People who bought before that don’t lose equity? The rooting for a housing

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Oct 4, 2022
8:52:14pm

Memmo All-American

crash around here is weird. A 20% drop in prices with 9% interest rates isn’t going to be as cool as you think.

This message has been modified

Originally posted on Oct 4, 2022 at 8:52:14pm

Message modified by Memmo on Oct 4, 2022 at 8:52:31pm

Message modified by Memmo on Oct 4, 2022 at 8:52:41pm

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Memmo

Previous username: (Private)
Bio page: Memmo
Joined: Feb 8, 2011
Last login: Apr 18, 2024
Total posts: 12,667 (746 FO)

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Messages

Author

Time

Wall Street: U.S. housing market to see the second-biggest home price decline since the Great Depression

SierraCoug All-American

10/4/22 8:47pm

Oh cool

JoeExotic

10/4/22 8:49pm

That’s not all bad. Only bad for the people who purchased in the last couple

DataMouth

10/4/22 8:50pm

Or tapped large home equity lines

Jesse Pinkman

10/4/22 8:51pm

Why should that matter?

CarolinaCoug

10/4/22 8:57pm

You could now be under water with your housing debt

Jesse Pinkman

10/4/22 9:00pm

But you'll still have the same payments and debt owed. It's only bad if you'll

squidmark

10/4/22 9:09pm

Which only matters if you want to sell and move.

Eddie

10/4/22 9:10pm

Only bad for them if they were planning on a short term stay. It’ll come back up

homegrown

10/4/22 8:51pm

People who bought before that don’t lose equity? The rooting for a housing

Memmo

10/4/22 8:52pm

No, because equity isn't real. If they sell in a down market and buy another

Plato

10/4/22 8:54pm

Huh? Not following

Memmo

10/4/22 9:11pm

Yeah but 9% interest rates won’t last long either

DataMouth

10/4/22 8:56pm

Nobody knows anything

Memmo

10/4/22 9:07pm

100%... the fed (USD) is pushing the global economy in recession, sounds like

shamc

10/4/22 11:03pm

I'm torn, to be honest.

Eddie

10/4/22 9:12pm

Yep my loss is your gain congrats!

shamc

10/4/22 11:01pm

Or for anyone who has to move or is retiring and hoping to downsize.

Zooropa

10/5/22 6:21am

Part of what made the US the world's most dynamic economy was American mobility

Zooropa

10/5/22 6:23am

This is amazing news for everyone that is not already in their dream home

Coog4Life

10/4/22 8:51pm

How is this a new consensus. Wall Street thought those increases were

Plato

10/4/22 8:53pm

Lots of people were saying that price increases would slow down and stop, but that we wouldn’t see much decline in

mvtoro

10/4/22 9:20pm

That was consensus around here. Nothing seems obvious til it is

Memmo

10/4/22 9:25pm

That's called wishful thinking, not economics. Steep price increases are usually

TailgateU

10/4/22 9:30pm

Depends on the interaction of supply and demand.

VenturaCoug

10/4/22 10:33pm

Rates up, recession fears, demand down, home prices down. Supply and demand.

TailgateU

10/5/22 12:10am

Sure but those things weren’t caused by steep price increases.

VenturaCoug

10/5/22 10:10am

Increases were caused by low rates, sudden shift in demand, and a screaming hot

TailgateU

10/5/22 10:18am

And an absurd increase in materials cost which has now gone way down.

Plato

10/5/22 11:11am

People have been predicting it for years and been wrong. Just because something

VenturaCoug

10/5/22 12:37pm

Uhhh... which parts weren't supply and demand?

TailgateU

10/5/22 1:34pm

It’s not what I said. But if you didn’t see that proclaimed my “market experts” then you weren’t paying attention.

mvtoro

10/5/22 12:51am

What happened to home prices in 2020 and 2021?

Busiturtle

10/4/22 8:54pm

I might be able to buy a house now.

Tesla Coug

10/4/22 8:55pm

Got cash sitting and waiting.

zonacougar

10/4/22 8:55pm

That's a good thing

shakarocks

10/4/22 8:55pm

This is a nothingburger. Alarmist headline. Home prices have risen 50% over the

Mr. Rumsfield

10/4/22 8:56pm

Yep 7 to 10% drop is not much considering how much prices have

johnnybyu

10/4/22 9:00pm

A healthy housing market is one where new entrants of average income can

txblue

10/4/22 9:00pm

Until large companies arent allowed to overbid and pay cash vs single family

CarolinaCoug

10/4/22 9:14pm

I think that works itself out in a healthy housing market. Companies are after

txblue

10/4/22 9:19pm

Scary headline. Not so scary article

Tare

10/4/22 9:01pm

Honestly even a 25-30% correction would be healthy IMO.

HingleMcCringleberry

10/4/22 9:03pm

Heck, according to Zillow, I'm already down 10%.

squidmark

10/4/22 9:11pm

Me too, just over 9 percent in the last 2-3 months.

Emmett Fitz-Hume

10/4/22 9:56pm

Rapid decline that won’t return to the baseline of two years ago.

IGlowInTheDark

10/4/22 9:18pm

Great. Now Gen Z will have to come up with a new excuse for why they

Mister P

10/4/22 9:18pm

It's just math. If interest rates are going to triple something has to give.

JuicyJam

10/4/22 9:20pm

odds are property taxes dont adjust tho

Swishfromdeep3

10/4/22 9:43pm

They will. You can always appeal what they say, and if comps show your value is

TailgateU

10/4/22 9:45pm

BlackStone about to own a bunch more houses.

AZcougLawyer

10/4/22 10:13pm

As they should, the rocket upwards has been insane. Needs to calm down.

Mitty

10/4/22 11:13pm

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