I know some people feel that losing a job is a big threat to managing a mortgage realtively comfortably. Not sure anyone should buy under this situation. I also don’t think this risk, at a very high level, constitutes living within ones means. Sometimes the buyers parents “guarantee” this risk.
Some depreciation is a much more acceptable risk with the thought that it could just be a paper loss. I just always got around it by buying what I could likely keep one way or another without a job. Who wants to be under the stress of depleting some type of “survival” reserves paying for a house? Makes sense to avoid that. It makes me wonder how the ‘downward spiral’ believers are going to deal with this. Because at some point one has to draw the line or pay cash.
Moving out seems like acceptable risk mitigation but then you have to find being a landlord acceptable too.If I had to move out but still had a decent rental, I would consider that a success.(It never happened involuntarily). Single people might have it easier in this regard…They can get roomates if their personality allows for it. I have met many people who calmed their buyers remorse, with the idea of a roomate to help in tough times.
I don’t relate to relocating because of a job loss, but I understand many people do need to think about this.
Brian1
I am not sure there is a bottom where listings are universally unwanted. In fact, I tend to doubt that scenario ever comes.Maybe that is not what is meant? In the bubble there was practically no such thing as an unwanted house and now there is. I consider that a huge sign of improvement.
