09-30-2022, 06:50 AM
Why I DONT believe the housing market with crash.
<!-- SC_OFF --><div class="md"><p>Why> For one you would have to be desperate to sell you home in this market. Because the home owner would have to replace the asset with another, its not a chuck of gold its where you live. Everyone has to live somewhere and if people sell there home and cant afford another they rent , now you have more competition for rentals driving rents higher. And selling your home is trading in a 3% mortgage with at 7% that would double your payment. And on top of that you pay 7-10% in commission and fees when selling your home. As for people who own second homes, as long as rents are high enough to cover the majority of the mortgage then landlords are not going to sell. Now that being said if we see massive lay offs then were fucked and people are forced to sell. But if that starts happening the fed drops rates and everything recovers. Theoretically... </p> <p>Im not saying home prices wont come down in certain markets, but this fear mongering about an impending crash in nonsense.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/bradimal"> /u/bradimal </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/xrhmvd/why_i_dont_believe_the_housing_market_with_crash/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/xrhmvd/why_i_dont_believe_the_housing_market_with_crash/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Why> For one you would have to be desperate to sell you home in this market. Because the home owner would have to replace the asset with another, its not a chuck of gold its where you live. Everyone has to live somewhere and if people sell there home and cant afford another they rent , now you have more competition for rentals driving rents higher. And selling your home is trading in a 3% mortgage with at 7% that would double your payment. And on top of that you pay 7-10% in commission and fees when selling your home. As for people who own second homes, as long as rents are high enough to cover the majority of the mortgage then landlords are not going to sell. Now that being said if we see massive lay offs then were fucked and people are forced to sell. But if that starts happening the fed drops rates and everything recovers. Theoretically... </p> <p>Im not saying home prices wont come down in certain markets, but this fear mongering about an impending crash in nonsense.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/bradimal"> /u/bradimal </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/xrhmvd/why_i_dont_believe_the_housing_market_with_crash/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/xrhmvd/why_i_dont_believe_the_housing_market_with_crash/">[comments]</a></span>