re: Homebuilders cancelling contracts to sell for more on market

I'm just sitting back and waiting to buy on the cheap when defaultville inevitably hits

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However, the idea that institutional investors are somehow largely to blame for the current housing market catastrophe is wrong and obscures the real problem. Housing prices have been skyrocketing due to historically low supply, low mortgage rates, and the largest generation in American history entering the market looking for starter homes.

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Calling bullshite on this.

Larger than Boomers in the 70s?

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m just sitting back and waiting to buy on the cheap when defaultville inevitably hits

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Serious question - who is going to default? The only people who have been able to buy for the last few years are those paying cash and highly qualified people.

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But people are paying more of their income towards housing now and that money has to come from somewhere when wages don't keep pace, which they aren't.

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The whole point of buying is that your cost doesn’t increase when prices go up. As long as we don’t have massive job losses the market is not going to crash. Your mortgage payment in real dollars is the most expensive it ever will be on the day you sign the paper. It doesn’t get less affordable over time, especially not when compared to renting.

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Hanna James signed the contract with the contractor

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Did she have a contract or not? If she did and the contract was to build x house for x price, is there really zero recourse for her?

Seems like the contractor broke the contract and is liable for damages…unless there are details missing from the story.

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“American dream” is going to be a tough sell for an entire generation of young adults at this point, not good long term

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All part of the plan.

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Its true though. I make a really good living and I'm struggling to establish long term wealth for my kids. 20 years ago, a person my age in my field with my qualifications wouldn't have such concerns. They'd be swiping up land and property

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Same.

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As long as we don’t have massive job losses the market is not going to crash

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As long as nothing pops the bubble, we will be fine.

Something always pops the bubble.

Thanks for the share in the 60 Minutes episode. It was a good watch.

I do believe a bit of a “reset” happened in the two years of Covid where traditionally irresponsible people had limited options of how/where to spend their cash flow with less vacations, fewer options of new cars to buy, and less entertainment/lifestyle “bad choices” that they could make.

Combine that with low interest rates and people, that traditionally wouldn’t, now have the 5% - 10% down to buy a new house in these sun belt markets.

With no more mortgage forbearance, it will be interesting to see how many people overextended themselves if their middle management type jobs end up getting cut because of rising expenses.

Just my opinion, however, mortgage forbearance, enhanced unemployment, etc. should have ended before Memorial Day 2021 instead of incenting a big slice of the community to keep staying home/unemployed for another three months and not contributing to the economy by working and producing.