Friday, November 04, 2022

Pigs bring down the whole market.

I would wager that every single house sold during the pandemic will go into negative equity. I'm posting about this house because it obviously fell out of the sale, and when they put it back on - it was for 17% less. That was a 400k price drop. Seriously.

The price it sold for in 2019 is closer to the real value.  Which means this house needs to fall a further 20-30%. I bet the market over-corrects. These people tried to squeeze out a 56% profit in three years. And let me tell you - the MLS is full of this crap! 

The housing market is absolutely vaporized now. Soon construction will be too.

What I learned during the housing crisis is that people who benefit early from government intervention, are rarely the same people who benefit in the long run. And often people who had no involvement at all will pay. I mean, people basically looted the government. Partied like it's 1999. And we don't have a single thing to show for it.

There is going to be a lot of finger pointing in the coming months, but one thing is sure - no one said a single thing while it was happening. 

I'd also like to say that a direct neighbor of mine just paid 400k over asking (for a total fixer) and I can barely look at those people. I spent ore than 10 years trying to claw back my equity. I wouldn't wish that on anyone.

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