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Article on housing market. Seemingly prices will come down. Login/Join 
Green grass and
high tides
Picture of old rugged cross
posted
Not a surprise but it does address what is happening. I have no idea how some people think a mortgage of $3-5k is a good way to go. Espeically if you are currently at 20% equity or so. That is scary.

https://www.redfin.com/news/ho...25&inquirySource=365



"Practice like you want to play in the game"
 
Posts: 17274 | Registered: September 21, 2005Reply With QuoteReport This Post
quarter MOA visionary
Picture of smschulz
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Yeah but with inflation and potential depression-ish economy it will just all be relative. Eek
 
Posts: 20454 | Location: Houston, TX | Registered: June 11, 2006Reply With QuoteReport This Post
Optimistic Cynic
Picture of architect
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Not to mention that when interest rates go up, the total cost to the buyer will increase as well. So it might seem like the property is selling for a lower "price," but it just means that the bank is taking more, and the seller geting less. The buyer is still on the hook for about the same amount (or more).
 
Posts: 5086 | Location: NoVA | Registered: July 22, 2009Reply With QuoteReport This Post
come and take it
posted Hide Post
quote:
Originally posted by architect:
Not to mention that when interest rates go up, the total cost to the buyer will increase as well. So it might seem like the property is selling for a lower "price," but it just means that the bank is taking more, and the seller geting less. The buyer is still on the hook for about the same amount (or more).


Yep, this exactly. Prices are coming down as interest rates go up. The mortgage payments are going to stay high.




I have a few SIGs.
 
Posts: 1678 | Location: Texan north of the Red River | Registered: November 05, 2003Reply With QuoteReport This Post
Needs a check up
from the neck up
Picture of Timdogg6
posted Hide Post
Starting to finally see some price reductions in South Florida


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The entire reason for the Second Amendment is not for hunting, it’s not for target shooting … it’s there so that you and I can protect our homes and our children and and our families and our lives. And it’s also there as fundamental check on government tyranny. Sen Ted Cruz
 
Posts: 4944 | Location: Boca Raton, FL The Gunshine State | Registered: July 30, 2002Reply With QuoteReport This Post
Member
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Location, location, location.

I am not seeing any downward movement in high-end to mid-priced stuff YET.

Inventory is so thin, at worst stuff may now take weeks to sell instead of days, but prices are still firm, and bidding wars still happen.

The lower end may weaken, but only because low- end buyers will start not to qualify at the higher rates.

Unless inventory increases, prices with not come down.
 
Posts: 4183 | Registered: February 15, 2004Reply With QuoteReport This Post
Member
Picture of P250UA5
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Meanwhile, listing prices are still increasing in my neighborhood.

3 houses listed this year, 1 about 2 months ago, 2 within the last couple weeks, for over $900k Eek

That's way above the values when we moved in here. And, part of what motivated us to list & downsize.

Edit: Was posting from my phone earlier.

I'm only aware of 2 reductions, so far, in my immediate neighborhood section (there are something like 7 or 8 sections of the total neighborhood). The rest, sales prior to ours, were going for $30-70k over list.

We turned unlucky & listed the same week interest rates jumped, so it took us 3 weeks to get a deal going vs the 3-5 days the prior 6-8 sales had taken.

Also, we're about to have an influx of Exxon employees coming down from Dallas, so I expect the market here in N Houston to stay strong/seller biased for a while.




The Enemy's gate is down.
 
Posts: 11005 | Location: Spring, TX | Registered: July 11, 2011Reply With QuoteReport This Post
So let it be written,
so let it be done...
Picture of Dzozer
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Neighbor's house went on the market Saturday - it sold in 3 days for nearly double what we paid for ours.



'Live long and prosper'
 
Posts: 3516 | Location: The Forest | Registered: April 28, 2007Reply With QuoteReport This Post
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quote:
Originally posted by old rugged cross:
Not a surprise but it does address what is happening. I have no idea how some people think a mortgage of $3-5k is a good way to go. Espeically if you are currently at 20% equity or so. That is scary.
If I had a household income of $350k+ a year a $3-$5k mortgage is no big deal. Totally depends on income. It is shocking that the average mortgage is over $2k a month now. That's nuts.

I am shocked with the debt to income ratio some of my friends share with me. I wouldn't be able to sleep at night with how many people live.
 
Posts: 3076 | Registered: January 25, 2013Reply With QuoteReport This Post
I Am The Walrus
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Unless you sold your overpriced NY/NJ home and moved somewhere cheaper, I'm thinking a lot of people didn't put 20% and are paying PMI.

I'm wondering what's going to happen when people realize the house they paid $400k for is only worth $250k but their frenzied buying made them make a bad decision to overpay.


_____________

 
Posts: 12055 | Registered: March 12, 2005Reply With QuoteReport This Post
I Deal In Lead
Picture of Flash-LB
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quote:
Originally posted by Edmond:
Unless you sold your overpriced NY/NJ home and moved somewhere cheaper, I'm thinking a lot of people didn't put 20% and are paying PMI.

I'm wondering what's going to happen when people realize the house they paid $400k for is only worth $250k but their frenzied buying made them make a bad decision to overpay.


I'm guessing they'll do the same thing that they did the last time this happened, and that's to default on their mortgage.

After all, it's not these poor peoples' fault that they made bad decisions, so they shouldn't have to pay for them.
 
Posts: 9000 | Location: Gilbert Arizona | Registered: March 21, 2013Reply With QuoteReport This Post
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Picture of mcrimm
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Look at this example: The average Joe bought a $500k house when rates were 2.5%. He put 10% down and financed $450K for 30 years. His P&I payment was $1,778.04.

Rates today are 6.75%. Joe's payment would now be $2,918.69 for the same house.

Now if Joe could only afford the $1,778.04 (before taxes and insurance) he could only buy a $324,135.86 home if he puts down the same $50K.

So, what happens to the housing market? What happens to new construction with $10 2x6s? The answers are just around the corner.



I'm sorry if I hurt you feelings when I called you stupid - I thought you already knew - Unknown
...................................
When you have no future, you live in the past. " Sycamore Row" by John Grisham
 
Posts: 3718 | Location: Saddlebrooke, Arizona | Registered: December 24, 2013Reply With QuoteReport This Post
I Am The Walrus
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mcrimm,

That's probably with Joe and Jane working. Either Joe or Jane gets laid off or injured and doesn't have long term disability insurance and they default. That happened in a place I lived. Lots of people buying those $500k homes stretching 2 incomes.


_____________

 
Posts: 12055 | Registered: March 12, 2005Reply With QuoteReport This Post
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I just don't understand how people are buying homes now. The average person can't come close to affording a $500k home. How do they even come up with a down payment for that amount?
But somehow, someway, houses where I live are selling as fast as they're being built. Five years ago a neighborhood near me had a sign that said homes starting at 300k to 500k. Now its 500k to the 900ks. Nearly double, that's insane.


No one's life, liberty or property is safe while the legislature is in session.- Mark Twain
 
Posts: 3212 | Location: TX | Registered: October 08, 2005Reply With QuoteReport This Post
Down the Rabbit Hole
Picture of Jupiter
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quote:
Originally posted by sigspecops:
I just don't understand how people are buying homes now. The average person can't come close to affording a $500k home. How do they even come up with a down payment for that amount?
But somehow, someway, houses where I live are selling as fast as they're being built. Five years ago a neighborhood near me had a sign that said homes starting at 300k to 500k. Now its 500k to the 900ks. Nearly double, that's insane.



Here is an interesting article that may explain some of it. I don't believe most people are aware of this growing trend.

"Investors and corporations are buying up houses and turning them into rental properties."

https://www.nytimes.com/2022/0...-housing-market.html


Diligentia, Vis, Celeritas

"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
-- George Orwell

 
Posts: 4247 | Location: North Mississippi | Registered: August 09, 2002Reply With QuoteReport This Post
Get my pies
outta the oven!

Picture of PASig
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I think the housing market is due for a big correction, around where I live there's signs EVERYWHERE but few people snapping up properties like a year ago this time.

BREAKING: The Federal Reserve announces 0.75 % interest rate hike— the highest in 28 years


 
Posts: 30212 | Location: Pennsylvania | Registered: November 12, 2007Reply With QuoteReport This Post
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Hate to tell you but PA isn’t the growth market that you think it is. FL and TX among some other states are still selling strong. People aren’t flocking to Pennsylvania.

I will take that bet the prices won’t correct massively down here. Plateau? Yes, crater? No.

Mccrimm is absolutely right. At double the interest rate mortgages aren’t coming down anytime soon. Cash buyers will benefit, everybody else will wax rhapsodically about 3% interest rates.
 
Posts: 5111 | Registered: June 18, 2005Reply With QuoteReport This Post
Gracie Allen is my
personal savior!
posted Hide Post
IMHO Texas is waiting to see how long it takes to start running out of people who managed to sell their houses somewhere else - mostly on the Pacific Coast. In-state migration has been shunted off to apartments or outlying areas for many, many months now.
 
Posts: 26573 | Location: Deep in the heart of the brush country, and closing on that #&*%!?! roadrunner. Really. | Registered: February 05, 2008Reply With QuoteReport This Post
Green grass and
high tides
Picture of old rugged cross
posted Hide Post
Anyone thinking they are going to borrow a few hundred thousand to buy a house better have a hellofa job and do the arithmetic.

It is going to bring the market down everywhere.



"Practice like you want to play in the game"
 
Posts: 17274 | Registered: September 21, 2005Reply With QuoteReport This Post
Get my pies
outta the oven!

Picture of PASig
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quote:
Originally posted by pedropcola:


Hate to tell you but PA isn’t the growth market that you think it is. FL and TX among some other states are still selling strong. People aren’t flocking to Pennsylvania.



Ummmm....where did I state that?

I was just making an observation about what I AM SEEING around me dude.

No need to put words in my mouth here. It's almost like you're heavily invested in RE and trying to tell yourself that it's gonna be alright, everything is fine, nothing to see here

See how that works?


 
Posts: 30212 | Location: Pennsylvania | Registered: November 12, 2007Reply With QuoteReport This Post
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