You think the housing market is gonna crash anytime soon?

[mb23100]

We're trying to buy or build a vacation log home up on Mt. Charleston, NV and I'm kinda weary that the value will drop in the near future. From what we are looking for, we're in the price range of around 750k. We'd hate it if we buy it and 5 years from now, the value will be at 300k.

But we're also weary of it going up to a point where we won't be able to afford it.

Half of people I know say the housing market is going to crash like in 2008. The other half says it's going to keep going up.

Why Mt Charleston? Just curious. Utah seems like a lot better place to get away. Lots of lakes and better skiing etc.....

 

[Fluffernutter]

This is genuinely stupid

What we are finding in my town is that it is so hard for young families to buy a home because boomers have their entire retirement tied to their homes.

Therefore, they ask for a price that is way above market price and simply sit and sit and sit. Blocking people from moving in.

A generation ago, 72% of the homes in our town had kids within the school system. Today, it's less than one third.

At some point, there will be a great sell off when the older population retires or passes away.

 

[badascan]

No. The purchasing power of the dollar might stabilize which would make the rising house prices appear to stabilize or retrace a little. If shit really hits the fan then of course way fewer people would be in the market to buy which would lower prices too but there are plenty of extremely wealthy entities that will continue to snap properties up so who knows... I also have zero idea what i'm talking about...

 

[nostradumbass]

It has to. Housing price to median income ratio is the highest it's been in at least 75 years, quite a bit higher than before the 2008 crash. Stock market's tanking and a full recession is coming, interest rates are getting bumped and foreclosures are up, so housing prices should start to follow everything else before the end of the year.

 

[cincymma79]

What we are finding in my town is that it is so hard for young families to buy a home because boomers have their entire retirement tied to their homes.

Therefore, they ask for a price that is way above market price and simply sit and sit and sit. Blocking people from moving in.

A generation ago, 72% of the homes in our town had kids within the school system. Today, it's less than one third.

At some point, there will be a great sell off when the older population retires or passes away.

It’s really selfish they won’t just die so you can get a house cheap

 

[CutStryker]

Not as long as all the illegals keep pouring in.

Housing owners can ask for high ass rent because they’ll allow 10+ mofos up in there. Can easily get the amount they’re asking for.

 

[Diogenes of Sinope]

No. Circumstances are different. Far different than 2008. In my area at least.

House prices have doubled. Literally. In the last 2 years. Supply is not.meeting demand and investors are the buyers now.

If anything this is the beginning of lower middle class descent into poverty and inability to buy.

someone I know had their home go from 1 million to 2.3 million in 8 years.

its a little less than 1900 square feet

 

[Halifax]

When buying housing it only matters when you're planning to take the money out of housing with regards to market performance.

If it's a long term investment you're pretty much all good. I'd say if you plan to have the place 20 years you shouldn't bother thinking about the current market.

someone I know had their home go from 1 million to 2.3 million in 8 years.

its a little less than 1900 square feet

That sounds a lot like Toronto and Vancouver now.

Not quite so extreme in halifax where the price of my small semi went from $230000 to houses equal to mine on my street going for$499999.


So buying more than 5 years back, my mortgage payment monthly + property tax was $1150 a month on a 5 year and is now locked in a 10 year and I pay $1250 a month for the next decade.(I saw this interest bump coming and acted accordingly. Yay me)

However had I not locked in for 10 this past summer, it would have hurt if I had to remortgage now. Likely to the tune of $1650 a month.

The ones who bought a 500k home here at 2.1% in the last 2 years are shitting kittens now when their mortgage comes up because in canada you don't get a 20 year or 25 year rate. You usually get 5 and then renegotiate based on current rates when your term is up. Those who bought a 500k at 2.1% fixed see the writing on the wall in 3 or 4 years. They currently pay $2100 a month at 2.1% with property tax included. A 5 year fixed is around 4% now due to the new swings. If it goes to 6% or 7 their monthly payment bumps to $3100 to $3300 a month. Asking anyone to come up with an extra $1000 a month when 67% of Canadians live paycheck to paycheck is insane.

 

[HeffDoesWant]

America should be fairly insulated from interest rate increases due to long fixed terms.

That said I would off a year if planning to pay cash or mostly cash.