When such articles start coming out, one thing is for sure - nothing like this will happen!!
Nah. Not really.
Actually it already started. For the first time since past 10 years.
I could see 20% drops in certain areas like the Bay, Florida or Austin where prices were super inflated with everyone moving there. Well there's about to much higher mortgages and the funnel of new transplants will eventually settle down. Places like the Midwest will probably be fine since they didn't inflate nearly as much. I could see the Midwest remaining pretty steady.
Agree. Tiny crappy houses in bay area, Seattle were super inflated (50 -60% over its actual worth price in the past few years. ). Its destined to go down atleast 30-50%.
I have trouble seeing Seattle drop by that much unless Amazon and or Microsoft goes through a series of deep layoffs.
Real estate is local. What is true for rest of US might not be true for bay area. https://www.kron4.com/news/bay-area/san-jose-housing-shortage-is-worst-in-us/amp/
ye well san jose saw the most housing decline in the entire country !!. https://therealdeal.com/sanfrancisco/2022/08/02/san-jose-leads-u-s-cities-in-falling-home-prices/
The entire bay area is highly inflated. Especially San Jose , Sunnyvale, Fremont, Peninsula (San Carlos/San Mateo/Redwood City/Belmont/Melo Park), Berkley. People were crazily overbidding for crapppy , small houses in 5, 6, 7 rated school districts 400-600k over asking price (not to mention that asking price itself is 40-60% of what it's actually worth)
Well, why would anyone sell low?
Some people might be forced to sell if they get laid off or have to relocate back to an office. Or maybe they moved to Austin and realized it sucks there.
Agree . The one's who purchased the homes in 2020 and 2021 will try to wait out and hope for housing prices to go up. And they are the one's who will come and comment in posts like this to say, Bay area housing prices will never go down. But there are many homes which were not listed or sold in 2019 or 2020 or even 2021 who were waiting for the right time. Also there are many more homes than the one's sold in 2020 or 2021 who bought their homes for much lower than the current price or the 30% lower price next year. (If they have purchased the homes in 2018 or before). So if there is any downturn in economy, they all will be forced to move out or sell. There will be a cascading effect and people will realize it only after it's started.
Businezzz iNsider!!1 🥱
So? I bet the monthly payment will still be high bc of high interest rate. Unless you buy all cash
Only if interest rates stay high all 15 or 30 years. Also that's why the price adjustment is long due. Crazy ppl who have cash and can afford to pay 10K mortgage for a tiny 1200 -1500sq ft garage in a cheap looking community have mostly purchased in 2020 /2021 /2022 .
Ok; you must be talking about SFBay; in Seattle area I know people who locked in ~3k mortgage for 2500 sqft+ , 4bd+, 5000 sq lot, good enough school in 2021; now rent for this area for SFH is ~3400 monthly
Should I buy in November or wait till Jan/Feb?
I would wait till the housing price starts moving upwards. Also FED chairman last week said they are going to raise interest rates aggressively for the rest of the 2022 . Minimum 1.5% in next 2 cycles this year. With that gauranteed interest rate increase, your mortgage interest rates for sure will either go up or in the best case stay at the current levels. Which means, housing prices will definitely not go up this year and good part of 2023. Infact it may very well go lower. Atleast 20-50% depending on the location. If it's bay area and the current house price is over 1.8M /2M , then chances of going down by 30%+ is very very high in next few months.
Thanks for your detailed input. Much appreciated. Yes looking at Bay area only 🤦
As much as I want this to happen I have 0 hopes looking at data.
Ready for the apocalyptic price drop in San Jose?
Few months ago many people were over bidding for tiny crappy looking houses in San Jose. The prices skyrocket unreasonably. The reason I hear was good school district! 1M -1.5M over its actual worth price for schoool district? Unbelievable!
Ready. San Jose real estate will get wiped out.