What if it doesn’t collapse?

[sdrealtor]

JWM
Dont know if that was directed at me but if it was. IMO House prices not only CAN go down, they HAVE gone down and WILL continue to go down for the next few years. The only thing I am uncertain of is how far and hopw fast.

sdr

[PerryChase]

The ownership premium that owners pay months after months needs to be deducted from the net when they sell to arrive at the true gain/loss.

You can rent a house that would’ve sold in 2005 for $1 million for $3,000 to $3,500/month. Even if you can afford the payments, you’re losing money every month you own the house. Unless appreciation is, at the minimum, equal to the ownership premium, then you’re losing money every month you own the house.

[PerryChase]

The ownership premium that owners pay months after months needs to be deducted from the net when they sell to arrive at the true gain/loss.

You can rent a house that would’ve sold in 2005 for $1 million for $3,000 to $3,500/month. Even if you can afford the payments, you’re losing money every month you own the house. Unless appreciation is, at the minimum, equal to the ownership premium, then you’re losing money every month you own the house.

[PerryChase]

The ownership premium that owners pay months after months needs to be deducted from the net when they sell to arrive at the true gain/loss.

You can rent a house that would’ve sold in 2005 for $1 million for $3,000 to $3,500/month. Even if you can afford the payments, you’re losing money every month you own the house. Unless appreciation is, at the minimum, equal to the ownership premium, then you’re losing money every month you own the house.

[JWM in SD]

No sd realtor it was not aimed at you. I don’t agree with you on certain aspects, but you are not disingenuous in my opinion.

[JWM in SD]

No sd realtor it was not aimed at you. I don’t agree with you on certain aspects, but you are not disingenuous in my opinion.

[JWM in SD]

No sd realtor it was not aimed at you. I don’t agree with you on certain aspects, but you are not disingenuous in my opinion.

[bubba99]

To restate the issue, “Is a $400k house at 8% interest effectively worth more than an $790k house at 4% interest?”

Except for some tax or calculation differences the monthly payment is the same. Taxes are higher on the $790k house, tax deductions also higher. To the buyer, the cost of ownership might be very comparable. And that is a problem. The cost increases driven by low interest to some extent kept the payments even. Now that the rates are being raised, yes price will decrease, but monthly payment stay the same.

To the buyer who needed teaser rates to qualify the market is now unavailable.

To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%

[bubba99]

To restate the issue, “Is a $400k house at 8% interest effectively worth more than an $790k house at 4% interest?”

Except for some tax or calculation differences the monthly payment is the same. Taxes are higher on the $790k house, tax deductions also higher. To the buyer, the cost of ownership might be very comparable. And that is a problem. The cost increases driven by low interest to some extent kept the payments even. Now that the rates are being raised, yes price will decrease, but monthly payment stay the same.

To the buyer who needed teaser rates to qualify the market is now unavailable.

To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%

[bubba99]

To restate the issue, “Is a $400k house at 8% interest effectively worth more than an $790k house at 4% interest?”

Except for some tax or calculation differences the monthly payment is the same. Taxes are higher on the $790k house, tax deductions also higher. To the buyer, the cost of ownership might be very comparable. And that is a problem. The cost increases driven by low interest to some extent kept the payments even. Now that the rates are being raised, yes price will decrease, but monthly payment stay the same.

To the buyer who needed teaser rates to qualify the market is now unavailable.

To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%

[JWM in SD]

“To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%”

It is also going to look very good to those with lots of cash for a downpayment as well. You know, like those bitter renters who saved the difference between rent and the comparable mortgage payments.

[JWM in SD]

“To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%”

It is also going to look very good to those with lots of cash for a downpayment as well. You know, like those bitter renters who saved the difference between rent and the comparable mortgage payments.

[JWM in SD]

“To the buyer with a big down payment from the early 2006 sale of his/her over priced home, the market is going to look very good.

To everyone else, the market looks the same (interest) times (price) = payment =/- 4%”

It is also going to look very good to those with lots of cash for a downpayment as well. You know, like those bitter renters who saved the difference between rent and the comparable mortgage payments.

[sdrealtor]

gotcha, jus checkin

[sdrealtor]

gotcha, jus checkin

[Author]

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