Housing market trash

drkelly said:

Housing bubble 2.0? Regional housing markets look like they did in 2007 | Fortune

America's 100 largest housing markets are overpriced relative to fundamentals, finds researchers at Florida Atlantic University.
fortune.com
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"While Moody's Analytics own research finds 96% of housing markets are overvalued, Zandi won't call this a housing bubble. In order for it to be a housing bubble, it would need both home price overvaluation and speculation in the market. Unlike the FOMO driven 2000s housing market, Zandi doesn't think speculation is driving our ongoing boom."

Where do they even get their data then? There are more institutional investors now than ever before. And they have greater market percentages than ever before.
 
I'm just glad we're not buying anything right now. Like everyone else, we could sell and make a ton of profit. But that profit will be eaten up quickly in the cost of a replacement home. We refinanced last year at 3% and keep knocking down the priciple with extra $$$ each month.
I really can't imagine starting out/over/etc and looking down the barrel of a starter home in WNC being in the $300k at 6%+ range.
 
Jody Treadway said:
I really can't imagine starting out/over/etc and looking down the barrel of a starter home in WNC being in the $300k at 6%+ range.
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The thing is, if inflation truly is universal, and it is 8+%, then it also means that your income will be going up by the same amount (in theory on average).
You'll be able to afford 8% more house and mortgage [once it catches up to you.. .the only question is when that happens]
Thats one of the points of the article @shawn posted.
 
RatLabGuy said:
The thing is, if inflation truly is universal, and it is 8+%, then it also means that your income will be going up by the same amount (in theory on average).
You'll be able to afford 8% more house and mortgage [once it catches up to you.. .the only question is when that happens]
Thats one of the points of the article @shawn posted.
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I see that 100%.
I'm of the persuasion of not to be in debt when shit hits the fan. That's where my perspective comes from.
 
Jody Treadway said:
I see that 100%.
I'm of the persuasion of not to be in debt when shit hits the fan. That's where my perspective comes from.
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And its a very sensible perspective.
The point is simply that if inflation increases both prices and income, then the income-to-debt ratio doesn't change much and there isn't any real risk.
Of course if you're in a profession that gets canned, then you're fucked. But that would be the case no matter how much of a mortgage you have.
 
CarolinaHD said:
Just lost out on another house (6th one) after offering $22k over asking with a nice due diligence fee and 30 day closing 🙃


Bring on the recession
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Is it 100% necessary for you to buy a new house now? The prices now are massively over inflated and not based on reality. If you buy you are part of the problem.
 
RatLabGuy said:
The thing is, if inflation truly is universal, and it is 8+%, then it also means that your income will be going up by the same amount (in theory on average).
You'll be able to afford 8% more house and mortgage [once it catches up to you.. .the only question is when that happens]
Thats one of the points of the article @shawn posted.
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Do most companies provide raises that keep up with inflation of this magnitude? I cannot imagine that my company (I work for a large utility) will give across the board 8% raises.
 
VortecJeep said:
Do most companies provide raises that keep up with inflation of this magnitude? I cannot imagine that my company (I work for a large utility) will give across the board 8% raises.
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On average, probably not immediately. I have no idea what the typical lag is between rises in the cost of goods & living, and average wages. I'm quite sure that data exists.
But bc of supply and demand they eventually HAVE to some extent. if you don't pay enough, people quit. If an industry doesn't catch up, it dies off. The only question really is, for any particular industry what is that lag time?

As a government employee I can guarantee you my pay wont go up nearly enough to catch up. Last I saw the proposal was 4.6%, which in any other year would be huge, but now is like half what would be appropriate.
 
shawn said:
People are getting double-digit annual raises.
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By changing companies, or staying where they are? I hope so, but I don’t foresee it happening at the power company any time soon. And I understand it from their perspective, until they are seeing lots of top talent leave without being able to fill the roles, they don’t have to.
 
VortecJeep said:
By changing companies, or staying where they are? I hope so, but I don’t foresee it happening at the power company any time soon. And I understand it from their perspective, until they are seeing lots of top talent leave without being able to fill the roles, they don’t have to.
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Standard annual review

If you're not getting a big raise, you need to go find a new job.
 
benXJ said:
Is it 100% necessary for you to buy a new house now? The prices now are massively over inflated and not based on reality. If you buy you are part of the problem.
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Screenshot_20220510-153652_DuckDuckGo.jpg


Yes I need to buy a house
 
shawn said:
Standard annual review

If you're not getting a big raise, you need to go find a new job.
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Please tell this to Congress on my behalf.
 
shawn said:
If you're not getting a big raise, you need to go find a new job.
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This^^^

Unless you suck at your job and should be grateful you're even employed. Frankly, I've had more than one person chase a dollar because they thought they were better/more qualified than they were (which I don't blame them for)...get fired, then come ask for their job back. Not everyone is a rock star...and not every business is going to have the patience to manage around an employee's short comings.
 
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