Homebuyers are anticipating housing price drops and backing out of deals, where now 15% of buyers are backing out of deals.

This should increase inventory quite a bit. In hot markets like Phoenix, Vegas, Boise, people are backing out at 25%, 27%, 22% respectively.

Interest rates are only going to go up due to inflation being at 9%. Might be at double digits interest rates by the end of the year.

The problem with housing and Realestate in general which makes it un-affordable is the way that banks and financial institutions allow people to do cash out refinances on 80% of the "appraised value". I know several people who do this and when I first heard about it, it seemed so easy that I thought it was illegal, but nope it is perfectly legal. This speculation and leveraging appraised values of realestate causes the actual worth of the houses to artificially inflated. We need landlords, that I understand but the game seems rigged once you find a banker willing to work with you. My buddy was able to buy 4 houses this last year doing just that, meanwhile he can't even lift a hammer or hang a door. Its all just a bull **** financial pyramid scheme. I bought rentals using alternative financing but I flipped them myself and know what I'm doing. meanwhile there are guys out there doing cash out refinance and buying as many rentals as possible. Everyone wants to be a land-chad real estate mogul. It really is just a matter of if you can get a banker to work with you after that you can print money. I hate it ..

For example, my buddy bought a house for $30,000. Somehow the bank thinks it is worth $115,000. So they cut him a check for 80% of the $115,000. SO he buys a house and the bank turns around and cuts him a check for $92,000!! WTF!

The fundamentals are all totally ****ed right now in realestate. The fact that this is happening all over the country makes the prices of homes totally screwed up.

I'm sure some people who were offering to pay over asking price, cover costs, no inspections, ect are backing out. There are always backouts.Then he can use equity from those homes to buy more. I was seeing how this is common where a trick the very wealthy use is they will use their own money to invest and then take out loans on their investments because that money is not taxable and then use that money to do what they want and invest using that. Building a house of cards with bank loan statements. If all else fails they just walk away and let the house fall down on itself and one loan goes after another. Sure, they lose it all but they gained a whole lot in the process. Of course a lot more complicated than that.

That there’s always back outs is obvious, and misses the point.

What is the average blackout rate?

Looks like cities with huge housing bubbles are experiencing the largest amount of back outs. Could be because prices are too high and now unaffordable for the area.

Fkn lol

They better buy now before interest hike up.

I TOLD YOU SO



You would HAVE to be a RETARD to be holding property in 2022. INB4COPE

It's already over for them.

no **** you'd have to be retard to think housing wasn't gunna pullback...
inb4 same retards hurrrrrr rents dueee hurr

****ing stupid ****s

BOOMERS ARE 42% OF ALL US HOMEOWNERS.
When you add in the silent and greatest generation homeowners, that figure is almost half of all housing in the US owned by boomers or older.
ALMOST all boomers will die between now and the next 15 years causing aTSUNAMI OF HOUSING INVENTORY.and the biggest housing market crash in world history.
Homecels, when will they ever learn?
https://constructioncoverage.com/res...g-markets-2020

Cope.

I’m trynna close on this bad boy right now

BS, no spoon on house.

Potential homebuyers, and and those canceling contracts"Why would I buy this house for this much money in Texas, Florida, Idaho, Arizona, Tennessee, Georgia, etc when I'll be able to buy a house for that same price in California, Hawaii, or New York after the Housing Market Crashes BIGLY?"

Banks don't "think" the house is worth anything. They are required by law to have a random appraiser assigned to the loan request who comps the house with recent sales nearby.

I thought about bringing a spoon, maybe after the deal is done done haha

There are indeed wealthy buyers who've bought homes purely just because they "hold value"... wrong, houses need constant repair, maintenance, insurance, property taxes... after holding a house and trying to rent it out, most investors will sour on the idea and just sell it off and go back into the stock market where such nuisances don't exist...


Boyos, 60%....

If you didn't buy a house when the interest rates were 3%, you're absolutely fooked. Interest rates are fooking the market.

Even if the market crashes 30%, you're still paying a lot less in real terms than current prices if you bought at the peak.

Paid a lot for my house in 2021, but also have a 3% rate. No fuks given because my $2500 payment on my $600k house in 2030 is going to be easy. Meanwhile, your $4000 rent on your 600 sq ft apartment in 2030 is going to be difficult.

lol if you don't think rentcels are covering those costs.

Homes absolutely depreciate. The land however...

LOL @ you for thinking rent is mandatory....WRONG... rent is optional in Biden's America....

2.625% locked in rate (permanent, doesn't change every 5 years like for Beavercels), also didn't end up paying some massively inflated price either.

You should just stop paying rent then and report back what happens to the misk.

my advice to rentcels:

wait until not just the crash but also the fed slamming rates again, but before the slammed rates cause an uptick in pricing

where i live the crash started in 2008 but the bottom was in 2012

not saying it's gonna take that long, but there is a lag

watch the case-shiller charts for your area

srs

watching your same house drop by 200K as I swoop in to buy it up mortgage free. When you got another 25 years to go.


this is how I move on your block.

Honestly if house prices crash you can just buy at whatever the current rate is -- if its not ridiculous -- then refinance as they come back down. You don't even have to time it. Just get the house you want at the right price, keep your credit score in check, and refinance.

Chang, ****** and Mr Shekelberg gonna swoop in and buy up everything.......

Biden says I ain't gotta pay sh/t, but you gotta keep up repairs and maintenance....

There’s a few houses that I saw that were bought for $500K in May, then immediately put back on the market for $750K. They’ve been sitting since with gradual price cuts down to $680K.

Seems like a noob investor.

Lol do you even have any money?