House prices will increase 20% year over year, I've been studying the market since 2020. I bought a 4th home and paid $100k over asking, which is cheap considering I was the only buyer bidding. Even the bank doesn't agree with my valuation lol. Best to get financial advice from TikTok. Bands don't know anything
The news for real estate is generally 3-6 months behind the actual market trend. All across the board seeing more homes on the market, for longer, and at lower prices. Now we see announcements like BOA giving out zero down payments mortgages - literally a repeat of 08. Just remember, if you are having this thought about selling to lock in profits, so is everyone else. The time is coming...
This isn’t 08. Certain markets will for sure drop in price and some more than others but the housing market isn’t likely to suddenly “crash”. There are 85 million Americans between the ages of 25 and 44 and there aren’t nearly enough houses for them to buy.
Leading up to 2008 the housing market was in part driven by fundamental issues in mortgage lending and when those easy and cheap loans went away, so did the demand. The millions of people who want to buy property aren’t going vanish in the same fashion. The combo of higher rates + higher prices may force some into a more conservative mindset and a longer approach to buying a home, but they aren’t going to suddenly drop out of the market. And everyone who owns a home isn’t suddenly going to want to sell it.
Anyone who would say there will not be a crash is delusional. Depends on what your definition of crash is.Pandemic boom markets might see a bigger drop. Prices peaked in May and are coming down since then. Nationally median prices came down 0.77% which is laregest decline in more than a decade. With rates rising above 6 and inflation not coming down, prices are only setup to fall further.
No one knows what the future holds for the market. If you need/want to sell soon you are already facing higher interest rates and going into winter on the downside but low inventory on the upside. You can try now or hold off until early spring. We if you don’t need to sell and have some years in case the market turns down for a short time then wait. Unless there are unique negative factors , RE is a solid long term investment.
Do a self check: are you employed? That indicator says there is a lowered chance of the market crashing. Are you unemployed? That indicator says there is an elevated risk of the market crashing
The market is so hot that the fed literally had to turn the money off in order to prevent housing prices from shooting straight to the moon. There won’t be a crash any time soon. It may take decades before we see a 2008-style crash again
Exactly. Just keep buying homes. If we all keep buying, home prices cannot go down. Offer above asking always, that pushes process up. I just bought my 4th home.
Same - have seen a huge increase in inventory, days on market, and price drops and a big drop in houses under contract within 7 days of hitting the market in the past month or so. Houses are ~30% less affordable compared to a year ago, but prices are still up ~5% to 10% compared to a year ago.
Your market may vary, but the big markets are already seeing a noticeable shift.
House prices will increase 20% year over year, I've been studying the market since 2020. I bought a 4th home and paid $100k over asking, which is cheap considering I was the only buyer bidding. Even the bank doesn't agree with my valuation lol. Best to get financial advice from TikTok. Bands don't know anything
Probably won’t. Maybe it’ll slow down. Inventory is still incredibly low. This isn’t at all like in ‘08 so I wouldn’t hold your breath.
Maybe never.
The news for real estate is generally 3-6 months behind the actual market trend. All across the board seeing more homes on the market, for longer, and at lower prices. Now we see announcements like BOA giving out zero down payments mortgages - literally a repeat of 08. Just remember, if you are having this thought about selling to lock in profits, so is everyone else. The time is coming...
Coach
This isn’t 08. Certain markets will for sure drop in price and some more than others but the housing market isn’t likely to suddenly “crash”. There are 85 million Americans between the ages of 25 and 44 and there aren’t nearly enough houses for them to buy.
Leading up to 2008 the housing market was in part driven by fundamental issues in mortgage lending and when those easy and cheap loans went away, so did the demand. The millions of people who want to buy property aren’t going vanish in the same fashion. The combo of higher rates + higher prices may force some into a more conservative mindset and a longer approach to buying a home, but they aren’t going to suddenly drop out of the market. And everyone who owns a home isn’t suddenly going to want to sell it.
I agree. Very well articulated as op mentioned
Anyone who would say there will not be a crash is delusional. Depends on what your definition of crash is.Pandemic boom markets might see a bigger drop. Prices peaked in May and are coming down since then. Nationally median prices came down 0.77% which is laregest decline in more than a decade. With rates rising above 6 and inflation not coming down, prices are only setup to fall further.
Mentor
Pm1 go ahead and save this response in notepad for future pasting
No one knows what the future holds for the market. If you need/want to sell soon you are already facing higher interest rates and going into winter on the downside but low inventory on the upside. You can try now or hold off until early spring. We if you don’t need to sell and have some years in case the market turns down for a short time then wait. Unless there are unique negative factors , RE is a solid long term investment.
Mentor
Do a self check: are you employed? That indicator says there is a lowered chance of the market crashing. Are you unemployed? That indicator says there is an elevated risk of the market crashing
Mentor
The market is so hot that the fed literally had to turn the money off in order to prevent housing prices from shooting straight to the moon. There won’t be a crash any time soon. It may take decades before we see a 2008-style crash again
Exactly. Just keep buying homes. If we all keep buying, home prices cannot go down. Offer above asking always, that pushes process up. I just bought my 4th home.
It may never crash. Prices (at least in the Houston area) are definitely coming down though.
Mentor
We still have houses selling $100k over asking where I am.
Subject Expert
Same - have seen a huge increase in inventory, days on market, and price drops and a big drop in houses under contract within 7 days of hitting the market in the past month or so. Houses are ~30% less affordable compared to a year ago, but prices are still up ~5% to 10% compared to a year ago.
Your market may vary, but the big markets are already seeing a noticeable shift.
The first quarter of next year... the market is cooling down in Miami!
If the market crashes, interest rates will drop, and then property values will increase due to supply constraints.
A hope everyone has a great day !!!