Dr. T, you were buying a second house/vacation house, not a primary residence, correct?

 

Maybe downsizing and had cash in hand

It DOES happen occasionally....and then you're really in the 's seat

 

Yes, Maybe that makes for stricter requirements.

 

Yes, it definitely makes for stricter underwriting requirements.

Think about it. Someone would be much more willing to just walk away from a second house/vacation house than from their primary residence. It would be much easier to tell the kids that "we're not going to the weekend house anymore" than to tell them they have to leave their home, neighborhood, maybe even school.

Additionally, it's pretty hard for the bank to be sure you're buying a vacation home because you want to own it, rather than as a speculative investment. And we all know where mindless speculation in the real estate market got us, don't we.

 

Yes, that makes sense.

 

In our condo association, only one condo of the eight lakefront ones has ever sold since 1995. For many years, we would get cards in the mail and have solicitations hanging from our doorknobs saying from real estate agents saying " I have a buyer(s) for your condo, are you interested?" None of that is happening now, and three are for sale at reduced former prices. None of these are distressed sales; people are looking but not making offers. People either don't have the money, or the credit, or are too scared to commit.

 

there's a similar thing happening in some RENTAL markets. a large 1940s apt complex about 2 blocks from our house has a sign hanging under their main entrance sign that says "Penthouse Available"

Curious....I stopped in a month or two ago and got a tour from the property manager. These are HUGE older apts on the top floor, with wood floors, a small glass-enclosed terrace....about 2,500 SF. 3 BR + library +2.5 baths. Not a lot of charm but solid construction. The going rate incl heat, electric and water is about $3,200/ month...no extra fees.

Turns out that there are 6-8 of these and there has always been 8-10 names on a waiting list....popular for someone in this affluent area who is getting out of a 3-4,000 SF Main Line stone monster. Now there is NO ONE on the waiting list, and that "Penthouse Available" has been there for over 2 months.

 

Yeah, when you can no longer sell the 3-4,000 Main Line stone monster to a "flipper", it affects the whole food chain.