Real Estate Crash thread

**Danno** · 05-10-2021, 03:36 PM

Granted, I'm no contracts lawyer, but #4 sure doesn't read as if a borrower-provided appraisal can prove that PMI is no longer needed.

**RootSkier** · 05-10-2021, 03:37 PM

Originally Posted by Falcon3

Some mortgages have a required amount of PMI time. When I was looking at low down payment mortgages most of them required 24mo of PMI even if it went over 80% Loan to value the day after sale.

I am not sure this is correct. My understanding is that federal law requires lenders to stop collecting PMI payments when your LTV is 78%, but the LTV is not based on current market price, it is based on the original appraisal.

Edit: I agree with Danno. That's not what that says.

**Whiteroom_Guardian** · 05-10-2021, 03:39 PM

I hosted an open house this weekend for another agent. Really not necessary in this market, but was good to see who's out looking.

One potential buyer was a couple in their late 40s/early 50s with their 20ish daughter looking for "starter homes" for her. The house (under contract basically right away) was listed at $630k lol.

This is the America we live in. "Starter homes" worth 8-10x what our parents paid for their first homes.

**sirbumpsalot** · 05-10-2021, 05:06 PM

Originally Posted by Whiteroom_Guardian

I hosted an open house this weekend for another agent. Really not necessary in this market, but was good to see who's out looking.

One potential buyer was a couple in their late 40s/early 50s with their 20ish daughter looking for "starter homes" for her. The house (under contract basically right away) was listed at $630k lol.

This is the America we live in. "Starter homes" worth 8-10x what our parents paid for their first homes.

I don't know....the starting pay for my parents profession has gone up 15x to match that 10x starter home price. Just one data point I know.

**4matic** · 05-10-2021, 05:08 PM

Houses in California up 100x since the early 70’s

**dan_pdx** · 05-10-2021, 05:55 PM

Originally Posted by 4matic

Houses in California up 100x since the early 70’s

Yeah, that's literally true. Several of my aunts and uncles bought houses in the Bay Area suburbs for under $50k around 1970 +/- a bit. They've done pretty well for themselves, but on the other hand, they held on to the houses for 50 years too - it averages out to about 10% increase in value every year, which doesn't seem that crazy...at least until I checked out my own house and found out much my rate of appreciation has lagged theirs.

**rideit** · 05-10-2021, 06:07 PM

My parents bought their first house in 1976 for $39k (Roland Park, Md). The zestimate now is about $850k.
FWIW.
They sold in 79, but I have no idea for how much.
Then they bought a house in Westchester (5 bed 3 bath, walk to the train, etc) for $144k.

**Name Redacted** · 05-10-2021, 06:16 PM

Mom told me the other day that their first home in AL was $19K in the 70’s. It is now on the market for $39K. Guess California appreciated a little faster than Bama. Who knew?

**liv2ski** · 05-10-2021, 06:32 PM

Originally Posted by 4matic

Houses in California up 100x since the early 70’s

No, my mom bought a nice place in Glendale CA in 1975 for $60k. It is a $1.3M home now per Zillow.

**4matic** · 05-10-2021, 06:45 PM

Originally Posted by liv2ski

No, my mom bought a nice place in Glendale CA in 1975 for $60k. It is a $1.3M home now per Zillow.

900sf homes that sold for $8-$10k in crappy hoods are going for $800k+ now or more.

**MontuckyFried** · 05-10-2021, 07:02 PM

Originally Posted by 4matic

900sf homes that sold for $8-$10k in crappy hoods are going for $800k+ now or more.

I'll just say that they've gentrified the hell out of places like the LBC and Oakland. When I went to Oakland couple years back, the amount of man-bunned hipsters and trendy cafes there was jarring to say the least. NOT the places I remember from 20 years ago.

**montanaskier** · 05-10-2021, 07:50 PM

Originally Posted by Name Redacted

Damn dude, how old is your mortgage? You probably need to just refi and you’ll lose the PMI in the process as well as get a lower payment, and lower rate. Chances are you won’t need an appraisal either. Unless I’m missing something and you don’t want to refi for some reason.

Turns out this is the way to go. Thanks for the input. I already had a low rate but looks like I’ll be able to get rid of PMI and be about 1200 less a month overall. That’s a win.

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**montanaskier** · 05-10-2021, 07:58 PM

Originally Posted by Name Redacted

Mom told me the other day that their first home in AL was $19K in the 70’s. It is now on the market for $39K. Guess California appreciated a little faster than Bama. Who knew?

Bama is still really really cheap. You get on the coast or some nicer spots around Huntsville or Bham, and it gets more expensive but you can still find super cheap places and the places that are expensive are really BIG.

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**MagnificentUnicorn** · 05-10-2021, 08:07 PM

Originally Posted by MontuckyFried

I'll just say that they've gentrified the hell out of places like the LBC and Oakland. When I went to Oakland couple years back, the amount of man-bunned hipsters and trendy cafes there was jarring to say the least. NOT the places I remember from 20 years ago.

I lived in the east bay 20 years ago, you don’t know what you’re talking about. The gentrification really took of in the early ‘90s. We moved on in 2003 because we couldn’t handle the gentrification and outrageous housing prices. That’s when the market really peaked in the bay. Things have increased but it’s not like the run up of the late’90s early aughts. Places were doubling in price after a couple years.

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**Name Redacted** · 05-10-2021, 08:18 PM

Originally Posted by montanaskier

Turns out this is the way to go. Thanks for the input. I already had a low rate but looks like I’ll be able to get rid of PMI and be about 1200 less a month overall. That’s a win.

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Awesome. $1200 is substantial.

**Name Redacted** · 05-10-2021, 08:24 PM

Originally Posted by montanaskier

Bama is still really really cheap. You get on the coast or some nicer spots around Huntsville or Bham, and it gets more expensive but you can still find super cheap places and the places that are expensive are really BIG.

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Yeah this was Talladega, apparently it was a nice neighborhood back then, but went downhill and stayed there. Kinda sad. Beautiful country in its own way.

**goldenboy** · 05-10-2021, 08:51 PM

Originally Posted by montanaskier

Bama is still really really cheap. You get on the coast or some nicer spots around Huntsville or Bham, and it gets more expensive but you can still find super cheap places and the places that are expensive are really BIG.

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My brother is headed to Huntsville later this week for a vacation but also to look at rental investments. Sounds pretty cheap and Huntsville is expected to grow and has space force and some tech business.

**montanaskier** · 05-10-2021, 09:31 PM

Originally Posted by goldenboy

My brother is headed to Huntsville later this week for a vacation but also to look at rental investments. Sounds pretty cheap and Huntsville is expected to grow and has space force and some tech business.

Huntsville is cheap but has some nice spots and it’s growing like crazy. NASA has always been a big player there, and a nice school in UAH. We almost bought a rental house last year but the seller backed out last second. Always looking down that way.

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**skaredshtles** · 05-10-2021, 09:57 PM

Alabama??

FTS.

**rideit** · 05-10-2021, 10:12 PM

I suggest we just fuck Alabama with Mississippi.

**LegoSkier** · 05-11-2021, 12:05 AM

Real estate may be a good medium term investment but really long term maybe not so much: https://www.bbc.com/news/health-53409521

**glademaster** · 05-11-2021, 05:36 AM

Originally Posted by LegoSkier

Real estate may be a good medium term investment but really long term maybe not so much: https://www.bbc.com/news/health-53409521

If only that had happened 2 generations previously, the planet wouldn't be irreparably fucked. Too late now, so enjoy the ride before the wheels really fall off.

**altasnob** · 05-11-2021, 08:31 AM

Ya, but the world's population still all want to live in the US. So until that stops happening, too the moon!

**Toadman** · 05-11-2021, 09:06 AM

Originally Posted by LegoSkier

Real estate may be a good medium term investment but really long term maybe not so much: https://www.bbc.com/news/health-53409521

Good for the environment. But too little too late. Not to mention pensions and social security type set ups are screwed.

**54-46** · 05-11-2021, 09:10 AM

Originally Posted by altasnob

Ya, but the world's population still all want to live in the US. So until that stops happening, too the moon!

Funny, a buddy of mine was sayin, “Who the fuck told India that they could have 1.4 Billion people?”

India (1.39B) has almost as many people as China (1.44B)

35% of the world’s people in two countries.