Comments by "worn down" (@worndown8280) on "Core Logic Negative Equity Map" video.

@ShinkuGouki They are always stubborn at first. But when you are a house flipper having to pay a mortgage every month eats into your profit margin. A lot of houses out there on the market are flips. When they have to drop their prices to sell in a timely manner it pulls down prices for the normal joe as well.
2
That doesnt include bond measures, only assessed value. So if a county or city doesnt get the money it needs from that assessed value it just throws bond measures on the ballot. They get you either way. But you "feel" protected.
1
@eric3969 ballot measures have bonds in the very often. 2% increases my ass. Lol
1
People forget the number of flippers in 2005-2008 time period. These people drive up the price of real estate. The smart ones get out early. The greedy ones are always left holding the bag. On the street behind me in California over 50% of the new homes built were all bought by house flippers. They sat empty for two years.
1
@Pilostudio Yea thats sad. I mean by the end of that time period everyone and their cousin where trying to flip homes. I do feel bad for the people who did it for like a normal job and not as a get rich quick scheme. Those cable home channels made it seem like easy money.
1
@Tony-hx2fj Housing has inflated because of demand. There is no more demand. Demand for all goods peaked in 2019. Demography tells all. Housing will return to the deflationary asset it was prior to WWII.
1
@Tony-hx2fj I actually bought in Dec 2007 in Northern California. the house was valued at 510k, I bought it for 216k. DR Horton just wanted to close its offices so took the loss. My house dropped in value to 165k. Those were good times. When I sold it in June of 2020 it sold for 505k. Got the hell out of that state. You are right about people who use their house as a piggy bank, which they cant do anymore. Those folks are going to be some of the first to go down, they have to be so way over leveraged it isnt funny.
1
@Tony-hx2fj Dont say that, let me dream a little. lol
1
Adjustable rate mortgage use is through the roof. Also a lot sold their previous home and then with that extra added equity could pay higher down payment for the new home. Its not sustainable. Higher house prices are required for there to be people with enough money to purchase. Since the market is now flat everything has stalled so no new houses will be sold without price drops. And new constructions are giving all sorts of discounts. But like always home owners who are selling dont want to do that. So they hold out but then the market starts its downward track and they lose even more by holding out for top price. Finally there is acceptance of price dropping then its a race to the bottom. People needing to sell will drop prices more so that their house sells Finally when all demand is met prices stabilize. This is the same thing that happens in the stock market. Also this isnt even taking into consideration how bad this recession is likely to be and with the number of people losing their jobs it could very well be a blood bath in the housing markets. Any one who thinks they know cant really. it could be 10% to 60%. But right now it looks like its the calm before the storm.
1
Name the large investment companies that are buying up all the houses. Last year Blackrock only bought 2000 homes. Now they are hemorrhaging money. It wont be long before they start liquidating assets for capital.
1
@Kurplode Blackrock is saying that but they are having so many pull out of their investment funds its not even funny. Not to mention their exposure in China is getting them utterly wrecked since they are a foreign company and back of the bus for any compensation.
1
@AA-Crow you mean in the areas with the highest real estate cost increase, Charlotte, Atlanta and Dallas... let's see how it works for them. They are going to be taking a hair cut just like everyone else. If you don't think so you should invest in them. You probably don't know how many homes those companies own each. Just parroting other people.
1