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The housing market crisis in America

ryanator said:
It's going to get worse in another way soon. It's expected that the rates will start going down this year. That will cause houses to go up in price significantly, again.
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Again? They never dropped around here.
 
The economists are basically telling people they might as well get used to the higher prices (they aren't going to go down to pre-pandemic prices) and rely on wage growth to make up for it. Not just housing but for everything.
 
jmanz said:
and rely on wage growth to make up for it.
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Happy Cracking Up GIF by Regal
 
nodle said:
Again? They never dropped around here.
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I mean again and again and again and again....

There aren't enough houses to meet the demand, the only reason it's been quieter this past year is because the higher rates and sellers are holding out. The number of buyers are building up significantly and once rates start going down just enough, welcome to another COVID era wave of real estate.

Plus it doesn't help that corporations got into the residential housing market by using their endless amount of money to buy up stuff.
 
There is a house down the street that went up for sale...didn't sell back when rates were 8% and they took it off the market. Now the rates are 6.8%, they put it up for sale again, dropped the price $10k and the house is sale pending 3 days later.
 
My niece just bought a house yesterday. She is young, newly married, and is one of those types that want everything now. I think there are a lot of people out there (I used to be one of them) that just don’t understand how interest rates work. I am sure there wouldn’t has cared if it was 3% vs. 20% they would had purchased it anyways. I think there are a lot of people buying like this with the attitude of ‘I will deal with it later’. Case in point, they bought it because they have goats, chickens, etc. for the larger back yard, and I asked my mom if she checked because most cities have zoning laws for animals and she don’t think she did. They both have jobs, nothing great but keep buying tons of toys and living above their means. They have been trying to sell their new side by side they bought this summer for like 40k because they can’t afford it and then went out and bought a 450k house. I have a feeling they are getting in over their heads. I think a lot of America is like this right now.
 
nodle said:
My niece just bought a house yesterday. She is young, newly married, and is one of those types that want everything now. I think there are a lot of people out there (I used to be one of them) that just don’t understand how interest rates work. I am sure there wouldn’t has cared if it was 3% vs. 20% they would had purchased it anyways. I think there are a lot of people buying like this with the attitude of ‘I will deal with it later’. Case in point, they bought it because they have goats, chickens, etc. for the larger back yard, and I asked my mom if she checked because most cities have zoning laws for animals and she don’t think she did. They both have jobs, nothing great but keep buying tons of toys and living above their means. They have been trying to sell their new side by side they bought this summer for like 40k because they can’t afford it and then went out and bought a 450k house. I have a feeling they are getting in over their heads. I think a lot of America is like this right now.
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Yeah one big problem now is that you might be able to afford the house payment, and maybe even the other stuff...But home insurance goes up, property tax goes up, and utilities go up. That makes a person house poor which is no fun. Hopefully in the case of your niece, she will have the opportunity to refinance (which also costs money to do) to a lower rate to save some money down the line.
 
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