Problem is here our rental market is so strong. Where I came from you just didnt see people renting single family homes. Here you see them on every street. Prices are high and people with hi income/low asset or both but not planning to stay long term or not ready to buy yet create this incredible rental market. If you lose your job and need to move away or regroup, renting it out until you get back on your feet will always be an option. Even in a down economy somneone is winning. During a plague, someone makes bank burying the bodies. Most of those folks wont buy while waiting for even lower prices like some of the permabears here. You may not be able to rent it out for as much as you once could but nearly all will always be able to rent it out for enough to bridge the gap if they want to. Only way to slow down this ship is much higher rates IMO
[quote=svelte]The only way housing will tank is if something hits employment and the government doesn’t ease the pain by giving them cash.
That would force some homeowners into selling or foreclosure, but any of that happening is still awhile away. At least in SoCal. It will happen again at some point in the future but not this year.
The stock market, on the other hand. That’s a different story.[/quote]
Unemployment doesn’t matter as long as USG continues their rent and foreclosure moratoriums. Plus endless money printing from the Fed which is creating more rich people to keep buying up all assets like there is no tomorrow.
[quote=deadzone][quote=svelte]The only way housing will tank is if something hits employment and the government doesn’t ease the pain by giving them cash.
That would force some homeowners into selling or foreclosure, but any of that happening is still awhile away. At least in SoCal. It will happen again at some point in the future but not this year.
The stock market, on the other hand. That’s a different story.[/quote]
Unemployment doesn’t matter as long as USG continues their rent and foreclosure moratoriums. Plus endless money printing from the Fed which is creating more rich people to keep buying up all assets like there is no tomorrow.[/quote]
I point your attention to the line “and the government doesn’t ease the pain by giving them cash.”
Also CA rent moratorium ends June 30. San Diego County on Aug 15.
[quote=svelte]The only way housing will tank is if something hits employment and the government doesn’t ease the pain by giving them cash.
That would force some homeowners into selling or foreclosure, but any of that happening is still awhile away. At least in SoCal. It will happen again at some point in the future but not this year.
The stock market, on the other hand. That’s a different story.[/quote]
newsom is planning massive state stimmy to spend part of that surplus. partly stimmy check and partly more rental assistance.
Foreclosure moratoriums have had little impact on the market locally. Nationally as well. The vast majority of mortgage forebearances have been resolved. Most owners are back to work, have refinanced into the lower rates rolling their missed payments into a new loan with a much lower monthly payment or are current having paid back the missed payments or in a plan to do so. The government program proved to be very successful in getting folks through the total lockdown of the country last Spring. Nothing to see here on home values.
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