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Why would they sell? They live there now. Why also would builders not keep prices high buy produce less? 2008 was bad loans coming to head. I don’t think it’s
by DSingularity 4y ago
Why would they sell? They live there now.
Why also would builders not keep prices high buy produce less?
2008 was bad loans coming to head. I don’t think it’s going to be the same.
- silisili 4y ago> Why would they sell In many cases, they don't, they just walk away. Would you stay in a 500k 2000sqft house that you have no equity in, when a 300k 2000sqft house was for sale next door? In a non-recourse state? And even for principled people, when you lose your job or fall behind on something you overpaid for, it's really easy to just walk away.
- thebradbain 4y agoEven in non-recourse states, walking away from your mortgage will decimate your credit score and preclude you from getting a mortgage on a cheaper property in practice, even if theoretically it pencils out on paper.
- yawnr 4y agoBecause you have a 2.5% mortgage and your monthly payment is still smaller than than 300k house at current rates. This is going to be the main issue to me. People are just going to sit in all these houses with bloated prices because the rates they pay are so low, and prices are going to have a very hard time returning to anything close to what they were with inventory so low.
- tjr225 4y agoThis is the situation I’m in. I’m in the Seattle metro and the mortgage on my 3 bedroom ranch is less than a 1 bedroom apartment in Seattle. I can commute if I need to but why would I ever give this up? I have 0 other debts which makes it extra compelling.
- DSingularity 4y agoYou will never get approved, unless you have workarounds. Even if you did that 7% interest rate will make it all even out for most people.