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(54,681 posts)
52. This is mostly a completely foreign language to me
Sat Jun 18, 2022, 05:57 AM
Jun 2022

Never having bought a house in the USA, I have little idea what most of this means. My two siblings bought the houses that they live in decades ago, one in Virginia, one in new Jersey. We bought ours here in Germany for cash--I had saved most of what I earned up to then--, as the wildly fluctuating exchange rate (I am paid in dollars in the USA) was a risk I wasn't willing to bear. That was in the bull market of 1990, so it cost me a fortune, and the high-flying dollar-DM rate was long dead after the high interest rates in the USA fall off their astronomical highs.

My only vague contact with the current real estate market in the USA was hearing about my nephew in northern California. He, his wife and their 10 year old son live in a tiny apartment in Palo Alto, where he was in school, and stayed on. They recently saw a half duplex in Oakland with bay views. It was listed at $1.7 million, which they can't afford, but my brother is retired with virtually no expenses at all, and he offered to help. In light of the current craziness, the owner was entertaining seal offers, based upon, but not limited to, the asking price. My nephew offered $2 million, which terrified him in case it was accepted. Instead of accepting my nephew's offer, the owner got an offer of $2.15 million and cash outright, instead of the financing my nephew would have needed. My nephew wasn't even second or third.

I guess his quality of life would have improved, except for the daily worry of how he was going to both pay for his house and put food on the table. It sounds like insanity to me, but his job is in that area, and he wants to keep it.

I don't even pretend to get the situation over there, which is probably more like 500 different local situations, anyway. My one daughter that lives in the USA bought, with her husband, a really nice, and very spacious apartment in New York City at the height of the Corona crisis. They paid a price which is maybe between half and two thirds of what it would have cost them now.

I am SOOOO glad to not to have to deal with all this!

According to news reports I've been following it's corporate investors who are in2herbs Jun 2022 #1
If you bought a house for 300,000 and its now worth 200,000 former9thward Jun 2022 #19
You only feel the effects of being underwater only if you go to sell. Otherwise you won't in2herbs Jun 2022 #40
+1 2naSalit Jun 2022 #31
That seems possible. MineralMan Jun 2022 #2
Recently Retired Nictuku Jun 2022 #34
I'm really interested in the Reverse Mortgage thing as well. Like you, I have no kids to leave.... Tarheel_Dem Jun 2022 #36
I have some friends who are very happy with their decision Nictuku Jun 2022 #37
One more thing... Nictuku Jun 2022 #38
The only way I plan to leave my home is if I can no longer climb stairs. After I read your post, Tarheel_Dem Jun 2022 #45
That makes me happy to hear this! Nictuku Jun 2022 #47
Things to look out for Nictuku Jun 2022 #48
I'll definitely keep good records. And I'll also definitely insist on paying my own taxes & ..... Tarheel_Dem Jun 2022 #49
Please do really serious research before you get conned into a reverse mortgage. BSdetect Jun 2022 #61
One important point for you to consider with a RM, Totally Tunsie Jun 2022 #50
In the high property and income tax states JustAnotherGen Jun 2022 #3
the only thing that will drop around here is the rate of escalation. maxsolomon Jun 2022 #4
This message was self-deleted by its author Mosby Jun 2022 #17
Already Timewas Jun 2022 #5
Is that a bad thing? Polybius Jun 2022 #6
I didn't mean to imply it's a bad thing for every person in every situation Hugh_Lebowski Jun 2022 #9
When I first started house-hunting, interest rates were over 17%... getagrip_already Jun 2022 #7
Okay, but were home prices/values on a generally downward trend? Hugh_Lebowski Jun 2022 #11
early 80's, you can look it up..... getagrip_already Jun 2022 #20
I agree, we bought in 1989 and the interest rates were HIGH - almost 11%. seaglass Jun 2022 #42
Let me guess - 1980? Retrograde Jun 2022 #18
It's happened before CanonRay Jun 2022 #8
We were much Tickle Jun 2022 #54
Your prediction is borne out by what looks like a huge bubble in the homeowners equity chart andym Jun 2022 #10
People kept buying houses even when rates were 10-12%. FloridaBlues Jun 2022 #12
I have the same reply to you as I did in post #11 above (nt) Hugh_Lebowski Jun 2022 #13
But that was back when you could deduct all of your interest. lindysalsagal Jun 2022 #53
My current house value is crazy inflated. Tommy Carcetti Jun 2022 #14
Same here ... Zestimate is about 130% higher than what I paid 7 years ago Hugh_Lebowski Jun 2022 #15
Us too, just about same %. Baked Potato Jun 2022 #32
The Zestimate on my home is 3x what we paid in 2000 ReluctanceTango Jun 2022 #39
Ours is too. nt Roisin Ni Fiachra Jun 2022 #59
In the 2008 housing crash many homes did lose significant value. mn9driver Jun 2022 #16
If it's a massive, practically overnight crash, those would be different conditions than what I'm Hugh_Lebowski Jun 2022 #21
that had a lot to do with liars loans and the crooked lending industry..... getagrip_already Jun 2022 #23
I hope to live everything but maybe my last hours of my life in my home. pwb Jun 2022 #22
values won't fall Johnny2X2X Jun 2022 #24
Yes, well ... simply put, most people aren't as smart as you :) (nt) Hugh_Lebowski Jun 2022 #30
AVG mortgage rates are at 5% where I'm at, values will NO DOUBT fall because the number of people uponit7771 Jun 2022 #35
Wealthy cash investors may be wary of the falling knife effect, when prices decrease andym Jun 2022 #25
We bought our current house the summer of 2012 crud Jun 2022 #26
Very smart Johnny2X2X Jun 2022 #28
The housing market is not driving the inflation Buckeyeblue Jun 2022 #27
It lowers demand Johnny2X2X Jun 2022 #29
Low supply of gas? No lines here. No stations closed like in the 70's. Captain Zero Jun 2022 #58
The only fly in this theory is that inventories are still at historic lows... JCMach1 Jun 2022 #33
If buyers are selling in droves, won't there be droves buying? onenote Jun 2022 #41
Exactly!!! Demovictory9 Jun 2022 #44
My theory here is institutional investors would be buying and trying to get people to lease their Hugh_Lebowski Jun 2022 #46
This message was self-deleted by its author WarGamer Jun 2022 #43
Yes, of course. And once again it's location location location. librechik Jun 2022 #51
This is mostly a completely foreign language to me DFW Jun 2022 #52
Prices aren't falling here in the Triangle area of NC any time soon. mnhtnbb Jun 2022 #55
What goes up must come down Mr. Ected Jun 2022 #56
Around here house rentals had disappeared and homes flew off the market Captain Zero Jun 2022 #57
Am I the only person in America who bought a house because I wanted to live in a house? NutmegYankee Jun 2022 #60
No. Raftergirl Jun 2022 #62
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