buying now or waiting another year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

+1. You can’t always put a value on things like better schools, a yard so your kids can scoot right out the backdoor, etc. If you can afford it and it makes your life better, good for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

You are beating yourself up for not predicting the future?

Hindsight is 20/20 100% of the time, foresight...not so much.

And I'm glad you've more than recovered. That's exactly the point. Nobody said it would be pleasant or an experience somebody would want. But it did not end you. Here you are.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

You are beating yourself up for not predicting the future?

Hindsight is 20/20 100% of the time, foresight...not so much.

And I'm glad you've more than recovered. That's exactly the point. Nobody said it would be pleasant or an experience somebody would want. But it did not end you. Here you are.

Of course not. But do I think it’s a good idea for a first time home buyer to be escalating way over the listing price and getting involved in a bidding war right now? No. So much of the real estate activity in recent months seems emotional and based on FOMO. The market just doesn’t make any sense and the Fed has a giant MBS portfolio to unwind. No one knows what will happen, but I can’t help but think a first time home buyer should sit back and let the dust settle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

+1. You can’t always put a value on things like better schools, a yard so your kids can scoot right out the backdoor, etc. If you can afford it and it makes your life better, good for you.

Actually you can put a value on this. Plenty of people would choose to NOT be underwater on a home or significantly overpay for a yard for their kids.

[Anonymous]

Anonymous wrote:
Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

You are beating yourself up for not predicting the future?

Hindsight is 20/20 100% of the time, foresight...not so much.

And I'm glad you've more than recovered. That's exactly the point. Nobody said it would be pleasant or an experience somebody would want. But it did not end you. Here you are.

Of course not. But do I think it’s a good idea for a first time home buyer to be escalating way over the listing price and getting involved in a bidding war right now? No. So much of the real estate activity in recent months seems emotional and based on FOMO. The market just doesn’t make any sense and the Fed has a giant MBS portfolio to unwind. No one knows what will happen, but I can’t help but think a first time home buyer should sit back and let the dust settle.

So this very reasonable, somebody entering this market with nothing to sell us certainly at the biggest risk of winding up underwater. But nobody knows if that will happen and by how much. There is no sign of any major crash like what you experienced.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

+1. You can’t always put a value on things like better schools, a yard so your kids can scoot right out the backdoor, etc. If you can afford it and it makes your life better, good for you.

Actually you can put a value on this. Plenty of people would choose to NOT be underwater on a home or significantly overpay for a yard for their kids.

Yes, but I qualified my post with “if you can afford it.” People on here have wildly different personal and financial situations. For example, some people move to school districts that have great special education services. It might be “worth it’” to overpay in the short term to get that benefit for your child. It’s not just about the brick and mortar house but about commute, schools, lifestyle, etc.

[Anonymous]

The most likely scenario for close-in desirable DC neighborhoods is that nominal prices may stagnate—not fall and certainly not crash—over the next few years. They will fall, however, in real terms.

[Anonymous]

Incidentally, comparisons with 2008 are of limited value. Back then, the root source of the shock was housing. Now, it is not.

[Anonymous]

If your DH’s start up fails what are his job prospects? I would assume a conservative amount for future income - if he had to find a new job. Underbuy.

And don’t buy an undesirable location/property. Those are first to lose value and the last to recover.

But if you’re planning to be in the home for 5+ years and you underbuy a home without serious flaws you will be fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you buy in the next couple of months you will be being buying at the worst possible point since 2007. If you are comfortable with that, that’s up to you, but I would ask what is so urgent that you can’t wait 6 or 12 months? The people who are telling you to buy now, that it will be fine, are realtors who have a personal financial stake in keeping the inflated market going for as long as possible. These are salespeople. Talk to a market forecaster who has nothing to gain from you losing money on a purchase. Read about what’s going on in the larger market, what the rising interest rates will do to prices, what the Fed is doing and predicting. Don’t listen to salespeople.

Incidentally, the people who said don’t buy last year were also right. People who bought in 2021 will take a financial beating too during the downturn. Just not as bad a beating as the people buying now. In a few weeks it’s expected their houses will be worth whatever it’s valuation in 2019 was. They didn’t buy at the absolute peak (which was probably last week) but they still paid a premium they won’t be able to recover anytime soon. Talk to someone in your real life who understands market behavior. Don’t take anonymous advice from a bunch of realtors on the internet.

This PP is trying really hard to sound smart, but here's the hard truth.

1) Housing supply has grown much more slowly since 2007, at the same time millennials have entered their family formation phase and are looking to move to SFHs; they are actually being joined by Generation Z who will likely look to have larger homes sooner because of WFH and the value of outdoor space for this COVID generation (its never going away right).

2) Low rates have definitely made more people capable of paying more for homes, but there are plenty of families being helped by boomer parents, and of course institutions buying more and more SFH. https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html Rates have to get really really high to beat out the rental income and with inflation, rents are just going up and up.

3) Rising rates may soften prices of stall them, definitely seems possible, but you as a buyer with a mortage, will likely end up paying MORE over the lifetime of your loan with higher interest payments. MAYBE you can refinance in a decade if we see "historically low" interest rates again. But in the near term, your monthly payment will likely be much higher if you delay further and buy within the next decade.

One caveat, if WFH really really becomes a thing, and you can work from anywhere, that could really hurt major metro markets -- make no mistake, people move to DC for access to Congress and jobs. So if you believe we are in new digital remote only frontier, then you can settle down in Boise and call it a day.

My recommendation, since you have been looking for TWO FING years is temper your expectations, get yourself into some kind of property that you can comfortably afford even with a downshift in your career, and become somewhat coupled to the housing market rather then buffeted by the waves of rising prices and rents as a renter. Basically, get a house with a mortgage as a good old fashioned inflation hedge you can live in.

This is the way.

Just buy when you a) think there's a good chance you'll be in the area for at least 5 years, b) can put 20% down, c) find a house you like that meets your needs. If that's not you, do not buy now ... or at any time until you hit a/b/c.

The doomsayers who say the housing market will crash in "weeks" are FOS. Could it happen? Sure, if WW3 truly starts. Otherwise, no way an abrupt change happens so fast.

Most likely housing prices will go flat or appreciation will slow or prices will slightly decrease. Why? Because because there is no likely singular event that can make any change "happen fast."

No matter how self-assured somebody sounds on here, and intuitively it would make sense for the market to start to at least see slower rates of appreciation...part of the hurdle for that is that inventory remains low compared to demand and the cost of labor and building materials and land have never been higher. People can have all the theories they want, but until inventory drastically increases or the cost to build goes way down...it's pretty challenging to imagine a scenario that causes a sudden down-turn in prices.

Okay, Mandorian, no one has said crash. People, including the Fed, are saying there will be a downturn *beginning* in the next few weeks. Beginning. Not crash. Also, you seem to have conveniently overlooked the data showing that new building starts are at their highest levels since 2006. So new building is surging.

So in 1 year they have made up for a deficit 14 years in the making? Even with supply chain issues?

https://www.businessinsider.com/us-underbuilding-housing-over-the-past-decade-2020-9

New starts are at the highest level since 2006, so I guess the industry is finding a way around supply issues? In truth, because existing house prices are so high, new builds can charge a surcharge for supplies and still compete just fine. Supply is responding to demand, as you would expect when people are willing to pay for it. Supply is expected to increases in existing homes as well, as millions of prior posts have described in detail. A market as out of balance as this one has been will find a way to correct.

But still not close to the last peak.


And, more importantly, not close to meeting demand.

I have spoken.

[Anonymous]

Anonymous wrote:If you buy in the next couple of months you will be being buying at the worst possible point since 2007. If you are comfortable with that, that’s up to you, but I would ask what is so urgent that you can’t wait 6 or 12 months? The people who are telling you to buy now, that it will be fine, are realtors who have a personal financial stake in keeping the inflated market going for as long as possible. These are salespeople. Talk to a market forecaster who has nothing to gain from you losing money on a purchase. Read about what’s going on in the larger market, what the rising interest rates will do to prices, what the Fed is doing and predicting. Don’t listen to salespeople.

Incidentally, the people who said don’t buy last year were also right. People who bought in 2021 will take a financial beating too during the downturn. Just not as bad a beating as the people buying now. In a few weeks it’s expected their houses will be worth whatever it’s valuation in 2019 was. They didn’t buy at the absolute peak (which was probably last week) but they still paid a premium they won’t be able to recover anytime soon. Talk to someone in your real life who understands market behavior. Don’t take anonymous advice from a bunch of realtors on the internet.

This post has a very big "let me look into my crystal ball" vibe.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

For most people buying $1m+ houses in the DMV, losing $100k does not mean being underwater.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

For most people buying $1m+ houses in the DMV, losing $100k does not mean being underwater.

Yes understood. But losing 100k is losing 100k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just bought. These posts stress me out a little. I paid premium (over asking), but not absurdity (ie 100+ over asking). I’m lucky that I was already a home owner and am preparing to sell, so fingers crossed we sell high also. The part that stresses me most when I read these posts is that we currently live in a desirable close in neighborhood, and we are moving further out. I think it’s likely our new home could see a small drop in value in the months/ my ears ahead. But then I remember it’s the right home and location for my family, we didn’t financially over extend ourselves, and it will make daily life much better. And I’m at peace with that. The thing is, I have all this stress when I read these posts… and yet I also believe that the DMV real estate market is different, that WFH is here to stay and yet won’t change things that much in the near term, etc. no one knows what will happen. Waiting would have been very difficult for my family so I am glad we didn’t do it. Only you know what’s right for you and your family OP.

Let’s say you end up losing 100k on the house whenever you sell it.

Does that translate into a life of poverty? Do your kids not go to college? Do you have to work until you’re 90? Do you starve?

Assuming that you didn’t wildly overextend yourself and you invest/save a reasonable amount each year, the answer to all of these is: no.

So what’s the worst thing that happens? Is it that bad?

It sounds like you made the best decision for your family. Rest easy.

This is the way.

Yeah I don’t know. I was underwater in 2008 and the subsequent years. It was terrible. Just the fact I couldn’t sell my property. I had to continue paying a mortgage for a property where I had negative equity. Even doing repairs or maintenance sucked since I knew if I were renting I would be so much better off. I couldn’t do a short sell or walk away because it would ruin my career which requires a credit check. I would have liked to move to another city but I couldn’t. When I finally could, I had to rent out my place and be a landlord which was a giant PIA.

Even being 100k underwater is a noose around your neck. Would you suggest someone put down 0% on a house and then take out a home equity loan immediately after closing? Because that’s essentially what being 100k underwater is like.

Sure, I more than recovered financially, eventually sold my property and I’m doing fine. But it was a lot of unnecessary stress that could have been avoided had I not bought a home during a home buying frenzy when market fundamentals didn’t make any sense.

For most people buying $1m+ houses in the DMV, losing $100k does not mean being underwater.

Yes people in the DMV are at an even bigger risk, especially in the district which is experiencing a population loss and increasing crime.