topic Re: Scale 1-10 in SmorgasBoard

Scale 1-10

Creditrecipe — Fri, 26 Aug 2022 20:54:36 GMT

On a Scale of 1-10, how hard is this housing market going to collapse?

Re: Scale 1-10

pizzadude — Fri, 26 Aug 2022 21:09:59 GMT

@Creditrecipe wrote:
On a Scale of 1-10, how hard is this housing market going to collapse?

I think it will vary widely by location. Some markets will remain hot, albiet slower than they have been due to rising interest rates, but won't be an issue for those buyers who can still pay cash.

Re: Scale 1-10

CreditCuriosity — Fri, 26 Aug 2022 21:25:50 GMT

@pizzadude wrote:
@Creditrecipe wrote:
On a Scale of 1-10, how hard is this housing market going to collapse?
I think it will vary widely by location. Some markets will remain hot, albiet slower than they have been due to rising interest rates, but won't be an issue for those buyers who can still pay cash.

Yeppers what you said.. some markets will remain hot and others will not.. Alot of cash buyers still out there regardless of interest rates. Overall as a whole it will slow down imho. 2008 and 2022 are two different things going on.

Re: Scale 1-10

ptatohed — Sat, 27 Aug 2022 06:58:40 GMT

As CC said, this is different than 2008. There won't be a crash. There will be some leveling off and some slight cooling in prices for a while. Home prices shot up too fast too quick so there will be some cooling. The number of cash buyers doesn't determine housing prices, the market does.

Re: Scale 1-10

wasCB14 — Sat, 27 Aug 2022 17:48:35 GMT

My part of SoCal: High demand and low supply.

Nationwide: Prices may cool a bit, but inflation is destroying cash and stocks aren't cheap. I don't see a selling frenzy on the investment side. At least at far as long-term tenancy properties. Short-term rentals (ala AirBNB) could have some trouble from high supply.

Re: Scale 1-10

805orbust — Sun, 28 Aug 2022 09:43:43 GMT

Bloodbath is coming. We'll get through it and prices will be higher 10 years from now but it'd be nice to revisit this thread in 24 months.

Re: Scale 1-10

wasCB14 — Wed, 31 Aug 2022 03:35:05 GMT

I'm going to keep this vague and general to try to stay on the right side of the "no politics" line:

Don't dismiss the possibility of further government intervention in the housing market.

Re: Scale 1-10

Bill77 — Wed, 31 Aug 2022 05:40:53 GMT

There will be no hot markets left anywhere. And just like after 2008, prices will bounce around a bottom for several years.

Re: Scale 1-10

805orbust — Tue, 13 Sep 2022 05:11:32 GMT

@Bill77 and @wasCB14 , I agree wholeheartedly. It's going to be another 24-36 months before we find a bottom... imho of course

Re: Scale 1-10

wasCB14 — Tue, 13 Sep 2022 07:48:18 GMT

Which markets do people think are most overvalued?

In my neighborhood in the LA suburbs I see tons of cars parked on the street in residential areas. I see kids moving back in with their parents, and parents moving in with their kids. The number of people per bedroom seems like it must be quite high. Housing is expensive, but I can't really see prices here falling a lot when any available housing attracts so much interest due to current undesirably large households.

Re: Scale 1-10

gdale6 — Wed, 14 Sep 2022 14:58:25 GMT

Home mortgage rates have now surged past 6%. The reasons for the inflation are not the normal reasons for inflation and it appears the FED is tone deaf and will drive the economy into the ground. At 6% and the absurd prices of homes today its not sustainable, Im looking for 25% deflation in many areas, if you are in rural America you likely wont see that much of a decrease it never gets run up to begin with as people are vacating every week and there is no real demand for new homes to accomodate incoming people.