A really scary aspect to the whole thing is how much purchasing power is built on asset prices

Sign up, and you can make all message times appear in your timezone. Sign up

Report problem with this ad

Jun 29, 2022
10:13:07am

JollyGreenGiant All-American

A really scary aspect to the whole thing is how much purchasing power is built on asset prices

I heard a stat the other day that Americans’ net worths that consisted of assets (mostly houses and equities) was 325% of GDP in 1980 and it’s something in the 600s (I forgot the exact number they said) now. The wealth effects of that have gotta be playing a pretty big part

This message has been modified

Originally posted on Jun 29, 2022 at 10:13:07am

Message modified by JollyGreenGiant on Jun 29, 2022 at 10:15:47am

Report problem with this ad

JollyGreenGiant

Previous username: Cashmeousside
Bio page: JollyGreenGiant
Joined: Mar 5, 2017
Last login: May 1, 2024
Total posts: 13,536 (6,520 FO)

Report problem with this ad

Messages

Author

Time

It sure seems like (in my uneducated option) that the housing market could get really bad, really fast.

Ragnar Danneskjold $4,000,000 never forget

6/29/22 9:08am

If we go full recession mode, yep..turns into a buyers market real quick for

Squirt

6/29/22 9:11am

be careful when getting advice from professionals

byukarl

6/29/22 9:12am

It's total rah-rah groupthink with them.

Ragnar Danneskjold

6/29/22 9:13am

Supply/Demand still applies, and there are many places where demand for housing

Skeptical Optimist

6/29/22 9:13am

Agreed. But what people qualify for just dropped like a ton of bricks.

Ragnar Danneskjold

6/29/22 9:14am

Why would people want to move to the mountain west? There is no water there

TNT

6/29/22 9:14am

Not moist at all.

Ragnar Danneskjold

6/29/22 9:14am

Where are those places right now?

Iman23

6/29/22 9:19am

Yes, but demand will start to dry up when purchasing power is completely hamstrung

Indy Coug

6/29/22 9:19am

Demand can fall off a cliff very quickly

slappy

6/29/22 9:30am

Not if people don't have a place to live

Skeptical Optimist

6/29/22 10:08am

No one knows for sure, but if the economy continues down this path, the housing market could be hurting soon. Rising

slappy

6/29/22 10:17am

I know someone who sold 3 weeks ago who felt lucky to sell at asking, they where

byu1

6/29/22 9:17am

Looks like my details were off. Sold $2.3 mil. Refused 200k

byu1

6/29/22 9:18am

RE: Looks like my details were off. Sold $2.3 mil. Refused 200k

Ragnar Danneskjold

6/29/22 9:22am

I love the attitude of some sellers.

Ragnar Danneskjold

6/29/22 9:19am

She wasn’t like that at all. Very humble, but was “hoping” to get more like

byu1

6/29/22 10:59am

I mean if you are already in a home with a conventional mortgage, it doesn't matter.

6/29/22 9:20am

Unless it crashes really bad and you need to sell. But, yeah, those who got in

fattycoug

6/29/22 10:23am

With remote work being a big option, hopefully no need to sell. But lots of different circumstances.

6/29/22 12:14pm

I was talking with my buddy that’s in real estate. He didn’t think there was going to be a huge crash like 2008 in my

cheezedawg

6/29/22 9:22am

Yup. If there are a lot of cash buyers, that could be the case. But I think that cools off too.

Ragnar Danneskjold

6/29/22 9:24am

It will be interesting to watch. Rental prices are increasing double digit %

Acorn

6/29/22 9:24am

Like most humans, I predict more things incorrectly than correctly. But Housing

grosven

6/29/22 9:25am

2008 was a total anomaly. Today is nothing like 2008.

Jay Kay

6/29/22 9:33am

In some ways, it is always different this time. But in other ways, it is always

crack

6/29/22 10:36am

I just have to laugh! Yes, house prices may fall for a year or 2 but history

6/29/22 10:00am

That's actually how to play the long game

byukarl

6/29/22 10:05am

Your house does not produce cashflow until you rent it out, and ...

grosven

6/29/22 10:19am

One thing that could save a lot of people is remote work and there being less need to sell a home and move for new work.

zonacougar

6/29/22 10:00am

many employers are dialing that back though

byukarl

6/29/22 10:14am

Maybe a short term (small) dip, but supply is too constrained for a crash.

VenturaCoug

6/29/22 10:01am

You have to look at incomes when it comes to housing

byukarl

6/29/22 10:09am

Three comments:

VenturaCoug

6/29/22 10:42am

Agreed for people cheering for a housing crash they really don’t want that. It

johnnybyu

6/29/22 3:44pm

I think you will be wrong. They will definitely be lower in 2 years.

Iman23

6/29/22 8:39pm

How? I respect your right to disagree, but I don’t see it without a major

VenturaCoug

6/29/22 8:51pm

Agreed,If I am wrong it will be because we have the Great Recession 2.0. Which

johnnybyu

6/29/22 11:37pm

A really scary aspect to the whole thing is how much purchasing power is built on asset prices

JollyGreenGiant

6/29/22 10:13am

Agreed it would take an unemployment rate of something like 20% to match 2008in

Nat Gas Man

6/29/22 11:45pm

Most home mortgages were on 30 year fixed rates to people with credit scores

Gente_Boa

6/29/22 11:11am

I agree sellers will see rents being $500-1000 more than their house payment and

johnnybyu

6/29/22 4:10pm

I don't think prices will drop fast enough to offset the raise in interest. Demand will drop, but we are at a ~5mm

molodyets

6/29/22 11:24am

One thing we learned from 2009 is that housing prices can move much faster than many expect.

HarlemCoug

6/29/22 11:45am

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad