Housing bubble burst?
Reports for mortgage defaults in Q1 of this year have almost doubled since Q4 of 2023. Adjustable rate mortgages are on the rise at around 12%. Single family homes are up almost 40% since 2019, and yet the median income has stayed the same. Despite all that people seem more than willing to over leverage themselves and buy into this idea that being a home owner is financially responsible. Might be time to save cash and wait.
Agreed on the wishful thinking.
Find that picture with a skeleton on the bench - people still waiting for house prices to crash.
Type this in Meta Ai (WhatsApp) Imagine that picture with a skeleton on the bench. people still waiting for house prices to crash.
Hard for housing to crash when there is not enough housing on the open market and building a home is becoming too expensive. Buying a home during the lower interest rates period was financially responsible
Yes like you said “was”. For some reason I’ve been seeing a trend among various social groups where suddenly it’s become so important to buy a house. I say what’s the rush.
It really depends what someone is paying for rent vs what can be achieved through a mortgage. If the amount of rent is close to a house payment; people would say but the home because you are owning a tangible asset that will increase overtime vs paying someone else’s wallet
Those whose waited till 2020 for a "crash", only got themselves in a 40% up market.
Doomers: Just one more year
In 2020 housing price actually crashed pretty big. There was also a smaller crash in 2022 H2.
They have to come down for interest rates to get lower .. and will then rise again.. always a cycle.. u can wait for next cycle.. will just be older..
Prospective buyers are competing against hedge funds and small mom and pop investors for SFH who are buying them big time. Thoss investors will usually try to make a quick buck and dump houses for a profit (whatever % they can make). Once it starts to fall, those investors would dump big time since it's not their primary residence. Those with primary residences won't be able to sell as fast and will be left holding the bag! Current price environment compared to incomes is not sustainable!
Many making merry in sub 2 rates still.
I don’t think so, because this increase in price came from permanent increase in money supply. In theory income should catch up ceteris paribus, but there are lots of variables
It takes time bro. Probably a few years
Ok