US housing recession could send home prices tumbling 20%, economist says

Discussion in 'Current Events' started by sec, Sep 23, 2022.

  1. sec

    sec Well-Known Member

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    https://www.foxbusiness.com/economy...ould-send-home-prices-tumbling-economist-says

    HYPERLINK has full article

    snip

    Painfully high inflation and rising borrowing costs have proven to be a lethal combination for the housing market,........................

    With mortgage rates rising, demand for new homes is rapidly drying up, prompting home prices to fall.


    end snip

    For those who purchased homes in 2021, should we wipe away $50,000 or even $100,000 from their mortgage? If we can do it for those who borrowed to go to school, why not homeowners?
     
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  2. Independent4ever

    Independent4ever Well-Known Member

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    The housing market was ridiculous last year. I was looking to move, but gave up

    I am hoping to try again in 2023
     
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  3. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    It will be a good opportunity for those with cash to buy up some investment property. Being upside down is not a big deal for those planning on living there. I remember owing more then my home was worth. It turns out that if I kept paying the mortgage, they let me live there!
     
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  4. FreshAir

    FreshAir Well-Known Member Past Donor

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    unlike a school loan, you can lapse on the mortgage and let them take your home and buy a nicer one for less, many did that in 2008
     
  5. modernpaladin

    modernpaladin Well-Known Member Past Donor

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    Because (its widely believed that) homeowners tend to vote more conservative.

    Research on this is lacking, of course, but the stereotype is well enough known. Offering handouts to homeowners for votes is presumed to result in diminishing returns relative to offering handouts to other groups.
     
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  6. Irrational thinker

    Irrational thinker Well-Known Member

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    Will Brandon force banks to make toxic loans to minorities?
     
  7. cd8ed

    cd8ed Well-Known Member Past Donor

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    What students got $50,000 to $100,000?

    Also, could students discharge their student loan debt through bankruptcy? Should we remove this from homeowners?
     
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  8. Irrational thinker

    Irrational thinker Well-Known Member

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    Filing bankruptcy doesn't mean the debt is forgiven. There are some legal languages involved. Couldn't tell you as I am no bankruptcy attorney.
     
  9. sec

    sec Well-Known Member

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    What amount do you think should be forgiven for those who purchased real estate in 2021? Keep in mind that those folks were preyed upon by full Democrat control so it's not the buyers fault that the real estate market tanked. They need to have the risk removed much like with those who took out student loans.

    it's not their fault, they should not be held accountable
     
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  10. LiveUninhibited

    LiveUninhibited Well-Known Member

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    Yeah same here. Definitely time to wait out that market, unless downsizing I guess. Then it was a good time to sell.
     
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  11. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Ah, yes, the housing market COULD crash by 20% under Biden and that's the end of the world. However, the housing market DID crash in many markets by 50% with record foreclosures in 2007, under no other than the guy you most likely enthusiastically voted for.

    Or, should I say, GOP votes always have consequences, always harmful, to paraphrase some garbage phrase of a certain poster whose name shall not be named.
     
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  12. mdrobster

    mdrobster Well-Known Member

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    Hey, remember SALT, that caps federal tax credit at $10k. If one were to actually do some math, those 1st time home buyers are now stuck in a hard place as property values rise, that inhibits them from buying.

    That was a reason for many to buy homes instead of rent. !!!
     
  13. ShadowX

    ShadowX Well-Known Member

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    Already has
     
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  14. notme

    notme Well-Known Member

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    The thing is that prices of homes went up and up and up. Not just by a bit. But by a heck of a lot.
    https://fred.stlouisfed.org/series/ASPUS

    Where is was 150K in 1990, it became 375K in 2020, and 525K in 2022.
    So what that homes will lose 50 to 100k! Them houses were flat out overpriced.

    Who knew that when the price of housing jumped THIS fast, that it ends up being a balloon ready to be popped.
     
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  15. The Mello Guy

    The Mello Guy Well-Known Member

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    And you can get your property taxes lowered lol
     
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  16. cd8ed

    cd8ed Well-Known Member Past Donor

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    You answer my questions and I’ll answer yours
     
  17. sec

    sec Well-Known Member

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    in other words, you like other Democrat probably feel that having the productive pay off $10,000 of the debt of other people, will lead to more Democrat votes from those who get the largesse.

    If it works so well, why not forgive some $$$ of mortgages. It is about getting Democrat votes; isn't it?
     
  18. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Hey, I didn't complain when Trump bailed out the farmers from the effects of his tariffs with MY hard-earned money. It's only YOUR side that whines and whines when some of their tax dollars go to people they deem inferior.
     
  19. Lil Mike

    Lil Mike Well-Known Member

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    That was one of the craziest observations of the financial crisis, people who were upside down on their mortgages suddenly thought they had lost money and stopped paying their mortgages. It was stupid and damaged a lot of families with such irrational behavior.
     
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  20. Lil Mike

    Lil Mike Well-Known Member

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    Good grief, another so called "liberal" shilling for a tax cut for the wealthy. Let me guess, you want the 10,000 cap on the SALT deduction eliminated?
     
  21. Quantum Nerd

    Quantum Nerd Well-Known Member

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    Why was that irrational behavior? Maybe you can explain. In most cases, these were people offloading houses they just could not afford, so even with the hit to the credit score, it was probably still a good financial decision in most cases.

    Now, the banks knew the risks. They had just convinced themselves, like everyone else, that house prices could only go up. It's amazing what supposedly rational people can do when dollar signs cloud their vision.
     
  22. Lil Mike

    Lil Mike Well-Known Member

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    Well there were certainly some people who were in a bind who either because they had to move, and that was non negotiable, or they lost their jobs and lost the ability to pay, had to dump their homes. Even then, I think selling it for a loss might be a better tactic, but otherwise, if you were in a home that was underwater on your mortgage, so what? You have a place to live, and the housing prices were going to come back (and they did, with a vengeance). Again, I'm not saying some people had particular circumstances, but all things being equal, I'm not sure how it's a good financial decision to go into foreclosure simply because your market housing price (which is variable anyway) drops below you mortgage amount for a year or two,
     
    Last edited: Sep 25, 2022
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  23. mdrobster

    mdrobster Well-Known Member

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    Yes it is ridiculous and it affects first time home buyers everywhere.
     
  24. Lil Mike

    Lil Mike Well-Known Member

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    I'm not buying that at all.
     
  25. mdrobster

    mdrobster Well-Known Member

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    Simple math. A couple that with combined income is just $100k, will not be able to make that jump from rent to home. Housing is up everywhere, so a new house will easily cost $300k. With interest rates and property taxes, very few fall under $10k and hence make that transition. Maybe not all states have income tax, but in time they will. This $10k only works for a few.
     

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