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It seems unsustainably expensive. It seems like with inflation continuing to increase, demand for buying houses will have to go down because people will have to prioritize food. I'm just a girl with very little basic understanding of the economy, what happens to the housing market if inflation continues?

It seems unsustainably expensive. It seems like with inflation continuing to increase, demand for buying houses will have to go down because people will have to prioritize food. I'm just a girl with very little basic understanding of the economy, what happens to the housing market if inflation continues?

(post is archived)

[–] • 12 pts

The prices are unsustainable for anyone who wants to own their own house.

Not unsustainable for Blackrock. They'll own your house and you will rent for them at their discretion.

[–] • 10 pts

(you forgot to add ) "...and you will be happy"

[–] • 3 pts

I don't actually think you'll be happy

[–] • 7 pts

It's the latest propaganda: 'you will own nothing and you will be happy'

[+] [deleted] • 1 pt
[–] • 1 pt

And if for some reason it becomes unsustainable for them too, the government will give them enough of your money to make certain they never have to give up any of it.

[–] [deleted] • 7 pts

Even if there is a crash, it won't be in nominal terms due to inflation.

[–] • 6 pts (edited )

I can't see how it won't. Here in my area, houses have almost doubled. Even in the hoods, they're going for 200k or more.

Old man and his wife across the street just sold for nearly 200k. Reminds me of some friends that left the area in 2003, sold their tiny house for $130k and 8 years later it sold for $77k.

[–] • 8 pts

I think with inflation at this rate it will prevent a crash as the land/house is a tangible good.

[–] • 1 pt

That's my line of thinking as well. At this rate, $200k in January 2022 dollars is going to be worth $270k in January 2023 dollars easily. It could get worse than that even.

[–] • 3 pts

If I had to buy my own house today I couldn't qualify. Just the property tax would be almost as much as my current mortgage.

[–] • 3 pts

With all the border jumpers needing housing, I don't see the housing market tanking unless we have a scenario like we had in 2008 where banks were making loans to people who couldn't afford the payments. The rules were tightened after the last fiasco so that it wouldn't happen again. But who knows what the banksters are trying to get away with. with all the money managers getting into the real estate business, I doubt they are willing to lose their investments. doesn't mean it won't happen but none of them are psychic and they bend to the will of congress. There are cycles in the housing market and who knows what the next cycle will bring.

[–] • 2 pts

The construction industry is one of the big reasons we have border jumpers. Without invaders needing the government to give them houses the construction industry would be a lot slower.

[–] • 1 pt

absolutely right. In the south, 95% of construction workers are border jumpers. Jefe is the only one that speaks (broken) English. Most are peaceful and just trying to earn a living . but it still impacts the 5% trying to earn a better living, why pay more when you can get the labor for a couple pesos.

[–] • 2 pts

Prices are so high it amazes me that people are still buying. We'll see if spring and summer goes well. Eventually the buying stops and prices will start to fall. But not a lot at first, since people will not want to sell their house for less than what their idiot neighbor got. The only house sales come from forced sales from divorces and inheritances. If people start to stop paying mortgages it will get interesting. Government did protect the banks back in 2008-09.

[–] • 0 pt

re 'the buying stops and prices will start to fall.' - There's still going to be demand to obtain and keep homes because people who own homes will cash in on the growing demand for rentals.

[–] • 1 pt

One can only hope.

High prices serve no-one except banks and the gov't.

Me, as a home owner, only gets taxed more when prices rise. It isn't like I can sell my house and live in a van down by the river.

[–] [deleted] • 1 pt

They are going to print to hyper inflation. And give out more loans and loan forgiveness to everyone. Goods will be scarce. Housing will be scarce.

[–] • 1 pt

I'm hoping for this one too. Where I live cost of buying or renting has gone up 75% - 150% depending on what area you're in.

[–] • 1 pt

I was itching to sell a piece of property listed at $150,000 but now I'm glad it's not selling as fast as I wanted, or thought, because the cash from the sell I fear would be in danger (safer in the ground).

[–] • 1 pt

It might not "collapse" in the next year but yes there will be carnage in the near term. People hear about how this is the biggest bubble, blah blah blah. 2008 has absolutely nothing on what is coming our way.

There has been literally zero change put into effect after the earlier bailouts. (At the time it was an astronomical amount of money to the tax base). Yes, there was a lot of "press" about change and there was a lot of hot air about fixing, legislating and preventing similar situations from occuring again. It all amounted to a nothing.

When this bubble bursts, it won't be like the "Recession" or even the "Great depression".

For some it will be the equivalent of a moment as when the Deutsche Mark all of a sudden was worth fuck all.

For others it's going to be like Custer's Last Stand. For those individuals, they aren't going to be the troops on Reno Hill. I try not to be an alarmist but the momentum in this market won't gently recede and give way to cool shit.

We're headed for one hell of a storm.

[–] [deleted] • 0 pt

In regards to 2008 at lot of that had to do with subprime lending though no? There has been change in lending practices since then. The issue doesn't seem to be that they're over lending but the home's value is overly inflated.

[–] • 0 pt

The issue if you look at in a basic sense was that people were buying homes at inflated values. This was because homes appraised for those higher amounts. Banks loaned at those higher rates.

Sure, there was a big dance about legislation on lending practices.

Everything I described above is the same now as it was but on a much more inflated scale.

This situation is obviously a lot deeper than this basic explanation, however, nothing has changed from 2008 to now. All that happened was they threw a shit ton of money on a fire.

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