dominos effect to housing ?

[Pavanonline]

9 minutes ago, chandrabhai7 said:

Another reason major correction or recession is for sure

now the reason for raise of home prices they are saying it’s low inventory what happens when inventory goes up. No one will answer that.  When you buy 700K it’s ok if the home price doesn’t go up that much but the moment it goes down let’s say 650k people see this as big loss because you are paying interest on 700k @5%. It may not like immediate recession but pekA medalu alane start avtay

How will inventory go up? It’s your assumption it will. And nothing is loss unless you sell it. I’m not buying a house to sell it but to stay it next year. Only people who will have problem is someone who wanted to flip it. Even they can rent the home if they can’t sell. Corrections happen every  3 to 5 years, that is normal 

[sureshkonda]

1 minute ago, a_sagittarian said:

Why should they ? House price should be affordable to every one right. India la tayaravtundi enti

we live in a capitalistic world bro. nee house value future lo 50% perigithe nuvve kush aythav. appudu leni badha ippudu enduku ?

[Spartan]

[andhra_alludu]

1 hour ago, sage said:

Many people saying 2008 wont repeat they have taken care.

The problems in any field , personal life and things are like variants of corona, you give vaccine for one variant , new one is born.

The major measurement by banks is not giving loans to induvial to buy multiple homes. Last time they gave loans without salary and proper credit checks and that was major disaster as even $10 per hour person also bought multiple homes and was not able to pay loans. this time that might not happen.

 

1 major problem i see is the inflation is rising other costs in home by multiple times and low income areas might be the most effected. 

2nd if the housing interest rates increase,  many might not qualify for loans as their premiums go up.

3 rd people who invested in stocks their portfolios became half, how are they going to pay down payment and close houses.

4. what happens to bank loans if the value of house decreases in future.

 

 

Title chusi nenu inka Dominos Pizza valla housing market debbatintundi emo ani vachaa..

[a_sagittarian]

After 2008 revision, All banks got diversified. I think whoever is buying houses now are pretty much able to repay the loans irrespective of market. But they might foreclose only if the market keeps going down which is not likely. 

[a_sagittarian]

8 minutes ago, sureshkonda said:

we live in a capitalistic world bro. nee house value future lo 50% perigithe nuvve kush aythav. appudu leni badha ippudu enduku ?

I would be more happy to see every hard working man able to afford a decent home. If it becomes tough for most Americans to afford house next malli reps vastaru. Apudu 2 kadu kada okka job ki koda edavali manam. 

[chandrabhai7]

37 minutes ago, Vaampire said:

Even i want to know.

okka pani cheddam. Time machine kanipetti 2025-30 ki velli vadham. Full clarity vasthadi.

jokes apart, 2008 kind of thing is not possible now. But 10-15% correction is possible. Depends on inventory too

Sare ba 800K house meda 15% oka illu paditey what’s common reaction of householder who still have to pay 750K principal + 5% interest. Foreclosure start that way 

[chandrabhai7]

37 minutes ago, Pavanonline said:

How will inventory go up? It’s your assumption it will. And nothing is loss unless you sell it. I’m not buying a house to sell it but to stay it next year. Only people who will have problem is someone who wanted to flip it. Even they can rent the home if they can’t sell. Corrections happen every  3 to 5 years, that is normal 

2011 tarvata correction raledu 

[AreyOSamba]

1 hour ago, sage said:

Many people saying 2008 wont repeat they have taken care.

The problems in any field , personal life and things are like variants of corona, you give vaccine for one variant , new one is born.

The major measurement by banks is not giving loans to induvial to buy multiple homes. Last time they gave loans without salary and proper credit checks and that was major disaster as even $10 per hour person also bought multiple homes and was not able to pay loans. this time that might not happen.

 

1 major problem i see is the inflation is rising other costs in home by multiple times and low income areas might be the most effected. 

2nd if the housing interest rates increase,  many might not qualify for loans as their premiums go up.

3 rd people who invested in stocks their portfolios became half, how are they going to pay down payment and close houses.

4. what happens to bank loans if the value of house decreases in future.

 

 

2. Loan limits pecharu vayaa. They are also planning to experiment 40 year loan to get the payments down.

3. Stock portfolio ammi evadu monthly payments kattaru vayya. Morthly mortgage payment ki money vuntey loan istadu vayya. nee stock portfolio ni they dont care. 

4. It was taken careof during the underwriting stage. Adnukey appraisals realistic vuntay . they don't hype like Zillow or Redfin.

[chandrabhai7]

Anitiki moolam jobs. Jobs cut down start aytey automatic ga recession start avtadi migatha di Antha light 

[no01]

2 hours ago, chandrabhai7 said:

Anitiki moolam jobs. Jobs cut down start aytey automatic ga recession start avtadi migatha di Antha light 

this is true.....Job cuts lekapothe, I think recession wont happen. Correction ok le, ppl can survive.

if your 800K house is now worth 750K or less, nuvvu panic lo sale cheyyavu kada...agreed u are paying loan for 800K worth, but as long as u hold job, u will keep living in that house....inko few yrs lo malli back 800K or more ki velthadi pakka. 

 

[LadiesTailor]

4 hours ago, sage said:

Many people saying 2008 wont repeat they have taken care.

The problems in any field , personal life and things are like variants of corona, you give vaccine for one variant , new one is born.

The major measurement by banks is not giving loans to induvial to buy multiple homes. Last time they gave loans without salary and proper credit checks and that was major disaster as even $10 per hour person also bought multiple homes and was not able to pay loans. this time that might not happen.

 

1 major problem i see is the inflation is rising other costs in home by multiple times and low income areas might be the most effected. 

2nd if the housing interest rates increase,  many might not qualify for loans as their premiums go up.

3 rd people who invested in stocks their portfolios became half, how are they going to pay down payment and close houses.

4. what happens to bank loans if the value of house decreases in future.

 

 

Point 3 kummudi baa… as it takes to six to nine months to reflect stock market on real estate… fall is the time where we can some correction in real estate 

[chandrabhai7]

1 minute ago, no01 said:

this is true.....Job cuts lekapothe, I think recession wont happen. Correction ok le, ppl can survive.

if your 800K house is now worth 750K or less, nuvvu panic lo sale cheyyavu kada...agreed u are paying loan for 800K worth, but as long as u hold job, u will keep living in that house....inko few yrs lo malli back 800K or more ki velthadi pakka. 

 

Ala undadu ra. Okka 1% stops paying their mortgage then banks will face pressure 

[no01]

2 hours ago, chandrabhai7 said:

Sare ba 800K house meda 15% oka illu paditey what’s common reaction of householder who still have to pay 750K principal + 5% interest. Foreclosure start that way 

800K house 700K ke padina emi kaadu...this is temp. and malli 4 - 5 yrs lo it will come back to original price and it may get appraisal too...as long as u dont sell ur house, u wont see the loss. If u hold ur job, u still continue paying EMI's for that 800K itself...couple yrs lo interest rate padochu malli, u will re-finance and appudu 700K worth ke EMI kattuko.

u will see loss only when u sell...market down unte, ppl will hold on to their house.....again, its job market which is crucial 

 

[chandrabhai7]

1 minute ago, no01 said:

800K house 700K ke padina emi kaadu...this is temp. and malli 4 - 5 yrs lo it will come back to original price and it may get appraisal too...as long as u dont sell ur house, u wont see the loss. If u hold ur job, u still continue paying EMI's for that 800K itself...couple yrs lo interest rate padochu malli, u will re-finance and appudu 700K worth ke EMI kattuko.

u will see loss only when u sell...market down unte, ppl will hold on to their house.....again, its job market which is crucial 

 

Nuv chepte concept baundi kani when crunch situation like job loss vaste automatically things will change.  Note not everyone in IT