St, Quinwood WV, is a Townhouse home that contains 1000 sq ft.It contains 2 bedrooms and 1 bathroom.This home last sold for $5,500 in January 2023. The Rent Zestimate for this Townhouse is $983/mo, which has increased by $983/mo in the last 30 days.

www.zillow.com

But for real, surely if you drastically lower your standards, you could get one?

 

[LordCBH]

Never say never!

http://[URL]https://www.zillow.com/homedetails/1521-7th-Ave-Huntington-WV-25701/22392288_zpid/

[/URL]

But for real, surely if you drastically lower your standards, you could get one?

Definitely not in the Nashville/ Surrounding areas market lol

 

[Grildon Tundy]

I know we all feel the same sentiment right now that we all foresee some minor correction coming.. most likely some sort of small correction to maybe 2018 prices.. OR not..
I mean who can really predict the future...but it is a terrible idea to buy when interest rate is high AND home prices are high right?




I still remember when two of my friends, sold their homes in 2014 -2015 thinking the market was going to tank back then too and rented.
To find out that the market just went higher and higher and their previous homes were again sold by the new owners for almost double the price(not that it matters as new homes are double in price too).
One friend rented until like last month and gave in and purchased extremely expensive home( he could afford it)
My other friend ended up divorcing and havent really heard form him again since.

Lately I've been seriously tempted to sell and rent until I can buy back in for less exorbitant prices. Stories like this make me keep sitting on it.

 

[Grildon Tundy]

Definitely not in the Nashville/ Surrounding areas market lol

Could I interest you in a $100k plywood POS, built squarely between the prongs of a fork in the road?

1015 Savely Rd, Pegram, TN 37143 | Zillow

1015 Savely Rd, Pegram TN, is a Single Family home that contains 552 sq ft and was built in 1940.It contains 1 bedroom and 1 bathroom.This home last sold for $42,500 in September 2022. The Zestimate for this Single Family is $132,500, which has increased by $9,660 in the last 30 days.The Rent...

www.zillow.com

But for real, this was one of the cheaper, possibly livable homes I could find.

1521 Dry Creek Rd, Ashland City, TN 37015 | Zillow

1521 Dry Creek Rd, Ashland City TN, is a Mobile / Manufactured home that contains 1448 sq ft and was built in 1973.It contains 3 bedrooms and 2 bathrooms.This home last sold for $75,000 in November 2022. The Zestimate for this Mobile / Manufactured is $256,300, which has decreased by $3,300 in...

www.zillow.com

Just gotta lower your standards is all. I know how hard that can be, trust me--I'm still on dating apps.

 

[LordCBH]

Could I interest you in a $100k plywood POS, built squarely between the prongs of a fork in the road?

1015 Savely Rd, Pegram, TN 37143 | Zillow

1015 Savely Rd, Pegram TN, is a Single Family home that contains 552 sq ft and was built in 1940.It contains 1 bedroom and 1 bathroom.This home last sold for $42,500 in September 2022. The Zestimate for this Single Family is $132,500, which has increased by $9,660 in the last 30 days.The Rent...

www.zillow.com

But for real, this was one of the cheaper, possibly livable homes I could find.

1521 Dry Creek Rd, Ashland City, TN 37015 | Zillow

1521 Dry Creek Rd, Ashland City TN, is a Mobile / Manufactured home that contains 1448 sq ft and was built in 1973.It contains 3 bedrooms and 2 bathrooms.This home last sold for $75,000 in November 2022. The Zestimate for this Mobile / Manufactured is $256,300, which has decreased by $3,300 in...

www.zillow.com

Just gotta lower your standards is all. I know how hard that can be, trust me--I'm still on dating apps.

Honestly that one doesn't look terrible. But I'm gonna hold out for now, partly because I'm flirting with the idea of moving somewhere entirely new.

 

[nush]

Could I interest you in a $100k plywood POS, built squarely between the prongs of a fork in the road?

If they throw in the CRT TV and the cooler they've got a deal!

 

[chromhound]

I’ve accepted that I’ll never be able to own a home despite making more than my parents did when they were my age.

Wait for people to lose their houses. Get one for the low

 

[Platinumstorm]

I originally planned to purchase a home this summer, however I live in the desirable Boulder, CO area, and I watched the prices outpacing my honestly wonderful raises from 2017-2019. In 2019, I decided I would be wasting some money that I would receive in the summer of 2022 from something that happened 20 some years ago, so I put my 401k contributions at 0% [no match] and I just saved as much as I could for a down payment, which was like 50k? During the winter of 2019-2020, I was looking at homes, and I settled on a townhome in a neighborhood that I really fell in love with, over a massive corner house in housing sprawl-ville with a trashy backyard that just stared into people's homes, even though they were both nearly the same price.

I closed the week before covid was announced in the US, and I got the home with the lowest bid, because I let the previous owners stay in it rent free for two months. I had to pay for my apartment for two additional months anyhow, so this was a relative no-brainer. Two weeks later, I would have been denied for my mortgage loan for not having 20% down.
As you may have seen in other threads, my community was devastated by a wildfire in December of last year, which further increased property prices.


My home: 1800 sqft finished; Initial mortgage /w escrow which includes insurance and HOA [HOA is $260 /mo, which does blow]: $2551
Refied the next year: $2260
If I purchased this year with the same amount of money I had at my new home price: $4250. I could make this work if I went from 15% [around max] 401k, to investing about 4-5%, and doing no side investments; and I don't think I would be willing to be that house poor.
If I purchased this year using the money I would get this year at its new price: $3125 I ultimately would have wasted everything.
Appreciation value: $150-200k based on comps.

Rent 2019 980 sqft luxury ikea quality: 1780 and associated random fees of which I don't truly know the value of; probably $50
Rent 2022: $2130
Nearby 580 sqft apartment 2022 rent: $2180 [low end price only]

My community survived the 2008 housing collapse, with an average decrease of just 10%.
My area became a tech-boi work from home paradise, which might be its biggest financial risk for a housing crash.
Throughout all of last year, and at least some of this year, I was getting letters in my mailbox asking to buy my home from "families", whether that is true or not, I don't know, but the address it came from was from a townhome in my community.

In 2020 I advised a friend who was looking at a loan repayment program of 50k over 2 years to decline it, move to where I am, and buy a house. He didn't do that. I'm now advising him to rent, and he's planning on renting.

I think potential home buyers [US] are screwed either way. Right now, rents are underpriced compared to current housing costs by a ton in my area, and that makes me worry about even bigger renting hikes in the future. If they buy, they are buying at either a slowdown with a really painful interest rate at these prices [average single family home in my community is in the 900s, anything new is 1m+, townhomes in the 600s for nice quality, with a spattering in the 400s in less nice quality], facing a strong pullback, or forced to rent with questionable outcomes and continued wasting of money; I think stagflation is a real possibility, and that would be a worst case scenario as a renter.

 

[Kagey K]

I’m in Alberta Canada right now and about to buy. It’s looking like the market is going to flatten here but not drop. Kinda crappy timing for me but I’m ok with it staying stable. Our market has been skew by Toronto and Vancouver so much I just don’t know what is real anymore.

Looking to spend about $500k which is a lot in our minds

Just need to sell my townhouse condo first

In Alberta houses didn't really see the same increase as Toronto or Vancover, so you can still get a decent house for under 500k

If i could pick up and move my property into even the worst spot in Toronto it would be worth over a million (probably closer to 2) and i paid nothing close to that.

Since prices didn't really go up, I wouldn't expect them to move down much either. You should be relatively safe to spring whenever you want and won't see big fluctuations.

I dnt know how true it is, but some report came out a few days ago saying 18% of Canadian home owners risk defaulting on their mortgage if rates keep going up.

Rates are still historically low and that 5.2% stress test is supposed to weed out people before getting a new/renewal mortgage to begin with.

Right now with the rate hikes, my rate is 2.4%. It'll probably be 3% soon with another hike. That is still a good low rate. Not as good as 2%, but still good. It's not like 15-20 years ago were paying 5%+.

And these fuckers might be deadbeating killing the market. Some fuckers got to know when to buy a home and when not to. Getting approved for a mortgage is one thing. Being able to pay for everything even if rates go up is another thing. It's like half the people expect their rates to stay the same and as soon as it goes up 1%, it's bankruptcy city.

I think it's mostly people paying a million dollars for a 250k house that it affects the worst.

Some people stretched thier budget as thin as they could to overpay for a "hot property" and those are the ones about to get burned.

 

[Chronicle]

lol where is 20k two years rent?
Thats like 8-10 months anywhere nice.

Even worse

 

[Fools idol]

I'm depressed now. Thanks everyone. I was hoping to own a house by the time I was 40 but it's not looking like it's going to happen.

build a large cash position and wait around 12 months from now - prices will be significantly lower.

This recession is going to cause a lot of forced selling, and price collapse.

 

[Celcius]

build a large cash position and wait around 12 months from now - prices will be significantly lower.

This recession is going to cause a lot of forced selling, and price collapse.

I sure hope so. Things have been bonkers for so long…

 

[IDKFA]

The housing market in the UK is fucked. If you own a house already then you might be pleased at the skyrocketing prices, but first time buyers are priced out of a decent home, especially in the south.

We're looking to buy our first home because our landlady is selling. Our plan was originally to rent for a few more years then move to Poland, but now we either have to rent another place in the UK, which with current prices is outrageous, buy the house we're living in or buy another home.

Problem is the house we're living in has been valued at a crazy price. It's a very small 2 bed, yet it's valued at £240K. We'd need at least a 10% deposit, which we don't have and a combined income of £50K a year, which we also don't have. All for a tiny 2 bed.

It's crazy that I've been responsible for paying somebody else's mortgage for years via rent without issue, but apparently I can't afford to pay the mortgage myself?!?! If somebody has been paying rent without an issue for a certain amount of time then that should be a factor for lenders. A big factor.

Our best option will be half rent half buy. It means we can use a lower deposit, but I'd have to take a second job to pay for the mortgage that would be in the region of £1000 per month.

I'm just so fucking depressed about the whole situation. To add to it the UK is suffering from a major cost of living crisis. Everything is wildly more expensive. We have to budget each month just to put food on the fucking table.

Any millionaires on GAF want to throw me £5K to help me buy my family a home? Either that or I'll sell my ass for cash. That's how desperate shit has gotten. I'm begging and offering my body for cash

 

[OmegaSupreme]

The housing market in the UK is fucked. If you own a house already then you might be pleased at the skyrocketing prices, but first time buyers are priced out of a decent home, especially in the south.

We're looking to buy our first home because our landlady is selling. Our plan was originally to rent for a few more years then move to Poland, but now we either have to rent another place in the UK, which with current prices is outrageous, buy the house we're living in or buy another home.

Problem is the house we're living in has been valued at a crazy price. It's a very small 2 bed, yet it's valued at £240K. We'd need at least a 10% deposit, which we don't have and a combined income of £50K a year, which we also don't have. All for a tiny 2 bed.

It's crazy that I've been responsible for paying somebody else's mortgage for years via rent without issue, but apparently I can't afford to pay the mortgage myself?!?! If somebody has been paying rent without an issue for a certain amount of time then that should be a factor for lenders. A big factor.

Our best option will be half rent half buy. It means we can use a lower deposit, but I'd have to take a second job to pay for the mortgage that would be in the region of £1000 per month.

I'm just so fucking depressed about the whole situation. To add to it the UK is suffering from a major cost of living crisis. Everything is wildly more expensive. We have to budget each month just to put food on the fucking table.

Any millionaires on GAF want to throw me £5K to help me buy my family a home? Either that or I'll sell my ass for cash. That's how desperate shit has gotten. I'm begging and offering my body for cash

Right there with you. I've never given a bj before but for down payment assistance I'd sure as hell give it my best. It's crazy how long I've been paying rent at a higher price than most mortgages but that apparently means dick.

 

[Paulxo87]

Bought a 2 bedroom townhome 3 years ago for 159 in central NJ. Same units are now selling for 250k instantly. I can pay this one off at any time I want too. I'm so thankful I own something. The values will drop in most cases nation wide but in some areas I do not think so. I am an hour drive from both NYC and Philly - this is where everyone wants to be

 

[IDKFA]

It's crazy how long I've been paying rent at a higher price than most mortgages but that apparently means dick.

And that shit needs to change. Rent payments should be a consideration, especially if you've been paying for years without any issue.

 

[Cyberpunkd]

It’s even funnier how the renting lobby is pushing by making people believe ‘renting for life’ is the new norm lol. Good luck dying without a single property to your name.

 

[Aesius]

I don’t see prices going down very much. Demand still too high and supply too low. As soon as prices drop, demand will skyrocket again. The only thing that will solve it is a glut of baby boomer houses hitting the market over the next 10-20 years. Building alone won’t be able to keep up with the demand.

 

[Platinumstorm]

Look how well this aged back from 2006....Real-estate fucking Nostradamus shit
dude was only off + - a few years or so depending on market.

SO save up, or go FHA loan in 2026-2028, live in that for 2 years with PMI if you go FHA and sell that in 2030-2032 to move into a bigger home to sit on til 2036.
I still think we are headed for some crazy recession where, today its baby formula, tomorrow it will be some other major shortage, and eventually we will get to the meatflation/meat-pocalypse

One thing to say about this, is that it doesn't take into account local trends. My area barely even flinched during 2008. I think there is a slightly bigger chance of it flinching this time around because of work from home tech-bois. A counter to this is massive demand in an area that doesn't expand, is full blown NIMBY, and lost houses due to wildfire.

 

[ahtlas7]

My house goes up on the market next week. Anyone looking for a less than 1 year old house in Dallas area?

 

[SpiceRacz]

Wife and I bought our house last year it's already increased 140k. We wanted to get in while interest rates were low and prices went up. Did not expect prices to skyrocket like this though. I don't think prices around here (Phoenix) are coming down anytime soon, if at all.

 

[Ionian]

Bought my house in cash. Was during the reccession.

Has tripled in value (I'm lucky, nice house) so had the genius idea to sell.

Said it to my Father and he said what was the point as everything went up, I couldn't afford a better one even with the increase. I'd have to downsize.

Best advice he ever gave me. I'd likely be in a miserable apartment miles away.

I truly feel for anyone trying to buy now, honestly.

Supply and demand, banks are lending but prices are absurd where I live yet even rent prices have sky-rocketed. It's awful.

I was simply lucky, right place, right time. I feel for any new family.

 

[Grildon Tundy]

It's crazy that I've been responsible for paying somebody else's mortgage for years via rent without issue, but apparently I can't afford to pay the mortgage myself?!?! If somebody has been paying rent without an issue for a certain amount of time then that should be a factor for lenders. A big factor.

In the US, making monthly rent payments absolutely can influence your credit score positively, which determines the loans/interest rates you can get for a home. You might have to go through another third-party service to make sure your rent payments are going towards your credit score, but it's a way to make it a factor for lenders. Is that not the case in the UK?

 

[Durien]

Foreign money and investment firms shouldnt be allowed to take all the properties while actually working Americans can't buy anything

I've wondered about this myself. It seems to me that foreign money shouldn't be able to buy property. This causes issues like what Vancouver has and is spreading to the Seattle area.

You end up pricing locals out or with rental properties which end up never put on the market and passed down.

 

[IDKFA]

In the US, making monthly rent payments absolutely can influence your credit score positively, which determines the loans/interest rates you can get for a home. You might have to go through another third-party service to make sure your rent payments are going towards your credit score, but it's a way to make it a factor for lenders. Is that not the case in the UK?

I've looked into it and like the US, it's only via a third-party service. If I had known about this before I would have spoken to the landlord and go through tried to link up to a service.

It's a shame that this is only through a third-party service that isn't well known to a majority of people. It should really be standard. Either way, even without the service, a lender should be able to contact the landlord/letting company to get information on rent payments. Rent payments are the largest payments people make every month and should really be the most important factor on if they're able to afford a mortgage.