Comments by "worn down" (@worndown8280) on "Home Prices PLUMMETING in These Cities" video.

@georgia777 If you own your house outright, how is that going to cause you to die poor?
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@nicolcacola because "appraisal contingency". That means all the risk is on him. What if the house doesnt appraise for 1.1 million but only 900k? Where you going to get that extra 200k from? If he waives if and it doesnt appraise he either cant get a lone and as to walk away paying a penalty, or he has to find someone who will loan him money for more than the asset is worth.
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In East Tn we are seeing houses that are appropriately price go fairly fast still, but the ones with 40 year out of date features or need a lot of work cant ask the same prices as they did even 6 months ago. Typically seeing 40-50k price reductions before selling.
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@georgia777 If you are living in it the rest of your life how is its potential value any concern? Real estate, like any asset class can be an investment. Thats not what you as some who lives in it should be looking at. Especially since you own yours outright, as you said on another post. Its just a place to live. Now that may mean you may not have as much in valuable assets to transfer to your heirs but that doesnt make you poorer. Unless you intent to sell your house in a down market. In fact it might make you more money because when your property gets re assessed it will be at a lower value, thus reducing your property taxes.
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@donwhittaker5899 That only covers the assessed value. That doesnt do anything about bonds. Looking at my last property tax statement from when I lived in California the assessed value was only have the cost of of my total tax liability. The other half was county and school bond measures. Prop 19 doesnt touch them. Do you really think that the state wont just push more bond measures if they lack the desired revenue?
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@donwhittaker5899 Well, if you dont want to believe it thats fine. In most Californian counties the average costs of bonds on their annual property tax is 25-50% of the tax owed. If property values decline, the state will just squeeze money out via bond measures. Thats what they did in 2010-2015. And as you said you have been in your house for 28 years so your assessments have been capped. The average Californian cannot say that. You are in a much better position than they are.
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Dont forget taxes
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@ShayeSells Thats an extra 700 per year, not just once, every year. People can account for an upfront cost of a mortgage. Yes it will price some out, but nothing surprises a new home owner than the first tax bill. It adds up. As a former Californian who left I can attest to that. Your mortgage doesnt change, unless you have an adjustable. And then there are the rental buyers who dont get protections that live in owners do. Their taxes just scream up.
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New homes need to be sold because the builder has leveraged debt that needs to be pay off. So generally you will see a price correction in them first. Homeowners who actually own, often have an unrealistic emotionally based reason for their house being worth the price that they listed it for. Their house is good after all. So they tend to lower prices last, but often by then they have to really cut it deep. This was my experience in California, but I am in Tn now and I am seeing it here as well. New homes are starting to sit. That means price cuts will follow.
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@brz757 The Fed doesnt set the mortgage rate. Banks that lend set their own mortgage rates based on a number of criteria. If mortgage rates were the Fed rate they would still be at .5% instead of the 5% they are now.
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@seanneiberger4199 The Fed rate isnt 5%. You are conflating numbers. The Fed rate is .5%. There is no way that the Fed rate will get to 10%. I doubt they will get it to 3% let alone 5% before we have a deflationary crash we havent seen since the the great depression. And it if actually deleverages all its MBS's it will be even worse. If we get to 5% the Federal Government will have to start cutting costs and all the welfare people (disabled vets, farmers, the corporate lobby, single moms, military industrial complex, Medicare/Medicaid, and SSI pensioners) will all take a cut. 10% is fantasy land. People would be killing each other in the streets.
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@theorigin1891 You would be shocked at some of the prices in Nashville. We got 1 acre lots in Brentwood, a Nashville suburb going for 1.3 mil. House not included. But incomes here arent half what are in California. But LA has always been stupid high. I use to live in Nor Cal, so I am aware of the California dream. lol
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