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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think the $1.5m-$3m market is going to get hit hard.

A flipped house that would have sold for $2m in WOTP DC in 2019 now won't sell. The developers will need to get the price down to $1.5m-$1.7m range to generate interest.

The higher end market is going to have a rough time. Plus, getting a mortgage on one of those is going to be tough, especially if you are self-employee or an equity partner.

However, this is good news if you have $400-500K downpayment and want to spend $1.2-1.3m. The home that were previously $1.5m are now going to be reduced to your budget range. I feel like a sweet spot will open up for UMC buyers with 30-40% down payments and stable jobs.[/quote]

Instead of 1.5m house come down to 1.2-1.3m, I only saw 1-1.1m house going up to 1.2-1.3, and being sold within days... can PP explain why?[/quote]

People can still get forbearance on Fannie/Freddie loans (basically the entire 'conforming' market). Plus, sellers are leery of putting their home on the market in a pandemic. This is keeping the market inventory very tight in the $700K-$1.3m range inside the Beltway. There are easily 8 homes at $2m+ in my immediate DC neighborhood that have been languishing and/or were recently de-listed.

Once forbearance is done (end of 2020) and people are still out of jobs and no more unemployment bonus, the bills are really going to come due. I would not expect prices to start slipping until 4Q this year and really pick up significant drops next year. This is going to be an 18-24 month depression. [/quote]

Get with the program, the recession was cancelled by the Fed.  Good times are here again![/quote]

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