Not a single house for sale in my town

You read that right, not one single house is for sale in my town.
Usually May is when the floodgates open and people list their houses in hopes to have a closing just as school is done, but nope.

I follow real estate as a hobby. I’ve been following it for years, and I can easily say I’ve never seen anything like this in my entire time living here.
It wasn’t even this bad during the the depths of Covid.
So what caused this…?

Oh it’s a perfect storm, and one that seems very purposely constructed!

Many house-buyers locked in ridiculously low rates from 2015-2021, we are talking 2,3,4% interest rates.
Then housing prices shot up, along with that rise, interest rates climbed and climbed.
Then the government is pushing new mortgage rules that basically punish anyone that is financially responsible.
Anyone buying now that actually should be buying will be punished with higher closing costs. It makes no sense.
Apparently this was done to “level the playing field” bullcrap.

WELL how do you like that playing field now!!!???? All this did was constrict the market (at least in my area) Not sure if this is being seen all over the US. Any house that goes on the market now basically has no competition.
I don’t see anything changing anytime soon.

There are a few lots that are for sale, but many of the lots being sold now are from land that wasn’t developed previously for a reason.
Near busy roads, high noise, poor location, flood prone.
My jaw dropped when I saw a sign today for a new neighborhood that is basically in swamp land.

a reply to: JAGStorm

Also if realtors didn’t see this coming a mile away I don’t know what to say.
I know some people that switched jobs to become a realtor during covid and I just shook my head.
I’m convinced in the near future all real estate transactions will be done via AI or such.

Maybe you just live in a cold area. We have four or five houses on the market just in our neighborhood alone. In fact, a house on our street just sold last week for about $100,000 over what they originally paid.

originally posted by: JAGStorm
Near busy roads, high noise, poor location, flood prone.

Have lots here which feature all that if anyone's interested. $200k+. Plus covenants where the minimum house on said lot will start at $600k+.

This is upper flyover country too; not one of the crazy urban markets.

Know people who'd love to sell but they'd effectively be left homeless (i.e."Now what do I buy?"). So very much a self-feeding cycle that's going to break hard someplace.

Is another 2008 bubble butt bust co0ming down the pipes ?

a reply to: gb540

Know people who'd love to sell but they'd effectively be left homeless (i.e."Now what do I buy?"). So very much a self-feeding cycle that's going to break hard someplace.

That is exactly what is going on here so everyone is staying put.

originally posted by: Gothmog
Is another 2008 bubble butt bust co0ming down the pipes ?

I don’t know if it is a bubble because I don’t see people being underwater, or not being able to afford their homes but I see two other things happening.

The people entering the market are screwed. It’s either super high rentals or basically build, which many can’t afford. Or of course multigenerational housing.

originally posted by: Gothmog
Is another 2008 bubble butt bust co0ming down the pipes ?

Worse IMO.

The leverages are higher IIRC.

With the added inflation and current interest rates..

Yikes is all I'm going to say.

Get ready for the melding of The new Credit Score Tax and High Mortgage Rates to kill property prices. Then watch the defaults go wild ass berzerk 😁

a reply to: JAGStorm

I just checked what was happening with my local real estate. There are about a dozen average houses for sale, but not at prices working people can afford. I bought my house here about 14 years ago. I would not have been able to so easily afford it back then if it were at today's prices.

originally posted by: xuenchen
Get ready for the melding of The new Credit Score Tax and High Mortgage Rates to kill property prices. Then watch the defaults go wild ass berzerk 😁

I have a weird feeling something will happen too, but what.
Obviously many people are locked in with low low rates, so what can they do to them?
They can raise property taxes.

Credit scores and mortgage rates mainly hurt those entering the market or those that are selling/buying, which aren’t a lot of people.
So in essence will this stop a new generation from homeownership?

originally posted by: tamusan
a reply to: JAGStorm

I just checked what was happening with my local real estate. There are about a dozen average houses for sale, but not at prices working people can afford. I bought my house here about 14 years ago. I would not have been able to so easily afford it back then if it were at today's prices.

Looking at my hometown, I can say the exact same. Homes that were 80-130k are now 200+

a reply to: JAGStorm

I dunno, but where I recently moved there are FOUR entire subdivisions now under construction, one is almost completed, plus the one completed last year, and this is a relatively small town. Estimates that these new houses will double the population here. So, five SDs in total. Not to mention the adjacent town has a few new apartment complexes being built, and the other town has a ton of condos, etc being build.

As far as existing property/houses for sale in this area, they are everywhere here, and the prices are still through the roof.

a reply to: JAGStorm

You're right existing good loans are not going to suffer as much. One possible problem is appraisal values if somebody wants a 2nd Mortgage. Also some people may have trouble if they have other credit based on property value. Some odd type loans could even get called in if the "equity" gets out of balance and violates a lender's policies. 😬

We saw some of this in the 2008 crisis 😬

originally posted by: xuenchen
a reply to: JAGStorm

You're right existing good loans are not going to suffer as much. One possible problem is appraisal values if somebody wants a 2nd Mortgage. Also some people may have trouble if they have other credit based on property value. Some odd type loans could even get called in if the "equity" gets out of balance and violates a lender's policies. 😬

We saw some of this in the 2008 crisis 😬

I refinanced when rates hit rock bottom, but my bank (credit union) was trying to convince us to take out a HELOC. I was livid, I told them I didn’t want the extra money I wanted the locked in low rate.
I have a feeling they were doing that to a lot of people full well knowing what was coming down the pipeline.

Just imagine all the people that got loans with adjustable rates… crazy!!!!!

a reply to: JAGStorm

And away we go 😎

Almost like they were prearranging failures !!!!! 😎

originally posted by: JinMI

originally posted by: Gothmog
Is another 2008 bubble butt bust co0ming down the pipes ?

Worse IMO.

The leverages are higher IIRC.

With the added inflation and current interest rates..

Yikes is all I'm going to say.

True. I bought my house in rough shape for $117,500 in around 2009, 2010. Low end of the market (Cali). Invested 20k initially as well as upgrades over the years. Could sell for around $325,000 or more currently.

Zillow actually puts it at 488,000 to 513,000. With a rent of 2,600. I pay 800 a month plus utilities for the loan payoff.

I'm looking forward to the downturn again, to upgrade our square footage in the same area, I'm about half mile from my folks (list on zillow around 620 for their house) and as my house is privately owned, I can take money off it to pay for the new one.

Which gives me the option to sell or rent the current house and upgrade at no loss.

a reply to: JAGStorm



I’m in Massachusetts. I spoke to a nurse today, who confided in me that she and her family invested in a pop up tent trailer because their home they were renting just sold. To get into a new apt she would not only have to come up with thousands but the monthly going rental here runs about 2400.00/month for nothing special.

So she opted for the trailer pop up tent trailer to save for a house. Which will also cost her more now, since she has good credit.

I also know another woman who rented a house that just went up for sale, she works two jobs, pretty decent salary. She hasnt been able to find anything. Supply and demand in Mass is becoming a problem in this sanctuary state.

Buying a house here now with good credit is becoming a pipe dream.

a reply to: JAGStorm

I don’t know if it is a bubble because I don’t see people being underwater

That part is on the way .

originally posted by: JinMI

originally posted by: Gothmog
Is another 2008 bubble butt bust co0ming down the pipes ?

Worse IMO.

The leverages are higher IIRC.

With the added inflation and current interest rates..

Yikes is all I'm going to say.

Yep .
Wait till their full interest payments start in a couple of years.