The housing market just slid into a full-blown correctio

ConvenientParking

HR Legend
Gold Member
Jun 28, 2016
26,410
33,047
113
DTI requirements vary by the mortgage investor or and/or insurer and certain borrowers are allowed a higher DTI based on factors like FICO, other assets, high monthly residual income
 

onlyTheObvious

HR Heisman
Jan 3, 2021
6,444
7,522
113
Has something changed in the 42% debt to income calculation?
People shouldn't be able to borrow that much. I think retirement and college savings needs to be factored in. I think it should with car purchases also.

it’s none of my business until we get people pushing free college, free daycare, ect. You want to dip into my pocketbook with more taxes for those that refuse to save than you also invite me to give an audit your life choices.
 
Last edited:

coasterhawk75

HR Legend
Gold Member
Dec 2, 2001
13,545
2,154
113
65
Iowa City
The house next to us was on the market less than 48 hours before it went sale pending. It sold for $110k more than when the former owners bought it in 2019. (This is Iowa City)
 
Sep 23, 2011
2,428
2,962
113
There needs to be some sanity return to housing. My zillow is 700k on a house I bought forr 300k 10 years ago. They need to raise rates another 2 percent to help get inflation under control.
 

bhawk24bob

HR Legend
Jul 8, 2001
17,507
5,256
113
People shouldn't be able to borrow that much. I think retirement and college savings needs to be factored in. I think it should with car purchases also.

it’s none of my business until we get people pushing free college, free daycare, ect. You want to dip into my pocketbook with more taxes for those that refuse to save than you also invite me to give to audit your choices.

The lenders that are putting their money up on the bet is who’s making that decision. For better or worse, we aren’t going to unwind the mortgage market

There are societal benefits that outweigh the costs for college and daycare, just like there are societal benefits to having homeowners vs renters
 
  • Like
Reactions: noleclone2

fredjr82

HR Legend
Gold Member
Nov 13, 2007
23,071
13,126
113
It is insane what banks/mortgage companies think people can afford. Sadly, too many listen to them.

Agreed. Thankfully, that approval was just for me. GF wasn't included in the approval process. She'll be a silent partner that contributes to the household
 

seminole97

HR Legend
Jun 14, 2005
17,508
17,734
113
Agreed. Thankfully, that approval was just for me. GF wasn't included in the approval process. She'll be a silent partner that contributes to the household
Timothy 2:11-12?


satisfied-karate-kid.gif
 

SalAunese

HR Legend
Gold Member
Jul 11, 2002
41,980
14,340
113
Minnesota
And I'm OK with that.

I still think Iowa may still see a little bit of the over bidding. My realtor said it's younger kids from Minneapolis and Chicago whose parents' money goes farther here. With a remote workforce, people are moving away from urban areas.

FIFY and there's a large number of cash buyers out there as well. The pandemic created a perfect storm where initial low interest rates, the WFH trend, increased incomes and generational wealth via real estate came into play. In the super hot markets, a great number of first-time borrowers were those whose parents/grandparents provided a large down payment. Also, boomers downsizing and purchasing homes with via cash helped fuel this market as well. I'd say 75% of the homes near my parents in Florida were no appraisal, cash purchases, sight-unseen by early retirees or wealthy professionals from the northeast taking advantage of the WFH environment.
 
  • Like
Reactions: fredjr82

Joes Place

HR King
Aug 28, 2003
123,542
118,061
113
Rented for 7 years? That’s lost equity

LMAO!!! Lost equity?

Housing prices DROPPED considerably during that time. I waited it out until I saw the market stabilize. If I'd bought in 2006 when I moved, I would have seen basically no appreciation in value during that 7+ years of ownership and been "locked in", in an underwater loan for the better part of a decade.

Renting was cheaper, inclusive of any tax writeoffs.
 
  • Like
Reactions: sob5

biggreydogs

HR Legend
Oct 2, 2001
14,474
9,083
113
LMAO!!! Lost equity?

Housing prices DROPPED considerably during that time. I waited it out until I saw the market stabilize. If I'd bought in 2006 when I moved, I would have seen basically no appreciation in value during that 7+ years of ownership and been "locked in", in an underwater loan for the better part of a decade.

Renting was cheaper, inclusive of any tax writeoffs.
Curious, what is your net worth?
 

An Iowa fan

HR MVP
Dec 12, 2019
1,778
1,617
113
Star Tribune

ON THE MONEY​

By Nick Williams, business reporter
The price per gallon for regular unleaded fuel at the Shell station near my home in Maple Grove rose to $4.29 this weekend, a 20 cent increase from just a few days prior.
These high prices may push Minnesotans to forgo cross-country road trips this summer and keep vacations closer to home, according to an article written by colleague Mary Lynn Smith. That could lead to a boom in business for Minnesota resorts and vacation destinations.
Speaking of traveling, if you're thinking of spending time in Minnesota's cabin country this summer, and are thinking of buying a home there instead of renting, you might want to read reporter Jim Buchta's story on what to expect.
Low supply and high demand for homes around Minnesota's many lakes has created a home buying market that's tighter than what's stirring in the Twin Cities metro. If you're looking to buy a cabin up north, the first step is identifying the area where you want to spend your weekends and deciding what kind of lake you want to buy on. You'll also need some luck.​
 

Jcchawk

HR All-American
Gold Member
Oct 29, 2001
4,263
6,945
113
This is the point. The bubble is getting bigger, but about to pop. These people are about to get burned on deals like these.
And, the Midwest is usually the last to get hit by the trend.
The market will not drop in the Iowa City area(I'm in NL). It may stabilize but just like the last bubble it won't drop. There is too much turnover in housing with the University. It's almost like an insulation to those things.
 

Latest posts