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alphalegend91 t1_j6og5ii wrote

Reply to comment by hypotenusehippo in Put them in their place daddy Powell. by Garweft

They're never going back down that far. Houses in essence are meant to be anti inflationary so when there's large inflation the house prices will go down slightly and stay flat at best. The only reason 08 happened was because like 90% of people had ARM's and weren't thoroughly vetted on their sources of income. This is different.

What I have been seeing is a decrease in inventory of homes for sale and a drastic increase in homes for rent. Why would anyone give up those sweet low mortgage rates at a way lower price than what they want?

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hypotenusehippo t1_j6oj22v wrote

I hope you're wrong for my sake haha. I hear you though. I am no psychic and can't claim to predict the catalyst but it does feel unsustainable out there.

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alphalegend91 t1_j6olfbe wrote

I hope I'm wrong too, but as someone who bought their house in 2020 and has a 2.25% 30yr fixed rate I would absolutely buy up another house if it ever crashed and rent out the one I have.

I only put 10% down and my mortgage is $1570 with the $70 a month PMI falling off soon. Rent comps in my area are $2300-2500 for my property. There's no reason for me to ever sell it and I know multiple people in the same boat that would do the same thing.

It's unfortunate, but the rich get richer and everyone else gets left behind.

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cantstopwontstopGME t1_j6p440m wrote

Sad that owning a home is considered “rich” now.. that used to be the absolute bare minimum

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alphalegend91 t1_j6p49od wrote

I wouldn’t consider it rich, but being able to buy multiple properties and renting out the previous ones definitely would fall under that

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AwesomeRevolution98 t1_j6pizyk wrote

Yup exactly. Even if home prices go down like 30% which is a huge amount , 2008 we saw like only a 20% decline, with super high mortgages the net amount paid might actually be more.

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