One weird thing is that our investments research guys are pushing high yield as a great opportunity because of the “attractive” pricing. Seems like a high risk of widespread defaulting though.
The banks don’t want to be strict on or take aggressive positions against their borrowers because it would cause massive stress across the economy, other banks would do the same and all of the banks’ assets values would collapse eventually leading to their own demise.
But in normal times the regulators would tell the banks they are getting lax and allowing risk to accumulate to an unacceptable level if they engaged in the exact same behaviors they are engaging in now when the risk is piling up higher than ever.
Even less than 24 hours later I feel like we dodged a bullet not going into contract. Buying a house right now is a negative freeroll, the asset is either going to be worth the same, less or much less in 3-6 months. It will almost never be worth more in that time frame.
Pretty much responding to all of the last 25 posts but if you don’t think we are going into a massive economic disaster/contagion situation I think you are kidding yourself. 18 months of a severe disruption to world economies fucks everything because literally nothing was remotely on stable footing prior to this. Even if it was this would be the greatest economic disaster in modern history.
It’s one reason we are literally having the how many people are worth killing to “save” the economy question. We all knew the “booming” economy was fan fiction in January and everyone is in different stages of grief dealing with our new reality.
Yes, don’t know what you were thinking, lol. We bought our first apartment in January and the only reason I don’t massively regret it is it’s a big upgrade as a place to quarantine 23/7 compared to the place we were renting.
We’re moving from a shitty place to a great place and got too emotionally invested. The sellers saved us from ourselves.
Is selling your old place quickly for 5% below January value an option?
It would most likely be a lot more than a 10% decrease in the value of mortgages. Many mortgages would become worthless.
Probably, but the new house is 2.5x the price of the current house.
Sell current house now before housing armageddon hits
Rent a place for a year
Buy a new house for 50% of it’s current value when 25% of the country defaults on their mortgage
???
Profit
I think standing pat is a way more sensible move than selling and trying to rent a place for a year.
Would selling the place mean realtors and buyers come touring the place where his family is living? Does that sound safe? Or would it mean moving out first, renting a place then listing it. Which involves paying both rent and a mortgage in a market that is semi-frozen? Doesn’t seem like a smart option. If housing declines a lot, the spread between value of his current house and future house should decline so he wins by just standing pat. They also don’t deal with the cost of two moves or decisions on whether to deal with movers touching all of their stuff in these times.
maybe it’s time to stop judging Presidents based on how the stock market did while they were in office.
Where do you go the other hour each day?
This picture is a better representation but I saw the same thing on Thursday. WaPo open in a browser tab with the top headlines “worst jobless rate since great depression” and just below “fed chair says economy is deteriorating with alarming speed.” Meanwhile market up 3% on the day. 
Ty for this because I’ve been tempted to fall into the same trap. In a world without covid I would’ve been pulling the trigger on a home purchase this summer. There’s a great house I’ve been watching that fits a lot of usually mutually exclusive items in my wishlist but I get the impression that there’s going to be a wide gulf between my bearish outlook on the market and the seller’s need to continue believing their house is still worth what they’re asking. I kind of want to buy it anyway because it would be a major life upgrade, I think I’ve got good job security, and I need to make some kind of housing move either way but I’m almost sure the smart move is to wait.
Yeah the super-annoying part of this process is that nothing but time is going to convince sellers that their houses aren’t worth what they were in February, 2020. The only thing I can do as a buyer is wait for reality to set in. Which is super annoying because we have to move in time for the school year to start, so we may end up overpaying anyway.
Just rent for a year. You already know this because it’s obvious.
Home lenders brace for up to 15 million mortgage defaults
The people ITT telling you to sell and rent are exactly why a crash is inevitable. This is different than the fundamentals that led to the last housing crash, but perception is reality.
So that’s why buying a home at this exact moment in time is definitely the wrong move. There will be plenty of houses on sale in a year or two, and the loss you eat on your current one will be more than covered by that future discount. I was that idiot who bought in Summer 2006 and saw a 50% drop in value the next few years.
I accidentally did my cashout refi last week at what is likely the absolute top of the market near term. Now I can turn the proceeds from that into $10 million with the help of the geniuses at r/wallstreetbets. Just do the opposite of what they do.
Yeah… ‘perception’ is what has held housing prices as high as they were 2 months ago. Reality is what’s about to happen to those prices.
I suspect selling puts and calls (there are plenty of people advocating buying both on wsb) is a terribad idea in this environment… the BRM is basically impossible with this level of volatility.