I really don’t understand why everyone in the Bay Area is buying homes still at a crazy price and with high interest rates. Goldman Sachs had predicted homes in San Jose area to even crash more than 20% and I still see people buying homes. Edit- I personally think we will see a downturn with all the layoffs that are happening and the low ball offers. You are paying too much to the banks. Simple math on a 1 million dollar loan with 6% interest- you are paying 5k interest and 1.3k in taxes every month. You would only pay principal of 1k. If it was in 2021, on a 1 million loan, your rates are 2.25% so you were paying only 2k interest and 1.3K in taxes. Which made sense back then. https://thehill.com/homenews/3832410-goldman-sachs-says-4-cities-likely-to-see-a-2008-style-housing-crash-report/amp/ #mortgage #housing #sanfrancisco
House only go up
Detroit
Detroit housing prices can only go up
Buying because I am tired of waiting and there is no guarantee it will come down.
If you were really waiting then why didn’t you buy in 2020 dip ?
I was not looking for a house in 2020. I did not have money saved, I was not sure which location I want to buy, too many things. Now houses are more like 15% down from peak, which is decent.
Better buy and possibly overpay, rather than keep renting and overpaying every fkin month
Renting is not overpaying when you’re paying $5K as interest and property taxes to the bank and government. Tech people earn too much money but really need someone to teach them Finance 101. Not everything is “wasting money on rent”.
Are you seeing the trend for rent? Keep on paying the landlord.
I like your alias .. lol
Foreign investors are always buying up homes in the Bay Area no matter the economy
Buying because you want to own a house, lock in your housing costs for life, enjoy the location, can afford it. Trying to time the market is a fools errand.
Most people buying are looking to refi in future, not to lock in price. In fact, that's part of their calculation where some sellers have done the rate buy down for 1-2 years
Goldman cannot be trusted. At least even odds they’re looking to be buyers here.
They are a financial services firm, so they have no merit to lie here. Also, it aligns with their layoff report saying that the economy would tumble and would take time to pick back up. They are not fidelity or blackrock to lie and make use of the opportunity to buy the homes.
Wrong, they are an investment bank, and lying is part of their DNA.
Life goes on brother… food and shelter are some basic needs. You need to buy a house that you can make into a long term home. Something that you can call your own. Life goes on irrespective of recession cycles. Things even out over 10 year period… you don’t deter buying worrying about short term cycles Other thing to keep in mind is the fact that you are buying to live there long term.. it’s not merely a short term investment decision
If you time the market when prices are super low then you risk a bidding war against other market timers. There is no perfect time to enter the market, you buy when your finances and risk meter are in synergy.
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People in tech tend not to have much economic sense. If they’re in contact with a realtor they can be easily persuaded.
Realtors are the worst salespeople ever. Absolutely toxic.
a realtor the other day: "the mortgage rates are here to stay." Boom, down to September levels the next day. 😂