About 270,000 homebuyers who bought during the red-hot housing market this year already owe more than their house is worth, a new analysis found.

Among the 450,000 underwater borrowers in the third quarter, nearly 60% had mortgages originated in the first nine months of 2022, Black Knight found. That's about 1 in 12 homes purchased in 2022 with a mortgage, or 8%. Nearly 40% of homes bought this year have less than 10% of equity left to tap.

The figures reflect yet another fallout from rapidly rising mortgage rates this year, which have put pressure on housing values as home price growth cools at a record pace month over month.

“Though the home price correction has slowed, it has still exposed a meaningful pocket of equity risk,” Ben Graboske, president of Black Knight data and analytics, said in a news statement. “Make no mistake: negative equity rates continue to run far below historical averages, but a clear bifurcation of risk has emerged between mortgaged homes purchased relatively recently versus those bought early in or before the pandemic.”

https://money.yahoo.com/homebuyers-u...203707947.html

It’s over

they shouldve bought bitcoin

Underwater
10% equity left


Choose one

People who buy in a sellers market know their asset won't be worth what they paid for it for a while

Would be amazing to purchase at the dip and those sweet foreclosures

you're over-estimating their intelligence

how many of these dumb cucks bought in a bidding war with a variable interest rate loan?





i know atleast 3 dumb cucks who are crying about their variable interest rates going up in the last month. I was shocked how many retards signed up for variable interest rates when rates were at record lows. Mr. Shecklestein at the banks convinced them that variable rate HELOCs were the "in" thing and to get one to use as a checking account and pay all their bills with it. lol cucked.

-10% this year so far

Houses are still selling here for 2x their 2018 value

lol at this copecel. you think that is sustainable? layoffs are only just STARTING.

next year is going to be cuckcity

the number of people who "locked in" was way lower than i expected. a lot of retards out there. 2008 all over again, its coming.

Yeah somehow I think equity's not going to be getting better as prices drop 10-20% in most metro areas in 2023. On the other hand so long as those people don't have to move in the next 5 years they'll be ok in MOST places. It's going to suck for a lot of homebuyers in Los Angeles and Austin. If LA County if they bought this past summer and put 10% down (most people don't put 20% down) they're already underwater right now or are very close. And with the prices so high in LA this past summer:

-950K avg price including closing costs
-855K mortgage after 10% down
-home value 823K as of October (ruh roh)
-home value in another 12-18 months will be ~700K
-still owe well over $800K
-market will be flat for several years after hitting bottom. Prices were flat in LA for years before the pandemic

In Austin the average price nearly doubled from any month of 2019 to mid 2022.

-already down $100K in 5 months
-likely to go down another $100K next year
-everyone who put down less than 25% will be underwater
-better not think of moving before 2030


Beyond just negative equity on paper, a lot of people will be stuck. They'll stay at jobs they want to quit. Or let's say their company wants to transfer them with a $20K pay raise. Nope, can't. Unless it's to a new metro where house prices are half as much. They'll be fine if they stay in the house a long time, but it will be a mind fuk along the way.

Homeowner cells when will they learn

-10% this year and going down

next year will be even more

doesn't matter, that gain is not realized.

current trajectory

Versus every single renter ever, who will always be underwater paying someone else's mortgage.

Man these wealth flex threads do nothing for me. I have intelligent friends who work just as hard as I do, and struggle because they aren’t being handed anything. And I’m barely removed from that situation out of luck.

It’s easy to see that owning property is challenging these days.

Glad I bought in 02. It was high then, but I'm way above my purchase price.

i sold in feb and gained 700K. erased 25 years of mortgage.

You're in Miami? Your location says Minnesota.
Anyway, people who bought pre-pandemic will have positive equity as prices deflate. This thread is about people who bought in 2022 (and some who bought in 2021) that will have negative equity as prices come down. Bank of America's CEO said a few days ago the deflation in prices has 2 more years to go. It won't be as bad as the Great Recession crash. Back then it took until 2012 for prices to stay above where they were in at the start of 2004. I don't think it will take until 2028 for prices to be above where they were at the start of 2020.

I don't think we'll see prices crash below early 2020 prices, certainly not at a national level. Maybe a few places, but again not nationally. We'd have to have a very severe recession or a world war for that to happen. Housing is fuked for several years into the future and inflation will still be relatively high for a few years, but otherwise there are a lot of positives coming for the US economy. Admittedly partly because most of the rest of the world will be economically fuked for years. Being the superpower, their loss is our gain.

How many of those people bought in middle of America where prices where extremely over priced ?

How many total home sales where there not just counting the ones underwater ?

These cope threads always make me lol there’s gonna be zero slowdown in the costal areas and the cold vacation states like CO and MT

big tech layoffs only just begun


lmao but muh coastal states. someone is in for a rude awakening

I bought in 2020 so I’m still above water

The layoffs where for the very bottom of the industry and jr positions

Most good mid level and senior level tech brahs are just fine and could find a new job tommorow if they had to

Been patient about buying recently for this very reason. The asking price for the neighborhood I want to live in is pretty crazy compared to 3-4 years ago.

I continue to hold until the summer of next year. I've already seen the asking prices for certain homes on Zillow drop 15-30k regularly

and? how many mid and senior levels are there compared to junior level? can they prop up the entire coastal housing market? mass lay offs, rising interest rates = mortgage defaults and collapsing housing market

If you boyos buy, then make sure you get at least a 60% discount....

Don't be so sure. It's not just tech, the vast majority of companies have already initiated layoffs or will initiate layoffs in Q1 2023.

Lol just pathetic, will u rentcucks ever learn?