Homebuyer’s remorse: most people who bought a house recently have regrets

[GatorStaceyAdams]

I said it before- a lot of people's starter homes are going to end up being their forever homes. And while we are unlikely to see a true housing crash, we are also unlikely to see another housing boom that will negate all of their overpayments.

Another potential headwind over the next decade is that boomers will continue to retire/downsize, which will equate to more supply.

 

[JordanwiththeWiz]

Ain’t no way they talked to all Americans who purchased a home within the last 3 years to come up with this bullshyt 3 in 4 Americans stat. I know damn well I don’t regret my decision. Everybody I know and including people my wife don’t regret their decision. I feel like these articles main objective is to fear monger. Like if I get you so scared of some imaginary doomsday housing bubble you’ll be renting for the rest of your life. While all the mutual funds buy up all the housing and turn them into rental properties businesses that print money.

 

[GatorStaceyAdams]

Ain’t no way they talked to all Americans who purchased a home within the last 3 years to come up with this bullshyt 3 in 4 Americans stat. I know damn well I don’t regret my decision. Everybody I know and including people my wife don’t regret their decision. I feel like these articles main objective is to fear monger. Like if I get you so scared of some imaginary doomsday housing bubble you’ll be renting for the rest of your life. While all the mutual funds buy up all the housing and turn them into rental properties businesses that print money.

If you

1.) Like your house/neighborhood
2.) Can afford the mortgage and repairs

Then owning your house is a prudent financial decision, and as you said, maybe the best decision you will ever make. The problem is when people assuming, or depend, on the value of their house appreciating. Going housebroke and overpaying 25%, thinking that they will be able to sell for 50% higher in 5 years.

 

[Wink Beaufield]

This x1000.

What a great hustle that was.

God. Damn. I'm riding this 2.875% forevaaaaaaah.

Yeah. My refinance got me paying $1610 for a 3br 2ba semi detached duplex in DC.

I'm out here paying DC studio prices for a place with a damn yard.

 

[Originalman]

I kind of suspected the market was full of people paying more than they could afford. Only way to explain how so many properties were selling at these inflated prices.

A lot of folks bought homes at an all time high. Think it was a perfect time to buy and that their home value would go up and up and never come down. Now with the fed hammering out higher interest rates every couple of months and the bond increasing. Home prices are going down in many areas.

So that 500K house someone bought in Feb 2020 is now next to a house on the block that someone is selling for 450K. So already they done lost home value. So that is why folks have regret.

And thats not even counting investors. But we hope that these folks who regret buying the home can afford it. The worst thing is if they couldn't afford the house or who couldn't afford the home and also were involved with risky behavior such as pulling out equity for loans before the market slowed down.

 

[Sad Bunny]

Signing that mortgage contract in 2020 was one of the best decision I’ve ever made in my life.

New construction, four bedrooms, 2.5 bathrooms and I didn’t even finish the basement yet which will have a full bathroom as well.

2.9%

 

[Sad Bunny]

A lot of folks bought homes at an all time high. Think it was a perfect time to buy and that their home value would go up and up and never come down. Now with the fed hammering out higher interest rates every coupe of months and the bond increasing. Home prices are going down in many areas.

So that 500K house someone bought in Feb 2020 is now next to a house on the block that someone is selling for 450K. So already they done lost home value. So that is why folks have regret.

And thats not even counting investors. But we hope that these folks who regret buying the home can afford it. The worst thing is if they couldn't afford the house or who couldn't afford the home and also were involved with risky behavior such as pulling out equity for loans before the market slowed down.

Home value doesn’t really matter unless they were planning to sell their house within the next two or three years.

 

[JordanwiththeWiz]

If you

1.) Like your house/neighborhood
2.) Can afford the mortgage and repairs

Then owning your house is a prudent financial decision, and as you said, maybe the best decision you will ever make. The problem is when people assuming, or depend, on the value of their house appreciating. Going housebroke and overpaying 25%, thinking that they will be able to sell for 50% higher in 5 years.

I mean if you over leverage yourself. Chances are you got irresponsible financial habits in the first place. Whether it’s being upside down on a house or car or maxed out credit cards or no rainy fund. Them type of people stay on the edge living in a house of cards. I wouldn’t base my housing or financial decisions around people like that. Like you said looking for a quick flip in a seller’s market is asinine.

 

[Originalman]

Home value doesn’t really matter unless they were planning to sell their house within the next two or three years.

It does to people who have homes. They think in their head hey I bought this house for 500K and now the value has reduced by 50K.

Its the same reason folks have stocks or 401Ks and panic when the recession hits and start wanting to cash out even though their stocks or 401K has only dropped 15%.

Most people can't think long term plus are emotional and it is why most folks are bad investors. That is not even getting into how most people are god awful with finances.

 

[Geek Nasty]

A lot of folks bought homes at an all time high. Think it was a perfect time to buy and that their home value would go up and up and never come down. Now with the fed hammering out higher interest rates every coupe of months and the bond increasing. Home prices are going down in many areas.

So that 500K house someone bought in Feb 2020 is now next to a house on the block that someone is selling for 450K. So already they done lost home value. So that is why folks have regret.

And thats not even counting investors. But we hope that these folks who regret buying the home can afford it. The worst thing is if they couldn't afford the house or who couldn't afford the home and also were involved with risky behavior such as pulling out equity for loans before the market slowed down.

Theres people on ARMs too getting hammered

 

[Originalman]

Theres people on ARMs too getting hammered

Yep you sure are right breh. I seen it all in the 2008/2009/2010 house recession. I remember a property I bought in 2009 there was a house next to my property and the brotha was all of a sudden moving out. I was like whats up man what you doing? The brotha was like I am leaving this property I don't care if the bank forecloses it.

Brotha told me he bought the house in 2007 and assumed that the prices were going to increase and he would borrow off the equity. The market fell out and now he was upside down. Paying 300K on a house that was now worth 150K and to top it off he said he could barely make the payments when he first got the house. So he felt it would be better to just walk away and let the bank have it.

 

[jwinfield]

And other buyers didn’t even take the time to tour in-person before buying. In an effort to move quickly on a home, 36% of buyers made an offer without seeing the property in person.

 

[UberEatsDriver]

Most homebuyers are irrational buyers hence the reason why a lot of them are house poor to begin with

 

[Geek Nasty]

Closed in March 2020 with a low interest rate and a price within my budget. May be a top 10 best decision I've made in my life when it's all over.

Absolutely perfect timing

 

[thaKEAF]

Man this would’ve been me. Sold my house in April and was going through hell trying to buy a new one. Offering 20k cash above asking price for houses people weren’t even fixing up due to how the market was.

Last house we offered accepted but the appraisal came back way lower and they still wanted the same offer. Decided to just keep the money we made from selling and rent for a few years. Don’t regret it at all.