Recently I brought a home for 1.2 M in Bay Area. These are the news headings everywhere in youtube, google and in groups. Now MR. S* says "Everyone is Replaceable", I am scared of my job.
Housing Market Crash, Another 2008 Housing Crash,
Projects are Cancelled,
No more Buyers in the market,
Price drop by 50%,
The Housing Crash of Generation,
$25 Trillion Asset Crash
Zillow reports Big Price Crash of 50% and so on.
Powell probably told him he wasn’t going to allow it.
I heard Saul VB say we are replaceable....yep...his was the moment I changed my mind about him...a couple of weeks ago he talked about how some of the attrition was regrettable and they would in rare occasion allow a dive and save to occur....sudden he does a 180 where this apparently isn't the opinion any longer?
Maybe he realized too many people are extremely good at their jobs and can get offers from top tier companies for a significant amount more and it must have also occurred to him and other execs that they can't match the current market rates.. No $h!t....we know it too and are leaving by droves. You are losing the backbone of this company because of your failures.
Bay area homeowner here... and also own a house in NYC for 30+ years... have been through many of these "it's over" panics in both places. if you look at the long term pricing trends in both areas, most "downturns" are just flattening out or slower rates of increase. If you watch the listing and sale prices carefully, what's happening here is people are asking prices commensurate with mortgage rates from a year ago - and then have to take something a bit less than that. This is all assuming, of course, that you didn't get swept up in some frothy "I have to have this house" thinking and overpay for something with bad fundamentals (location, condition, etc).
If you overpaid, or overextended yourself (you really can't afford the house you just bought) then tighten your belt and look for ways to give yourself a cushion.
The macro picture is that there is a housing shortage overall in the country. Higher interest rates didn't change that. It's even more acute in urban/suburban coastal areas. Longer term fundamentals are still there.
You voted in the wrong person. I know, you just couldn't stand the other guy who was and is still an _ss but he actually did a good job. You just had to go with the flow, didn't you? Thanks, I am also paying 5 per gallon all the time now.
Not to mention automation…even offshore people can’t escape that..
Being scared for your job should have nothing to do with this and everything to do with the words “cheap” and “offshore”.
If you could afford the house when you bought it, it shouldn’t matter what it’s worth on paper. People walked away from their homes when the market crashed last time, and then ten years later the same home had tripled in price. Housing is long term. Unless of course you’re flipper/speculator, but that’s a different topic.
The most important real estate rule - Location. Location. Location.
Just as all zip codes took a hit in the last real estate down cycle, those in more desirable ones took less of a hit and rebounded sooner.
San Fran will always be a desirable area to live in because of the business opportunities. Same with other large cities. They go through cycles where they appeal more and less to different population segments but they always appeal.
If you're staying long term, it shouldn't matter. The price now is only a problem if you sell or maybe need a home equity loan. If you were concerned you wouldn't have bought it at the peak.
Might even take longer than 3 or 5 years. Its all about the demographics. The biggest group in the US, the baby boomers are retiring now, the last ones will retire in 2030. They probably aren't going to buy houses anymore, or smaller houses. If you retire, the last thing you want are more expenses. Gen x is a lot smaller than the boomers. The US birth rate is at 1.70. You need 2.1 to just replace the current population. Its not as bad as Japan, but still bad. At some point the population in the US, like many other countries, will start declining. At that point housing will probably not be the investment people thought it was.
I heard tech is affected from the " I heard tech is affected" guy.
OP - just keep doing what you do, do your best, spend wisely, save what you can. Don’t give into the fear that “news” outlets use to keep your eyeballs on their content.
If things enter a steep decline remember, you’re not alone, it’s a macroeconomic condition and it will end. Business cycles are always cyclical which means they come and they go. Try not to lose sleep over what MIGHT happen.
You base everything on fear mongering news headlines?
Sale now, use half the proceeds to snort coke, take the other half and move to Thailand while you still have a chance. Thank me in 10 years.
Yes, the US housing market is in 'deep freeze', but may come out in 3-5 years time. Hope for the best.
They’ll come back eventually.
Most people are priced out of the housing market and the demand for mortgages is falling.