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(CNBC)   The home equity you thought you had in your home has been reduced by a record amount. Don't worry, it will be reduced again next month and the month after and the month after that   (cnbc.com) divider line
    More: Obvious, Mortgage, Real estate, U.S. home prices, Mortgage loan, new report, Gain, Home prices, June gains  
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823 clicks; posted to Business » on 27 Sep 2022 at 11:05 AM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



34 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-09-27 9:33:19 AM  
FTFA: Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% gain in the previous month, according to the report.
 
2022-09-27 9:47:43 AM  

TwoHead: FTFA: Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% gain in the previous month, according to the report.


Those are July numbers... weekly cancellations soaring... mortgage rate soaring... fear index soaring...

When we finally get September numbers, three months from now, we'll know where we were then..  now.

I love these backwards looking numbers!
 
2022-09-27 9:56:34 AM  

NewportBarGuy: we'll know where we were then..  now.


I need to know where I was then now before after!
 
2022-09-27 10:00:03 AM  
Y KANT SUBBY MATH?
 
2022-09-27 10:08:39 AM  
I didn't think equity held would go down unless the price of the home went down... or you cashed some out or something.

Learns something new every day.
 
2022-09-27 10:39:20 AM  

NewportBarGuy: TwoHead: FTFA: Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% gain in the previous month, according to the report.

Those are July numbers... weekly cancellations soaring... mortgage rate soaring... fear index soaring...

When we finally get September numbers, three months from now, we'll know where we were then..  now.

I love these backwards looking numbers!


If prices stop soaring then housing will become affordable. Is it really the end of the world if prices don't go up double digit percentages year over year? Only asking because you folks are in that other thread complaining about prices going up :p
 
2022-09-27 10:50:31 AM  
HOME PRICES ARE TOO HIGH!
HOME PRICES ARE TOO LOW!
 
2022-09-27 11:00:06 AM  
But...but...but this is going to hamper my plans of making my home equity work for me by using it to purchase things I need like an 85 inch OLED and a new Hellcat before they get rid of the gas engines next year. Damn this economy. DAMN IT TO HELL.
 
2022-09-27 11:15:20 AM  
I just hope everyone who bought with under 20% down took advantage of the bubble inflating to ditch their mortgage insurance. What a racket that is.
 
2022-09-27 11:18:07 AM  
My home "equity" is I have a place to keep my stuff. That is unchanged from last month. Unchanged from last year. Unchanged for the last 5 years. Experts predict this will be unchanged next month, and the month after that, and the month after that, and so on.

The only reason you should be watching month to month changes in housing prices or mortgage rates is if you are actively looking to buy or real estate/mortgages is your job.

Otherwise, I understand why a business news network would report this stuff, but most of us can completely ignore these numbers.
 
2022-09-27 11:21:29 AM  
On the flip side, I doubt we're going to see a flood of home sales any time soon because nobody wants to give up their fabulous mortgage rate, especially given how high a new rate will be. That will contribute to a continued limited supply, which will help keep prices up.
 
2022-09-27 11:31:52 AM  
I bought in late 2020 for just over 400k.it is worth near 500 now. My house has gone up by as much as I paid in rent in 6 years for a much smaller place. Whatever we can do to make home buying affordable so people don't pay that much in rent for 15 farking years like I did would be great.
 
2022-09-27 11:32:00 AM  
Had a buddy try to beat the market, and failed.  He is moving this weekend into a new build.  The issue.  The house appraised $30k less than the contract price of the house that they started building last year.    He did sell his old house but after 2 price cuts.   So even before he moves in he is underwater $15k in the new house, after getting the builder to come down.
 
2022-09-27 11:33:50 AM  
People forget that mortgage interest rates were as high as 18% back in 1981, and above 5% as recently as 2010.
Their short memories will make buying a house easier for some as people are dropping asking prices from the insane levels of just a few months ago. Where I am back in March houses that were appraised at $140-150K for property tax were being priced - and sold - for $240K+. Those prices are slowly creeping back toward their assessments, which is close to where they sold just two years ago. Not all, but I can only speak for the local market.

Marry the house, date the rate. Refinance later.
 
2022-09-27 11:37:23 AM  

TwoHead: NewportBarGuy: TwoHead: FTFA: Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% gain in the previous month, according to the report.

Those are July numbers... weekly cancellations soaring... mortgage rate soaring... fear index soaring...

When we finally get September numbers, three months from now, we'll know where we were then..  now.

I love these backwards looking numbers!

If prices stop soaring then housing will become affordable. Is it really the end of the world if prices don't go up double digit percentages year over year? Only asking because you folks are in that other thread complaining about prices going up :p


No. HELL NO!

We need prices to come down. It's just that people have sucked out a lot of equity, and base a lot of things on home value and all that sh*t. It's going to cause pain for people who are not doing it right.

It should be good, in the long run, for people who want a home. But I don't think it'll crash. Just slowly deflate over time.

We'll see.
 
2022-09-27 11:50:43 AM  

rewind2846: People forget that mortgage interest rates were as high as 18% back in 1981, and above 5% as recently as 2010.
Their short memories will make buying a house easier for some as people are dropping asking prices from the insane levels of just a few months ago. Where I am back in March houses that were appraised at $140-150K for property tax were being priced - and sold - for $240K+. Those prices are slowly creeping back toward their assessments, which is close to where they sold just two years ago. Not all, but I can only speak for the local market.

Marry the house, date the rate. Refinance later.


VA roll over FTW, I've owned my house since 08. Bought it out after my divorce in 2012 with a VA loan, pulled 100% of the value in 2016 for a massive reno and rolled it twice since then for 1% lower apr each time. I'm still paying right about 1000 a month for a house valued around 300k in todays market.

VA rollovers require no credit,/income checks or home appraisal/inspection's just a closing fee and a new lower apr.
 
2022-09-27 11:51:06 AM  
We applied the "sweat" equity from the last house, a serious fixer, to our current house. We have a huge buffer between the mortgage and market.  If this is your first house, you made a minimal down and stretched your budget to buy, you'll be hurting. A story that gets repeated every ten years or so.
 
2022-09-27 12:04:38 PM  
Oh no, my property tax will go down.
 
2022-09-27 12:07:12 PM  

Gyro the Greek Sandwich Pirate: Oh no, my property tax will go down.


In my experience, they just raise the % taxed to account for the home value drop and they always make sure they get their revenue.
 
2022-09-27 12:14:19 PM  

tobcc: Had a buddy try to beat the market, and failed.  He is moving this weekend into a new build.  The issue.  The house appraised $30k less than the contract price of the house that they started building last year.    He did sell his old house but after 2 price cuts.   So even before he moves in he is underwater $15k in the new house, after getting the builder to come down.


th.bing.comView Full Size
 
2022-09-27 12:16:33 PM  

Gyro the Greek Sandwich Pirate: Oh no, my property tax will go down.


NewportBarGuy: Gyro the Greek Sandwich Pirate: Oh no, my property tax will go down.

In my experience, they just raise the % taxed to account for the home value drop and they always make sure they get their revenue.


Mine will Continue to go up, they will say that it still isnt caught up to the "current"  value.  Course they can only raise my valuation by 5% a year, due to state law, so my taxes will be going up for years no matter what happens.
 
2022-09-27 12:16:45 PM  

Gyro the Greek Sandwich Pirate: Oh no, my property tax will go down.


Nah, subby's just an idiot (or a Republican, but I repeat myself).  Values didn't go DOWN, they just didn't go UP as quickly as they did last year...
 
2022-09-27 12:20:12 PM  

natazha: We applied the "sweat" equity from the last house, a serious fixer, to our current house. We have a huge buffer between the mortgage and market.  If this is your first house, you made a minimal down and stretched your budget to buy, you'll be hurting. A story that gets repeated every ten years or so.


Not really. You'd only be hurting if you're planning on selling. Equity is meaningless to anyone not selling or borrowing even more money.

I've got approximately $150k in equity on my house, but it's my house, and I'm not looking to borrow against it, so that $150k doesn't actually exist. I've got a reasonable mortgage payment at a damn-near-free rate (even though we only put down 10% initially), so where's the hurt? Even if we were under water, we'd still have that same payment at that same rate, and a house to live in.

The only people hurting are those who are in the business of real estate (or are trying to move). The people who over-financed aren't hurting from lost equity - those loans already exist. Don't take out loans you can't afford, regardless of promises or FOMO.

Housing prices need to come down, but they aren't moving around here. Total lack of supply, and with the rate hikes, construction is cooling off a bit as well. Not to mention some really stupid zoning decisions preventing high-density housing in most areas. Portland is going to stay farked for a long time.
 
2022-09-27 12:27:46 PM  
Equity? Is that a side dish to go with my avocado toast brunch?
 
2022-09-27 12:32:44 PM  

Petit_Merdeux: NewportBarGuy: we'll know where we were then..  now.

I need to know where I was then now before after!


How can you be in two places at once when you're not anywhere at all?
 
2022-09-27 1:27:50 PM  
All part of the plan.

Sell your home to BlackRock before it is too late.  If you don't sell to BlackRock it will be condemned and eminent domained to BlackRock

Problem solved
 
2022-09-27 1:57:41 PM  

FlashHarry: HOME PRICES ARE TOO HIGH!
HOME PRICES ARE TOO LOW!


Older home owners: my kids can't afford a home!
Inflation: here ya go.
Older home owners: not like that!
 
2022-09-27 3:55:15 PM  
Pictured: The Fed bringing the economy to a soft landing.

Fark user imageView Full Size
 
2022-09-27 5:04:53 PM  
Note the use of the word "deceleration" in these stories. Not "decrease", but rather "deceleration".
 
2022-09-27 7:28:13 PM  
All it said was the rate of increase in the home's valuation has decreased from last year. The home's valuation is still increasing. It's just not increasing as fast as last year or earlier this year. Ho hum.
 
2022-09-27 10:49:16 PM  

TwoHead: NewportBarGuy: TwoHead: FTFA: Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% gain in the previous month, according to the report.

Those are July numbers... weekly cancellations soaring... mortgage rate soaring... fear index soaring...

When we finally get September numbers, three months from now, we'll know where we were then..  now.

I love these backwards looking numbers!

If prices stop soaring then housing will become affordable. Is it really the end of the world if prices don't go up double digit percentages year over year? Only asking because you folks are in that other thread complaining about prices going up :p


It's just a question of who you want 'to win'/benefit financially.

Cheap housing is great for people who don't own houses....but awful for people who just bought during historic highs.
 
2022-09-28 12:34:06 AM  

mcmnky: My home "equity" is I have a place to keep my stuff. That is unchanged from last month. Unchanged from last year. Unchanged for the last 5 years. Experts predict this will be unchanged next month, and the month after that, and the month after that, and so on.

The only reason you should be watching month to month changes in housing prices or mortgage rates is if you are actively looking to buy or real estate/mortgages is your job.

Otherwise, I understand why a business news network would report this stuff, but most of us can completely ignore these numbers.


I have no intention of moving but I rent out rooms in my place, I'm down one roommate with the second leaving soon. I need at least one roomie to break even here. Got a lot of depression debt I'm grinding out, otherwise I wouldn't need roomies at all.

If I get in trouble the plan is to sell the joint. So as long as I get enough out of it for the next place I really don't give a flying fark. And shiat would have to really go sideways for that to happen. There's roughly $26K difference between what I owe on it and what I bought it for and with the market being nanners the highly dubious Zillow estimate says it's value is about $90K up from what I paid for it.

If that were to hold selling the place would mean having enough to polish off all my problematic debt in one shot and having a little bit left to make a down payment on a smaller place.

So I keep track of it for that. But hopefully it all stays academic, I have a nice place to live, and I take another handful of years renting out rooms to get out of hock.
 
2022-09-28 7:12:16 AM  
Good!  House prices are to high.
 
2022-09-28 11:11:08 AM  

rewind2846: People forget that mortgage interest rates were as high as 18% back in 1981, and above 5% as recently as 2010.
Their short memories will make buying a house easier for some as people are dropping asking prices from the insane levels of just a few months ago. Where I am back in March houses that were appraised at $140-150K for property tax were being priced - and sold - for $240K+. Those prices are slowly creeping back toward their assessments, which is close to where they sold just two years ago. Not all, but I can only speak for the local market.

Marry the house, date the rate. Refinance later.


Yeah, I remember my parents buying a house (either their first or 2nd) for under 50k back in the late 70's early 80's and paying credit card rates, I wanna say around 17%. I've been lucky every single time I've bought a house. Never paid more than 4.5%, and always bought under market value, as I buy fixer uppers and put sweat equity in them. Last house I sold in 2020, I got lucky and sold cash to a gentleman who's grandkids lived 3 houses down. He was a widower with COPD, and had the cash without having to be seasoned. I knew what I was gonna ask on the market, about how much I would get beat down, and how much realtor fees would be, so we came up with a number that we were both happy with, and the sale cost me exactly $150 to rent the title office, he paid for inspections and title search. Saved ~10k in realtor fees and months of hassle. Got into the new house at 3.125% locked and bought 30k under any other house in the neighborhood. Remodeled master bath, gutted and re-wired , insulated, rocked up basement, remodeled basement bath/laundry room, put up a fence, and am about to tear out a wall and remodel kitchen. I figure I could sell for almost 100k above what we paid for it 2 years ago. I can't imagine being upside down in this market, but I see it on the brand new "half million dollar" homes (read actually worth 260k with shoddy construction, but in a booming marketplace) ALL of the time.
 
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