I know I’m supposed to want it to keep going up as a wealth generator or whatever.

But like… I wouldn’t be able to afford the monthly payments if I bought my house right now and it’s scary. Also none of my friends are buying homes, none of them are even renting full places. Just like renting rooms.

So what are your feelings home owners of lemmy?

  • ericbomb@lemmy.worldOP
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    1 year ago

    I mean we had those same situations, and we still had the collapse of the housing market in 2008 in the US, because everyone defaulted on loans at once on overinflated houses, then houses shot back to proper value. Losing an estimated 25% value.

    So it just feels like that might happen, because housing prices are soaring and interest rate is so high. So I mean, if it happened once in similar situation, it doesn’t seem unreasonable to say it might happen again.

    • SaratogaCx@lemmy.world
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      1 year ago

      One of the major things that is different is that loans are a lot different from what kicked off the '08 crash. We didn’t see a flood of interest only, 5/1ARM or other exotic lending setups. Yes, there are some out there but they aren’t as large of a slice of the market. Banks have to keep more capital than when WaMU crashed and we even saw some larger regional banks fail this year with only a rather minor impact outside of SV angel investor lending.

      This isn’t going to be like '08, There would need to be a major situation to cause house pricing to fall like a depression level downturn or industrial level of house construction destabilizes the market.

    • Takatakatakatakatak@lemmy.dbzer0.com
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      1 year ago

      In what way did the housing market collapse? The only thing that changed was the availability of irresponsible loans to people that can’t afford them. Tighter regulation of lending.

      The effect on housing prices was a mere blip, and banks are back to their old tricks again. You’re right about the same crisis repeating: there’s more packages of bad debt that have been sold and re-sold as if they have any value, this will almost certainly come home to roost again but on a longer timeline it’s not something that will ‘fix’ the global housing crisis because supply:demand has not changed in any meaningful way.

      If you are a private investment company with wads of cash, you’ll take advantage of the temporary instability and buy up massive amounts of private land and housing. Problem just gets worse in the long run because we keep propping up the system that rewards this behaviour.