Real Estate Days on Market?

[kthompson]

bmg88201, Valid concerns. Here we get tons of them from the north and I will say the majority I meet are decent people and they are fleeing the liberal areas and their ideas. ​

 

[bnold]

There is a reason these are so popular here.
T-shirt’s, billboards, bumper stickers.

 

[ultrarunner]

Some believe it will not be a total repeat because few homes in this lead up were bought with no money or little money down...

The number of all cash sales has never been higher...

 

[2manyrocks]

Supposedly the payment to income ratio is as high as it has been since the 1980s. When high gas prices and inflation eat up discretionary income, but loan payments still have to be made, that squeeze is similar to what happened in 2008. Maybe it doesn't get as bad as 2008 because of increased equity in homes, but I can see some people regretting paying these inflated home prices.

Stock prices have fallen since the beginning of the year. I don't see real estate being immune.

 

[ultrarunner]

The last go around the checker at the local Safeway store is someone I got to know... he and his wife who cashier's at CVS bought 5 homes in two years... they would have bought more but they were maxed out on loans.

Basically sign and own with little down and almost no verification.

Come 2009 they lost it all except for the one bedroom condo they lived in which went short sale because they no longer wanted to live there.

I have not seen a repeat of liar loans and no doc loans this time.

Time will tell if equity makes a difference...

 

[2manyrocks]

All equity means no payments due to the bank so there can't be any late payments triggering a foreclosure sale putting downward pressure on home prices.

But overall, how many homes are paid off and how many have hefty mortgage payments because housing prices are 3-4x today versus what they were pre-2008? And it's not just larger mortgage payments that factor into this because the cost of most everything has gone up (property taxes, insurance, maintenance, food, etc) putting pressure on what people can realistically afford to pay for a home.

It's not a bad thing to have more realistic values. The bad thing happens when a market gets too hot to be sustainable and people get caught in the transition to something sustainable.

 

[ultrarunner]

Yep… Inventory up solid 20% and prices down slightly with days in market increasing…

The last 5 area sales were cash or at least 50% down.

The last sale of 1.4m with 1 million down payment.

Thing is 90 days have passed and it just would not bring as much today… the first 60 days were dumpsters of construction debris as the 1600 foot rancher remodeled from its original 1960 decor.

 

[check]

Prices in Toronto for June were still up 5% over June of 2021. Note that, here, even though you may take a very low rate variable, which in my case was 1.45%, you still have to qualify for the five year rate, which is of course much more. That provides a good cushion when the variable rates go up.

 

[2manyrocks]

6 month YTD mutual fund statements are out.

 

[CloverKnollFarms]

Mortgage rates this week saw thier largest one week drop since, wait for it…

2008

Due to the reality that we are in a recession, and the market is cooling.

Ive seen this story before. It’s time to buy things cheap.