Housing crash? | Imamother

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Forum -> Inquiries & Offers -> Lakewood, Toms River & Jackson related Inquiries

Housing crash?

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amother

Fri, Apr 08 2022, 1:06 pm

Does anyone think a housing crash is coming soon? And if there would be a crash, would it even affect the Lakewood area market?

amother

Mistyrose

Fri, Apr 08 2022, 1:10 pm

What about a general recession?

amother

White

Fri, Apr 08 2022, 1:10 pm

I think there will be but it would to happen when the foreclosures start happening. people who haven’t paying their mortgage due to Covid and they weren’t allowed to go into foreclosure. Once is the foreclosures are allowed to restart it probably takes around two years for the process to take. As crazy as it sounds if there’s no bank or foreclosure sales in the only house is for sale or sale by owner and that makes the market higher

frizet

Fri, Apr 08 2022, 1:34 pm

As far as I can imagine Lakewood is growing faster than houses are going up, can’t imagine a crash anytime soon

amother

Lemonchiffon

Fri, Apr 08 2022, 1:36 pm

I don't think it will hit Lakewood. I do think there will eventually be a crash, but it's hard to predict when.

amother

DarkCyan

Fri, Apr 08 2022, 1:38 pm

There will be no crash in lakewood at most it will stabilize and stop jumping every few months. But based on the amount of people that need home and the lack of available houses I think lakewood is headed down the same path as brooklyn 20 years ago. I think prices will continue to climb.

yiddishmom

Fri, Apr 08 2022, 1:41 pm

In Lakewpod itself? Nope. From here on, Lakewood homes will always remain at 1m MINIMUM.

amother

Dodgerblue

Fri, Apr 08 2022, 1:42 pm

frizet wrote:

As far as I can imagine Lakewood is growing faster than houses are going up, can’t imagine a crash anytime soon

This. My husband works as a real estate attorney in Brooklyn, but I think the same is true for Lakewood. People are buying houses faster than the prices increase

Amarante

Fri, Apr 08 2022, 2:13 pm

No crash in Lakewood or most other desirable communities. At this point there is a shortage of housing.

At best the fast rise in prices will stabilize but prices won't go down precipitously.

I doubt there are many homes in Lakewood that are going to go into foreclosure because most people didn't lose their income who owned houses. Also even if someone needed to sell their home because they couldn't afford their mortgage, they would be able to sell it quickly and probably walk away with some money because of the rise in prices.

The conditions that causes the 2008 housing bust are not duplicated

1. Not all communities saw housing prices decline drastically. Homes in desirable areas tended to keep their value - they just didn't go up and most people just continued to live in their homes so any small drop in theoretical market value was irrelevant

2. Many people who bought homes in 2008 were underwater on their mortgages so they had to walk away from their homes. It simply made no economic sense to continue to live in a home. Also many homes were sold on "liar's documentation" and people had no interest artificially low payments for two years which reset. People had taken out these types of loans because they assumed prices would rise so much that they could resell at a profit. There were loads of these loans where people literally could not afford a "normal" mortgage. I don't think there are these kinds of shenanigans as people need to have a down payment PLUS they need to have an income that is in line with the ability to actually pay the mortgage each month.

amother

Butterscotch

Fri, Apr 08 2022, 2:13 pm

yiddishmom wrote:

In Lakewpod itself? Nope. From here on, Lakewood homes will always remain at 1m MINIMUM.

I don’t believe it will stay at that point.
I think it will stabilize.
The market in lkwd has fluctuated many times.
I think ppl are over extending themselves to buy homes snd I don’t believe it is sustainable.

amother

Hosta

Fri, Apr 08 2022, 2:19 pm

It won’t crash because the value of the building materials of the home went up; but I do think it would fall a little bit because of the higher interest rates which will make the mortgage payments higher and qualifying for a mortgage harder.

amother

Butterscotch

Fri, Apr 08 2022, 2:21 pm

amother [ Hosta ] wrote:

Building materials can also decrease eventually.
Lkwd has gone through cycles in past. All those times no one said it would happen.
Maybe not as greatly. But I do believe it will drop.

watergirl

Fri, Apr 08 2022, 2:22 pm

amother [ Butterscotch ] wrote:

I've said this so many times on this site re: people in Lakewood buying homes so expensive, they can not pay the mortgage unless they have a tenant - until the BANKS in the area stop giving mortgages to people who can not afford them, people will continue to buy what they can not afford.

When I bought my house five years ago, the bank looked at every single penny in all of our accounts and asked so many questions during the underwriting approval process, I thought it would never end. They looked as far back as 3-6 months if I recall correctly. I had to sign papers stating that I was not taking in a tenant etc. and I know there are papers people who receive money for the house who have to provide a signed letter from the giver that it is not a loan, it is a gift. The banks want to make sure people are NOT overextending themselves to buy the house.

Or course people lie on these documents. That's where our rabbis need to do a better job teaching yashrus to their kehillas. Our rabbonim have to be brave enough to stand up and tell their kehillos to stop spending more than they can afford. Those who can, spend and enjoy. Those who can not afford need to get chizzuk not to spend if they can not afford. The beauty of living within your means is so much greater than a huge house one can not afford honestly.

amother

Ebony

Fri, Apr 08 2022, 4:06 pm

First of all, Lakewood is not some special case. Whatever happens in the rest of the country, Lakewood can expect the same, give or take a few months.

Also, the conditions are not even remotely similar to the conditions that led to 2008. There is no crash coming. At most, the market will just cool off and stop skyrocketing. But prices aren't going down any time soon.

amother

DarkCyan

Fri, Apr 08 2022, 5:00 pm

amother [ Ebony ] wrote:

The trends in the frum areas in brooklyn back when it was the hottest place to live did not follow other trends the prices continue to rise even when it wasn't rising anywhere else. It is a special case. Lakewood is following those patterns now.

crust

Fri, Apr 08 2022, 5:13 pm

I think it is safe to say that prices will continue to rise in any area that has good infrastructure for the frum population.

If you want to pay less then you have to buy a few miles out or go through the pains of being a pioneer of a new community.

There's so much Bracha in this.
There aren't that many times in history when so many frum Yidden were able to live together in one place.

amother

Lightcyan

Fri, Apr 08 2022, 5:16 pm

We have seen with 2020 vision that nowadays anything can happen. IyH only for the good. The revealed good.

amother

Thu, Jul 14 2022, 9:17 pm

Bumping this up. Anyone think the housing market in the lakewood area is going to crash soon?

stillnewlywed

Thu, Jul 14 2022, 9:20 pm

amother [ OP ] wrote:

Bumping this up. Anyone think the housing market in the lakewood area is going to crash soon?

Just finished watching the Dave Ramsey Reality Check about the housing market - live event took place tonight.
According to the data there will not be a housing crash, home values will continue to rise. This is nothing like 2008.

amother

Anemone

Thu, Jul 14 2022, 9:28 pm

Every week I read the rental list in the Masa

The last few weeks the reason the list grew was because people are trying to rent out their homes for the summer.

This week there was more homes for regular housing. Is there going to be more houses for rent? I don't know if this is a fluke or the list will now start to grow.

Many homes in Lakewood proper are not owned by the people who live in them, are they going to keep their homes? or will everyone start selling at once? Are people in it for the long game or to flip?

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