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The housing market crisis in America

I know me and @jmanzhave been talking about this, he had mentioned that with the interest rate increase that homes are starting to slow down. I say someone posted a spec house with only the foundation poured and asking 300k more than what it's worth here and there are like thirty people tagging each other in the comments below in 15 minutes. It's insane around here for homes.

 
I was looking around at various cities, Boise and Bozeman for example. Hot market and inflated prices, but I am starting to see Zillow postings with "price cut" now. That was not happening before. Especially if the home has been on the market around 15 days or longer. This is what rate hikes do. It will become more wide spread as the rate hikes continue, which one of the fed members hinted at this morning. So many people (outside of millionaires) are fixated on the monthly mortgage payment. Higher rates mean you can afford less of a home, which drives down prices.

 
That being said, real estate is still a fantastic investment I believe. There is a reason why banks are so willing to give people money for homes and property. It goes up over time.

 
It's sickening, it's all about the investors and not being a homeowner. Now that the prices are significantly over inflated, the investors can't dare lose out on their money.  Who cares about the average person trying to make a living and having a home. 

 
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When it starts to slow down here I will let you know.

 
[QUOTE='nodle]
When it starts to slow down here I will let you know.
[/QUOTE]The CNBC speculation this morning is we will see things really happen in Q3 and Q4 of this year. The slowdown is in the extreme early stages right now. Not a lot of confidence that the fed will be able to navigate a "soft landing." They kept the printers on too long.

 
[QUOTE='jmanz]They kept the printers on too long.
[/QUOTE]They haven't shut them off, and from what I am reading they don't plan on it. It's like an end of the world scenario, well the world is going to burn so let's just keep printing and go out with a bang. Same goes for all these people buying these homes, I am sorry there is no way that you can afford these over inflated prices, but they just won't stop. There is no way they make enough for the mortgages. They must be in debt above their eyelids.

 
One other thing that is different this time around as well. The lack of building materials, this has caused a backlog in building and kept the prices rising. 

 
[QUOTE='nodle]One other thing that is different this time around as well. The lack of building materials, this has caused a backlog in building and kept the prices rising. 
[/QUOTE]There will be a slowdown in new building and thus material supply will eventually not be a problem. Already starting to see a slowdown in trucking demand numbers. Demand decreasing.

 
Well sooner or later with all the price increases/fuel costs, people are going to start going broke and then you are going to have mass forclosures like you have never seen before.

 
[QUOTE='nodle]Well sooner or later with all the price increases/fuel costs, people are going to start going broke and then you are going to have mass forclosures like you have never seen before.
[/QUOTE]I actually think the housing situation is in better shape than it was during 08 and 09. There were so many stupid loans then handed out like candy. Prices are indeed inflated now but I think that situation is a little different. We shall see.

 
You saw that link I sent you @jmanz yesterday. $1,000 a month for a shitty camper around here. I sometimes wish these articles would take into account of there might be a crashing housing market in one area, but what about where it is booming? I know 2 of the biggest real estate ladies here in our town, and I have talked to them about this. They both have told me there is no slow down here, not yet at least. They wish there was more to sell because they can't find homes to sell fast enough. I have gotten two letters personally in the mail with business cards from realtors in our area asking if we want to see our place and give them a call. People are so desperate around here that that the client will even go door knocking themselves asking if you would be willing to sell your home. I blame it on the way the other states are treating their citizens. People are fleeing to places like this to start over and have some sort of normalcy. We all keep thinking it will all end soon, but so far it hasn't.   

 
[QUOTE='nodle]You saw that link I sent you @jmanz yesterday. $1,000 a month for a shitty camper around here. I sometimes wish these articles would take into account of there might be a crashing housing market in one area, but what about where it is booming? I know 2 of the biggest real estate ladies here in our town, and I have talked to them about this. They both have told me there is no slow down here, not yet at least. They wish there was more to sell because they can't find homes to sell fast enough. I have gotten two letters personally in the mail with business cards from realtors in our area asking if we want to see our place and give them a call. People are so desperate around here that that the client will even go door knocking themselves asking if you would be willing to sell your home. I blame it on the way the other states are treating their citizens. People are fleeing to places like this to start over and have some sort of normalcy. We all keep thinking it will all end soon, but so far it hasn't.   
[/QUOTE]There are always pockets of hot, trendy areas. But then there is the rest of the country...

 
[QUOTE='jmanz]There are always pockets of hot, trendy areas. But then there is the rest of the country...
[/QUOTE]We are all that matter.

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I will say that when we bought our first home back in 08/09, our rate was 5.5%. Life went on. Just refinanced later when rates dropped. That's what will happen again to the folks who buy now. Hopefully it won't run up to 8-10%.

 
I had a guy from Spokane stop two days ago, asking about our area to move (go figure). Anyways he said Blackrock has moved into the area and no matter what house goes up for sale Blackrock instantly buys it and it's hurting the housing market. I have heard about Blackrock doing this in other states. 

 
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