The Next US Housing Crisis is Here

[+OverSword]

 

[odas]

4 minutes ago, OverSword said:

 

Not only in the US. Canada is so overblown with the market price it is not a matter of if but when. 800K for a rundown two bedroom house @ 1% interrest. Wait until it jumps where it should be, 3% not to mention higher.

Not sure what is going on and why but I see many many people being left without everything. 

[Tatetopa]

47 minutes ago, OverSword said:

 

Thanks.  I saw that report.  Appreciate you tipping me off to this site.

[spartan max2]

The housing market is insane. 

A mix of decreased supply because of Covid along with increased demand because of Covid. 

[Myles]

The banks have been doing quantity over quality again.  

My co-workers son is 22 years old.  He has an OK job at an accounting firm.   He makes around $35,000 a year right now.  Been there about 1.5 years.  His bank approved him for $220,000 mortgage to buy a house.   He was then looking at houses around that amount.   I talked him into buying in the $80,000 to $120,000 range for his first house.  

[spartan max2]

16 minutes ago, Myles said:

The banks have been doing quantity over quality again.  

My co-workers son is 22 years old.  He has an OK job at an accounting firm.   He makes around $35,000 a year right now.  Been there about 1.5 years.  His bank approved him for $220,000 mortgage to buy a house.   He was then looking at houses around that amount.   I talked him into buying in the $80,000 to $120,000 range for his first house.  

What you say seems true. We were house shopping last year and when we first got pre-approved for a loan we were suprised how high of a loan they would give us. Basically high enough to be like 60% of our income each month going to the morgage

[Myles]

39 minutes ago, spartan max2 said:

What you say seems true. We were house shopping last year and when we first got pre-approved for a loan we were suprised how high of a loan they would give us. Basically high enough to be like 60% of our income each month going to the morgage

yep, hopefully you knew better than to buy at the high end.    It's exactly what the banks were doing before the last time.  

When my wife and I got married and were going to purchase our first house, we also got pre-approved.  They approved us for $160,000.   This was 25 years ago.  My wife was working at Sears and I was working at a distribution center.   Our total annual income was around $$70,000.   We knew better.   We bought a house for $75,000.   Sold it 5 years later for $89,900.  

The problem lies with the people who look at banks similar how people do doctors.   Like they know best and they are the experts.  

[spartan max2]

4 minutes ago, Myles said:

yep, hopefully you knew better than to buy at the high end.    It's exactly what the banks were doing before the last time.  

When my wife and I got married and were going to purchase our first house, we also got pre-approved.  They approved us for $160,000.   This was 25 years ago.  My wife was working at Sears and I was working at a distribution center.   Our total annual income was around $$70,000.   We knew better.   We bought a house for $75,000.   Sold it 5 years later for $89,900.  

The problem lies with the people who look at banks similar how people do doctors.   Like they know best and they are the experts.  

Don't worry we are cheap as f lol

[+OverSword]

Loans that people can't afford are how banks have become the biggest owners of residential real estate in the nation.  Just wrong.  That's not what a bank is for or how they are supposed to function.

[aztek]

wow, 80 -120k for a house sounds like a myth to a new Yorker, , here where i live you wont buy a half an apartment for that much. 

[spartan max2]

12 minutes ago, aztek said:

wow, 80 -120k for a house sounds like a myth to a new Yorker, , here where i live you wont buy a half an apartment for that much. 

I remember reading some fluff article last year where this doctor couple was happy because they managed to buy an apartment for 1 million lol (in New York)

Edited April 19, 2021 by spartan max2

[aztek]

1 minute ago, spartan max2 said:

I remember reading some fluff article last year where this doctor couple was happy because they managed to buy an apartment for 1 million lol (in New York)

oh yea, in Manhattan in good areas prices are like that, 1 mil is a bare minimum,  parking spots alone can run several hundred thousands.  

[Myles]

25 minutes ago, aztek said:

wow, 80 -120k for a house sounds like a myth to a new Yorker, , here where i live you wont buy a half an apartment for that much. 

In rural areas of Indiana, you can get a lot for a little.  

20 years ago I bought my current house.   4 bedroom/ 3 bath big house.   25' X 40' pole barn.     7.5 acres (3 wooded) bordered on the north by 35 acres of woods that the owner uses as a nature preserve and doesn't allow an hunting.  1 mile outside city limits.  Bought it for $140,000.  I could sell it for around $260,000 now.  But I like the house and the area, so I will stay.