Ask Lemmy

Burn it all down and end secondary real estate market. The housings price problem started with that.

Can't wait. If it could happen in isolation and not involve a lot of people losing their jobs, I would love to see prices come down. No downside for homeowners really, the house is the same house independent of market value but taxes will decrease so monthly cost will decrease.

I'm old and know prices don't go up forever. As soon as those "we will buy your house" signs and phone calls start, it's near the end.

I don't know why you think that's going to happen. Supply is down and demand is as strong as ever. Policy to make housing more plentiful is woefully lacking.

What's the mechanism for a housing crash?

Usually things crash when enough people capitulate and think it won't crash. Gotta maximize the pain so that those with money can swoop in and gobble up all the assets. Most likely the crash will be combined with mass unemployment so that even people who have bought into a home risk losing it by not being able to make mortgage payments.

Wouldn't mind some new neighbors, not planning on selling, not going to contribute to the landlord crisis, I say let it burn.

My house is like 25% paid off, I don't care if it loses 90% of it's "value" I'll keep paying the bills. Rather everyone have affordable housing than some extra cash in my bank account.

Not a fellow home owner, in my early 20s and debt free. I feel soo bad for people who sign the dotted line on 400k mortgage and agree to decades of slavery to the economy just to have a poorly made suburbanite 2 story 3 bedroom. My parents tell me its not worth it, and I believe them. The only option for my generation that doesn't involve half a lifetime of mortgage slavery is to either buy land somewhere extremely rural and build atop or get used to the idea vanlife/nomadic living. I refuse to get into debt, period. Would rather live out of my van and pay myself rent while working and save up the money for a little plot of land in the mountains. My sympathies to anyone who goes the 'normal' path and eats 500k in debt in this day and age.

I paid 91k in 2017. Zillow says my place is worth 209k just six years later. I'm more than prepared for it to tank but it won't go lower than I paid.

I'll believe it when I see it. I think there's low inventory.

I'm trying to fix up a few things then get it re-appraised so I can get PMI taken off my mortgage. After that I don't really care, I plan to live here for awhile so if the value goes down in the short term I'm not too bothered.

It often feels like it doesn't even matter to me. I'm never going to be in a position to get out of massive debt and afford a decent home either way.

I wouldn't hold my breath waiting for any sort of epic crash.

I expect that home ownership is going to become solely for the upper-middle class and up, and that home prices won't make any serious downward movement.

I expect the housing crisis will eventually start to ease as areas become more accepting of high-density housing development, and that will become the sole province of people with finances beneath the home ownership class.

Essentially, the establishment of a much more distinct and explicit two-tier system. Prices in one will have minimal impact on the other, much like how any swing in prices for small passenger boats has no impact on the price of yachts.

Not worried in the least, house is < 10 yo and don’t plan on moving anytime soon. I also think my houses “value” is over inflated anyways.

Now if I bought in the last 3 years? Yea I might be sweating a little bit about being under water, depending on price and location.

US person here

I was lucky to be in a position to buy shortly after the 2008 crash, so another crash would erase a good chunk of equity (but I see most of it as fantasy equity anyway) but otherwise I'll be fine. I was in DevOps/SysOps for a real estate tech company at that time (and until recently) so I got to see the weird market moves in real time.

Nationwide we've already seen about a 4% drop from the end of the 2022 sales season (Memorial Day - Labor Day) to the end of the 2023 season. That decrease is actually as bad the height of the 2008 crisis but the drops were most felt in the most overpriced markets. This allowed the rest of the nation buffer against it so it's not having a big effect on main economy metrics (like the consumer confidence index).

Basically the bubble deflated considerably without popping, which is overall a guard against a (really bad) crash. Of course 1/3rd of China's economy is their housing market and it's on the verge of collapse... I don't know what that will do to the US but it won't be good.