Housing Market: crash or serfdom? Both?

a reply to: Ravenwatcher

Ok, sorry, I see what you are asking.

No, generally the listing agent will stop reassignment of title in the contract.
But yes, it can happen and does, but isn't real common.

a reply to: interupt42

Florida is insanity. I unloaded a house for 390 2 years ago. It is on the market for 719 right now.
Wish I stil had that one now.

Here in my rural are of eastern Victoria in Australia we’ve seen house prices become over inflated by 20-30% as people flock from Melbourne seeking the rural lifestyle.

I think as Mandroid7 says the market will correct itself but that’s going to leave a lot of new buyers short.

Interesting times, just hope it’s corrected before these city lot gentrify the country...

Doubt it anytime soon. Will have to see what happens in 2024 or how fast and how steep the fed increases interest rates.

Still a pretty hot market right now. Rich people moving out of Cali and the PNW, buying at asking price or more in Republican states.

Put in an offer last year, some Ahole from CA bid more than the asking price, sight unseen except for photos. Kinda glad I didn’t buy the house, water issues in that area for drying up wells due to drought. Sucker.

States that are anti Blue like Texas, Florida, Arkansas, Tennessee, Kentucky are being moved in from the Western States to get away from high taxes and sick leadership. Not that those Red states are perfect but they sure look good on paper and the people from Cali can afford to pay cash for houses outright in a lot of places due to the overpriced market of Cali.

originally posted by: Look2theSacredHeart
a reply to: AndyFromMichigan
You might enjoy the book "Pushed Out" by Ryanne Pilgeram. She's a sociologist that studies rural gentrification.

Sounds interesting. I actually live in the suburbs, but my city has been trendy for several years now. We are definitely seeing gentrification creeping in.

a reply to: Look2theSacredHeart

does any of this mean lower house prices?

geriatric nightmare we will have in 30 years if a high percentage of seniors don't have equity in their homes because they rent permanently.

Are my parents the only ones already in this position?

a reply to: scraedtosleep

I think the whole mess is unsustainable. Any one factor could tip the balance and drive demand and prices down. I bet interest rates do so, but I also think people are dumb with debt. People who are at 43% DTI in a brand new house are going to feel the hurt when student loans come due again in 10 weeks.

With investors who rent out their properties, they will find out the ceiling of rent prices people are willing to pay. House of cards. Buy high, rent higher...until no one wise will pay those prices.

I hope your parents are having an easy go of it in this bizarre time. I worry a bit about my in laws, as well.

Any pending crash is most likely to be centered on the overpriced urban liberal paradise.

Its 08 all over again, its becoming clear to me that this isn't an accident, because it worked in 08.. 1 person was charged with a crime in 08, the rest got to keep their winnings. Quite a risk free way to steal trillions from the world population.

Situation is simple,
1. Overleveraged financial institutions
2. Paper being pumped into the market to support people during the pandemic
3. As a result inflation causing the price of everything to rise
4. People unable to pay their mortgage
5. Banks not getting 'their' money from us simple minded mortgage payers, and they've lent vast sums out to way over leveraged hedgefunds gambling with our money.

So where is all this paper? Its being used on wallstreet, and thats where it will stay. And when the # hits the fan (again), wallstreet will have offshored much of it.

And when the # hits, it'll be blamed on the pandemic, not the FED once again hiding the true inflation rate in the US, not the hedgefunds literally gambling with our money through leverage they obtained from the banks, not the banks who decided not waive overdraft fees for their customers whilst simultaneously pumping the reverse repo market to hide liquidity and providing unlimited liquidity to hedgefunds. No no. Its the little microscopic virus, and regular people's poor decision making that will be to blame.

During these trying times, hedgefunds and banks have had all time high profits, Ken Griffin (citadel) just bought a COPY of the Declaration of Independence for over 30 million.

It will come crashing down when the leveraged positions need to be closed, and they absolutely WILL need to be closed soon enough. Mark my words.

a reply to: Look2theSacredHeart

A lot of what you described applies to New Zealand. Rising housing prices and the Reserve Bank of New Zealand printing money is keeping New Zealand's economy. Moreover, there is a national housing crisis/housing shortage caused by councils keeping the supply of land locked up and the Resource Management Act. The madness of both those issues is for another discussion.

But the Reserve Bank throwing money into the fire served only to drive up housing prices. Also, Kiwis returning home from overseas, fleeing the Covid-19 pandemic, required somewhere to live. So the danger is that the housing bubble implodes, turning New Zealand into the Greece of the South Pacific.

Soaring house prices and high petrol prices drove up inflation, eating away at people's already strained incomes. So, of course, the Reserve Bank is hiking interest rates at present. The entire situation is nutty economics that might place New Zealand in peril.