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Northwestern tiger
Minnesota Fan
Long Island NY
Member since Oct 2005
22699 posts
 Online 

My House has been sitting on the market for a month now

12 showings no offer, reduced the price, still no offer. A year ago our neighbors sold the their house, which was very similar to ours, in less than a week for 50k more than our house is currently listed. It was a bidding war.
I’m taking it off the market in two weeks. Will rent it out.
Interest rate is screwing everyone.
It’s ridiculous.


tiggerthetooth
Houston Astros Fan
Big Momma's House
Member since Oct 2010
56413 posts
 Online 

Only going to get worse. Get ready.


thelawnwranglers
LSU Fan
Member since Sep 2007
35092 posts
 Online 

Haven't morti rate doubled

Winter is coming baw


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311
Northwestern tiger
Minnesota Fan
Long Island NY
Member since Oct 2005
22699 posts
 Online 

The feds are getting super aggressive with the interest rate. They will cause a bad rescission


Mingo Was His NameO
LSU Fan
Brooklyn
Member since Mar 2016
25455 posts

quote:

The feds are getting super aggressive with the interest rate.


I mean they kind of have to. We're now at historical traditional mortgage rates, they can't give money away forever


armsdealer
New Orleans Pelicans Fan
Member since Feb 2016
8886 posts

Do you think it is last years market that was normal or is it that this years market is normal? I know I will lose some on my house but it is better for everyone for single family houses to be affordable.


tiggerthetooth
Houston Astros Fan
Big Momma's House
Member since Oct 2010
56413 posts
 Online 

quote:

The feds are getting super aggressive with the interest rate. They will cause a bad rescission


It's necessary to bring down inflation. They're pretty much committed to 0.75 and 0.50 rate hikes before the end of the year.


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221
HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
44573 posts
 Online 

quote:

Interest rate is screwing everyone.
It’s ridiculous.


It's the plan. Rates have/are killing the market slowly.


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150
molsusports
Ohio State Fan
Member since Jul 2004
34384 posts
 Online 

quote:

Do you think it is last years market that was normal or is it that this years market is normal?


No to both. Artificially low rates led to artificial inflation of housing. The mortgage rates were abnormally low (below 3%) between 2020 and 2022. This made it possible for buyers to afford more house and artificially elevated home prices.

Short term that seemed fantastic for owners who had paper gains or realized profits by selling. But this also supercharged individual and corporate speculation (flippers from small time investors to OpenDoor and Zillow. A surprising percentage of homes purchased this year (especially through April) were flippers relying upon the greater fool to buy from them what they overpaid someone else.

Zillow and OD have taken a bath on this model - and may yet go underwater.

Anyway, big picture the cost of housing is eventually affected, if not determined, by the ability of the owner or tenant to afford the cost of the mortgage or rent. The purchase prices of most American homes in most markets do not match the incomes of most Americans at typical mortgage interest rates.

TLDR. Home prices were over inflated by artificial and temporary financial policies. Average interest rates of 5 or 6 percent are not compatible with the current housing prices.


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220
TigerTatorTots
LSU Fan
The Safeshore
Member since Jul 2009
79868 posts

The bottom is about to fall out of housing. I feel bad for those trying to sell in this market. 7% mortgage rates cuts probably 75% or more of the buying pool of people for a specific price range


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molsusports
Ohio State Fan
Member since Jul 2004
34384 posts
 Online 

I'm pessimistic about current values being real values. But, barring a major recession or depression, we probably won't see a generalized and abrupt plunge in average housing prices.

Why? Because most people didn't both overpay and get an interest rate above 4% - so theymostly will afford the mortgages (even if they regret the purchase). Home purchases started to rapidly decrease since August (rates have risen two points since then) because fewer buyers can afford the real mortgage cost at normal interest rates.

Anyway, I think we see a slower slide downwards over a few years rather than an abrupt plunge. Sellers don't want to get less than what their neighbors received for similar homes. Until they HAVE to buy a house themselves and really understand the affordability issue from the perspective of a buyer they will really fight that reality


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91
danilo
Member since Nov 2008
16212 posts

Given the rates I am saving cash and considering putting down 50% (maybe more).
This post was edited on 9/27 at 9:56 pm


glorymanutdtiger
LSU Fan
Baton Rouge
Member since Jun 2012
3152 posts
 Online 

I’m sorry that you didn’t get any offers on your house. The housing prices are out of control and are inflated. We need the Fed’s to bring it back to normal prices. Houses in BR going for 500k is ridiculous


notiger1997
Metairie
Member since May 2009
53254 posts
 Online 

quote:

Houses in BR going for 500k is ridiculous



So are you implying that some houses in BR aren't worth this?
Seems like quite the blanket statement.


LSUShock
LSU Fan
Kansas
Member since Jun 2014
4599 posts

This seems like the only way to combat it. Borrow less. Own more. Take advantage of potentially needy sellers. Goes against everything this board has said for 5 years, but the game has changed.


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30
Gorilla Ball
LSU Fan
Member since Feb 2006
10188 posts
 Online 

Unfortunately a year ago houses were hoping on and being sold with little effort by the seller. Things have changed. It was a sellers market.
As inventory slowly and I mean slowly creeps up it will become a buyers market.
I have no idea what’s going to happen to the economy


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90
llfshoals
Alabama Fan
Member since Nov 2010
13702 posts

If you had 12 showings and no offers, I suspect price isn’t the problem. I can’t remember a listing in my office that has had 10 plus and no offers where it was. (If it’s too high they probably aren’t even coming)

What’s the feedback from the agents showing it?
This post was edited on 9/28 at 5:24 am


jlu03
LSU Fan
San Diego
Member since Jul 2012
3248 posts

I’m guessing with the sudden rise in rates people talk with their bank and don’t realize rates are now over 7%.


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60
Northwestern tiger
Minnesota Fan
Long Island NY
Member since Oct 2005
22699 posts
 Online 

quote:

What’s the feedback from the agents showing it?

Windows are old
Siding on garage
Roof getting old
Etc…
But everything is factored in the price. It’s listed below Zillow estimate


Lone Wolf McQuade
Member since Sep 2022
207 posts

quote:

...that the national average 30 year mortgage rate just soared above 7.0%, hitting 7.08% and the highest since December 11, 2000.


The fastest 1% rise in history.

We are also experiencing the worst inflation in 40 years. Why is no one upset with our government for all the excessive spending? What about the lockdowns?


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