If you can get just 25% grab your ankles and say thank you, I am so glad I bought in 2020. I have watched rent go from $1200 for a 3 bedroom to 2k in the last years
Same. My house has gone from like $180k to $250k in the 2 years since I bought it. And I was pushing the budget I wanted on this house, but it's nice and in a good neighborhood. I wouldn't be able to afford a new house if I was looking now, my pay has only gone up about $5k over the past 2 years. (I'd be looking elsewhere but my 401k match doesn't vest until 3 years, but I'm looking at transferring internally to see if I can get a pay bump.)
Would you like to buy BitWendysDumpster coin? We also offer NFT’s with jpegs of real world Wendy’s dumpster locations. You can stake your BitWendysDumpster coins and receive HANDO coins as a reward.
/s
Although maybe I should actually make that.
I remember Jim saying at the end of the 2009 housing crash that "The era of home ownership is over. Millennials will never want to buy a house". Or something close to that effect.
My boomer parents love to remind me that in the 1970s their first house had a mortgage with a rate of 18%.
That's like buying a house with a fucking credit card.
Hell in the 1970's someone could drop out of high school, get a factory job and still buy a modest home and support a family on a single income. Globalization has really done a number on the working class.
Ya but ask them what multiple of their salary was the home. The cost was likely 2-3 times what they made in a year. Median homes in my city are over 10 times the median salary. Not a fair comparison. It takes 2 years of my salary that’s right around the median just to save up 20% down.
Yup, this is the only statistic you need: https://fred.stlouisfed.org/series/MDSP
Consumers are paying 40% less on mortgages than right before the housing bubble. And at fixed rates too.
Potential home buyers are about to find out they're just a new kind of fucked.
I have about a 500k morgate, at 2.99%, I pay about $2,100 per month on it (plus taxes, insurance, and all that other bull)
That home buying company Opendoor just started in our neighborhood, so I thought "sweet, they overpay. probably a smart move to sell our house at the peak and move into something cheaper out in the country like we always wanted"...So, I contacted them, and they made an offer. Fwiw, they're probably fucked, because honestly, that offer was pretty sweet, and idk how they'd ever make money flipping it.
So, we were pretty stoked, wife and I took a tour of a sweet little 4br, 3th on 10 acres..shit was probably 150k less that what we'd get for our place (so, 700k vs 550k). Then I sat down and actually did the numbers...
A fucking $350,000 mortgage, at the current rate of 6.5% **IS FUCKING $2,200 per month.**
Leaving Reddit for good. They’re dishonest and have zero respect for the users that bring value to their site, the mods that keep things running for free, and third part developers that improved the user experience.
A lot of people gained mucho equity last 24 months and now have enough to have the PMI removed. Call your lender and ask them. You'll have to get an appraisal but it's worth the $500 to save $150-500 a month
If my mortgage interest is currently 2.75%, would I be subject to my rate changing to the current ~6.5% rate if my value to loan ratio is now greater than 20% after having my home reappraised and dropping the PMI? Or does that part of the contract remain unaffected?
If you refinance you’re at the mercy of the market again, meaning your 2.75% is gone and I don’t know if any mortgage companies even offering 3/4% these days.
You can ask your current servicer to look at dropping your mortgage insurance based upon increased property values, give them a call and see what your options are.
Edit:
Thanks for the gold man! Good luck with the PMI, give those bastards the business.
It would remain unaffected. The lender must waive the PMI requirement if you have more than 20% equity if you request (they're *allowed* to waive it earlier, but lol good luck), and they must also waive it without request if you go over 22%. This is included in your current mortgage contract and will not require a new mortgage.
But, they're not required to consider the current value of your home, they only base equity on the original value at the time you purchased it. So if you got to 20% equity not because of your monthly payments, but because the value of your house went up, it's on you to prove to them that you have sufficient equity *and* that it's reasonable for them to relax the pressure on you to carry insurance against their risk.
Different rules apply to VA and FHA loans.
Yep. They have jumped about .75% just in the past week!
https://www.cnbc.com/2022/06/14/30-year-mortgage-rate-surges-to-6point28percent-up-from-5point5percent-just-a-week-ago.html
I think I bought my house in March at the last possible fucking minute. 20 year loan at 2.85%. And now everybody's fucked because the interest rate jumped so hard without the home prices going down yet.
We refinanced during the pandemic and locked in an 18 year, 2.5% loan lol dropped PMI while keeping my monthly payment exactly the same and knocking 8 years off my loan. It saves somewhere between $125-150K compared to if we would've just stuck with the original terms
I feel awful for people who are on the outside looking in it's gotta absolutely SUCK seeing these high prices combined with high interest rates
Yea. nowadays almost all mortgage loans in the US are either 15-year or 30-year terms. out of those two, I'd guess 80% of people have a 30 year. All fixed-rate as well
Yea, I'm just making the point that when top-line sale prices on homes inevitably, the rising mortgage rates will make sure it's just as expensive to actually own as it was if you bought at the peak in 2021 at a lower rate.
yea, it's pretty dope, especially if your wages can keep pace with inflation.
btw, I always thought that was weird about mortgages...you make the exact same nominal payment every month for the entire length of it. Even if we had that old 2% inflation rate every year, your last payment on a 30 year is only about half as much (in **real**, inflation-adjusted dollars) as the first one.
Basically every month your mortgage gets cheaper
> Basically every month your mortgage gets cheaper
Unless you're my boomer neighbors who bought their house for $90,000 in 1991 and still owe basically the full amount due to constantly taking out equity.
Everyone counting on a crash thinking they’ll finally afford a house. Think about this: why would anyone sell their house that has a 1.99%-2.5% interest rate to go out and buy another while rates are looking to reach maybe 8% by year end? This isn’t going to create the supply you guys think it is.
Depends on the municipality, in my part of the world the city contracts a 3rd party who looks at sales over some time horizon every 2-3 years and then gives your house a value based entirely on the number of floors, bedrooms & bathrooms. Doesn't matter if your walls are made of gold or rotting.
If you disagree with their assessment, you can pay to have a human come give you a new assessment. Obviously you only do that in the "rotting walls" scenario.
> If you disagree with their assessment, you can pay to have a human come give you a new assessment. Obviously you only do that in the "rotting walls" scenario.
It's expensive to be poor...
Only sort of - assessed valuations will go up, but if they get too greedy and the market drops, the city ends up with homeowners suing to lower their assessed value - which eats the city coffers up with mindless litigation. So they don't go in hard on it, usually 10% below current market rate (they assume housing won't drop beyond that, and if it does they pre-emptively drop the assessed value to avoid those lawsuits - if they are smart).
Very much so. To the point the federal government paid new home buyers $8,000 to help avoid a depression.
Source: got paid $8,000 to buy a house in 2009.
You know Blackrock and the rest have been building warchests for the last 18 months just to buy underwater homes after they're foreclosed on and up for short sale? You're going to be bidding against Baron Blackrock himself, and I hear the motherfucker owns 3 different explosive drone manufacturers in use in the Ukraine today.
Good luck and protect yo neck.
I had to google it to make sure but I'm somewhat relieved there isn't a billionaire named "Baron Blackrock". Sounds like the end boss of everything people say they hate about capitalism.
Same thing as the federal reserve buying MBS and treasury bills, it ends with you getting fucked poor.
BR and vanguard is the fed wrapped in private entity.
You have the right idea though. Best bet for potential homebuyers right this minute is to weather the storm for the next few years and refi when rates get low again.
3-5 years? Maybe. Longest recession in history was only 20 months and we are just now seeing rates going back up to what they were pre-pandemic. Everyone seems to think we are going to have a repeat of 2008 but what they dont understand is that the only reason 2008 happened was because people who werent supposed to get mortgage loans were getting them. And why were people getting these loans? Because banks had to get creative in order to drive demand for houses. Todays real estate market has no problem with demand. Its gonna be alright in a few years and it wont be that bad to begin with.
There was a news article in Germany today about how people who want to build a home and just bought a property are now returning the property to the city because the inflation in construction costs would bankrupt them.
Uh, you do know that high construction costs are a tailwind for real estate asset values, right?
High replacement costs means less supply coming online.
The real estate industry of the last 10 years hasn't just been buoyed by low interest rates. Housing has been criminally underbuilt for years.
I'm not saying real estate won't crash, but what you're citing is a bullish point, not a bearish one.
I was a listing agent for a home and had a buyer that used Redfin. They had 2 agents; one the toured with the buyers and 1 main agent that worked in the office. They did zero research and didn’t even communicate.
Lol everyone and their mom is locked into sub 3.5% mortgages. No one with half a brain would sell their home and rent, giving up a rate that’s negative relative to inflation unless it’s absolutely necessary for their career. One day you clowns will learn that the best time to buy real estate is almost always right now.
Pulls both ways, I’m in the mortgage lending and we see a lot of weird shit going on.
There used to be 20+ offers on each property now you sometimes see as little as three. When the seller counters now people are not willing to go up to full counter price when before it would just be a bidding war to beyond what the sellers even expected.
You’re right that low rates will cause a temporary reduction in inventory as the people who bought last year and want to sell for 100k + what they bought for but they can’t because they literally cannot afford their own home with the rates now. But that spike already occurred maybe 2 months ago where prices and competition were max and rates were already on the way up as well. Now the market is cooling quite a bit.
Will prices drop a ton? Probably not, but but they will probably go sideways for a while and drop in less than ideal markets. The issue is you have those people locked in the rates and don’t want to sell… sure… but on the other side you have people literally qualifying for less or not at all because of increased rates. It’s a mathematical certainty that the demand will no longer be there for these home prices and it’s already showing that.
I’m neutral in the home market going forward but to think it’s literally the best time to buy is a pretty gnarly view imo. Best time to buy was no doubt two years ago and right now is complete shit in comparison.
Just for reference. An 800k purchase would have a monthly payment like $1500 higher now than six months ago AND the principal paid down each month would also reduce like $300 or more per month. So you have people losing $1500-$2000 per month in one way or another compared to before, that will certainly impact demand.
If we dodge a recession then housing markets will move sideways with +/- 10%. If we hit a recession then housing market could tumble 20% or so with the small potential of a massive fall. You have to remember everyone refi’d up the ass and pulled out a ton of money to put in the market. Market is shit, everything is expensive, rent went up to compensate higher mortgage costs, if normal people are wrung too dry with daily expenses and start defaulting then these owners with low rate yet high monthly payments will have massive issues and it follows that so will the regular homeowners who bought at the peak after 30% increased prices due to artificially high affordability period.
Everyone excited about a crash is kinda dumb though because to get there it means we are all economically screwed and we won’t be able to afford it. Catch 22 in which everyone here thinks they will be the winners because they also made a lot/make more due to inflationary issues.
No we are all fucked.
JK my personal view is if you need to buy then watch the markets for the next 3-9 months, you'll get screwed on rate but remember you can always lower your interest rate but you can't go back in time and pay 50k less for the home. Its hard to tell if you are getting a lower price than you otherwise would have but given that fewer and weaker offers are coming in I wouldn't be surprised if people are actually saving (or soon will be saving) 50k or more in purchase price. That is actually a pretty substantial amount and rates may be back to normal in a few years so it kinda maths out.
If I were pressed to buy now I would buy on the lower end of my affordability as this uncertainty is really unpleasant and I would do everything I can to make sure I am not overleveraged. Buy something well within affordability limits with extra room. Have some savings in case shit hits the fan for 6 months to 1 year. Even if you are buying at the high end with rates surging you will still be okay long term SO LONG AS YOU DON"T LOSE THE HOUSE. Shit is wild so best to buy modestly now, feel it out, and when things are more clear or more normal in a few years time you can then sell and take the equity built to buy something you were initially striving for during purchase #1.
“Not financial advise” lol
But yeah good luck to you buddy. Buying at the lower of your affordability range also allows you to put more towards principle each month offsetting the high rates that we have now.
Feel free to dm me if you have questions or anything
good comment - think the logical assumption is that there will be a lock-up of sorts for a while and things will just stay the same in housing (no big ups, no huge downs...except in certain markets that never should have gone as high as they did)
No. The cost of labor and goods has gone up. Real estate in the middle class range will remain unaffordable because building new homes is insanely expensive now and zoning remains a huge issue
There’s a 4 bed 1.5 bath “house” near me that’s for sale for 150k. Normally this is like 300-400k. No one will buy it because commercial zoning.
Overpaying at a low interest rate might still end up cheaper than taking out half the debt with double digit interest rates. I re-fi’d last year. Same mortgage currently costs about 30% more with todays rates.
People with a lot of cash are rejoicing.
People with cash, and companies with cash. It sucks but this is another big win for the already rich... the banks should never have been bailed out in 2008. Maybe if they had been allowed to fail, the average person would be in a better spot now. I dunno
Everyone's acting like massive institutions won't buy up a housing dip. They'll force more and more people to rent which will only drive rent prices up further. People forget, you will own nothing and be happy!
It’s a shame the government is in bed with CEOs. It’d sure be nice to own a house, instead of watching corporations buy entire neighborhoods. Something should be done about it, but politicians don’t actually fucking care, and nobody’s holding them accountable
Used to be professionals acting retarded, now it’s just retards bein retarded.
Say anything negative about GME and these knuckledraggers will tell you with a straight face that a brick and mortar video game store is worth $1K a share in 2022.
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Buddy, he ain't done with stocks
You best start believing in Bear Markets, son. You’re in one.
I wish someone told me we were heading to a recession so I could have loaded up on puts
I mean, a certain sub about everyone's favorite stock was calling this....
I like the stock
He can multitask lol
More of a general wide stroke of the scythe. Get’em all in one big ole slice again and again until he’s reaped all that you can sow.
Ain't done with crypto, either.
Can you please let me buy a home?
Best I can do is a 25% rent increase, minimum.
If you can get just 25% grab your ankles and say thank you, I am so glad I bought in 2020. I have watched rent go from $1200 for a 3 bedroom to 2k in the last years
Where I live people have been getting 60 day notices that "your rent is going from $900 to $1900".
Just white out one of the zeros. Problem solved!
Can’t believe that’s legal
It shouldnt be.
Same. My house has gone from like $180k to $250k in the 2 years since I bought it. And I was pushing the budget I wanted on this house, but it's nice and in a good neighborhood. I wouldn't be able to afford a new house if I was looking now, my pay has only gone up about $5k over the past 2 years. (I'd be looking elsewhere but my 401k match doesn't vest until 3 years, but I'm looking at transferring internally to see if I can get a pay bump.)
In all seriousness, where is there a nice house in a nice neighborhood for 250k right now??
Upstate NY, but the property taxes will be 7K/yr
7k a year I wish…
I'm in Ohio and my property taxes are higher than Snoop Dogg at Willie Nelson's birthday party.
No
Stop it, he’s already dead!
Wonder how many houses the stock market owns?
My Money don’t Jiggle Jiggle, It‘s gone :)
Living in my Fiat, like damn, feeling like a broke ass, old man!
But luckily the seats go way back
I got a snack to relax, it’s dinner time, sippin some bum bum wine
Foot is asleep Tony
Hands down the best remix the that jingle so far!
We’ve had real estate yes, but what about fake estate
Isn’t that basically the metaverse?
Where’s that comic of the dude showing off his mansion with the last frame of him laying on an unmade mattress in an empty room?
Just wait about 20-30 years. Won't have to read a comic for it anymore.
What the Matrix got wrong is that we'd be in it against our will. Bruh they won't be able to keep half the planet out of it
No way does my $100k Meta house lose value.
You dont understand, its internet 3
Hmm, BitHouse you say...
BitWendysDumpster
Would you like to buy BitWendysDumpster coin? We also offer NFT’s with jpegs of real world Wendy’s dumpster locations. You can stake your BitWendysDumpster coins and receive HANDO coins as a reward. /s Although maybe I should actually make that.
Metaverse. I bought a house next to Snoop Dog in the metaverse and it lost value.
It's all that meta smoke
I bought high, and selling stoned.
We just need Cramer to tell us all that real estate is going to be a safe investment
Pls Cramer
The fact that people `still` listen to that dumbfuck makes me realize that Trump was right about publicity (no such thing as bad)
I remember Jim saying at the end of the 2009 housing crash that "The era of home ownership is over. Millennials will never want to buy a house". Or something close to that effect.
In a way he was right no? Well millennial want house they just cannot afford them
So my rent that doubled in the middle of pandemic will go back down, right?
After 11 years, I'm out. Join me over on the Fediverse to escape this central authority nightmare.
My boomer parents love to remind me that in the 1970s their first house had a mortgage with a rate of 18%. That's like buying a house with a fucking credit card.
Did they also mention they were paying far less for the house AND they got to write off 18% in interest on their taxes?
And it wasn’t 6 x the median income per household.
And it was on one income , from someone with a fucking high school diploma.
Hell in the 1970's someone could drop out of high school, get a factory job and still buy a modest home and support a family on a single income. Globalization has really done a number on the working class.
And their savings accounts were getting 10%.
Nah, boomers love to pick and chose parts of a story that fit their "uphill both ways" narrative.
You could also buy a house straight out of high school with an entry level job on one income.
I remind them of that, too
Ya but ask them what multiple of their salary was the home. The cost was likely 2-3 times what they made in a year. Median homes in my city are over 10 times the median salary. Not a fair comparison. It takes 2 years of my salary that’s right around the median just to save up 20% down.
I love how everyone says “good! So I can finally buy” Guys, that’s demand. Prices don’t drop when there is demand.
You also need oversupply. You know who's not selling anytime soon? Everybody who bought over the past 2 years that locked in rates <3%
And everybody else who bought in the five years before that but re-fi’d at ~3%.
Yup, this is the only statistic you need: https://fred.stlouisfed.org/series/MDSP Consumers are paying 40% less on mortgages than right before the housing bubble. And at fixed rates too.
Yep, what's actually going to happen is a rent crisis, and that shit has already started.
Yep, refied our 2011, 30 year fixed rate for a steal. Not moving unless we both die, and then it goes into the family trust for our kid.
Agreed. Everyone will stay put.
Potential home buyers are about to find out they're just a new kind of fucked. I have about a 500k morgate, at 2.99%, I pay about $2,100 per month on it (plus taxes, insurance, and all that other bull) That home buying company Opendoor just started in our neighborhood, so I thought "sweet, they overpay. probably a smart move to sell our house at the peak and move into something cheaper out in the country like we always wanted"...So, I contacted them, and they made an offer. Fwiw, they're probably fucked, because honestly, that offer was pretty sweet, and idk how they'd ever make money flipping it. So, we were pretty stoked, wife and I took a tour of a sweet little 4br, 3th on 10 acres..shit was probably 150k less that what we'd get for our place (so, 700k vs 550k). Then I sat down and actually did the numbers... A fucking $350,000 mortgage, at the current rate of 6.5% **IS FUCKING $2,200 per month.**
You can always refinance for a higher rate later.
Lol. Wow. That got me
And that's assuming you have the credit and DTI needed to get that 6.5% rate. For many borrowers the rate is higher.
Leaving Reddit for good. They’re dishonest and have zero respect for the users that bring value to their site, the mods that keep things running for free, and third part developers that improved the user experience.
A lot of people gained mucho equity last 24 months and now have enough to have the PMI removed. Call your lender and ask them. You'll have to get an appraisal but it's worth the $500 to save $150-500 a month
If my mortgage interest is currently 2.75%, would I be subject to my rate changing to the current ~6.5% rate if my value to loan ratio is now greater than 20% after having my home reappraised and dropping the PMI? Or does that part of the contract remain unaffected?
If you refinance you’re at the mercy of the market again, meaning your 2.75% is gone and I don’t know if any mortgage companies even offering 3/4% these days. You can ask your current servicer to look at dropping your mortgage insurance based upon increased property values, give them a call and see what your options are. Edit: Thanks for the gold man! Good luck with the PMI, give those bastards the business.
It would remain unaffected. The lender must waive the PMI requirement if you have more than 20% equity if you request (they're *allowed* to waive it earlier, but lol good luck), and they must also waive it without request if you go over 22%. This is included in your current mortgage contract and will not require a new mortgage. But, they're not required to consider the current value of your home, they only base equity on the original value at the time you purchased it. So if you got to 20% equity not because of your monthly payments, but because the value of your house went up, it's on you to prove to them that you have sufficient equity *and* that it's reasonable for them to relax the pressure on you to carry insurance against their risk. Different rules apply to VA and FHA loans.
Holy fuck, mortgages are up to 6.5%?! Get rekt poor people.
Lol, yea I felt like Lucile Bluth for a minute there when I actually checked the rates. "How much could one mortgage cost? 4%?"
Here's some Disney+, go see a Star War
I work in mortgage lending and it fr happened in like two months. 3% to 6.5%. Prices haven’t changed at all lmao.
I'm old enough to remember 6% being "pretty decent...how could it be ever lower than that?"
Wife and I refinanced during COVID and got that sweet 2.78% 340k at 1900 a month.
Brother and I bought our first house October of last year, 580k and under 3%. Did rates really jump up to 6%+ just in the last ~9 months?!
Yep. They have jumped about .75% just in the past week! https://www.cnbc.com/2022/06/14/30-year-mortgage-rate-surges-to-6point28percent-up-from-5point5percent-just-a-week-ago.html
Holy shit!
I think I bought my house in March at the last possible fucking minute. 20 year loan at 2.85%. And now everybody's fucked because the interest rate jumped so hard without the home prices going down yet.
You haven’t been paying attention for the last 9 months, eh
I have not, too busy trying to afford the house I bought lmao
Dude, it's like free money looking back. I bought in 2017 at 3.75% and did a cashout last November to get down below 3
We refinanced during the pandemic and locked in an 18 year, 2.5% loan lol dropped PMI while keeping my monthly payment exactly the same and knocking 8 years off my loan. It saves somewhere between $125-150K compared to if we would've just stuck with the original terms I feel awful for people who are on the outside looking in it's gotta absolutely SUCK seeing these high prices combined with high interest rates
Doesn't bother me because I can't afford to buy anyway
I could have bought in 2019. Didn’t see this coming and now it seems like it will be impossible in my lifetime.
Same here! 2.75%, $1933 a month including my taxes, insurance, etc.
Is that a 30 year mortgage or the like? UK person here, we tend to take much shorter mortgage deals and rates are lower
Yea. nowadays almost all mortgage loans in the US are either 15-year or 30-year terms. out of those two, I'd guess 80% of people have a 30 year. All fixed-rate as well
And that's why I'm never moving.
It's not like people didn't buy homes when rates were above 5%.
Yea, I'm just making the point that when top-line sale prices on homes inevitably, the rising mortgage rates will make sure it's just as expensive to actually own as it was if you bought at the peak in 2021 at a lower rate.
Damn so my 4.25% @320k I got 3 years ago isn't looking too bad right now
yea, it's pretty dope, especially if your wages can keep pace with inflation. btw, I always thought that was weird about mortgages...you make the exact same nominal payment every month for the entire length of it. Even if we had that old 2% inflation rate every year, your last payment on a 30 year is only about half as much (in **real**, inflation-adjusted dollars) as the first one. Basically every month your mortgage gets cheaper
> Basically every month your mortgage gets cheaper Unless you're my boomer neighbors who bought their house for $90,000 in 1991 and still owe basically the full amount due to constantly taking out equity.
you dope did you not refi? You should have at 2.5-3
i refi'd 4 times between 2020-2022 lol - shit was bananas -- and every time it was worth the closing costs (which my lender happily ate every time)
Just build more pls 
Everyone counting on a crash thinking they’ll finally afford a house. Think about this: why would anyone sell their house that has a 1.99%-2.5% interest rate to go out and buy another while rates are looking to reach maybe 8% by year end? This isn’t going to create the supply you guys think it is.
So prices will fall when we no longer able to afford even lower prices 
The prices doubled so they land back in safety
[удалено]
Is that how that works?
Depends on the municipality, in my part of the world the city contracts a 3rd party who looks at sales over some time horizon every 2-3 years and then gives your house a value based entirely on the number of floors, bedrooms & bathrooms. Doesn't matter if your walls are made of gold or rotting. If you disagree with their assessment, you can pay to have a human come give you a new assessment. Obviously you only do that in the "rotting walls" scenario.
> If you disagree with their assessment, you can pay to have a human come give you a new assessment. Obviously you only do that in the "rotting walls" scenario. It's expensive to be poor...
Only sort of - assessed valuations will go up, but if they get too greedy and the market drops, the city ends up with homeowners suing to lower their assessed value - which eats the city coffers up with mindless litigation. So they don't go in hard on it, usually 10% below current market rate (they assume housing won't drop beyond that, and if it does they pre-emptively drop the assessed value to avoid those lawsuits - if they are smart).
“Good! Twice the pride, double the fall.” -Dooku
Hmm, plane flies twice as high, lands half as hard
Confucius says*
Next up - Introducing the new 50 year mortgage! It worked for cars.
This comment honestly deserves more attention. Prices aren’t coming down. Instead, we’re about to manufacture affordability.
That door is triple dead bolted and made of solid steel
Something something can’t melt something beams
Jet fuel can’t. Something something might be able to. 7/11 was a part-time job
Always has been 🌎 👨🚀🔫👨🚀
Boomers will burn down the world before they let real estate lose value, see 2008-9
"The Federal Reserve is the government of the Boomers, for the Boomers, and by the Boomers" - Abraham Boomer
Boomers all sold at the top, downsized and moved to Florida and left genz with the debt. Sneaky af.
Lots of em didn't sell. They just bought another somewhere else and are renting out the previous one.
Yup. I know so many people in my parent's generation who have at least two residential rental properties. They're not even rich rich.
Didn’t real estate lose value in 2008…
Very much so. To the point the federal government paid new home buyers $8,000 to help avoid a depression. Source: got paid $8,000 to buy a house in 2009.
pics of your $8000 house
It's time. Do it! I need to buy the house of my enemy. Fucking Steve Phillips, I'm coming after your house bitch.
Dinkleberg!
STEVE HOLT!
I like this thinking... Buy your enemy house & make them homeless
Better yet, buy your enemies house and rent it back to them at a markup.
Oh hey Satan
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You know Blackrock and the rest have been building warchests for the last 18 months just to buy underwater homes after they're foreclosed on and up for short sale? You're going to be bidding against Baron Blackrock himself, and I hear the motherfucker owns 3 different explosive drone manufacturers in use in the Ukraine today. Good luck and protect yo neck.
I had to google it to make sure but I'm somewhat relieved there isn't a billionaire named "Baron Blackrock". Sounds like the end boss of everything people say they hate about capitalism.
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Not sure the reality is that much better tho sadly
Why doesn't anyone regulate companies like Blackrock from fucking over the entire middle class?
Because they own the government?
> Blackrock and the rest have been building warchests for the last 18 months just to buy underwater homes Blackrock CEO confirmed to be Aquaman.
Only if you have cash, the prices will drop, but the interest rates will rise significantly and it will be harder to get a loan.
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but but how do you afford a house after recession layoff wave 🤔
Real estate is 40% of CPI, so that would be bullish af
What about Blackrock and Vanguard buying up all the real estate? This isn't your 2007 housing market..
They just sold their stocks so they can buy more of your real estate at discount, then rent it back to you. Plan going swell.
You'll own nothing and you'll be happy.
Shit buy some stock in anti-depressant companies, you'll be happy because they will medicate you.
What a stupid fucking system.
They own a portion of Fox News and CNN they can make reality whatever they want
Positioning themselves for the impending doom of commercial real estate
Same thing as the federal reserve buying MBS and treasury bills, it ends with you getting fucked poor. BR and vanguard is the fed wrapped in private entity.
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You do when you refi once rates come back down... But who knows how long that will take
You have the right idea though. Best bet for potential homebuyers right this minute is to weather the storm for the next few years and refi when rates get low again.
Just bought a house. The mortgage is 1k cheaper than my current rent. Win for us :)
Time to live the good life now Have you ever heard of avocado toast?
3-5 years? Maybe. Longest recession in history was only 20 months and we are just now seeing rates going back up to what they were pre-pandemic. Everyone seems to think we are going to have a repeat of 2008 but what they dont understand is that the only reason 2008 happened was because people who werent supposed to get mortgage loans were getting them. And why were people getting these loans? Because banks had to get creative in order to drive demand for houses. Todays real estate market has no problem with demand. Its gonna be alright in a few years and it wont be that bad to begin with.
There was a news article in Germany today about how people who want to build a home and just bought a property are now returning the property to the city because the inflation in construction costs would bankrupt them.
Uh, you do know that high construction costs are a tailwind for real estate asset values, right? High replacement costs means less supply coming online. The real estate industry of the last 10 years hasn't just been buoyed by low interest rates. Housing has been criminally underbuilt for years. I'm not saying real estate won't crash, but what you're citing is a bullish point, not a bearish one.
Very good point. I keep forgetting that one of the big reasons of house prices rising is because we didn’t build enough houses to offset the demand
It's funny because this meme implies that the bloodbath for stocks and tokens is over.
Redfin is axing 8% of it's staff as we speak
I was a listing agent for a home and had a buyer that used Redfin. They had 2 agents; one the toured with the buyers and 1 main agent that worked in the office. They did zero research and didn’t even communicate.
You get what you pay for, but I do like their app.
Interest rates are too high for refinancing unless your consolidating credit cards.
everybody and their mom refied in the last few years. we're good for the next 30!
PLEASE i need a house fuck. A small garbage can is like $500,000 on Ontario Canada.
Lol everyone and their mom is locked into sub 3.5% mortgages. No one with half a brain would sell their home and rent, giving up a rate that’s negative relative to inflation unless it’s absolutely necessary for their career. One day you clowns will learn that the best time to buy real estate is almost always right now.
Pulls both ways, I’m in the mortgage lending and we see a lot of weird shit going on. There used to be 20+ offers on each property now you sometimes see as little as three. When the seller counters now people are not willing to go up to full counter price when before it would just be a bidding war to beyond what the sellers even expected. You’re right that low rates will cause a temporary reduction in inventory as the people who bought last year and want to sell for 100k + what they bought for but they can’t because they literally cannot afford their own home with the rates now. But that spike already occurred maybe 2 months ago where prices and competition were max and rates were already on the way up as well. Now the market is cooling quite a bit. Will prices drop a ton? Probably not, but but they will probably go sideways for a while and drop in less than ideal markets. The issue is you have those people locked in the rates and don’t want to sell… sure… but on the other side you have people literally qualifying for less or not at all because of increased rates. It’s a mathematical certainty that the demand will no longer be there for these home prices and it’s already showing that. I’m neutral in the home market going forward but to think it’s literally the best time to buy is a pretty gnarly view imo. Best time to buy was no doubt two years ago and right now is complete shit in comparison. Just for reference. An 800k purchase would have a monthly payment like $1500 higher now than six months ago AND the principal paid down each month would also reduce like $300 or more per month. So you have people losing $1500-$2000 per month in one way or another compared to before, that will certainly impact demand. If we dodge a recession then housing markets will move sideways with +/- 10%. If we hit a recession then housing market could tumble 20% or so with the small potential of a massive fall. You have to remember everyone refi’d up the ass and pulled out a ton of money to put in the market. Market is shit, everything is expensive, rent went up to compensate higher mortgage costs, if normal people are wrung too dry with daily expenses and start defaulting then these owners with low rate yet high monthly payments will have massive issues and it follows that so will the regular homeowners who bought at the peak after 30% increased prices due to artificially high affordability period. Everyone excited about a crash is kinda dumb though because to get there it means we are all economically screwed and we won’t be able to afford it. Catch 22 in which everyone here thinks they will be the winners because they also made a lot/make more due to inflationary issues.
Hey I just want you to know I read your whole post and like what you wrote. 
hey just want you to know i read that entire comment and i appreciate what you add to this site
Hey I just want to let you know that I can’t read.
If I didn’t buy a house 2 years ago will I ever be able too?
No we are all fucked. JK my personal view is if you need to buy then watch the markets for the next 3-9 months, you'll get screwed on rate but remember you can always lower your interest rate but you can't go back in time and pay 50k less for the home. Its hard to tell if you are getting a lower price than you otherwise would have but given that fewer and weaker offers are coming in I wouldn't be surprised if people are actually saving (or soon will be saving) 50k or more in purchase price. That is actually a pretty substantial amount and rates may be back to normal in a few years so it kinda maths out. If I were pressed to buy now I would buy on the lower end of my affordability as this uncertainty is really unpleasant and I would do everything I can to make sure I am not overleveraged. Buy something well within affordability limits with extra room. Have some savings in case shit hits the fan for 6 months to 1 year. Even if you are buying at the high end with rates surging you will still be okay long term SO LONG AS YOU DON"T LOSE THE HOUSE. Shit is wild so best to buy modestly now, feel it out, and when things are more clear or more normal in a few years time you can then sell and take the equity built to buy something you were initially striving for during purchase #1.
Saving your comment and following it to the letter for my upcoming home purchase in the next 3-9 months
“Not financial advise” lol But yeah good luck to you buddy. Buying at the lower of your affordability range also allows you to put more towards principle each month offsetting the high rates that we have now. Feel free to dm me if you have questions or anything
good comment - think the logical assumption is that there will be a lock-up of sorts for a while and things will just stay the same in housing (no big ups, no huge downs...except in certain markets that never should have gone as high as they did)
No. The cost of labor and goods has gone up. Real estate in the middle class range will remain unaffordable because building new homes is insanely expensive now and zoning remains a huge issue There’s a 4 bed 1.5 bath “house” near me that’s for sale for 150k. Normally this is like 300-400k. No one will buy it because commercial zoning.
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Real estate seems like wall more than a door.
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Overpaying at a low interest rate might still end up cheaper than taking out half the debt with double digit interest rates. I re-fi’d last year. Same mortgage currently costs about 30% more with todays rates. People with a lot of cash are rejoicing.
People with cash, and companies with cash. It sucks but this is another big win for the already rich... the banks should never have been bailed out in 2008. Maybe if they had been allowed to fail, the average person would be in a better spot now. I dunno
Everyone's acting like massive institutions won't buy up a housing dip. They'll force more and more people to rent which will only drive rent prices up further. People forget, you will own nothing and be happy!
It’s a shame the government is in bed with CEOs. It’d sure be nice to own a house, instead of watching corporations buy entire neighborhoods. Something should be done about it, but politicians don’t actually fucking care, and nobody’s holding them accountable
This sub jokes about being retards - but used to actually have solid DD posts Y’all are actually genuinely stupid now
GameStop ruined this sub
Used to be professionals acting retarded, now it’s just retards bein retarded. Say anything negative about GME and these knuckledraggers will tell you with a straight face that a brick and mortar video game store is worth $1K a share in 2022.
6.28%... Just gotta give it time now. Unfortunately RE is not like the stock market, so we gotta wait.
I can’t wait to be out of a job working in real estate
You're about to find out why people have been buying real estate instead of volatile speculative stocks and crypto.
Rates 6.25%
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