Home Owners Thread

[silverarrow27]

Imo, market correction is coming, but no crash though. It'll get to the point where home prices are so high in areas where there are no good paying jobs. Sellers will just have to start reducing their home prices until it gets to a point where buyers can safely afford to buy and the sellers will still able to make a profit. If you bought a home in the last couple years to when the last crash happened, you'll still be making a profit even under the "market correction" phase.

When I bought my home two years ago, I was literally audited from top to bottom and to the cent that I was bringing home on my paychecks. The screening/auditing was so intense that it got too stressful and too much to deal with that I almost backed out from buying. If all banks are making sure buyers are able to afford their mortgages like they did me, my prediction, the next crash won't happen for another couple decades. If lenders are happily and freely handing out loans again, the crash will happen 5-10 years from now.

[ZenkiKid]

Originally Posted by silverarrow27

If all banks are making sure buyers are able to afford their mortgages like they did me

Judging with how minimal the requirements are for FHA/CalHFA loans are I doubt they are being thorough.

Look at the article I posted. Thats a prime example of how lenient these programs are.

[RalliartRsX]

Originally Posted by Agamemnon

I believe JP Morgan predicts it’ll be 2020.

..........You mean the same JP Morgan that decidedly were deceitful in wrapping up all these sub prime loans in secure packages?? Alot of those assholes received golden parachutes and because of the market crash, the government could either focus it's time on jailing these assholes or investing in the market.


I wouldn't be surprised if they were secretly shorting the market.......

[Agamemnon]

Originally Posted by RalliartRsX

..........You mean the same JP Morgan that decidedly were deceitful in wrapping up all these sub prime loans in secure packages?? Alot of those assholes received golden parachutes and because of the market crash, the government could either focus it's time on jailing these assholes or investing in the market.


I wouldn't be surprised if they were secretly shorting the market.......

The very same.

[gbaby2089]

I bought my house last spring. I just accepted an offer on it earlier this week.

The price I accepted is 20% higher than what I paid for it last year, the only physical changes I made to the house were planting flowers, tossing some box gardens in the backyard and painting the spare bedroom white.

This market is insane. Felt it was the best possible time to get out & come out if not ahead, better off than before I bought the place.

[RalliartRsX]

Did you buy a new place gbaby??

[ZenkiKid]

Originally Posted by gbaby2089

I bought my house last spring. I just accepted an offer on it earlier this week.

The price I accepted is 20% higher than what I paid for it last year, the only physical changes I made to the house were planting flowers, tossing some box gardens in the backyard and painting the spare bedroom white.

This market is insane. Felt it was the best possible time to get out & come out if not ahead, better off than before I bought the place.

Smart move.

Any longer youre probably gonna break even at best.

I worry about some of my co workers who recently bought. Theyre going to be underwater for sure a year or so from now.

[gbaby2089]

Originally Posted by RalliartRsX

Did you buy a new place gbaby??

Nope, I decided to try to go to grad school and I don't want to be tied to one location for that/finding a new job. I'll rent for the next few years and see where I wind up.

Literally had an offer within 24 hours of listing the house & it is not in a desirable area. People are wild rn.

Originally Posted by ZenkiKid

Smart move.

Any longer youre probably gonna break even at best.

I worry about some of my co workers who recently bought. Theyre going to be underwater for sure a year or so from now.

Yeah, a friend of mine is saving to buy a house and when I saw him this weekend I tried as hard as possible to get him to mind his time and wait for the market correction. We'll see how that goes.

[KevinEdgar]

Almost 4 years since I bought my house in nor cal and I'm still not sure if it was a good idea since I am always overseas haha. At least it has ~$100k of equity... I finally come home next month after living in south korea for a year, can't wait to get some work done on the house!

[pacotaco345]

Originally Posted by KevinEdgar

Almost 4 years since I bought my house in nor cal and I'm still not sure if it was a good idea since I am always overseas haha. At least it has ~$100k of equity... I finally come home next month after living in south korea for a year, can't wait to get some work done on the house!

Where in norcal if you don’t mind me asking? Reason being is I’m PCSing to travis in January and I’m not sure where I want to live yet...



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[KevinEdgar]

Originally Posted by pacotaco345

Where in norcal if you don’t mind me asking? Reason being is I’m PCSing to travis in January and I’m not sure where I want to live yet...



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Yuba City to be exact, as I’m stationed at Beale AFB. Travis is dope, my dad works there and I’m from the Bay Area but I don’t know much about the surrounding area of Travis.

[fitbmx180]

bought a house 2 years ago.. but who cares about that.. i built a shop right away! put a hoist in it, bought some welders and a plasma cutter. Will post pictures when my photobucket isnt messed up

[exitspeed]

Our remodel is underway. Photos coming soon.

[ZenkiKid]

Friends of a friend bought a a house in an old area of my city for 565k. 5/2.

Guaranteed theyre gonna be under water a year or so from now.

I was hearing the details and the whole time my head was spinning. Just because you qualified for it doesnt necessarily mean you should.

[gbaby2089]

Originally Posted by ZenkiKid

Friends of a friend bought a a house in an old area of my city for 565k. 5/2.

Guaranteed theyre gonna be under water a year or so from now.

I was hearing the details and the whole time my head was spinning. Just because you qualified for it doesnt necessarily mean you should.

That's how I feel about the folks who are buying my place.

I thought I bought at the top of the market, so glad I was wrong about that.

[ZenkiKid]

Originally Posted by gbaby2089

That's how I feel about the folks who are buying my place.

I thought I bought at the top of the market, so glad I was wrong about that.

Good for you for being able to turn a good profit.

Sucks for them for falling for it. Oh well thats their problem now.

[RalliartRsX]

So I am beginning to doubt the whole "Cali house market is on the brink of collapse". You have to remember, Cali has a lot going for it; Tech Center of arguably the world for instance. Cali has one of the highest wealth densities in the country.

Folks who attain a certain amount of wealth to afford $700+K houses, are not exactly making stupid financial decisions like the teacher and apple picking couple making $50K a year, being subsidized by the government and jumping into a $700K house which was the major driver for the collapse.

I may be wrong, but the CA of the 2008 crash is not the same CA of 2018.

[gbaby2089]

It is still due for a correction IMO. If I were looking to buy right now, I'd be looking to save every cent I could for the next two years instead.

[spooled240]

Prices here already seem to be dropping or cooling off just slightly here in SoCal. I've noticed it and this article here talks about it:

https://www.cnbc.com/2018/09/20/home...alifornia.html

[spooled240]

Originally Posted by RalliartRsX

So I am beginning to doubt the whole "Cali house market is on the brink of collapse". You have to remember, Cali has a lot going for it; Tech Center of arguably the world for instance. Cali has one of the highest wealth densities in the country.

Folks who attain a certain amount of wealth to afford $700+K houses, are not exactly making stupid financial decisions like the teacher and apple picking couple making $50K a year, being subsidized by the government and jumping into a $700K house which was the major driver for the collapse.

I may be wrong, but the CA of the 2008 crash is not the same CA of 2018.

That's what a lot of people here think, but you have to think that just because a lot of the nation's wealthiest people live in CA, there's also substantially more non-wealthy people here in CA. I think the average income in Los Angeles is like 55-60k lol. These people start off buying condos, fixer uppers OR houses that are farther out from major metro areas and commute. Think of these as the CA market "hacks".

With interest rates on the rise, I think we are approaching a breaking point in affordability, especially when these hacks are no longer affordable.

[RalliartRsX]

A correction I can see. A full on crash?? Not a chance

Spool, all that article is stating is people are being more cognizant in purchasing a home vs going full monty and throwing money away in bidding wars. In addition, the Feds have raised interest rates for the 3rd consecutive quarter. In my eyes, people are being more careful with their money, which is a good sign overall. People are sitting on a lot of money, and have not forgotten about 2008. Being careful with one's money is actually a good thing. Also,

In the four weeks ended Sept. 16, more than one-quarter of the homes listed for sale had a price drop, according to Redfin, a real estate brokerage. That is the highest level since the company began tracking the metric in 2010. Redfin defines a price drop as a reduction in the list price of more than 1 percent and less than 50 percent.

1-50 % is classified as a drop?? Ok, how many houses dropped 1% vs 50%?? Not a very informative article outside of small picture thinking. So yeah, I do not see a crash.
However, I am not an economist lol.

[RalliartRsX]

Spool, you are assuming all those folks bought with balloon loans. If they locked in their rate and they could afford it on their current budget, chances are they are not going to suddenly foreclose on their house.

People have not forgotten about 2008.......Mind you it was barely less than 10 years ago. Some folks are still digging out....

So yeah, we will see. But I do not see a major crash. A correction sure, but that will be nationwide.

[RalliartRsX]

People tend to forget; once you lock in your loan rate, the feds raising interest rate has zero effect on your mortgage.

Now, if property taxes go up by double digit percent........Yeah. As it stands, people are not just going to begin foreclosing. People will probably not buy as many houses or have bidding wars, but that is no where near the same as state full of foreclosures.

[spooled240]

Originally Posted by RalliartRsX

A correction I can see. A full on crash?? Not a chance

Spool, all that article is stating is people are being more cognizant in purchasing a home vs going full monty and throwing money away in bidding wars. In addition, the Feds have raised interest rates for the 3rd consecutive quarter. In my eyes, people are being more careful with their money, which is a good sign overall. People are sitting on a lot of money, and have not forgotten about 2008. Being careful with one's money is actually a good thing. Also,

Yeah I don't think we will see a crash, unless the Feds raise the interest rates through the roof in a very short amount of time which I'm sure they won't do.

I will say this though.. I predict that there are going to be more people selling their houses with interest rates on the rise. Rising interest rates usually mean lower house prices to compensate and I think there are a lot of people who have been waiting for the right time to cash in on their house. If we see a major surplus of houses on the market with hesitant buyers, this may drive prices down.

Originally Posted by RalliartRsX

1-50 % is classified as a drop?? Ok, how many houses dropped 1% vs 50%?? Not a very informative article outside of small picture thinking. So yeah, I do not see a crash.
However, I am not an economist lol.

Vague I know, but the fact that there are price reduction even happening could be an indication that things are slowing down. I remember checking houses in my area earlier this year and never seeing reduced prices lol

[spooled240]

Originally Posted by RalliartRsX

Spool, you are assuming all those folks bought with balloon loans. If they locked in their rate and they could afford it on their current budget, chances are they are not going to suddenly foreclose on their house.

People have not forgotten about 2008.......Mind you it was barely less than 10 years ago. Some folks are still digging out....

So yeah, we will see. But I do not see a major crash. A correction sure, but that will be nationwide.

Originally Posted by RalliartRsX

People tend to forget; once you lock in your loan rate, the feds raising interest rate has zero effect on your mortgage.

Now, if property taxes go up by double digit percent........Yeah. As it stands, people are not just going to begin foreclosing. People will probably not buy as many houses or have bidding wars, but that is no where near the same as state full of foreclosures.

Right, but I'm talking about the buyers. A rise in the interest rate changes what you can afford. Even though it's a slow rise, it will affect people's affordability.

[RalliartRsX]

So what I do not get is why are they hacks?? Home buying and fixing up a home is good for the market.

And I agree. However, if someone doesn't buy a house on the outskirts, someone else will or the house just stays on the market an extra week. Both of these scenarios infinitely better than an actual foreclosure.

[spooled240]

Originally Posted by RalliartRsX

So what I do not get is why are they hacks?? Home buying and fixing up a home is good for the market.

And I agree. However, if someone doesn't buy a house on the outskirts, someone else will or the house just stays on the market an extra week. Both of these scenarios infinitely better than an actual foreclosure.

I used the word hack because its realistically yhe only way for younger people to get into the housing market. I'm in San Diego right now and the closest decent house thats less than 550k is either in a shithole or a min of an hour drive away in the boonies. Its not uncommon for people to pay 500k for a 800 sq ft condo or drive 3-4 hours a day to get to work because they live very far where the houses are affordable. Make money in the city and actually have a decent house in the outskirts..a hack of sorts.

And maybe to your second point..although if prices begin falling people will be hesitant to buy.

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[RalliartRsX]

I think you mean a real working class humans and not the folks from HGTV is what you mean by hacks??

I only take offense as that is how we got into an expensive market in a major metropolitan area.

I am not cool with 70-85% of my monthly income going to mortgage so this way worked well. We are at something like 25% of our income for mortgage, renovated the home to our liking and are now sitting on a far amount of equity by investing sweat equity. Lots of $$ for discretionary funds (car), travel funds, and freedom to fly our parents up at will or for us to take a random weekend at any country within a 7 hour plane ride at will. win win so yeah. I am an East Coast "Hack" and very proud

[spooled240]

Lol I dont mean the people are hacks, I meant the aforementioned methods to get in the game are sort of a way to "hack" the system. It was a poor word to describe it..but it's pretty crazy here in Socal so you have to get creative and be patient if you want to own something before your 40s.

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[ZenkiKid]

Originally Posted by RalliartRsX

are not exactly making stupid financial decisions like the teacher and apple picking couple making $50K a year, being subsidized by the government and jumping into a $700K house which was the major driver for the collapse.
.

Thats basically what HFA/FHA loans are now in a nutshell. Allowing people to qualify for more than they can really afford.

Many are calling FHA loans the new sub prime loan.