Originally Posted by
crewdawg
Word! Its absolutely crazy to me to see the real estate market the way it is right now. I have been expecting a correction, but it just keep going up and up. Stuff is going above ask with competing offers, the day it hits the market. Selfishly, I'm hoping for a correction in the real estate market since I'm hunting for my "forever home."
I am looking for the same. I also feel like the only person who doesn't like housing prices that are always climbing.
What good does that do for the average person? The example I use: If you buy a house for 200K and it goes up 10%, you gain 20K. If your next house was worth 400K and went up 10%, it increased by 40K. Now that 20K you thought you had gained in value is actually a 20K hit. It helps the lenders as you will need to borrow even more for the next house. It helps the lenders when you take out a HELOC because it increased in value to make improvements to your house. Climbing home prices is definitely good for the lenders. I look forward to not having a house payment someday.