Impact of stock market crash on real estate?

[Anonymous]

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Congrats. We have our place listed and have also had horrible luck with timing. We also had to do some repairs that were delayed and we missed the spring market. Then we took it off for the holidays.

We were approached with an off market contract at the end of January right as we were about to put it back on the market. This took a few weeks then the buyer back out right before I went out of town. So this delayed us for over a month.

Literally tons of homes in the small neighborhood went under contract the week before we got to market. Then nothing under contract during this past 6 weeks. Then all the recent stock market fun. Please send me some good vibes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. When people's net worth falls they are not going to go buy a house.

In some years like 2000/2001 the stock market crash real estate started to blow up as viewed as safer asset, Same happened in 2020 stock crash.

Often stock market crashes cause real estate melt ups.

That is because interest rates usually fall very low making mortgages affordable.

If we have a stagflationary environment where the market is down and interest rates are high, this will be bad for the housing market. The housing market in the late 1970s/early 1980s wasn't a great time. The difference is the stock market at that time had been dropping since 1967 and actually declined nearly 80% to it's low in 1982.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Where is this? I haven't seen reports of $200K to $300K drops in prices anywhere in the country, unless your house is worth many millions of dollars.

[Anonymous]

Some people are freaking out that prices will never be this high and they must sell to "cash out" or they wont get their money out. Usually it's those who want to sell for top dollar and stand to make profit. When stock market get iffy these people also freak out about losing it all if they don't sell. I am wondering how they will be reconciling this.. If you sell at a huge profit what do you do with cash? You likely will be buying something else or somewhere else. People who are risk averse to the point of pulling their money out of their own housing are not likely to dump it into the yo yo market.

[Anonymous]

It's not stocks as much as the tariffs impact on the bond market, which has pushed mortgage rates above 7%. Rising interest rates combined with a recession does not bode well for real estate.

[Anonymous]

Anonymous wrote:It's not stocks as much as the tariffs impact on the bond market, which has pushed mortgage rates above 7%. Rising interest rates combined with a recession does not bode well for real estate.

I thought this is supposed to bring mortgage rates down

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's not stocks as much as the tariffs impact on the bond market, which has pushed mortgage rates above 7%. Rising interest rates combined with a recession does not bode well for real estate.

I thought this is supposed to bring mortgage rates down

Higher treasury bond yields are a reflection of the collapse in trust in the US among large institutional investors. Trump's recklessness has been very costly. And mortgage rates are going up as a result.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are in lower NW. There are so many houses for sale. For the past 10 years you would be lucky to see 2-3 houses a year for sale. Now you see that on one block.

A lot of that is boomers dying off.

omg

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. When people's net worth falls they are not going to go buy a house.

In some years like 2000/2001 the stock market crash real estate started to blow up as viewed as safer asset, Same happened in 2020 stock crash.

Often stock market crashes cause real estate melt ups.

It’s funny that you think you’re dealing with something similar to Covid. Trump is fundamentally destabilizing the USA as a legitimate country so there is ongoing massive flight from US capital markets that in turn will destroy the net worths of American home buyers. Wake up.

Trump is destabilizing the global economy. The US will likely suffer less than our trading partners. Prime real estate, especially along the coast, in the mountains, and in big cities like NYC or SF, is a relatively safe place to park money when the market is tanking and confidence is low. I predict some sectors of real estate will rise.

With global warming and rising insurance prices, I would abandoned investments along the coasts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Where is this? I haven't seen reports of $200K to $300K drops in prices anywhere in the country, unless your house is worth many millions of dollars.

It’s not a price drop. Our house was bought for $600k in 2013. We listed and sold for $1.6. Houses in our area usually go well over list and are priced with this expectation. But I think if we had priced higher it would have sat, and I’m grateful and happy with our long term gains.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Congrats. We have our place listed and have also had horrible luck with timing. We also had to do some repairs that were delayed and we missed the spring market. Then we took it off for the holidays.

We were approached with an off market contract at the end of January right as we were about to put it back on the market. This took a few weeks then the buyer back out right before I went out of town. So this delayed us for over a month.

Literally tons of homes in the small neighborhood went under contract the week before we got to market. Then nothing under contract during this past 6 weeks. Then all the recent stock market fun. Please send me some good vibes.

I’m the PP whose house sold and I’m sending you lots of good wishes. It is a weird market. It’s so frustrating to deal with erratic contractor timelines when you’re trying to move quickly, and even worse to realize that people will delay a huge, major, once-in-a-lifetime purchase because it’s Christmas break or spring break or February break or raining or sunny or whatever. I hope you get some good offers in the next few weeks as people return from vacations, settle schools for next year, or come close to the end of leases that expire in summer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Congrats. We have our place listed and have also had horrible luck with timing. We also had to do some repairs that were delayed and we missed the spring market. Then we took it off for the holidays.

We were approached with an off market contract at the end of January right as we were about to put it back on the market. This took a few weeks then the buyer back out right before I went out of town. So this delayed us for over a month.

Literally tons of homes in the small neighborhood went under contract the week before we got to market. Then nothing under contract during this past 6 weeks. Then all the recent stock market fun. Please send me some good vibes.

Sending you good vibes as well. We closed last month in manhattan and we were grateful that we got our ask.

There is so much going on right now. We listed last year, and were told that a lot of buyers were waiting until after the election, especially since ny revolves around the finance industry. Despite ny’ers hating Trump, the finance industry assumed that he would usher in a period of activity - mergers, acquisitions, etc- that would fund Wall Street.

I’ve heard stats ranging from 10-30% in terms of how much more supply is on the market than 12 months ago. Many gen z and millennial buyers are selling their panic pandemic purchase because of regrets about maintenance, finances, or RTO. So many of them bought without inspections or an understanding about interest rates and maintenance costs.

Add in rising mortgage rates fueled by tariffs, inflation due to tariffs, jobs uncertainty due to doge and tariffs, and it’s not promising. We were planning to sell right when Covid struck and we pivoted to renting for a few years, so if you don’t to sell now, consider renting. I think the rental market will continue to expand if mortgage rates climb and people don’t want to commit to buying.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I live out of the area and have a house that even this week should have flown considering limited inventory and the price point. Last night we had 3 agents writing offers for their clients. As of noon today, all 3 buyers got cold feet and are pausing.

We couldn’t go to market earlier because we had to finish a small renovation to make the house acceptable for our market, but now our timing feels as crappy as it could possibly be. I’m not panicking but I’m not feeling great at all. There was nothing we could do about our timing but as someone who graduated into two recessions, I’d love for one major event in my life to not be accompanied by huge global drama.

Replying to my own post. Our house went pending a few hours after I posted this. We got ask, but not above. If this were last year, our house would have had multiple offers and would have gone for $200-$300k above ask. I think that if we had listed today instead of a week ago, we would have had more bids, but people were in a tariff drama/market panic.

But overall we are relieved that it moved in these circumstances and glad to have moved on.

Congrats. We have our place listed and have also had horrible luck with timing. We also had to do some repairs that were delayed and we missed the spring market. Then we took it off for the holidays.

We were approached with an off market contract at the end of January right as we were about to put it back on the market. This took a few weeks then the buyer back out right before I went out of town. So this delayed us for over a month.

Literally tons of homes in the small neighborhood went under contract the week before we got to market. Then nothing under contract during this past 6 weeks. Then all the recent stock market fun. Please send me some good vibes.

Sending you good vibes as well. We closed last month in manhattan and we were grateful that we got our ask.

There is so much going on right now. We listed last year, and were told that a lot of buyers were waiting until after the election, especially since ny revolves around the finance industry. Despite ny’ers hating Trump, the finance industry assumed that he would usher in a period of activity - mergers, acquisitions, etc- that would fund Wall Street.

I’ve heard stats ranging from 10-30% in terms of how much more supply is on the market than 12 months ago. Many gen z and millennial buyers are selling their panic pandemic purchase because of regrets about maintenance, finances, or RTO. So many of them bought without inspections or an understanding about interest rates and maintenance costs.

Add in rising mortgage rates fueled by tariffs, inflation due to tariffs, jobs uncertainty due to doge and tariffs, and it’s not promising. We were planning to sell right when Covid struck and we pivoted to renting for a few years, so if you don’t to sell now, consider renting. I think the rental market will continue to expand if mortgage rates climb and people don’t want to commit to buying.

PP here. I'm glad you got your price. That must be a load off your mind to have it sold.

The election uncertainty hit us too. We finally got to market late May 2024 and the spring market was over. Then summer is always a dead market there. Then the usual fall market was nonexistent due to the election uncertainty. Then we pulled it off the market for the holidays. Then dealing with that confounded buyer delayed us, and lots of properties went under market the week before we went back on market. Now there's no activity due to the stock market issues.

We keep just missing the market. We're going to rent it out if nothing happens over the next week.