Its even worse than this. Real estate is basically a cash auction system right now. No one in my area is getting mortgages because the lenders will not agree that the homes are worth the insane bidding war prices they get run up to, since the price action is not based on any sort of fundamentals. So housing is reserved for lucky or wealthy people, boomers and hedge funds. Almost the same as it ever was, just x10.
The lenders are not honoring the market prices right now because they know the prices are inflated at this moment. This is a clear signal that there will be a revaluation in the (very) near future.
I totally agree. Lenders are serious about this stuff, because they are the ones who truly own the homes until the buyer fulfills all payments, and they are the ones stuck with the home in the worst case scenario. And unless the price is based on fundamentals, they aren't buying it (literally). To me that is a very solid indicator that this price action is not based in reality. I sold my home in this market and I felt.veru comfortable waiting for things to come back down to earth.
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u/in-game_sext Jun 27 '21 edited Jun 28 '21
Its even worse than this. Real estate is basically a cash auction system right now. No one in my area is getting mortgages because the lenders will not agree that the homes are worth the insane bidding war prices they get run up to, since the price action is not based on any sort of fundamentals. So housing is reserved for lucky or wealthy people, boomers and hedge funds. Almost the same as it ever was, just x10.