What Happens If The Market Crashes AFTER You Buy A House?

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#realestate #firsttimehomebuyer #javiervidana

[ChristopherAbelman]

I just finished my last Airbnb stay ever. The place was an absolute dumpster fire: unclean, unfurnished except for the bare minimum, nonfunctional just about everything, broken plumbing, electrical code violations, an unsecured property, constant noise intrusion, and just filth and a general state of advanced decay. The owner was clearly trying to milk it for cash while dodging responsibility. Trying to get some satisfactory resolution from Airbnb has turned into a nightmarish quagmire.

[williamyejun]

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

[DonaldMark-nese]

I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.

[kelvinjohnson]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[jameswood]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[gingerkilkus]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[bigd]

Market crashing doesn’t matter unless you’re selling….or refinancing (unless using IRRRL then it doesn’t matter)

[sophiewu]

I bought my first house in 2018. My co-worker told me that the market was so high n it wasn’t a good time to buy. Then I bought my second house in 2021. Another person told me that the market was gonna crash soon. Now I’m glad that I have a place to live in without paying insane interest or rent. N I also have rental income coming as a second income.

[CliveBirse]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio

[ClementRusso]

I anticipate a housing market downturn due to the numerous individuals who purchased homes above the asking price, even with favorable interest rates. Despite the low rates, many are now at risk because they lack equity. If housing prices continue to decline, they may face difficulties selling or even risk foreclosure if they can no longer afford the property. This scenario is likely to impact a substantial number of people, particularly with the anticipated surge in layoffs and the rapid increase in the cost of living.

[JefferyDuns]

Housing crisis triggers a market crash or a financial crisis, it could send shockwaves through the stock markets worldwide. I’m worried about my investment of over $600K stocks. Is this a time to consider diversifying my portfolios?

[thomasmorrison]

You give excellent advice. So practical. I hear so many people giving bad advice including friends and relatives. We did exactly as you suggested. Qualified for 450k back in 2002, bought a house for 300k. Fired two realtors who refused to show us homes for 300k and insisted on showing us 450k homes. Now, I own two paid off homes. One I paid 300k, the other I paid 530k. The 300k home is now about 600k and the 530k home after 100k renovations is about 1 million. Keep up the good work.

[Evelyn]

This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.

[bobbymainz]

With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.

[frozenpride]

That's what I keep telling people who are telling me to buy now and just refinance. Refinancing is not going to be that easy when your house goes down 80k in value.

[treyatl]

25 percent of your net income going towards your mortgage is ideal but isn’t all that practical with todays interest rates and home costs. If the median household gross income is $75k, then the net income is approximately $56, 000. That means the typical family mortgage needs to be between $1100-$1200. It’s hard to rent an apartment for that amount let alone purchase a house.

[christyp]

We purchased a home at a high DTI, I was not able to work due to pregnancy complications needed to be on bedrest. We were extremely stressed and living paycheck to paycheck. We sold this home after less than a year losing all of our downpayment and getting a check of about 5k back. We now want to buy again but with a mortgage that one of us could pay alone if an emergency happens. Living paycheck to paycheck is never worth it. We are now happily renting and waiting to buy below our means when we are able to save for the downpayment again.

[feguensdouze]

I can’t thank you enough This is the best video I have ever seen when you said: 15:00-15:53 “it will never be the right time to buy” that means a lot. I hope your video work with the algorithm and share it with everyone. Many need to eat this

[DanTheMan]

I’ve already bought my house, but I still like to watch your videos because they make sense and I like to share these vids with my friends and family.

[OroborusFMA]

I just sold my late parent's house for 375k. It was valued at 260k five years ago. I wanted to get the closing done as quickly as possible because I'm convinced the market will tank soon. If not now, six months from now, the house isn't going to be worth close to 375k.