Thankful for the current real estate trend

[GarGuy]

The covid eviction moratorium is coming to an end on the 31st of this month here. I want to see how that plays out.

Probably gonna still take 6 months to get them out.

[Sackett]

But at todays market prices that Ford Pinto you apply named is now the corvette and the corvette is now a Maserati. Your chances of coming out ahead are pretty slim!!!!!
You sell high in this market you also pay high in this market.

Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....

[Katsaregood]

Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....

That’s why I’m not buying again during this trend. My taxes have increased so rapidly and the land value has gone way way up. The taxes doubled and more tax increases are coming next year. There’s no benefit to remain and with development moving in it’s time to go. There are no mortgages or loans tied to anything.

[justletmein]

Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....

I keep toying with the idea of ducking into a rental and waiting it out then buying low after the crash. Problem is will it be 2 years or 20 years?

[Big Lee]

Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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Depends on the Pinto.. If said pinto had a 454 Big Block chevy. I'd keep the pinto. Lol.

I'm stealing your line btw

[DFWPI]

Depends on the Pinto.. If said pinto had a 454 Big Block chevy. I'd keep the pinto. Lol.



I'm stealing your line btw

Well, that's a good deal.

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[ladrones]

Probably gonna still take 6 months to get them out.

The slow walk.

[jerp]

I keep toying with the idea of ducking into a rental and waiting it out then buying low after the crash. Problem is will it be 2 years or 20 years?

That's the question. It took just a few years to bounce back from the drop in 08'- 09' (at least in Texas) However some around here are old enough to remember the real estate crash of the 1980's. Peaking in 1978, home sales plummeted by 50% over the next four years and didn't get back to that 1978 level for almost 20 years. It was especially bad in Texas and Oklahoma because it was exacerbated by a collapse in the oil patch. If you bought a house in this part of the country in the early 80's you likely couldn't sell it for what you paid for it for 15 years, maybe longer.

[ken]

Yep, the only ones "making out like gang busters" are brokers, real estate agents and those tied to the closing process. Most homeowners who are selling to buy another house are not in any better spot than they were prior to this spike. There will most likely be a market crash coming with tons of foreclosures and then that home you paid an inflated $650K for, now gets valued at $450k.....

What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.

[Throwin Darts]

What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.

Interest rates.

A lot more people can afford a $400k house at 2.5% interest than can afford it at 5% interest.

[jerp]

What factors do you see in the future that will likely cause a market crash?

The last time an overheated real estate market crashed it was caused by sub-prime lending money to people that couldn't afford the real estate. Current mortgage lending underwriting guidelines are very rigid.

At some point the market has to cool but I don't see a crash unless there is a large recession or if the inventory caused by ending the covid related moratorium on foreclosures is larger than expecected.

Yeah, there's still too much money chasing too few available houses and it could take a long time for that to change. A huge spike in mortgage rates could slow things down but that doesn't seem to be in the cards either - at least not in the immediate future.

[kae006]

Thankful for the current real estate trend

Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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When you say same price, I assume you’re meaning same *payment*. Because unless you move to a completely different market you’re not upgrading from a Pinto to a Corvette at the same price.

We just sold our house in Omaha last week. 5300 finished square feet with an additional 600 sqft of unfinished storage space for $15,000 less than the house we’re buying in Minnesota that’s 2,950 square feet.

If I could have found what we wanted in a rental I would have rented and hoped the market stabilized and/or corrected in the near term, however it’s not practical with our situation.


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[bowhunterchris]

I am just waiting on this bubble to burst so I can buy land. Prices are stupid at the moment.

[175gr7.62]

Depends. But, if you were driving a Ford Pinto and could upgrade to a Corvette for the same price, would you?

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Except the Corvette now costs what a Ferrari used to cost. Same thing with trucks. My buddy was ecstatic he got what he paid for a Chevy pickup 3 years ago on trade. He proceeded to buy a Dodge for sticker price when you used to get $10-$13,000 off.

[toledo]

I am just waiting on this bubble to burst so I can buy land. Prices are stupid at the moment.

Don't get your hopes up. Very likely chance prices go up more, followed by a period of little to no movement. Any drops in prices are typically minimal.