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re: Stock market crashed 22% in 2 days. I wish the housing market crashed instead.
Posted on 4/8/25 at 6:27 am to Phat Phil
Posted on 4/8/25 at 6:27 am to Phat Phil
The housing market is nothing like the stock market. There are not many ways for it to crash without stocks being collateral damage.
If you can’t understand this, why even trouble yourself with the economy and politics
If you can’t understand this, why even trouble yourself with the economy and politics
0
Posted on 4/8/25 at 6:34 am to SDVTiger
quote:
when rates drop
And herein lies part of the problem. Low rates punish the fiscally responsible and reward those that live in debt.
Posted on 4/8/25 at 6:45 am to Mid Iowa Tiger
quote:
Too many people got home loans that did not have credit enough to get the mortgage. Add to that many of them got more than 1 mortgage at 100% financing. The reason there is down payment requirements is to build in a buffer from day one in case of a
This is true. It’s also true that the same thing currently exists.
You haven’t heard as much about it in the media because the wall street media hasn’t wanted bad news in the narrative…. just like in 2006.
The previous administration allowed poorly qualified borrowers under the guise of DEI principles…. and many of those buyers haven’t made their mortgage payments and have maxed out their revolving credit limits.
Instead of allowing those substandard borrowers to exercise a healthy bankruptcy process, the Biden administration allowed the wholesale placement of these loans into “forbearance” …. IOW, you the taxpayers have been making the payments for substandard loans, …. so that the borrowers could avoid bankruptcy.
Now the current administration faces a massive backlog of mortgage defaults that, if not managed carefully, could deflate the housing market.
The major banks learned a big lesson from the 2007 calamity…… “big daddy Government will bail us out if we make bad loans”
This post was edited on 4/8/25 at 6:48 am
Posted on 4/8/25 at 9:32 am to NC_Tigah
quote:
That is not what "illiquid" means at all.
Housing is an illiquid asset. You said it’s not what it means then say it is illiquid. Odd.
quote:
Further, unlike standard market securities, homes come with a substantial cost-of-carry -- mortgage notes, repairs, insurance, taxes.
So, for the vast number of folks faced with a move, sitting on a home until the value comes back up is not a feasible option.
Yes it comes with costs. Unless the people are going to live in the street no matter where they live comes with costs - rent, utilities, insurance or a payment for ownership. Pretty much 6 of one 1/2 dozen of the other.
Most moves are done for convenience and those that are work related usually have a package from the employer. Ergo, they owner can choose not to move.
Posted on 4/8/25 at 9:34 am to cadillacattack
Oh I am well aware of the credit bubble we have. If it pops these tariff moves won’t matter.
There are a substantial amount of people underwater on homes, cars, credit cards, pretty much everything. I’ve seen the aggregate data from someone who works for the Fed in Dallas. It’s fricking ugly. Worse than 2007.
There are a substantial amount of people underwater on homes, cars, credit cards, pretty much everything. I’ve seen the aggregate data from someone who works for the Fed in Dallas. It’s fricking ugly. Worse than 2007.
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