re: Who blinks first...home buyers or home sellers?

I think home sellers are in for a very rude awakening. Here's an example.

There's a home that is being sold here in Cenla for $325k. Dropped from $370k a month and a half ago.

It's a really nice home in (for ellick) a nice area. The neighborhood is mature, the homes are well-kept, it's generally a very nice house. However, the inside of the house has not been renovated since what looks like 1970. It was owned by an old doctor who passed away and my understanding is that the estate is now trying to sell the home.

The issue is you would need to dump $70k at least into the home just to get it bare basics modern. There's no way it sells for $325k. It's been on market for 200+ days now.

There are a ton of houses around this area just sitting. For a long time. And it's like sellers don't get that they should have sold 4 years ago.

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This is me! I've ran the numbers before but I would have to purchase a house that cost around 60% or so of the house I bought in 2021 to keep a similar payment.

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Similar here. Quick numbers…
Current home val - ~$425k
Equity ~$275k
Current payment ~$1250/mth

To get a $1250 note on a 30yr @ 6% I could only finance $200k. Add in the $275k equity and I could buy a $475k house and keep my mortgage the same, but would be going from a 15yr note with 11 years left to a 30 with 30. And I’d be paying $300 towards principal to start vs $1000 currently.
All that for basically the same house lol. I AINT GOING A GOT DAM PLACE lol

Sellers

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Yep.

For me to upgrade homes my monthly note would skyrocket

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Exactly. My orginal rate was 4.5%, then we refinanced to 2 something when the rates were low. My note was $880 on a 175k home. Now with property taxes have gone up, insurance has gone up, my note now is over $1200. We want to upgrade, but shite, I would rather not go house broke. I don't want to pay 350-400K for a bigger house. Not in New Iberia. They crazy over there. They pricing houses like they are youngsville.

The government should require lenders to make mortgages transferable like they used to be. You sell your house, you can roll the debt obligation to the new and cover any additional out of pocket or with another loan

Lot of people out here staring down the barrel of a 3x interest expense, maybe even greater, just to move anywhere that isn’t a downsize or scale down.

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The government should require lenders to make mortgages transferable like they used to be.

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They still are.

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The market is the market and people should get what they can, but Sellers have been generally greedy

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How is taking what the market will bear being "greedy" in any way? Do you expect people to discount their shite just because you can't afford it? "You seem like such a nice guy, I tell you what I'm going to do, I'm going to just go ahead and knock 50% off the top for ya..." Yeah, wake the frick up. This is America, brother, land of buy low, sell high.

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How is taking what the market will bear being "greedy" in any way? Do you expect people to discount their shite just because you can't afford it? "You seem like such a nice guy, I tell you what I'm going to do, I'm going to just go ahead and knock 50% off the top for ya..." Yeah, wake the frick up. This is America, brother, land of buy low, sell high.

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You seemed to have misread my qualifying language. I am talking about general market greed, not so much an individual dynamic as I would do the same thing. I bought a house last summer, can afford plenty

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still just to many people In “trap houses” as my friends call them

trapped/golden handcuffed to low interest rates that even if you want to move it just financially doesn’t make sense to. the gap between the locked in low interest rate and the amount other homes would have to decrease just to make an even swap is too wide

less buyers and less houses on the market…stalemate and the people fricked are the ones who have to sell or move

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I've said this on the Money board a few times, but these people who keep spouting "well the rates are actually still average or even low historically" are missing the mark. The rates HAVE to come down both to make houses affordable for first time buyers and to get the market going again.

A home is too big of an investment for your average person to have values go down or stagnate for too long.

11% on a $60k house is a much different ballgame than 6% on $350k in terms of your monthly payment.

If rates don't make it back into the low 5's or even 4's naturally, there will be some sort of government intervention to push them there.

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So people are getting frustrated that their 1300 sq ft house won’t sell for 350k?

Well i wonder why?

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Depends on where you are. Where we're looking the price would be ~3x that.

We love our "temporary" (going on 2+ years) apartment and are fine to renew and continue waiting it out until the right place comes along. Will keep socking away money in the meantime.