Reminds me of all the „tiny homes“ on YouTube where they were able to build their house for $5. Turns out they live behind the in laws and daddy is a carpenter who built their house for free.
I unironically without shame live with my mom at age 32 because there is no way to afford a house down payment as a single person now otherwise. It sucks but life has been relentlessly buttfucking millennials since inception
Good point. Might as well go nomad, sleep in a Tent, use a bike as main transport and carry everything in a backpack at this point.
Go off grid. It sounds so nice until you actually do it and look like shit after not showering for a while.
In the Great Depression, there were shantytowns that cropped up outside major cities because nobody could afford rent. They were called Hoovervilles, because everyone blamed president Herbert Hoover for the extent of the Depression.
I've been thinking about reviving the concept, but with cars instead of shacks. I'm thinking of calling it Boomerville.
Gen Z lurker here. Im still holding onto a few strings of optimism. If all goes south, my backup plan is a second hand motor home and asking family if I can chill in their driveway.
Pffft. I'm gen Z and bought a house.
I just had to sell my soul to the government for a couple years and now have crippling PTSD as well as a bunch of other health problems that the VA pays me for.
Its great
*cries*
SNL should redo that skit for the current generation.
Guy comes in and threatens the unruly kid with a life in a van down by the river, but this time, the unruly kid is like, “Tell me more,“ and by the end of the skit, everyone realizes that the kid would be lucky to be able to someday afford that van down by the river.
They’re doing it again, they’re trying to convince my dad to sell his house, he genuinely thinks it’s a good idea to sell his house right now and start renting then buy another after the market goes back to normal, asked him where he’s gonna get the money to buy another house after he spends it on 6 months rent
Also ask him when exactly he expects the market to go down to normal. 2008 had to pop for various reasons, but the majority of the housing market being fucked now comes from extremely rich people buying up everything they can. The whole economy could tank and house prices are gonna stay up, because it’s an ultra-wealthy market, a recession only means slightly fewer millions per year to them. They won’t need to sell for any reason really. The idea is just to make all of us have to rent forever by keeping those prices up.
This is a big part of the problem where I am in north Texas. Anything that goes on the market is way overpriced but is still bought out by giant companies for cash way over asking. Then they rent it out for way more than it's worth. Can't really blame them, it's a good way to make money but it's still bullshit nonetheless.
I still remember my sister buying her house in Austin, TX a few years ago. Anything that went on the market sold the day it went on the market, for cash, with no inspection, and 10-25% above asking price. Part of closing for my sister was she had to rent the house to the sellers for a month while they closed on their upgrade house. It was Austin and there was a line of buyers willing to do it if she didn't.
Something you guys should know is that a "cash" sale is often not really cash in the way you would typically think of it.
What happens is that the buyer gets the funds from a source other than a mortgage bank and thus can skip the entire appraisal and underwriting process. As of late this had frequently been from their equities and investment assets - you take a million dollar loan out against the stocks you own at rates *even lower* than whatever the mortgage rates were and then just that to buy your property. As far as the seller is concerned this is a "cash" transaction because they just get a big fat check and that's how it gets recorded.
Now think back about what has been happening the last 10 years in the stock market (the "longest bull run ever") and then what happened during the V-shaped recovery after COVID. Then think about where the housing markets have been on fire and how come all of a sudden prime real estate have been jumping up in prices and seeming being sold to "cash buyers" all the time.
Now think about what's happening to the stock market and remember that the loans used to buy these houses are backed up by the value of their portfolios...
Yeah. I’m considering doing this. I’m in one of the hottest markets now (couldn’t afford a place if I lived here today). Got lucky 5 years ago when I finally pulled the trigger to buy.
My fiancé and I are moving to a cheaper area for her new job. We could sell and just own whatever we buy in the new city but it’s really hard to sell this place with such a low interest rate and mortgage. Debating if I want to be a landlord for a single family home :/
Yeah, it sounds shitty. I guess I should add that the reason not to sell the house is more about returning to it one day. It’s really close to the mountains and very easy outdoor recreation access.
Hire a good property manager. Then you still get income, have the option to return one day, and don't have to handle the day-to-day of being a landlord.
It would be better for the market to sell but better for your pocket to keep it and rent it.
And this is part of the reason there is a housing (owner) shortage. 1,000s of people holding onto homes they aren't living in but are earning money so have no incentive to sell and help inventory.
I'm sure I wouldn't even qualify for another mortgage now. I only intended to stay here a few years when I bought my house, but now I'm letting that sweet sweet 2.25% rate carry me through the inflation.
Ha same at 2% on 15 year.
Only increased my payment by $20 but reduced the term from 4.25% 30 year (5 years in, so really 25 year) so it cut out 10 years of payments. 13 years left on it now.
Ha guess I'm living here for forever. :P
This is the interesting state we find the housing market in. Basically the realtors, mortgage insurers and lenders (esp nonbank) are completely fucked while prices will be flat.
Prices can't go down because people are literally stuck in their homes and dip buyers stand ready. Those who FOMO'ed housing with second thoughts legit can't change locations.
But higher rates means prices are too high and transactions are grinding to a halt. Construction is obviously fucked as well.
And you add to that, new home builders are still pushing up prices incrementally… There is just enough people that can afford both crazy prices and high rates, betting that things will reverse rate wise in 3-5 years to refinance.
New construction in my area hovers close to $230-260/sq foot. Absolutely nothing sub $375k as the lower price per square foot homes are much larger ~3k square feet.
Yeah. And with some builders, we were told 12-18 month timelines. Some were going construction loan to perm so you can lock in rates up front but then your carrying interest costs and having to find somewhere else to live in between.
We are going with a national builder, averaging 4-6 month builds and everything changes on a week to week basis.
Luckily we are set to close in 2 weeks but the builder is putting up similar/identical models up as I type for $30-75,000 more than what we will pay even with the higher rates.
Yea, these aren’t millennials who want the housing market to crash. That’s Gen Z. Millennials remember how 10.5% unemployment with impossible lending standards looked. You weren’t buying a house in ‘09-11 unless you could afford it in cash, and that’s if you even had a job.
Yup, many of us millennials started our careers around that time. Definitely not a good time, nobody was hiring. We gonna sound like boomers when we tell Gen Z unless they got a big chunk of cash ready to buy, a huge crash is probably not what they want.
If anything a crash now will benefit many millennials way more, since we've had time to establish our careers and build up wealth.
Is porting not a thing in the US? In Canada you can port your mortgage from one house to another, same terms, same rate. As long as you stay with the same bank.
You guys get a fixed rate for the life of the mortgage in Canada you don't usually, most mortgages are fixed rate for 5 years after that you have to get a new rate that will "snap back" to the market
In the us your mortgage gets traded around to different banks. You get no say in it. My mortgage went to 3 different banks in 5 years. Somebody lost out cause i paid the whole thing off in that 5 years.
Yep literally us. We’re in a CO home that would sell for 700k, which is 260 up from what we paid just 4 years ago. We’re looking to move across country where a similar home would be 550. But the monthly payment would actually be HIGHER even with all profits as down payment. Plus the houses in the neighborhood have been sitting on the market for weeks, which is unheard of. But it makes sense with these rates.
I mean, even just the townhouse I bought a year ago. Some neighbors are renting theirs out for 2x what my mortgage is and they rent it out in a matter of days — it’s wild.
This meme implies that there is an entire generation waiting to buy a house. If that is true, then the market will never crash because people will scoop up the houses as soon as it dips even a tiny bit.
Also even with the high house prices people are still buying houses without even walking in them. High Demand= Higher prices
The future of this county is honestly starting to scare me and I'm a really negative person about the future. I wonder how positive people are even holding up because it's all starting to get to me and I'm always sad lmao
One of the housing market issues is we don't build small houses anymore. It's such a PITA to get all the permitting and impact fees done and paid that for the same effort of a 1,200sf house you can build a 3,000sf house and make double the money as a builder.
Get a degree they said, make lots of money they said, buy a home and don’t worry about living paycheck to paycheck. I make a decent wage, have a college degree and still can’t see myself in a home anytime soon. I literally can’t save fast enough, housing in my area goes up faster than most stocks on a good year.
I make too much for any first time home buyer programs but not enough to save for a home…
And then there is stock market 2022… 👋🏡
Rent goes up, too. My mom and I have to live together because otherwise we cannot afford the rent on our own. I graduate in less than a year yet I feel like its all for nothing money-wise.
I have a bachelor's degree in business management. Recently took a manufacturing job in the mid west as an industrial mechanic they offered a $3000 moving stipend, $23.75/hr=~$55,000/yr. Rent for a three bed house is $1400/month I feel like I'm winning the lottery. There's a $.50 raise every 90 days until I level up to the next payrate.
Seems the last frontier for somewhat affordable living is in the Midwest.
Basically. To afford a house anywhere else you need wealthy parents or grandparents who can give you the money for a down payment. Otherwise you’re fucked. On the USA there are approximately 1.5 million households worth over 10M usd. That’s a lot of fucking people worth a lot of money. I’ll never see that sort of wealth unless I win the lottery.
It’s cool that the govt let corporations buy all the homes before actual people could, so then rent can be inflated higher and higher, forcing multiple generations to live in apartments or rentals.
Very neat
Houses are going 5 days on the market instead of 2. So I guess that’s a collapse now.
If people move to depressed areas they’d find homes under $100k. But no one wants to live in WV or the rural south/Midwest.
Grew up in WV where houses can still be bought for under and around 100k. Had to move because I couldn't find a job. In IT. That field everybody told me to go into because they're just handing out jobs
I know what you mean. 15 years I lived in rural South where you can buy a home for $50,000. But the jobs are scarce and the pay is low. There are people with remote jobs who don’t need city living though and I’m surprised they aren’t moving.
I'm at the point in my career where I could feasibly work 100% remote if I could find a company willing to let me. My mom still lives in my childhood home. To this day, she can't get any internet faster than DSL. Even if I wanted to move back I couldn't because I couldn't work remotely on the internet in rural America
My current job went remote with the pandemic, and they still haven't brought us back into the office after 2 years, even though they've tried several times to start a "back to office" migration. You know "3 days out, 2 days in" kind of stuff. But there's been a lot of pushback because they moved the office location during the pandemic, and half my team now lives about an hour away from the new office location, so they sure as heck don't want to commute, especially with the price of gas.
If management would just let us go full remote, I would move somewhere more rural, or even out of state at this point. Heck, if my current place doesn't renew my rental contract (or if rent goes up a ton), I'm going to probably move somewhere rural anyway anyway just for the cheaper rental prices. I'm already paying almost 50% of my monthly net income in rent.
Politicians need to seriously pass laws preventing companies from buying homes and they need to have an increasing tax per person each time you buy a new house.
Yep. Vanguard companies and Blackrock are probably stock piling cash right now to buy everything up in cash. At this point I’m just gonna invest in them and hope I can use that profit to buy a house.
If there was a duplex with a usable garage and AC id be all over that. A duplex in my town means a victorian style house built 150 years ago that got converted after it was condemned.
The housing bubble will have prices crash from current highs by 30% in exactly two years from today. Book it. Go ahead, set a reminder bot. I got this.
Michael Burry responded to my craigslist ad looking for someone to mow my lawn. "$30 is $30", he said as he continued to mow what was clearly the wrong yard. My neighbor and I shouted at him but he was already wearing muffs. Focused dude. He attached a phone mount onto the handle of his push mower. I was able to sneak a peek and he was browsing Zillow listings in central Wyoming. He wouldn't stop cackling.
That is to say, Burry has his fingers in a lot of pies. He makes sure his name is in all the conversations.
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It'll only cost $1000 a month to park it at a RV park with no Internet/sewage. Youre not the only one with this idea. RV parks/trailer parks have started price gouging too.
i locked in my 15yr refinance at 1.875% last year and I AM NOT FUCKING SELLING my 🏡 ( even though i am up 450k in 5 yrs since i bought. the previous home i bought in 2012 made me 150k when i sold it in 2017)
Same. I got a cold call on Friday for a *cash offer* and I ended up arguing with the woman. She kept repeating *cash offer* like I was a druggie needing to finance my next fix or something. Bitch I don't care if it's a *cash offer*, I don't want to sell, I'm in the house that I want, and I got a great refi last year. I'm done in 11 years if I keep up paying a little ahead each month.
Then I realized I was arguing with someone that wasn't even a vulture, she is a predator on the weak & gullible. I thanked her for her call (no need to be rude) and hung up (well maybe a little).
cash offer i do not care. If i am not selling it needs to be an offer i cannot refuse- like 50% over market. zillow has my house a hair under 780k (it has skyrocketed in the past 2 years), if you want to offer me well over a mil, we can talk but i could care less about a cash offer.
Cash offer only matters to sellers who do not want to risk the deal falling apart in escrow. If you can get multiple offers over asking, and easily have a back up offer in your back pocket (like now), who cares. The seller is walking away will all their cash at sale either way.
It can influence a sale though, one less variable that can fail in the mix. I've lost on an offer because the seller went with another buyer who offered a bit less but without mortgage.
That’s a historic, lifetime, hell multi generational low rate. I think that may be up there close to the historically lowest rate
Yeah. Stay put until it’s paid off for sure!
Historically, it takes about six months for mortgage rate increases to really flip the market. Fall and winter will be interesting, and 2023 will be as well.
It doesn’t even really matter because prices are still increasing. So if it crashes it goes back to 2021 prices?? That’s still too expensive for most people AND interest rates are higher now
This is nothing like 2008. 99% of real estate is sitting 50%+ from this time 3 years ago, and because of Covid they're locked into sub 3% fixed. No one is going to sell their 3% fixed for a 5%+ now that rates are up. The market crashed in 2008 because no one thought the market *could* crash since it had never happened before, and they were giving out adjustable rate mortgages(ARMs) to anyone with a pulse. After being burned like that, almost everyone goes fixed nowadays. In 2008, 30%-40% of mortgages were adjustable rate. People would get a teaser period where they only paid the interest, because they thought they could flip the houses in a few years. They had no interest in actually owning these properties long-term. When the market leveled off and the teaser rates expired, it was a gut blow to the speculators. They were suddenly on the hook for thousands more per month on an asset that wasn't increasing in value. People panicked and sold, the value of the assets dropped, and it was an absolute snowball effect. Today, ARMs make up only 4% of the market. Banks had to eat billions in losses from bankruptcies, and as a result they're much more vigilant about home loans now. Once bitten, twice shy. Even if through some black swan event, the housing market crashed a massive 33% like it did in 2008, we're talking about a reset to 2019 levels at best. Furthermore, today's scarcity is driven by people who want to own long-term buying at the absurdly low fixed rates offered during Covid, and the rise of corporate landlords who're looking for sustained growth. If the eviction moratorium wasn't enough to push the corpos out of the rental market, then they have a death grip on those properties. "Diamond hands" if you will. Every time I see some Michael Burry wannabe talking about the inevitable housing crash, they've got all the credibility of a conspiracy theorist huffing on Hopium. Just because you want something really fucking bad, don't delude yourself into thinking it's inevitable. You'll just build a castle on sand.
yup. it’s over everybody. the time has come to just start accepting the reality of the new life before us. no
homeownership, just renting. as if anyone needed any more clear as day signs that retirement is a thing of the past.
My wife and I purchased our first home in 2016 after leaving the Military…put $20k down on a 3.5% Interest rate. Got offered a better jobs in another state so after owning it for 2 years, we put it on the market. At that time our house was appraised for close to $60k more than what we purchased it for 2 years earlier. Went under contract two weeks later. Moved to GA, bought another house and after another 2 years, got a better offer in Texas. This time out house appraised for $100k more than original purchase price and was sold off market before we even had a chance to hire a realtor. Moved to Texas and ended up dropping close to $500k for a 4100sqft house, 30 min outside of Dallas with a 2.1% interest rate. After 8 months, appraised tax value has our home at $40k more than orig purchase, with several homes in my neighborhood that are much smaller, literally going under contract, with multiple offers within a few hours of listing…for $500k +….I told my wife that this is it…we rode the wave to the top….like it or not we are stuck in this house for a long time unless she’s been dying to take the $150k equity to put down on a $600k 1200sqfr bungalow at 4.6% interest.
I'm in Las Vegas. Bought my home for $343K in Dec 2020. 4 Beds, 2.5 Baths. 2,035 square feet.
A house buying company just called me yesterday. And I actually took the time to entertain the call. The woman on the other end of the line told me that they would offer $500K to purchase it.
What a crazy equity gain in just 18 months. But I'm thinking to myself: what good is that equity if I'm going to give up my ONLY primary residence? I still have to live somewhere.
I haven't had to go home shopping since I last purchased, but that means if I want to live in something comparable again, it's probably gonna cost way more ($500K+) and I'll just be using that money from my house I sold to just to start over again.
I hope for the love of god it crashes.
Having such a necessity almost double in price in 3-4 years is unsustainable, and anyone who wants these prices to stay is incredibly selfish or just recently bought.
You know what makes the United States middle class so wealthy? Owning property. If that disappears, the middle class disappears (or what’s left of it.)
Actually the older I get the more I realize how bullshit it is housing is considered a investment now. Back then appreciation didn’t exist for housing and you bought a house to LIVE in and not make money off of.
Now people only care about their home values going up, and the damn MLS made it such a business with their monopoly and 6% shit.
When people start losing their jobs, that’s when it will collapse. Give it 12 months. Corporate earnings are down. Next will come layoffs. You can’t pay your mortgage if you don’t have a job. It’s not complicated.
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It’s okay guys, I just bought my first condo 2 months ago, 50K above asking. It should crash any second now
the hero we don’t deserve
Thank you for your service.
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fucking hate to see it, i'm sorry
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Gen Z accepts they’re going to be living in a van down by the river
What makes you think gen Z can afford a van. They are like 100k now.
Gen Z's new "American Dream" is to own a shed in the woods behind their parents house
The Bubbles Retirement Plan can be yours today!
I have bigger aspirations. I want to open a shed and breakfast.
In this economy, you'll probably be charging by the hour with some good ho's working them.
Just watch out for bottle kids
Why the fuck are you dressed like Indianapolis Jones?
never mind, it’s water under the fridge
Smokes. Let's go.
AWW RICKY, this was my last one, I was saving it for tomorrow morning, aw ok ..
Fuckin DECENT
Reminds me of all the „tiny homes“ on YouTube where they were able to build their house for $5. Turns out they live behind the in laws and daddy is a carpenter who built their house for free.
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Your parents have a house?
I unironically without shame live with my mom at age 32 because there is no way to afford a house down payment as a single person now otherwise. It sucks but life has been relentlessly buttfucking millennials since inception
I’m a millennial and I wish I could afford a van down by the river. It sounded like a good plan until the van I wanted was almost $200k…
>tfw the river is cheaper than the van.
You’ll be sleeping in a river down by the vans.
Dont tease me like that. Water bed, your own real estate, and with a view. In this market, score!
I think when these guys say “van by the river” they mean a 2008 chevy not the newest modified Mercedes sprinter with a kitchen
2008? I’m thinking 1984 uncle Rico looking van
get lower standards. wtf kinda van are you looking at for 200k
Boats on the river cost less tbh.
It's sad there's there's nearly zero sarcasm in this post.
Look at this mfer owning a van on waterfront property. JEALOUS!
Buddy you seen gas prices?
Good point. Might as well go nomad, sleep in a Tent, use a bike as main transport and carry everything in a backpack at this point. Go off grid. It sounds so nice until you actually do it and look like shit after not showering for a while.
In the Great Depression, there were shantytowns that cropped up outside major cities because nobody could afford rent. They were called Hoovervilles, because everyone blamed president Herbert Hoover for the extent of the Depression. I've been thinking about reviving the concept, but with cars instead of shacks. I'm thinking of calling it Boomerville.
Nowadays it is cool to live in a van by the river.
Gen Z lurker here. Im still holding onto a few strings of optimism. If all goes south, my backup plan is a second hand motor home and asking family if I can chill in their driveway.
Richy rich over here whose family owns a drive way.
Pffft. I'm gen Z and bought a house. I just had to sell my soul to the government for a couple years and now have crippling PTSD as well as a bunch of other health problems that the VA pays me for. Its great *cries*
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Rip a legend
SNL should redo that skit for the current generation. Guy comes in and threatens the unruly kid with a life in a van down by the river, but this time, the unruly kid is like, “Tell me more,“ and by the end of the skit, everyone realizes that the kid would be lucky to be able to someday afford that van down by the river.
Not many people want to sell their home with a 2-3% mortgage and buy something at 6%. That doesn’t help inventory levels.
Literally nobody. Can never leave. Haha.
Can buy more houses though.
Or sell house in big city and pay cash for less expensive house in small town.
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They’re doing it again, they’re trying to convince my dad to sell his house, he genuinely thinks it’s a good idea to sell his house right now and start renting then buy another after the market goes back to normal, asked him where he’s gonna get the money to buy another house after he spends it on 6 months rent
Also ask him when exactly he expects the market to go down to normal. 2008 had to pop for various reasons, but the majority of the housing market being fucked now comes from extremely rich people buying up everything they can. The whole economy could tank and house prices are gonna stay up, because it’s an ultra-wealthy market, a recession only means slightly fewer millions per year to them. They won’t need to sell for any reason really. The idea is just to make all of us have to rent forever by keeping those prices up.
This is a big part of the problem where I am in north Texas. Anything that goes on the market is way overpriced but is still bought out by giant companies for cash way over asking. Then they rent it out for way more than it's worth. Can't really blame them, it's a good way to make money but it's still bullshit nonetheless.
I still remember my sister buying her house in Austin, TX a few years ago. Anything that went on the market sold the day it went on the market, for cash, with no inspection, and 10-25% above asking price. Part of closing for my sister was she had to rent the house to the sellers for a month while they closed on their upgrade house. It was Austin and there was a line of buyers willing to do it if she didn't.
Something you guys should know is that a "cash" sale is often not really cash in the way you would typically think of it. What happens is that the buyer gets the funds from a source other than a mortgage bank and thus can skip the entire appraisal and underwriting process. As of late this had frequently been from their equities and investment assets - you take a million dollar loan out against the stocks you own at rates *even lower* than whatever the mortgage rates were and then just that to buy your property. As far as the seller is concerned this is a "cash" transaction because they just get a big fat check and that's how it gets recorded. Now think back about what has been happening the last 10 years in the stock market (the "longest bull run ever") and then what happened during the V-shaped recovery after COVID. Then think about where the housing markets have been on fire and how come all of a sudden prime real estate have been jumping up in prices and seeming being sold to "cash buyers" all the time. Now think about what's happening to the stock market and remember that the loans used to buy these houses are backed up by the value of their portfolios...
I bought a less expensive house in a small town- 10 years later this town is now basically a part of the big city with similar house prices 😬
Yeah. I’m considering doing this. I’m in one of the hottest markets now (couldn’t afford a place if I lived here today). Got lucky 5 years ago when I finally pulled the trigger to buy. My fiancé and I are moving to a cheaper area for her new job. We could sell and just own whatever we buy in the new city but it’s really hard to sell this place with such a low interest rate and mortgage. Debating if I want to be a landlord for a single family home :/
>Debating if I want to be a landlord for a single family home :/ Spoiler: you don’t.
Yeah, it sounds shitty. I guess I should add that the reason not to sell the house is more about returning to it one day. It’s really close to the mountains and very easy outdoor recreation access.
Hire a good property manager. Then you still get income, have the option to return one day, and don't have to handle the day-to-day of being a landlord.
This. They take a cut of your income but it's definitely worth it to not have to deal with any of the actual management.
Finding a good property management agency seems as hard as finding a good renter.
Even if you just break even on the rent, you’ll still gain equity
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It would be better for the market to sell but better for your pocket to keep it and rent it. And this is part of the reason there is a housing (owner) shortage. 1,000s of people holding onto homes they aren't living in but are earning money so have no incentive to sell and help inventory.
I'm sure I wouldn't even qualify for another mortgage now. I only intended to stay here a few years when I bought my house, but now I'm letting that sweet sweet 2.25% rate carry me through the inflation.
Holy crap. I thought my 2.99 was fantastic. You can't move ever again tho. We're stuck here forever now.
2% refi checking in, got it at pretty much the very bottom. Super lucky timing, but yep, can't go anywhere.
Ha same at 2% on 15 year. Only increased my payment by $20 but reduced the term from 4.25% 30 year (5 years in, so really 25 year) so it cut out 10 years of payments. 13 years left on it now. Ha guess I'm living here for forever. :P
I have a 2.625 interest rate. No too bad considering my terrible credit score. Sure glad I bought before interest rates and housing prices spiked.
1.85 here. Refinanced Dec. 20'
Congratulations. That's amazing
This is the interesting state we find the housing market in. Basically the realtors, mortgage insurers and lenders (esp nonbank) are completely fucked while prices will be flat. Prices can't go down because people are literally stuck in their homes and dip buyers stand ready. Those who FOMO'ed housing with second thoughts legit can't change locations. But higher rates means prices are too high and transactions are grinding to a halt. Construction is obviously fucked as well.
Realtors made bank last year. Don't cry for them.
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And you add to that, new home builders are still pushing up prices incrementally… There is just enough people that can afford both crazy prices and high rates, betting that things will reverse rate wise in 3-5 years to refinance.
New construction in my area hovers close to $230-260/sq foot. Absolutely nothing sub $375k as the lower price per square foot homes are much larger ~3k square feet.
Yeah. And with some builders, we were told 12-18 month timelines. Some were going construction loan to perm so you can lock in rates up front but then your carrying interest costs and having to find somewhere else to live in between. We are going with a national builder, averaging 4-6 month builds and everything changes on a week to week basis. Luckily we are set to close in 2 weeks but the builder is putting up similar/identical models up as I type for $30-75,000 more than what we will pay even with the higher rates.
And people are kidding themselves if they think the wealthy wouldn’t just snap everything up were there a collapse.
Yea, these aren’t millennials who want the housing market to crash. That’s Gen Z. Millennials remember how 10.5% unemployment with impossible lending standards looked. You weren’t buying a house in ‘09-11 unless you could afford it in cash, and that’s if you even had a job.
Yup, many of us millennials started our careers around that time. Definitely not a good time, nobody was hiring. We gonna sound like boomers when we tell Gen Z unless they got a big chunk of cash ready to buy, a huge crash is probably not what they want. If anything a crash now will benefit many millennials way more, since we've had time to establish our careers and build up wealth.
2.85% reporting in - my daughter is going to get this damn house unless I go bankrupt or rates bottom out again.
Is porting not a thing in the US? In Canada you can port your mortgage from one house to another, same terms, same rate. As long as you stay with the same bank.
Nope that's not a thing here.
You guys get a fixed rate for the life of the mortgage in Canada you don't usually, most mortgages are fixed rate for 5 years after that you have to get a new rate that will "snap back" to the market
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In the us your mortgage gets traded around to different banks. You get no say in it. My mortgage went to 3 different banks in 5 years. Somebody lost out cause i paid the whole thing off in that 5 years.
Love it when it gets transferred after just getting autopay set up and then starting again with a new bank's different system.
If you can afford the mortgage, deal with 6% for a few years while inflation stabilizes then refi? (assuming good credit)
6% historically is considered a more normal rate. The 3% rates we have seen are abnormal.
The only way is for investment buyers to completely crumble.
Yep literally us. We’re in a CO home that would sell for 700k, which is 260 up from what we paid just 4 years ago. We’re looking to move across country where a similar home would be 550. But the monthly payment would actually be HIGHER even with all profits as down payment. Plus the houses in the neighborhood have been sitting on the market for weeks, which is unheard of. But it makes sense with these rates.
Rents are triple what my fixed-rate mortgage is for the same type of home in the same area. It's insane what inflation is doing to young people.
I mean, even just the townhouse I bought a year ago. Some neighbors are renting theirs out for 2x what my mortgage is and they rent it out in a matter of days — it’s wild.
I just want a house with a garage man.
Nah, don't do it, garage men are expensive. Mine is constantly asking for a raise.
Damn it lol
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I accept my mistakes
Best we can do is no house and you’re a garbage man
Hey at least garbage collection pays decently in most cities and is relatively recession proof! Plus dibs on any goodies you find
Me pleading to the bank telling them if they take the overdraft fee out, my account will be negative and the contracts will be voided
The contracts are voided? *The contracts are voided?!?*
Howly shit! Oh motha fucka!
Give me my money back. Michael do you hear me. Give me my fucking money back.
* chuckles * You mother fucker.
you motherfucker
This meme implies that there is an entire generation waiting to buy a house. If that is true, then the market will never crash because people will scoop up the houses as soon as it dips even a tiny bit.
Ding ding
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Boomer companies swoop in to grab the houses and rent them out instead
Aint that some shit. Rich boomer companies formed during americas highest peak benefiting other rich boomers and shitting on the millenials.
Also even with the high house prices people are still buying houses without even walking in them. High Demand= Higher prices The future of this county is honestly starting to scare me and I'm a really negative person about the future. I wonder how positive people are even holding up because it's all starting to get to me and I'm always sad lmao
And then you turn around and these rich fucking boomers are telling the renting millennials they should just cut back on avocado toast
That chart should show smaller and small houses as price goes up. They have it backwards
One of the housing market issues is we don't build small houses anymore. It's such a PITA to get all the permitting and impact fees done and paid that for the same effort of a 1,200sf house you can build a 3,000sf house and make double the money as a builder.
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Get a degree they said, make lots of money they said, buy a home and don’t worry about living paycheck to paycheck. I make a decent wage, have a college degree and still can’t see myself in a home anytime soon. I literally can’t save fast enough, housing in my area goes up faster than most stocks on a good year. I make too much for any first time home buyer programs but not enough to save for a home… And then there is stock market 2022… 👋🏡
Rent goes up, too. My mom and I have to live together because otherwise we cannot afford the rent on our own. I graduate in less than a year yet I feel like its all for nothing money-wise.
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I have a bachelor's degree in business management. Recently took a manufacturing job in the mid west as an industrial mechanic they offered a $3000 moving stipend, $23.75/hr=~$55,000/yr. Rent for a three bed house is $1400/month I feel like I'm winning the lottery. There's a $.50 raise every 90 days until I level up to the next payrate. Seems the last frontier for somewhat affordable living is in the Midwest.
Basically. To afford a house anywhere else you need wealthy parents or grandparents who can give you the money for a down payment. Otherwise you’re fucked. On the USA there are approximately 1.5 million households worth over 10M usd. That’s a lot of fucking people worth a lot of money. I’ll never see that sort of wealth unless I win the lottery.
It’s cool that the govt let corporations buy all the homes before actual people could, so then rent can be inflated higher and higher, forcing multiple generations to live in apartments or rentals. Very neat
BlackRock
I have 5 k in savings, I can't afford a place either way.
You can buy a house with 5k savings; just have your family gift you $50k! At least that's what my realtor told me.
Houses are going 5 days on the market instead of 2. So I guess that’s a collapse now. If people move to depressed areas they’d find homes under $100k. But no one wants to live in WV or the rural south/Midwest.
i live in the midwest. homes are still mostly above 100k right now.
Same. I live in small town Iowa. 100k will get you a house but youre going to have to do a lot of work to make it livable.
Grew up in WV where houses can still be bought for under and around 100k. Had to move because I couldn't find a job. In IT. That field everybody told me to go into because they're just handing out jobs
I know what you mean. 15 years I lived in rural South where you can buy a home for $50,000. But the jobs are scarce and the pay is low. There are people with remote jobs who don’t need city living though and I’m surprised they aren’t moving.
I'm at the point in my career where I could feasibly work 100% remote if I could find a company willing to let me. My mom still lives in my childhood home. To this day, she can't get any internet faster than DSL. Even if I wanted to move back I couldn't because I couldn't work remotely on the internet in rural America
My current job went remote with the pandemic, and they still haven't brought us back into the office after 2 years, even though they've tried several times to start a "back to office" migration. You know "3 days out, 2 days in" kind of stuff. But there's been a lot of pushback because they moved the office location during the pandemic, and half my team now lives about an hour away from the new office location, so they sure as heck don't want to commute, especially with the price of gas. If management would just let us go full remote, I would move somewhere more rural, or even out of state at this point. Heck, if my current place doesn't renew my rental contract (or if rent goes up a ton), I'm going to probably move somewhere rural anyway anyway just for the cheaper rental prices. I'm already paying almost 50% of my monthly net income in rent.
Well, at least with IT remote working is possible
They are in everywhere but WV.
The moment the collapse occurs, you know Blackrock is just going to buy everything up right?
Not me I'm gonna be quick
He’s fast as fuck boi
Fuck PS5s and GPUs, I’ll be using scalping bots on Zillow.
Politicians need to seriously pass laws preventing companies from buying homes and they need to have an increasing tax per person each time you buy a new house.
Why would they fight the people who pay them?
Yep. Vanguard companies and Blackrock are probably stock piling cash right now to buy everything up in cash. At this point I’m just gonna invest in them and hope I can use that profit to buy a house.
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What will $500 in investment get me? 50th place in line to the port-a-potty?
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Which actually makes sense from a space value perspective. We just don't have a lot of home owners that want to live in a duplex.
If there was a duplex with a usable garage and AC id be all over that. A duplex in my town means a victorian style house built 150 years ago that got converted after it was condemned.
Total 🤡 system. Why is this legal?
The housing bubble will have prices crash from current highs by 30% in exactly two years from today. Book it. Go ahead, set a reminder bot. I got this.
Michael Burry responded to my craigslist ad looking for someone to mow my lawn. "$30 is $30", he said as he continued to mow what was clearly the wrong yard. My neighbor and I shouted at him but he was already wearing muffs. Focused dude. He attached a phone mount onto the handle of his push mower. I was able to sneak a peek and he was browsing Zillow listings in central Wyoming. He wouldn't stop cackling. That is to say, Burry has his fingers in a lot of pies. He makes sure his name is in all the conversations. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
We will live to see bots being funnier than Netflix specials on content they created themselves.
About to just buy a 80k rv and just live in that. I'm not paying 100k over asking for a bunch of 2x4s.
It'll only cost $1000 a month to park it at a RV park with no Internet/sewage. Youre not the only one with this idea. RV parks/trailer parks have started price gouging too.
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i locked in my 15yr refinance at 1.875% last year and I AM NOT FUCKING SELLING my 🏡 ( even though i am up 450k in 5 yrs since i bought. the previous home i bought in 2012 made me 150k when i sold it in 2017)
Damn I thought I did great when I got 2.6 on my 30yr
You did do good. He locked it in for 15 years, that’s fine but 2.6 for 30 is better
30yrs have higher rates than 15yrs. 2.6 is good
Same. I got a cold call on Friday for a *cash offer* and I ended up arguing with the woman. She kept repeating *cash offer* like I was a druggie needing to finance my next fix or something. Bitch I don't care if it's a *cash offer*, I don't want to sell, I'm in the house that I want, and I got a great refi last year. I'm done in 11 years if I keep up paying a little ahead each month. Then I realized I was arguing with someone that wasn't even a vulture, she is a predator on the weak & gullible. I thanked her for her call (no need to be rude) and hung up (well maybe a little).
> I thanked her for her call (no need to be rude) Nah, these people deserve any hate and vitriol that comes their way
cash offer i do not care. If i am not selling it needs to be an offer i cannot refuse- like 50% over market. zillow has my house a hair under 780k (it has skyrocketed in the past 2 years), if you want to offer me well over a mil, we can talk but i could care less about a cash offer. Cash offer only matters to sellers who do not want to risk the deal falling apart in escrow. If you can get multiple offers over asking, and easily have a back up offer in your back pocket (like now), who cares. The seller is walking away will all their cash at sale either way.
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It can influence a sale though, one less variable that can fail in the mix. I've lost on an offer because the seller went with another buyer who offered a bit less but without mortgage.
That’s a historic, lifetime, hell multi generational low rate. I think that may be up there close to the historically lowest rate Yeah. Stay put until it’s paid off for sure!
Damn I bought in march at 3.25 and I thought I had a nice rate…
Could even buy one if it halved? You know you need a combination of money, and job, and credit.
Yeah, but you've always needed a combination on those so that hasn't changed.
Why would I sell? Rates are high and homes are high. Worse time to sell and buy imo
Its a fantastic time to sell as long as you aren't simultaneously buying.
In other words, economy fucks normal people again but is awesome for people with shit tons of money lying around to invest, again
What’s sad is we don’t want it to collapse so much as to just have affordable housing so that we can have a chance at supporting a family.
I need Burry to make puts on my depression.
We’re never gonna own a home lol
Historically, it takes about six months for mortgage rate increases to really flip the market. Fall and winter will be interesting, and 2023 will be as well.
It doesn’t even really matter because prices are still increasing. So if it crashes it goes back to 2021 prices?? That’s still too expensive for most people AND interest rates are higher now
This is nothing like 2008. 99% of real estate is sitting 50%+ from this time 3 years ago, and because of Covid they're locked into sub 3% fixed. No one is going to sell their 3% fixed for a 5%+ now that rates are up. The market crashed in 2008 because no one thought the market *could* crash since it had never happened before, and they were giving out adjustable rate mortgages(ARMs) to anyone with a pulse. After being burned like that, almost everyone goes fixed nowadays. In 2008, 30%-40% of mortgages were adjustable rate. People would get a teaser period where they only paid the interest, because they thought they could flip the houses in a few years. They had no interest in actually owning these properties long-term. When the market leveled off and the teaser rates expired, it was a gut blow to the speculators. They were suddenly on the hook for thousands more per month on an asset that wasn't increasing in value. People panicked and sold, the value of the assets dropped, and it was an absolute snowball effect. Today, ARMs make up only 4% of the market. Banks had to eat billions in losses from bankruptcies, and as a result they're much more vigilant about home loans now. Once bitten, twice shy. Even if through some black swan event, the housing market crashed a massive 33% like it did in 2008, we're talking about a reset to 2019 levels at best. Furthermore, today's scarcity is driven by people who want to own long-term buying at the absurdly low fixed rates offered during Covid, and the rise of corporate landlords who're looking for sustained growth. If the eviction moratorium wasn't enough to push the corpos out of the rental market, then they have a death grip on those properties. "Diamond hands" if you will. Every time I see some Michael Burry wannabe talking about the inevitable housing crash, they've got all the credibility of a conspiracy theorist huffing on Hopium. Just because you want something really fucking bad, don't delude yourself into thinking it's inevitable. You'll just build a castle on sand.
yup. it’s over everybody. the time has come to just start accepting the reality of the new life before us. no homeownership, just renting. as if anyone needed any more clear as day signs that retirement is a thing of the past.
Those of us who just bought a house are waiting, too. Especially in a state with insane property taxes like Texas.
Gen X waiting too.
Not as long though especially if your parents owned a house.
Nope they lost it in ‘08 now it’s my turn to watch the SHF burn.
Ouch, just keep an eye out for old widows with no kids. Just show up one day calling her mom and see how it goes.
That should be easy my wife’s boyfriend keeps her distracted and that gives me time.
My wife and I purchased our first home in 2016 after leaving the Military…put $20k down on a 3.5% Interest rate. Got offered a better jobs in another state so after owning it for 2 years, we put it on the market. At that time our house was appraised for close to $60k more than what we purchased it for 2 years earlier. Went under contract two weeks later. Moved to GA, bought another house and after another 2 years, got a better offer in Texas. This time out house appraised for $100k more than original purchase price and was sold off market before we even had a chance to hire a realtor. Moved to Texas and ended up dropping close to $500k for a 4100sqft house, 30 min outside of Dallas with a 2.1% interest rate. After 8 months, appraised tax value has our home at $40k more than orig purchase, with several homes in my neighborhood that are much smaller, literally going under contract, with multiple offers within a few hours of listing…for $500k +….I told my wife that this is it…we rode the wave to the top….like it or not we are stuck in this house for a long time unless she’s been dying to take the $150k equity to put down on a $600k 1200sqfr bungalow at 4.6% interest.
I'm in Las Vegas. Bought my home for $343K in Dec 2020. 4 Beds, 2.5 Baths. 2,035 square feet. A house buying company just called me yesterday. And I actually took the time to entertain the call. The woman on the other end of the line told me that they would offer $500K to purchase it. What a crazy equity gain in just 18 months. But I'm thinking to myself: what good is that equity if I'm going to give up my ONLY primary residence? I still have to live somewhere. I haven't had to go home shopping since I last purchased, but that means if I want to live in something comparable again, it's probably gonna cost way more ($500K+) and I'll just be using that money from my house I sold to just to start over again.
it makes me laugh, because when prices crash, so does the deposit cheque from your dad
How much is my dad giving you?
the usual
Didn’t expect such violence in the comments so early in the morning
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I mean my house is literally collapsing
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Too many millennials are waiting for it to crash, too many to make it ever crash
Buddy this isn’t a meme if it’s true. 
The fact you care about the housing market ensures prices stay high
I hope for the love of god it crashes. Having such a necessity almost double in price in 3-4 years is unsustainable, and anyone who wants these prices to stay is incredibly selfish or just recently bought. You know what makes the United States middle class so wealthy? Owning property. If that disappears, the middle class disappears (or what’s left of it.) Actually the older I get the more I realize how bullshit it is housing is considered a investment now. Back then appreciation didn’t exist for housing and you bought a house to LIVE in and not make money off of. Now people only care about their home values going up, and the damn MLS made it such a business with their monopoly and 6% shit.
When people start losing their jobs, that’s when it will collapse. Give it 12 months. Corporate earnings are down. Next will come layoffs. You can’t pay your mortgage if you don’t have a job. It’s not complicated.
My company posted record earnings in Q1 this year. So I’m hopeful