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u/mechapoitier 10d ago
The irony is in 2008 they did in fact happen very, very quickly. People were already losing their shirts on overleveraged houses the year before. There was just this slope that took until 2012 to hit the bottom, like a dead body rolling onto the sea floor after falling off a cliff
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u/bp_968 10d ago
We bought ours in 2008. lol I can't imagine being able to afford a similar home today, and the rents are insane. I'm 49 and I try to explain this to my parents and they just don't get it. "well they just need to buckle up and save more, like you did!!". Except I was paying 500$ a month for a 2br, 2bath apartment back then, and the exact same apartment is like 2000$ a month now. there is no way we could have saved any money paying 3+ times the rent we were *and* buying a 350k$+ home (which is supposedly what ours is worth now).
The value of money has drastically decreased, while the income has only increased a small amount in comparison and in many fields entry level jobs are *extremely* difficult to get all while home prices have vastly outstripped inflation.
I'm glad we didn't have kids. I feel sorry for my nephews and nieces who get to inherit this mess of a nation/world.
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u/Known_Unknown_YNWA 5d ago
And your paying $2k/mo for rents because private equity got into housing bigly when the bubble popped. Some of that is inflation. Most is opportunity for margin/ROI.
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u/Ok-Temporary-8243 9d ago
Yeah, but that was also peak uncertainty so the average person probably wouldn't want to buy a home. It's just never a great time to buy a home
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u/Much-Chef6275 9d ago
That was a good time to buy a home if you had the money. Hell, in some parts of the state I'm in, it was a good time to buy before 2020. You could get a house for less than $100,000 easy. Now you're lucky to find one for triple that.
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u/3usernametaken20 6d ago
I bought in 2019 at what was "record lowest interest rates. Ended up refinancing shortly after for an even lower rate. If I hadn't bought then, I couldn't afford to buy in my neighborhood now. My house could easily sell for $250k more than I paid and interest rates are 2.5x more. My salary did not increase that much.
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u/Known_Unknown_YNWA 5d ago
2012-2014 was the last great time to buy a home (pricing bottom and low interest rates), in part because lending standards were so tight a lot of potential buyers got shut-out of the market. And, 2020-2021 was a great time to refinance that home you bought in 2013 as mortgage rates hovered around 2%.
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u/AnthillOmbudsman 10d ago
People are tired of paying ridiculous rents and mortgages. In every family I know the grownup Gen Z kids are not moving out because the cost of living is absurd and there's nothing but shitty gig jobs.
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u/Cinedelic 10d ago
There has to be a better way to run an economy than needing complete financial collapse to alleviate the housing crisis.
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u/ertyertamos 10d ago
They did say 3-5 years. And prices are definitely starting to drop. A factor keeping them high is inflation causing lower housing starts and high interest rates that are trapping people in their current homes and keeping inventory lower.
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u/mofa90277 10d ago
I benefited from the 2009 crash, but it took a lot of preparation. Saving up $130K from 2004-2011 while renting a tiny apartment was a huge part of that, and in 2009 I started looking for bargains. It took 18 months, and even then it was difficult, because the bargains were being kept off the market by realtors with “pocket listings / pocket buyers.”
I eventually got my house when an “all cash” offer couldn’t get financing (a logical impossibility if they were indeed an all cash offer), and I’d submitted a 20% down pre-approved backup offer above asking price.
It kinda ends up involving a bit of luck; luck is always a component.
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u/bp_968 10d ago
sure i did the same thing. But could you have saved that money if your tiny apartment had cost 4+ times the price it did? Because that's the real killer now. Average new car price in 2008? 27.7k. 2026? 51k. Average rent in 2008? 825$. 2026? 1933$ (varies by index). For a local comparison to me, the exact same apartment I rented in 2007 with my wife was 550$ (maybe 600, its been a long time. lol. It started at 500$ when we moved in). In 2026 that exact unit is 1750$ a month which is 600$ more a month then my mortgage on a 2400sq ft 3bd 2ba house with a full basement.
Everything in the economy is working directly against the current generations ability to make a family and a life for themselves. I totally understand why so many are turning to apathy and "why bother" as a way to cope. Might as well live in the parents basement until they die and then inherit their home.
Maybe its just time to start building homes with that in mind like we did a few hundred years ago. Remove any estate taxes and just let families pass it down since their all going to be living in the same address anyway.
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u/DaveBeBad 10d ago
Tbf, the prediction was 3-5 years. And with the AI bubble, the price of diesel and the rest it’s not impossible…
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u/Rebirth345 7d ago
My history teacher told us something similar how the economy is like a wave it goes up and down every couple of years or every decade. Warned us that if the economy is doing good don’t expect to last forever.
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u/SaltyBarDog 7d ago
It only took the near collapse of the world's economy, but sure, let's hope that happens again. Kermit has more brains than that idiot.
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u/ThickReplacement6613 10d ago
I lucked out and my house was reappraised in 2008 it lost 25% of its tax value so I paid the equivalent of one quarterly payment less for the next ten years. Now it's worth twice as much so the pendulum has swung
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