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Posted on 7/30/14 at 5:14 pm
Posted on 7/30/14 at 5:14 pm
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This post was edited on 10/30/14 at 1:50 pm
3
Posted on 7/30/14 at 5:41 pm to Asgard Device
Posted on 7/30/14 at 8:57 pm to foshizzle
Posted on 7/30/14 at 10:45 pm to foshizzle
You could say that about many markets. Truly insightful.
Posted on 7/31/14 at 6:15 am to Asgard Device
quote:
You could say that about many markets. Truly insightful.
It also happens to be the correct answer.
You might be able to make some halfway decent guesses about specific areas, but your question is far too general, the 8 Ball is as good a guess as any. You didn't even specify the country, much less city. Real estate prices in North Baton Rouge might respond very differently to interest rates than would prices in, say, Willis N.D.
This post was edited on 7/31/14 at 6:17 am
Posted on 7/31/14 at 6:28 am to foshizzle
Wouldn't that have an immediate impact on supply and demand?
If 10 people can qualify for house A and the feds raise rates to where only 7 people can qualify, it will put downward pressure on pricing, not taking other factors into consideration.
Right?
If 10 people can qualify for house A and the feds raise rates to where only 7 people can qualify, it will put downward pressure on pricing, not taking other factors into consideration.
Right?
Posted on 7/31/14 at 6:58 am to I Love Bama
I would think so, in general
Posted on 7/31/14 at 7:20 am to I Love Bama
Usually when the interest rates increase it is in very small increments with a strong economy. Interest rates right now are higher than they were two years ago but real estate prices and demand is up. Home prices will be more tied to the economic state than just the interest rate. In 2006-2008 rates were around 5% and there was sufficient demand. Right now there is pent up demand for homes and cars. I think after a year or so that will work out, along with an interest rate increase the market will cool a bit.
Posted on 7/31/14 at 8:59 am to Libertariantiger
quote:
Usually when the interest rates increase it is in very small increments with a strong economy. Interest rates right now are higher than they were two years ago but real estate prices and demand is up. Home prices will be more tied to the economic state than just the interest rate. In 2006-2008 rates were around 5% and there was sufficient demand. Right now there is pent up demand for homes and cars. I think after a year or so that will work out, along with an interest rate increase the market will cool a bit.
Just to tag on this... if the economy is improving, wages will go up. Interest rates will go up only if the economy is cranking. So, yes, the monthly payment on a house will cost more, but, there will be more money in pockets to pay for said payment.
Posted on 7/31/14 at 9:07 am to Libertariantiger
I'm contemplating making a move to Sacramento or St Petersburg (Florida) but right now is bad timing due to child on the way and my mom's health problems. So, Id be looking at doing this in 2 to 5 years.
I'm trying to convince myself that I may not lose a lot of equity in a future purchase when interest rates are factored in.
I'm trying to convince myself that I may not lose a lot of equity in a future purchase when interest rates are factored in.
Posted on 7/31/14 at 9:23 am to Asgard Device
Short simple answer is yes, higher interest rates will push down prices to some degree. Borrowers are able to borrow money on the pretext they can repay x amount a month. The more of x that is interest the less that is left for principle. Wage increases lag behind a improving economy for years for most employees so little bounce will actually come from there IMHO. The US gov has been supressing rates for a few years for many reasons one of which is proping up real estate prices and sales, this would lead one to conclude a rise on rates would have the oposite effect even if one does not understand the forces at work.
Posted on 7/31/14 at 2:59 pm to Libertariantiger
ummm you do know that demand was up because anyone and their dog could get a loan right?
best you take a back seat on this question.
best you take a back seat on this question.
Posted on 7/31/14 at 4:15 pm to Asgard Device
quote:
I'm trying to convince myself that I may not lose a lot of equity in a future purchase when interest rates are factored in.
To clarify, I mean that if interest rates go up I'd have to buy a less expensive home to have the same monthly payment.
Posted on 7/31/14 at 4:24 pm to Asgard Device
quote:
To clarify, I mean that if interest rates go up I'd have to buy a less expensive home to have the same monthly payment.
Yes that is correct
Posted on 7/31/14 at 4:38 pm to cave canem
quote:
Yes that is correct
Posted on 7/31/14 at 4:47 pm to Asgard Device
Not sure why that was even a question.
Posted on 7/31/14 at 4:51 pm to Asgard Device
quote:
I'm contemplating making a move to Sacramento or St Petersburg (Florida) but right now is bad timing due to child on the way and my mom's health problems.
This decision is dripping with logic.
Posted on 8/1/14 at 1:16 pm to Asgard Device
history would tell us yes but in todays economy i would say no. they might level off flat but the housing market has disconnected itself from normal factors. the fact that a new construction house in baton rouge cost $130 a sq ft and the new construction cost in texas is about $80 a sq ft. how prices are inflated in my book and if we correct those prices the economy may will take that much longer to recover.
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