[HN Gopher] Housing markets are now set to 20%-25% home price de...
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Housing markets are now set to 20%-25% home price declines, finds
Moody's
Author : gamechangr
Score : 12 points
Date : 2022-09-25 19:57 UTC (3 hours ago)
(HTM) web link (fortune.com)
(TXT) w3m dump (fortune.com)
| lake_vincent wrote:
| Moody's is corrupt to the core, so I take anything they say with
| a grain of salt.
| Finnucane wrote:
| It'll be interesting to see what happens to inventory-for-sale
| numbers. Presumably the market won't be flooded with forced sales
| and foreclosures like 2009. One also wonders if the big corporate
| investors who have been hoovering up properties will choose to
| wait for the market to bottom.
| bombcar wrote:
| Inventory will climb, probably to pre covid or earlier numbers.
|
| Time on market is the one I'll be keeping an eye on, because
| that should be around 2-3 months. Longer indicates prices need
| to fall, shorter indicates that they have room to rise.
| justahuman74 wrote:
| Any chance this will touch the bay area prices?
| badlucklottery wrote:
| > Any chance this will touch the bay area prices
|
| The interactive map in the articles shows SF to be "overvalued"
| (but not "significantly overvalued") and it states SF home
| values are down 7.8% between May and August of this year.
| gruez wrote:
| I'm not sure what map you're looking at, but the first map
| (for 2022) shows that "san francisco-oakland-berkeley, ca"
| has a value of -10.17, which means it's _undervalued_. From
| the caption:
|
| > IF A HOUSING MARKET HAS A NEGATIVE PERCENTAGE, IT MEANS
| HOME PRICES THERE ARE LOWER THAN EXPECTED WHEN FACTORING IN
| LOCAL INCOMES. DATA FOR THE Second QUARTER OF 2022.
| pengaru wrote:
| I suspect anywhere there's substantial tourism/airbnb activity
| the prices have taken a bubble-like trajectory. And I don't see
| that abating, travel is only increasing. It'd require something
| like regulations reeling in the whole short-term rental business,
| or something else killing tourism.
|
| So I'm inclined to ignore these numbers for anywhere having
| significant tourism.
| bombcar wrote:
| Recessions can hamper tourism and once they have difficulty
| covering the mortgage, things will snap wildly.
| bdcravens wrote:
| I bought into a new community this year. When I signed late last
| year, most of the street was sold before the foundations were
| poured.
|
| They're now building the next section, a few blocks away. Many of
| those houses are approaching completion and are still for sale.
| vinyl7 wrote:
| I sure hope so after the insane 50-100% bull run of the last two
| years
| jbverschoor wrote:
| And maybe the 400% tech worker salary too
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