“Her husband is a realtor and she’s pregnant. They have decided to sell their condo and rent until the market comes down.”

“Just got a conversation with a friend of mine. Her husband is a realtor and she’s pregnant. They are looking to move to a bigger place. She said her husband has made the calculations and they have decided to sell their condo and… rent and wait until the market comes down before they’ll buy again!”
– Makaya, at VREAA, 16 Aug 2011 6:36pm

“I know a guy that did that in 2004/05 – I think they are divorced now.”
– Blammo, at VREAA, 16 Aug 2011 7:37pm

The first story is interesting as a possible case of someone close to the market getting wind of coming weakness. Most insiders in bubble markets, however, don’t foresee their collapse.
Blammo’s anecdote is an example of probable social fall-out of the speculative mania. (‘Probable’ because they may have divorced regardless).
Financial stress is often claimed to be the commonest cause of marital break-up. On the other hand, once the housing bubble imploded across the US, there was talk of many couples being forced to stay together because they couldn’t afford to sell the house and separate.
– vreaa

15 responses to ““Her husband is a realtor and she’s pregnant. They have decided to sell their condo and rent until the market comes down.”

  1. I know quite a few couples who separated over financial stress (usually due to house-poverty) but I can’t say I’ve ever heard of a marriage breaking down because of renting.

    • I think it’s not due to renting as much as due to all the lost wealth that they could have had if they just held on. That lost $200K, $500K, $1M equity is a tough pill to swallow and a tough obstacle for love to overcome. It’s the financial stress of knowing that you let a once in a lifetime jackpot slip through your fingers because someone is stupid enough to do the math.

      • Yeah, because the 1M equity jackpot is a given.

      • So you know people who have divorced because they “let a once in a lifetime jackpot slip through”? I.e. they were living comfortably but passed on the opportunity to buy into the housing market, and the resulting stress broke up their marriage?

      • My wife and I recently sold our home in a US city. I wanted to rent for a year, because I believed (and still do) that homes would lose another 5% to 7% over the coming year.

        This was unacceptable to my wife, who needs to be settled, need our kids established in their school district, doesn’t follow the market like I do, etc. The idea of moving all our stuff into a rental for a year and then moving again was crazy to her.

        Long story short, we bought a new house. The discord wouldn’t be worth it.

        So if you have a situation where one member talks the other into renting when he/she doesn’t want to, and then they proceed to get spectacularly priced out of even the type of home they just sold, I could see that causing extreme marital stress.

      • 4 sweetest words in life: i told you so

      • Long story short, we bought a new house. The discord wouldn’t be worth it.

        Honestly this amazes me. I mean we’re supposed to all believe that guys think with their dick, but it seems when it comes to finances women aren’t really better, they seem to defer those decisions to their ovaries.

    • “I’ve ever heard of a marriage breaking down because of renting”

      Indirectly I have. Couple married in 2004, thought prices were too high even then and decided to save and wait. No divorce yet but let’s just say regret is a dish that’s always hot.

      There’s a life lesson in there somewheres.

    • Ouch! Did you look at the photos? The wife is in a couple of them. Looks like she’s doing the dishes. Happy families.

  2. I know quite a few that sold in 2007 and 2008…they’re still waiting, with our market 30% higher. This is called “getting caught with your shorts down”. Not such a brilliant move when you have a baby on the way. The greed here is thick, very thick.

    • “The greed here is thick, very thick.”

      Greed and hubris. If they went in with their eyes open about the potential time horizon for re-entering the market (i.e. they knew there was a tangible risk it might be many years), I can’t call them greedy at all.

    • Looking forward to your commentaries on the way down.

      “It is but a fleshwound”

      But realistically, you’re probably going to disappear once the wind fully blows in the other direction.

  3. had this blogger bought when he/she started this blog, he wouldnt be here to complain about it. and a lot of people will keep complaining about how unaffordable it is until the day their teeth fall off.

  4. I met an agent and pregnant wife too (could be the same couple). They are already not living in the condo they own (rented out while they live with family). You’ve heard of a mortgage helper basement suite, why not rent out the whole thing! I asked him if Richmond is really dead since the tsunami, said, “yes, and no one came to my westside open this weekend either.”

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