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re: Buyers Backing Out On Homes Due To New Rates
Posted on 3/31/22 at 1:53 pm to LSUnation78
Posted on 3/31/22 at 1:53 pm to LSUnation78
Imagine it being the 80s with 15-18% rates
And people balk at 4% lol
And people balk at 4% lol
2
Posted on 3/31/22 at 1:53 pm to TigerFan55555
quote:
TigerFan55555 LSU Fan Tomball, TX Member since Nov 2008..... The illegal students outnumber the legal students in almost every inner city school and the VAST majority have the IQ of a door knob... Trump was 100% right on one thing. The VAST majority of people crossing the border are not good people, many of the younger ones are pure evil and have the education of a 3 year old...deadly combination. Im actually researching several places to go.. North Alabama was one of them...
Years ago it would have been great to see all the kids in school, but from what I have heard (especially in Austin), the school systems there are nothing but liberal Indoctrination camps.
North Alabama isn't an entirely bad place, Yet. We're still pretty much the center of the Bible belt, and lots of folks here are still rooted in Christian values, good morals, and overall decency.
It's an area that's probably synonymous with most parts of Texas, but unfortunately, Liberalism is like a rapidly spreading cancer.....it's rapidly killing us one vital organ at a time.
Posted on 3/31/22 at 1:57 pm to Ag Zwin
quote:
Seems silly that even a 2 percentage point increase would negate a buying decision, especially when it’s tax deductible, but I can see it influencing a segment that is either strapped or just looking to change homes in the same locale.
Majority of people dont have enough deductions to itemize the mortgage interest to claim over the standard deduction. Remember standard deduction got doubled back in 2017.
Also, a deduction isn't that great, especially if you're in a lower tax bracket to begin with.
This post was edited on 3/31/22 at 1:59 pm
Posted on 3/31/22 at 2:03 pm to Catchfalaya
When we locked in our rate about 8 months ago, my wife and I both agreed that we were going to be in our current home at least 10 years before we'd sell (at the current rate) because we new a rate increase/inflation decrease was coming.
There's only so much inflation you can have in goods/materials (like food, gas, and lumber), before the house of cards falls.
Hopefully, this means the housing market cools, prices come down, and the dollar gets stronger.
There's only so much inflation you can have in goods/materials (like food, gas, and lumber), before the house of cards falls.
Hopefully, this means the housing market cools, prices come down, and the dollar gets stronger.
Posted on 3/31/22 at 2:05 pm to HempHead
quote:
If you're not buying in Madison Co or East Limestone/Athens, you can find stuff that is very reasonable, at least compared to most places.
Not sure about that, my SIL has a house on the Madison line in Limestone CO and her house went up 33% over the past year from $300K to 400K.
Posted on 3/31/22 at 2:15 pm to GWM
This market really is unprecedented in that so many things are coinciding.
1. Massive amount of demand due to Covid PTSD and younger millennials finally starting families.
2. No supply due to 15 years of under building and current owners that sell then needing to become buyers in this clown show of a market. The only people selling right now are doing so because they absolutely have to, or they are unloading second homes for huge profit, or they are retirees downsizing and moving to the sticks. The normal churn of trade ups does not exist.
3. Writing is on the wall that rents are going to increase astronomically which is incentivizing buying.
4. Knowing rates are going to keep rising is both a impetus to buy now AND disincentive to sell now unless you’re in one of the groups I mentioned.
5. New construction is just as expensive but may end up being the only way to get into a home if nothing else is for sale.
All that said, what I see happening is a housing market that basically shuts down in terms of transactions while values remain flat or continue increasing at a slower pace due to the number of people that need homes chasing fewer and fewer listings.
1. Massive amount of demand due to Covid PTSD and younger millennials finally starting families.
2. No supply due to 15 years of under building and current owners that sell then needing to become buyers in this clown show of a market. The only people selling right now are doing so because they absolutely have to, or they are unloading second homes for huge profit, or they are retirees downsizing and moving to the sticks. The normal churn of trade ups does not exist.
3. Writing is on the wall that rents are going to increase astronomically which is incentivizing buying.
4. Knowing rates are going to keep rising is both a impetus to buy now AND disincentive to sell now unless you’re in one of the groups I mentioned.
5. New construction is just as expensive but may end up being the only way to get into a home if nothing else is for sale.
All that said, what I see happening is a housing market that basically shuts down in terms of transactions while values remain flat or continue increasing at a slower pace due to the number of people that need homes chasing fewer and fewer listings.
This post was edited on 3/31/22 at 2:18 pm
Posted on 3/31/22 at 2:18 pm to NOLAVOL16
quote:
This market really is unprecedented in that so many things are coinciding.
1. Massive amount of demand due to Covid PTSD and younger millennials finally starting families.
2. No supply due to 15 years of under building and current owners that sell then needing to become buyers in this clown show of a market. The only people selling right now are doing so because they absolutely have to, or they are unloading second homes for huge profit, or they are retirees downsizing and moving to the sticks. The normal churn of trade ups does not exist.
3. Writing is on the wall that rents are going to increase astronomically which is incentivizing buying.
4. Knowing rates are going to keep rising is both a impetus to buy now AND disincentive to sell now unless you’re in one of the groups I mentioned.
All that said, what I see happening is a housing market that basically shuts down in terms of transactions while values remain flat or continue increasing at a slower pace due to the number of people that need homes chasing fewer and fewer listings.
I am in the California sticks and plan to move in a year. Really debating if I should dump now while I have 250 grand of equity. Hate to have rent for a year in this area, but I am afraid the market will crater.
Posted on 3/31/22 at 2:20 pm to aubie101
Tough choice. I wouldn’t worry about selling as much as having to buy in a year.
Posted on 3/31/22 at 2:23 pm to TigerTatorTots
quote:
Sounds like buyers are trying to buy way too much house if a 1% increase in rates is causing them to have to back out
The same people rolling Denali's with 7 year loans on them.
Posted on 3/31/22 at 2:24 pm to Catchfalaya
The peoples whos asses are about to be in a bind are developers and contractors who built houses or subdivisions to sell to customers with these ridiculously high building costs!
They can't drop prices on homes as much as interest rates are rising..
They can't drop prices on homes as much as interest rates are rising..
Posted on 3/31/22 at 2:24 pm to Catchfalaya
For the most part people adjust and buy what they can afford monthly. I think in the next few years, those with the ARMs will be screwed and there will be a glut of those houses dumped on the market. Banks may have to fire sale them.
Posted on 3/31/22 at 2:24 pm to Catchfalaya
quote:
Just had two buyers this week back out on purchases due to rising rates.
With a signed purchase agreement? Were they not qualified?
I'm putting my house on the market at the end of April. Handing it over to the realtor for a full week for showings while we get out of dodge. Hopefully rates don't skyrocket before then. This house isn't that expensive. Half a point or a point shouldn't knock all potential buyers out of the market.
Posted on 3/31/22 at 2:26 pm to NOLAVOL16
quote:
Tough choice. I wouldn’t worry about selling as much as having to buy in a year.
Yeah, but I am moving back to the South so it will be a lot cheaper.
Posted on 3/31/22 at 2:27 pm to rltiger
quote:
hose with the ARMs will be screwed and there will be a glut of those houses dumped on the market.
How many ARM’s are still out there? You’d have to be a royal dumbass to have taken out an arm at any point in the last 10 years or more. There was only 1 way that rate was going to go.
Posted on 3/31/22 at 2:28 pm to Catchfalaya
Yep. I might actually be able to grab a house now. Previous offer before me couldn’t afford the new rates.
Posted on 3/31/22 at 2:28 pm to EasterEgg
quote:
Good, maybe prices will come back down to normal.
nah, assessor over here wants them high to tax more...
Posted on 3/31/22 at 2:30 pm to deltaland
quote:
Imagine it being the 80s with 15-18% rates
I wouldnt mind that if values went back down to 100k
Posted on 3/31/22 at 2:31 pm to aubie101
quote:Dump now. The next few months are normally a really busy time of the year, and I expect it to get pretty crazy till about September.
I am in the California sticks and plan to move in a year. Really debating if I should dump now while I have 250 grand of equity. Hate to have rent for a year in this area, but I am afraid the market will crater.
It’s headed for a cliff I’m afraid, and you really want to get off before it goes over the edge
Posted on 3/31/22 at 2:31 pm to aubie101
quote:
Yeah, but I am moving back to the South so it will be a lot cheaper.
Depends on where in the South. The sticks? Yeah, you’ll be another transplant jackass driving up the cost for the locals. Lol
Posted on 3/31/22 at 2:31 pm to deeprig9
quote:
you can't afford a house at 4.8% you can't afford a house.
People can’t afford a mortgage but they can afford a 85k vehicle with a 10 year loan in Lafayette.
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