Quote:
Originally Posted by ASAP
The problem with this is that it caused WAY too much accessibility into the market causing a major bubble... again, if everyone is cool with major asset growth, raised taxes, insurance and transaction costs... then so be it... just know those people are now stuck where they are... perhaps forever.
...also it seems like any sort of common sense flew out of the window in the past 5 years... folks bought houses that under normal circumstances they could never afford and effectively took supply from folks that in reality could...
Here a few scenarios that I saw in the past few years-
Guy trying to buy a 300k home w 15 down... turned out... he didn't even have enough for that 15k downpayment.... this is someone that should not even quality to buy a home.
Another individual going thru a VA loan that again didn't have anything down and was getting approved for a 430k home... the process took months by the way.
A cash buyer that lost a transaction for a few K to someone that had 10k downpayment but somehow got a loan for 5k more lol.
Any sort of common sense or reasoning flew out the window the past few years... there should be some sort of priority matrix to buying a home that qualifies buyers... it seems this doesn't exist as long as they have some job, like 15k down lol and some credit history... as a point of comparo, in most other countries, no one outside of the cash buyer above would even have access to a home... everyone else would have to live with a 10% rate lol.
|
Look at the chart posted a couple pages back. The market has pretty much steadily gone up since the 70s. You can see a mild bump with a mild drop around 1990 then the 2008 debacle. However both of those spikes don't hold a candle to that 2020 spike. The access to credit you mention would have also been an issue pre 2020, however while the market still went up, the massive spike was in 2020.