The housing market just slid into a full-blown correction

[GnauzBookOfRhymes]

1. Aka investing firms. Regular people (aka the majority of the market by number) are already starting to buckle in these economic condtions, many with debts still deferred. Who will be buying from the firms for them to be making profit? Ask zillow how that works. They smashed against the ceiling and the market only inflated more afterward.

I mean unless you think they're going full throttle with this nation of renters shyt this aint sustainable

2. These are a shrinking minority of americans you expect to carry the market through a likely recession? Their credit wont be the problem, it will be the not willing to lend due to market conditions.

3. I mean fundamentally everyone needs a place to live so there will always be demand from that alone but idk how that gets reconciled with how much this market is being propped up by money market bullshyt that will inevitably implode again

1. I wouldn't draw too many conclusions about the market at large based on zillow ending its home buying program. They saw an opportunity to make some easy money and got burned. Renovations were taking too long bc of supply chain/worker shortages, and as a publicly traded company my guess is that leadership were wary of having thousands of properties languishing on their books. They are already packaging these homes into blocks to sell to private equity firms.

The private equity people are absolutely going full throttle with the "nation of renters shyt."

2/3. I think you underestimate the extent to which our national economy has fundamentally split into two groups. Let's call them the "have" and the "have nots" lol. There are a LOTT of "haves" and they are completely unaffected by market conditions that are crippling the "have nots." We're going on more than 10 years straight of a booming economy for the "haves." And banks loan no matter what's happening. Yes the standards may get more stringent, but again the people in the market will easily qualify.

 

[Sir Richard Spirit]

99% of towns were built to service railway expansion back in the day. There has to be some kind of industry to warrant people to live there like your example with Facebook.

Unless you’re going to build a work from home city or an exclusive city for the rich, random subdivisions aren’t going to appear out of thin air.

I have no problem with what you’re saying. I’m only saying the land is livable. There’s nothing else to understand. It’s up to governments and developers to handle the rest.

 

[Bboystyle]

People are being forced to buy these expenisve ass houses with high mortgages because the cost of living, even as a renter, is just as high or slightly less than owning a house. No matter what anyone says, this is not sustainable. I can guarantee you this will not be the norm.

 

[GnauzBookOfRhymes]

People are being forced to buy these expenisve ass houses with high mortgages because the cost of living, even as a renter, is just as high or slightly less than owning a house. No matter what anyone says, this is not sustainable. I can guarantee you this will not be the norm.

It's also not a bad place to park your money during uncertain times.

 

[ogc163]

 

[greenvale]

I just bought, but oh well I don't plan on moving for a while + the location is prime. I don't think this market (south jersey philly suburbs) will crash as dramatically because it has some of the best public schools in the country

 

[mastermind]

I've noticed this in the market we are looking. (Austin area)

I just signed a contract for a new home this week. I think the interest rates hike is scaring buyers.

 

[acri1]

So what does this mean for a prospective first-time home buyer should I wait it out? Or try to find something ASAP?

 

[ogc163]

Today's Mortgage Rates, June 13, 2022 | Rates Surge Past 5.75% After Inflation Report | NextAdvisor with TIME

Looking at today’s mortgage rates a number of notable rates saw an increase. The surprising climb in 30-year fixed mortgage rates is making headlines, but don’t forget about fixed 15-year rates, which crept higher as well. We also saw an uptick in the average rate of 5/1 adjustable-rate...

time.com

Looking at today’s mortgage rates a number of notable rates saw an increase. The surprising climb in 30-year fixed mortgage rates is making headlines, but don’t forget about fixed 15-year rates, which crept higher as well. We also saw an uptick in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

• The average 30-year fixed-rate mortgage currently sits at 5.78%
• Today’s 20-year fixed mortgage rate is 5.76%
• 15-year mortgage rate: 4.91%
• The average 10-year fixed-rate mortgage currently sits at 4.83%
• 5/1 ARM rate: 3.94%

 

[ogc163]

 

[88m3]

the economy is happy and healthy

 

[Amo Husserl]

 

[88m3]

So what does this mean for a prospective first-time home buyer should I wait it out? Or try to find something ASAP?

depends on the interest rates and a number of personal factors

 

[OfTheCross]

That's back to normal...the abnormal times were the super low rates

 

[Amo Husserl]

.