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re: Every time I passed on a real estate purchase because the price was too high...
Posted on 10/12/23 at 10:59 am to sidewalkside
Posted on 10/12/23 at 10:59 am to sidewalkside
I don’t get the hesitation in the market currently. If you’re waiting on interest rates to drop, what do you think housing prices will do when that happens? You can always refinance to a lower rate later if rates drop, and if rates keep going up, you’re better off with the lower rate you have now.
5
Posted on 10/12/23 at 11:01 am to Epic Cajun
quote:
I don’t get the hesitation in the market currently.
For me, it is a simple matter of monthly budgeting for what I would be getting.
There's also still a mental shock when looking at prices. The cheapest livable homes I see around me are around $375,000. These houses were more like $275,000 just 2 years ago.
This post was edited on 10/12/23 at 11:02 am
Posted on 10/12/23 at 11:01 am to Epic Cajun
Yup. As soon as rates start to go down the bidding wars and prices will go back up. Everyone would rather sit around and cry
Posted on 10/12/23 at 11:16 am to Epic Cajun
quote:
I don’t get the hesitation in the market currently.
Because the houses aren’t worth what people are asking.
Posted on 10/12/23 at 11:17 am to Epic Cajun
quote:
I don’t get the hesitation in the market currently. If you’re waiting on interest rates to drop, what do you think housing prices will do when that happens? You can always refinance to a lower rate later if rates drop, and if rates keep going up, you’re better off with the lower rate you have now
The problem was the crazy lag in home prices reflecting the new rates. Everyone’s homes valuated super high in March 2021 and they’re either refusing to come off those prices, or they’re being forced out their own crazy low interest rate because a move and they’re trying to parlay that into their new mortgage.
We’re finally seeing downward pressure on prices and now you’d be right. As a prospective buyer I want to get a home at a lower price if I’m paying 8% interest. In 2 years when I refinance to 5.5% (or whatever we’re lucky to get) I’ll both save money and my home value increase will roll into more equity.
Nothing dumber than buying a home at 2021 price and 2023 rates. You won’t be able to refinance because the bank is going to value your house 30k less.
This post was edited on 10/12/23 at 11:19 am
Posted on 10/12/23 at 11:53 am to Epic Cajun
quote:
I don’t get the hesitation in the market currently. If you’re waiting on interest rates to drop, what do you think housing prices will do when that happens? You can always refinance to a lower rate later if rates drop, and if rates keep going up, you’re better off with the lower rate you have now.
This is a dumb tactic used by realtors. The bottom line is that nobody knows when rates will drop significantly. Therefore, why would I stretch my budget banking on a lower note at some undetermined time in the future?
Example: We almost moved in the spring and would have been giving up a 2.8% rate for a 6.5% rate and our monthly note would have doubled. Everyone from the realtor to the loan officer pushed the “refinance later” narrative and even said “rates are projected to be in the high 5’s by year end and low 5’s by mid next year.” Looking at current rates, there’s zero chance that happens.
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