5 ms·

As I read the comments here, and observe discussions about housing in the media and among friends / family, I can't help but to pick up that two opposing groups

As I read the comments here, and observe discussions about housing in the media and among friends / family, I can't help but to pick up that two opposing groups start to manifest: 1. homeowners, who have total confidence in the market, willfully ignoring the influence of federal reserve policy, and everything "just work out in the long term," and 2. aspiring homeowners, who are hoping for a fall in prices, regardless of how destructive the secondary effects might be. Yet another fault line to fracture American culture. Anyway... Prices are going down. Both groups 1 and 2 will feel some kind of pain - both groups are connected and do not realize or ignore that fact. It's the debt we will all have to pay for pretending we were rich. A lot of assumptions will be challenged - including the assumption that asset prices always go up in the log term. I find all of this to be very sad and avoidable.

lotsofpulp 4y ago
#1 only applies to those that are either living in a home and want to use an increase in the home’s price to get more leverage to purchase a more expensive home, or for people who have multiple properties and earn money by buying low and selling high. Otherwise, a homeowner not looking to trade up using leverage from current home’s equity is in the same camp as #2. Higher home prices simply mean higher prices for everything else (eventually), which the average homeowner is not going to like.
DontchaKnowit 4y ago
I understand it isn't ideal that a new homeowner would have the price if their house collapse after purchasing, but if you never intend to sell, what possible harm could that do to you? For instance- I could afford 3 of my current mortgages currently, so if I have to move but would get wreck on the price if I sold currently, all I have to do is go back to renting and rent my house out. So what harm could this do to me?
- 015a 4y ago
  > I could afford 3 of my current mortgages currently, The key word being: currently. I wouldn't begin to speak to individual situations, but: what the World is and will continue to go through in order to correct some of the imbalance that happened over the past ten years will decimate a lot of people. Maybe ironically, the people it may least impact are the people who were already decimated. As they say, when a tornado hits, homeowners lose their home, but the homeless lose nothing. And, I'm sure, Bezos will be fine. Its the people in the middle that always get screwed.
- game_the0ry 4y ago
  > but if you never intend to sell, what possible harm could that do to you? Operative word being if > So what harm could this do to me? It will harm those around you. I advise you look at yourself as a part of the American society you participate in - acting like we are separate is the source of many of our problems.
  - DontchaKnowit 4y ago
    I'm not saying "welp doesn't affect me so fuck it" I'm just seeing a lot of people referring to deluded new homeowners who are telling themselves they're gonna be fine when really their finances will be ruined - or something to that effect. This comment is me 1) saying there are plenty of people who were aware of the potential for falling housing prices and got into the market anyway because the reward is greater than risk and 2) putting feelers out to see if I'm part of the deluded camp or if my assessment is correct.

lotsofpulp 4y ago

#1 only applies to those that are either living in a home and want to use an increase in the home’s price to get more leverage to purchase a more expensive home, or for people who have multiple properties and earn money by buying low and selling high. Otherwise, a homeowner not looking to trade up using leverage from current home’s equity is in the same camp as #2. Higher home prices simply mean higher prices for everything else (eventually), which the average homeowner is not going to like.

DontchaKnowit 4y ago

I understand it isn't ideal that a new homeowner would have the price if their house collapse after purchasing, but if you never intend to sell, what possible harm could that do to you? For instance- I could afford 3 of my current mortgages currently, so if I have to move but would get wreck on the price if I sold currently, all I have to do is go back to renting and rent my house out. So what harm could this do to me?

015a 4y ago
> I could afford 3 of my current mortgages currently, The key word being: currently. I wouldn't begin to speak to individual situations, but: what the World is and will continue to go through in order to correct some of the imbalance that happened over the past ten years will decimate a lot of people. Maybe ironically, the people it may least impact are the people who were already decimated. As they say, when a tornado hits, homeowners lose their home, but the homeless lose nothing. And, I'm sure, Bezos will be fine. Its the people in the middle that always get screwed.
game_the0ry 4y ago
> but if you never intend to sell, what possible harm could that do to you? Operative word being if > So what harm could this do to me? It will harm those around you. I advise you look at yourself as a part of the American society you participate in - acting like we are separate is the source of many of our problems.
- DontchaKnowit 4y ago
  I'm not saying "welp doesn't affect me so fuck it" I'm just seeing a lot of people referring to deluded new homeowners who are telling themselves they're gonna be fine when really their finances will be ruined - or something to that effect. This comment is me 1) saying there are plenty of people who were aware of the potential for falling housing prices and got into the market anyway because the reward is greater than risk and 2) putting feelers out to see if I'm part of the deluded camp or if my assessment is correct.