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/biz/ - Business & Finance

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52680385 No.52680385 [Reply] [Original]

Home equity in the US is at an all-time high.

If you have parents with a house they've owned for years with hundreds of thousands in unused equity, you should seriously consider asking for their help in coming up with a down payment.

It's the freest money you'll ever have.

>> No.52680460

Give it a few months, home sales are plummeting and prices will follow.

>> No.52680526

Lemme guess you want me to live in my divorced alcoholic parents house so I'll eventually blown my brains out too?

>> No.52680580

>>52680460
>THE HOUSING MARKET WILL CRAHS IN TWO MORE WEEKS
>I CAN JUST FEEL IT!!!!
The housing market won’t crash unless something else blows up, such as massive layoffs or massive increases in food prices.
>But Anon, the housing market doubled in 2 years; how can you say that?
Because most people bought it long before COVID, they refinanced to never seen before interest rates. About 90% to 95% of homeowners with a home mortgage have an interest under 4%. I know a guy who has a 2.75% interest rate.
Let's pretend, you are the average homeowner who bought before COVID with a $300k loan at 3%. You are thinking about moving (New Job and a Nicer House). Here is the issue you have. Home prices have doubled. You’ll have equity in your current home, but the nicer houses that you want has doubled in price. So, it is a wash. You’ll have to take out another $300k loan. Also, you are now giving up that 3% rate.
This is how much rates matter.
>A $300k loan at 3% costs you $1264.81 a month
>A $300k loan at 7% costs you $1995.91 a month
Is your new job going to pay $731.10 more after taxes? It probably won’t.
Most homeowners are not going to leave their starter home and are going to stay right where they are. Move up buyers are dead. They are more likely to rent out their starter home for 2k a month than sell it.
>But Anon, there are people who need to sell because they died or got divorced
That is a small part of the sellers’ side of the market. The number of homes on the market is not anywhere close to pre-COVID levels. Dead people and divorces have not been keeping up with market demand even during high current interest rates.
Something else must break in the economy for the housing market to crash. The housing market will not crash on its own.

I am a rentcuck who is looking to buy a house. I want a massive 2008 crash. There just will not be a crash. At most a 10% decline from the top. And a 20% decline in areas like Boise, Las Vegas, Charlotte, and Phoenix.