Boston suburbs on $75K/year?

[G-fused]

Originally Posted by blisterpeanuts

He should ask for minimum $100K salary.

Since we're throwin' out numbers, I say he should ask for $500k.

[Dm84]

Originally Posted by G-fused

Since we're throwin' out numbers, I say he should ask for $500k.

Lol. Depending on the college, they may have published pay grades that leave very little room for negotiation.

[Parsec]

Originally Posted by timberline742

And some don't employ history professors, but whatever. If the person wishes to become a professor, best of luck to him. If I wanted to make more money I would have stayed in my last job, or gone into a completely different profession.

And while getting tenure is harder and harder, it is far from dead.

You're a history professor? I would've never imagined based on your posts (that's a good thing)!

[timberline742]

Originally Posted by Parsec

You're a history professor? I would've never imagined based on your posts (that's a good thing)!

Oh no, I'm not. Nothing of the sort. I didn't mean to imply that. I was just saying not everyone wanting to go into academia as a professor has the option of walking into high paying private sector positions. I did work in academia at two Universities in the Boston area (one not prestigious, one very very prestigious) and saw the tenure process first hand working with the Academic Deans. It was an eye opener.

There is so much going on behind the scenes at Universities I would have never have imagined while being a student.

[Shrewsburried]

Originally Posted by 495neighbor

Huh?

Low interest rates = rise in home prices. It's what happens when the masses focus on monthly payments and not the bottom line.

I'd argue that the last "good deal" on real estate was in the mid-'90's ... relatively low interest rates and the home price index had lowered to near mid-'80's levels (when rates were double digits).

[495neighbor]

Originally Posted by Shrewsburried

Low interest rates = rise in home prices. It's what happens when the masses focus on monthly payments and not the bottom line.

I'd argue that the last "good deal" on real estate was in the mid-'90's ... relatively low interest rates and the home price index had lowered to near mid-'80's levels (when rates were double digits).

The interest rates in the 1990s were around 6-7% for most buyers.

Supply and demand, overall economy, location, condition primarily drive home prices.

Interest rates were as low as 2.5% during the latest real estate bust.

There is no correlation between interest rates and home prices.

[kingeorge]

Originally Posted by 495neighbor

The interest rates in the 1990s were around 6-7% for most buyers.

Supply and demand, overall economy, location, condition primarily drive home prices.

Interest rates were as low as 2.5% during the latest real estate bust.

There is no correlation between interest rates and home prices.

You are both right. Many different factors can push prices up or down. But, it is true that in high COL like MA, lower interest rates "lure" buyers into bigger mortgages, and even bidding wars. When borrowing money is cheap...

If mortgage rates shot today into 5%, 6% or more, many homes would be sitting on the market, and would probably not sell without some price reductions. Low interest rates are definitely inflating asking prices, and making them more "palatable". But, so are low inventory, and general desirability of this area. It is a mix. Very expensive mix of factors for buyers to deal with.

[495neighbor]

Originally Posted by kingeorge

You are both right. Many different factors can push prices up or down. But, it is true that in high COL like MA, lower interest rates "lure" buyers into bigger mortgages, and even bidding wars. When borrowing money is cheap...

If mortgage rates shot today into 5%, 6% or more, many homes would be sitting on the market, and would probably not sell without some price reductions. Low interest rates are definitely inflating asking prices, and making them more "palatable". But, so are low inventory, and general desirability of this area. It is a mix. Very expensive mix of factors for buyers to deal with.

Lower interest rates don't "lure" people into spending more money on the same home. Lower interest rates allow people to buy a bigger, better home because they can afford bigger, better on the same budget. Face it, people have to live somewhere. It is still much cheaper to buy than to rent in most areas. Low number of rentals and more and more people coming to this state for job opportunities.

[kingeorge]

Originally Posted by 495neighbor

Lower interest rates don't "lure" people into spending more money on the same home. Lower interest rates allow people to buy a bigger, better home because they can afford bigger, better on the same budget. Face it, people have to live somewhere. It is still much cheaper to buy than to rent in most areas. Low number of rentals and more and more people coming to this state for job opportunities.

Yes they do, if having bidding war, five other offers, and they are pressed against rock, and a hard place.

When you have not much to chose from, but you need a roof over your head, and especially if inventory is low, competition high: you buy what you can get your hands on (all else being equal), and lower rates make spending over your budget little more digestible.

Many buyers go into RE market with one idea of their home budget, only to "learn better", and then go out with very different results, especially when forced to be as attractive bidders as possible.

Obviously, not every buying experience is as high pressure, but for nicer location, schools, and good or renovated condition, in Eastern MA, chances are that you will be going full asking price, and often little above, just in case.

I stand by my claim that cheap money lures some people into overspending. We have seen results of that very recently. Only difference, this time around, is that banks are mostly concentrating on more able buyers and investors, and demand some skin in the game, hoping for better outcome, if housing collapses again in the future.