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The housing market appears crushed. Sales are so low. It may take only a minor jump in unemployment for housing prices to slide.
by nine_zeros 3y ago
The housing market appears crushed. Sales are so low. It may take only a minor jump in unemployment for housing prices to slide.
- rcme 3y agoYou should do a cost comparison between buying a house between 2008-2020 and now. Selling your house would lead to a massive increase in living expenses. It would need to be truly desperate.
- landemva 3y agoI continue to be surprised by the limited listings. But people don't want to sell, and why would they sell out of their 3% mortgage now?
- adamredwoods 3y agoCorrect, the inventory is terrible. Yet, I am "desperate", and we're looking at houses and actively in talks with mortgage officers. I also feel housing prices won't come down in the areas I'm looking at. I feel they will only go up, because employment in this area (Pacific NW) is fairly solid (T-mobile just dropped some news today). So regardless of interest rates, If I can survive 2 years with a high mortgage, in hopes the price value of the house will be the lowest it will ever get.
- brianwawok 3y agoOr live outside the big cities and enjoy reasonable prices :)
- adamredwoods 3y agoBut I don't want to live TOO far out, should anything happen to my current job. I don't feel that the remote-work revolution has taken hold.
- rcme 3y agoThere are many people like you, and many more who would like to buy but are priced out entirely with current prices / rates. My hypothesis is that the forces driving low inventory are also creating massive demand to build up that will take years or even a decade to unwind.
- smileysteve 3y agoYet prices continue to increase. Hopefully, this is how prices decrease and houses become primarily for living instead of investing.
- smileysteve 3y agoSome of the unemployment shift is likely to come from the real estate market (banks, brokers, realtors); with as many closings as happened during the boom times of free money, we should expect normal times to require less staff and be less profitable.
- soligern 3y agoWe’re looking and can’t find something that lasts more than two weeks. It’s going to take something drastic to drop those prices since they’re still going up and hopefully it’s before I end up buying a new place.
- poulsbohemian 3y agoTotally depends on your market. I have plenty of buyers and sellers where I work. Spoke to a designated broker this morning in the largest urban market in my state who said overall his office is down significantly, but his top producers are all doing fine still. Holding on to that low rate is stopping some sellers, but sooner or later life events catch up with everyone.