The last few months have increased median home prices significantly to record levels across the country.It still hasn't stopped and the next few months we should see continued rising..if we are lucky we will see at least SOME pullback on prices but i wouldnt be surprised at all there is none.

It sucks to think there are people who have been saving and all of a sudden are absolutely priced out of the market.

I think in some less popular areas, it may still be more manageable to own a home but still..having to accept that you are paying 20-30%+ over just a few months ago...

Crazy to think so many people are going to get locked out and even the "cheap" areas are no longer affordable.

I'm very fortunate to have locked in a new construction just before the market shot up...but with these high prices, i may end up being forced to sell due to high property taxes :/ House has already increased 100k and will likely keep increasing.

feelsbadman.

can confirm. not a good feel at all, bro. I think the issue is really that the city/county/state isn't permitting as much new housing developments as they should be. They are refusing to keep up with demand.

Investment banks and financial institutions are getting involved in the housing markets and buying up homes.

Another bubble burst is right around the corner.

This thread is new and exciting

Inb4 Ernie and some wagecel stats

Same going on in canada
Prices have just sky rocketed

I hope the market can cool down a bit . Rental market also over priced and trash here

For the averagerealfirst-time home buyer it just means delaying another year or so at most. If you figure in 2019 Timothy wanted to buy a $300k house, needing a $60k down payment for bypassing PMI, in today's world that house is probably now $400k, so Timothy would need another $20k to add to their down payment, which they can hopefully accumulate within a year tops. Might need more down though if they want to keep their payment lower.

depends, building company's are fckin rolling in it right now

you seen the price of a 2x4 recently? fckin wild

you know rentcels aren't paying their rent right now right?


joke's on you incel.

i'm hoping that the inventory of homes will increase when the eviction moratorium ends

JFL at bragging about unrealized gains. Just like all those people bragging about their GME portfolio at $400 and Doge @ .45.

What are you gonna do with it? Sell it, pay a broker commission, closing costs, and then buy another house that's equally overpriced?

Yes they are lol

But how would this cause a "burst bubble"? Its a supply/demand issue and unless all these investment companies flooded the market with inventory, it wouldnt affect much..even then, considering there is a strong demand, i dont see there even being enough inventory that could be released.
I don't think they will...most people using the eviction memo are likely not home renters vs apartment renters. The only hope would be if the home owners decided to sell in this market vs continue renting.

not under no eviction order.

I've continued to save and wanted to put off looking for a house and it kind of has bit me in the ass a lil with the crazy high costs. I'm comfortable right now with where I'm at, and will hold out longer and continue to save $$ until prices come back down to earth

9 tenants, all have paid

u mad????Very honest feedback here, take it for what you will. I'd look to buy something as soon as you are comfortable with it being what you want and comfortable with the payment

Prices WILL NOT go down any time soon, at least not in the middle class range

Just my opinion

it legit makes no sense. my uncle was so happy when he sold February 2020 and covid hit the very next month. He pocketed his $1.1M and thought that since the economy was devastated that the house prices would plummet, so he's rented this past year waiting to buy a house for less than what he sold and in the end he actually got fuked. He totally regrets selling, we all thought it was genius at the time.

Not sure why you all thought it was genius at the time. Home owners did not lose their jobs. Home owners typically aren't bussers, waitresses and event staff lol

And with interest rates this low, plus people spending more time at home and wanting home offices, with supply still being limited, of course housing prices would go up

My GF just recently bought a condo not to far from where I am, and we were talking about exactly what you're saying. Idk about the area you're in, but 425k+ for a starter home is pretty typical around my area

In Phoenix it's around the 300k range, around the 400-450k range in Scottsdale

These prices may stagnant at some point when there's a minor correction. But then all the people sitting on the sidelines with lots of cash are going to jump in, and start to push it up again

There are just lots of highly qualified buyers with lots of money right now, and a limited supply that's unable to keep up with demand. We won't see a crash any time soon

That always makes me chuckle. Say I bought a house for $180K, put 3% down so $5400. If my house is now worth $400K I turned $5400 into $220K in 4 years. Not bad brahs

I don’t know what’s more pathetic, rentcels or op and his SFH

I heard the population of my state has gone up 10% in just the last six months. I hope they don't build a single new house ever, FUK OFF WE'RE FULL, SRS.

We're #1.

brb 1 bedroom apartment 800
brb 1 bedroom home 1200 + insurance and property tax (bout another 350) + maintenance + utilities are way higher so more like 1900

brb rather just save the 1k and invest it. youre just gonna be sitting in a corner miscing with either option so JUST LOL at mortgagecels

The fact that the Fed is still buying $40 billion in mortgage backed securities... Every Single Month is straight up criminal.

If mortgage rates were allowed to rise naturally, and they rose to historic norms of 7%, the median housing payment based on the avg 6% down payment on a median $350k home would rise over $1,000 a month for mortgage payment alone. And if rates were to rise to historic norms, you're going to also have a ****load of freshly unemployed people whose perpetually unprofitable employers just went bankrupt because they can no longer service their debt and kick the can.

The average American only look at payments because they're fukking stoopid, so the avg moron who is already living hand to mouth with minimal savings is not going to be able to afford a home at their current prices if rates rose to 7% unless home prices fall by 40%.
For each percentage increase in mortgage rates, home prices would have to fall about 5% from current levels.

My bo Xi will soon own your property anyway just imagine that

The buyers are not actually highly qualified when you look at their employers' balance sheets and realize that their unproductive jobs would evaporate in an environment where interest rates were allowed to naturally rise. Over 20% of US businesses are perpetually unprofitable and would almost immediately go bankrupt if rates were to rise to any meaningful level. In fact, 2.5% was enough to send the economy into a near tailspin in late 2018. That threshold is probably much less now considering how much additional debt has been added to corporate balance sheets since 2020.

And the interesting thing is when these companies finally do go bankrupt, there's going to be nothing left to pick over from creditors because the bulk of their value is based on intangibles. So when rates finally rise, you're going to have at least 20% of businesses implode almost overnight. That is obviously going to have ramifications on the rest of the economy as other businesses that are currently profitable start losing money as a result of this massive hole that was blown in the economy. Then on top of that, you have an over-indebted federal government with the bulk of its debt in short term bonds that will be forced into austerity an literally unable to stimulate and blow more money on stupid chit like PPP grants as they have during Corona because they have to start rolling over new debt into higher interest bonds and any further spending forces yields up even higher compounding the problems.

And that is all while home prices are simultaneously becoming more unaffordable because the average down payment is a paltry 6% and higher rates cause payments to balloon forcing sellers to have to adjust their prices down.

If we ever get natural interest rates, asset values are going to chit the bed so very hard.

my cousin is a realtor here in hawaii and he's been selling a couple of houses/condos each month because landlords are getting screwed from non-paying tenants. from what he told me, the landlords who are trying to keep their properties are going to have to increase rent to recoup over a years worth of non-payment. average house for rent here in honolulu 3k; nobody is going to want to pay 3.5k for rent when the house down the road is charging 3k. the combination of the of rental properties available for rent, increasing rent costs (that nobody in their right mind would pay), and a decrease of good (paying) renters will push more landlords to sell.

they move back in with their families. its pretty common to have 2-3 families living in the same home. in fact, my friend and his brother are both married with kids and still live with their parents in a 3 bedroom home. drive through waipahu, ewa beach, pearl harbor, pearl city, etc and you'll see drive ways and the sides of the streets packed with cars.

hawaii was hit hard by covid since most people make low wages and the travel industry was dead for most of the year. at one point, we had almost 25% unemployment

Wanted to rep, but I'm on recharge.

Nice analysis. Much more in depth about why the Fed is painted into a corner re:raising interest rates.