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Fellow home owners, are you ready for the housing market to crash? (lemmy.world)

submitted 1 year ago by ericbomb@lemmy.world to c/asklemmy@lemmy.world

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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?

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[-] rip_art_bell@lemmy.world 30 points 1 year ago* (last edited 1 year ago)

The housing market isn't going to crash. We're at the highest mortgage rates in 23 years and it's STILL a sellers' market. The fact is, inventory being incredibly low + home buying being desirable for many == no reason for a crash. Even the Great Recession only resulted in a temporary price dip.

I know a lot of millennials and zoomers would LIKE for there to be a crash because they think it would let them afford a home. This is a false belief, though: if there were a major crash, it would likely be accompanied by a recession in the labor market too, so there goes your ability to pay for the house.

Also, it's not black and white. If house prices and interest rates cooled off, it would let me (a homeowner) refinance my mortgage.

Morever, there are benefits to home ownership outside of equity / profiting off a sale:

Tax benefits (I can deduct my mortgage interest and property taxes; can't do that with a rental)
Do what I want with my house -- customize, upgrade, etc.
No landlord to tell me what I can or can't do, or kick me out
For complicated reasons, there aren't many detached house rentals in my area, so owning a house means no loud, obnoxious apartment living -- this is the BIG one for me

https://finance.yahoo.com/news/housing-market-crash-experts-191734802.html---

[-] Edgelord_Of_Tomorrow@lemmy.world 8 points 1 year ago

This is the right answer.

Look at Europe. For many the closest you get to buying a house is a 99 year lease, and for the majority renting is normal. The main difference is that renters have many more rights so there's less reason to want to own for yourself.

[-] BigilusDickilus@lemmy.world 1 points 1 year ago

Out of curiosity who are you leasing from in that situation?

[-] Edgelord_Of_Tomorrow@lemmy.world 1 points 1 year ago* (last edited 1 year ago)

Landholders, many from families who have owned the land for centuries.

Just try to buy a house in any of Europe's historical capitals. They went through what we are now centuries ago.

this post was submitted on 29 Sep 2023

356 points (95.4% liked)

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