Housing Mkt Correction/Collapse

Discussion in 'West Mall' started by Chop, Jun 7, 2022.

  1. Chop

    Chop 10,000+ Posts

    [​IMG]

    'THAT'S RIGHT. I MADE HOUSING MORE AFFORDABLE.'
    (in case there are any exceptionally thick lurkers out there: this is not an actual quote, just a prediction of the spin...)
     
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  2. BrntOrngStmpeDe

    BrntOrngStmpeDe 1,000+ Posts

    that part always chaps my ***. it was the gov meddling that forced lenders to lend to unqualified mortgagees. Of course they are going to charge a higher premium for borrower pools that are going to have a much higher default rate. and it attempts to completely absolve those borrowers for their role in defaulting. "placed in mortgages"...friggin financial-illiterate author. To be sure, lenders sold investors a bill-of-goods about the "aggregated debt" quality of MBSs but the original impetus was largely a democratic push to make more people homeowners. (even the ones that hadn't done their part to get there). I firmly support making more people homeowners but the right way to do that is to make more people financially literate and responsible, not by imposing mandates on the lenders. In my opinion, this is THE class that is sorely missing from high school requirements.

    Financial Ed 101. Required for graduation. Taken in your spring semester right before you leave school.
    --Job hunting
    --salary expectations
    --stocks
    --loans/mortgages
    --insurance
    --credit cards
     
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  3. theiioftx

    theiioftx Sponsor Deputy

    30 year rate now at 5.78%. Thanks Joe.
     
  4. UTChE96

    UTChE96 2,500+ Posts

    Finally starting to get price drop notifications on homes I have been following on Zillow. Heading for a long overdue correction in the housing market.
     
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  5. mchammer

    mchammer 10,000+ Posts

    462E103D-A77A-4A2D-9116-F8099BFE0067.jpeg
     
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  6. Chop

    Chop 10,000+ Posts

    Very right about a long overdue correction. Houses got so expensive, many buyers couldn’t afford them on their incomes. Housing prices exceeded the ability of many average folks to pay. It was out of whack—hence the “correction.”
     
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  7. Chop

    Chop 10,000+ Posts

    Housing markets labeled ‘high’ risk of a home price drop just spiked 73%—find your local market using this interactive map

    It's very regional...

    There's a good chart in the article. They're predicting a regionalized drop, with Texas, the South, the Plains, and most of the Midwest largely likely to escape a big drop in housing prices. On the other hand, much of the West Coast, No. Arizona, Idaho, Detroit, Cleveland, the Northeast, and Fort Walton/Destin, Florida are at a moderate or high risk for a very significant price decline.

    "While it's fair to call this shift a housing correction, it's far too early to call this a housing bust or housing crash. Right now, we're watching the U.S. housing market try to find an equilibrium amid spiking mortgage rates. If things do get messy, the Federal Reserve could always step in and once again put downward pressure on mortgage rates.

    That said, the cooling housing market has seen the odds of a home price decline jump. At least on a regional level."
     
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  8. Chop

    Chop 10,000+ Posts

  9. Chop

    Chop 10,000+ Posts

    Texas Housing Market: Prices, Trends & Forecast 2022

    Texas is looking better than most of the rest of the West. I think a good outcome would be a prolonged plateau, where home prices remain relatively flat for a long time. That would give the average-range incomes time to catch up.
     
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  10. Chop

    Chop 10,000+ Posts

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  11. OUBubba

    OUBubba Reluctant and Bullied Sponsor

    I was buying some lumber for a small project from my one stop light town lumber yard. He said that their prices are always inverse of the interest rate. When it goes up, the price of lumber goes down. Interesting.
     
  12. Mr. Deez

    Mr. Deez Beer Prophet

    It makes sense.
     
  13. SabreHorn

    SabreHorn 10,000+ Posts

    Bubba,

    Are you finally getting around to building that deck around the hot tub out in front of your doublewide? My cousins will be jealous until their workers comp settlement comes in.
     
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    Last edited: Jul 25, 2022
  14. Chop

    Chop 10,000+ Posts

    Alert: US Pending Home Sales Decline by a Staggering 20%

    "The drop in sales was nationwide, but the South and West saw the worst of it.

    Sales declined 8.9 percent monthly and 19.2 percent from last year in the South. The West took a major hit as sales dropped 15.9 percent monthly and 30.9 percent from June 2021, according to CNBC."
     
  15. guy4321

    guy4321 500+ Posts

    Looking for the correction in Austin as my property assessment is $200k over what I could realistically sell my house for. Property tax protest is what got it to the $200k!
     
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  16. mb227

    mb227 de Plorable

    Travis has always been squirrely on valuations...the house I had with an ex in the late 90's (north of 183) remained not too far north of what it was purchased for in '97. The spike in its valuation didn't start until a few years ago (maps.google suggests from the streetview that many improvements have been made). Meanwhile, the house I had in the Westlake area was surrounded by homes that STILL saw bidding wars even after the crash in the '07-'08 period...and the home I was in with a quarter-mil valuation has jumped close to seven figures.
     
  17. OUBubba

    OUBubba Reluctant and Bullied Sponsor

    [​IMG] That plywood around my above ground pool isn't aging like I thought it would. :)
     
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  18. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

    Try reinforcing it with some thin cast iron bands.
     
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  19. SabreHorn

    SabreHorn 10,000+ Posts

    Bubba,

    I told you to hold the line on your personal injury attorney. Obviously, you didn't so there wasn't enough left to spring for redwood. My cousins said if the plywood becomes a problem, reenforcing it with beer cans (not bottles) helps a lot. Stacking them with the pour hole up allows them to fill with water and adds weight for additional stability.

    I believe them because the rise in used car prices has hit their business really hard. Not as easy to take a $300 clunker and get hit by a Mercedes as it used to be. I guess the recession really has hit Oklahoma hard.
     
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  20. guy4321

    guy4321 500+ Posts

    Westlake? When are we having the summer party at @mb227's place?
     
  21. Chop

    Chop 10,000+ Posts

  22. Chop

    Chop 10,000+ Posts

  23. Chop

    Chop 10,000+ Posts

  24. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

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  25. Chop

    Chop 10,000+ Posts

    I want a world of 2% interest rates and 2% inflation, yet 7% growth, in perpetuity.

    Is that too much to ask?
     
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  26. Sangre Naranjada

    Sangre Naranjada 10,000+ Posts

    And I want the sun to rise in the west tomorrow, and for my wife to suddenly realize my farts are humorous, melodious, and aromatically pleasing.

    Is that too much to ask?
     
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  27. guy4321

    guy4321 500+ Posts

    Yes and no. I'm just not sure which answer applies to which question.
     
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  28. Chop

    Chop 10,000+ Posts

  29. Chop

    Chop 10,000+ Posts

  30. nashhorn

    nashhorn 5,000+ Posts

    Heck at my age I just want me and wife to, ah heck, you can fill in the blank.
     
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