Bad time to buy a home in Knoxville? (mortgages, vacation home)

[mbmouse]

And the rates went back up a half point or more yesterday late afternoon due to the bond rate going so low. Man, CRAZY times.

[Beretta]

But they are most likely going to lower them again I believe. Also, if Congress passes raising the caps on certain loans (Fannie Mae and Freddie Mac) from $417,000 upwards to $525K in high cost areas then I might just be inclined to list my house for sale again. I wonder what this areas cap would be? Hopefully at least $500K. These indeed are interesting times!

[hiknapster]

Originally Posted by SmokyMtnGal

But they are most likely going to lower them again I believe. Also, if Congress passes raising the caps on certain loans (Fannie Mae and Freddie Mac) from $417,000 upwards to $525K in high cost areas then I might just be inclined to list my house for sale again. I wonder what this areas cap would be? Hopefully at least $500K. These indeed are interesting times!

Aha! Perfect timing.

I just finished reading an article that says that they are about to raise the cap to $625,000, and it would be for one year.

Deal a boon to higher-priced housing markets - Real estate - MSNBC.com

Also, I think Bernake will lower the interest rates, again. I don't necessarily agree with this, though. In the long run, the inflation could skyrocket and we could be in a worse mess than before.

Once again, as MBMouse and I both agree, until we start producing and become less reliant on other countries for our products we will be forever in this catch-22.

When that happens, everyone will be able to buy a house, invest in the stock market, etc.

[Beretta]

Originally Posted by hiknapster

Aha! Perfect timing.

I just finished reading an article that says that they are about to raise the cap to $625,000, and it would be for one year.

Deal a boon to higher-priced housing markets - Real estate - MSNBC.com

I think the $625K is possibly a mistake and there was an error in the release. I heard it earlier then I heard that the amount was a mistake and it is actually higher!
Congress, Treasury Announce Deal on Tax Rebates - Politics and Government * US * News * Story - MSNBC.com
I will be happy either way as my house is priced such that with someone putting 20% down they will be over the $417K max amount so I welcome any higher amount. Time to get de-cluttering and de-personalizing again soon possibly! Yep, I agree, this may backfire but hopefully this will allow home prices to go back up. There are lots of arguments that this won't help the lower priced homes. But, I think it is up to interpretation.

[goodbyehollywood]

I think the Fed and the government keep making poor choices to accommodate people who made even poorer choices. All this bad decision making is causing lots of you-know-what to hit the fan and even people who made good choices are now getting spattered. Factor in global repercussions, worldwide panic, kneejerk reactions and dire predictions, and the whole planet is getting spooked. There are no easy fixes, no clear direction and it's hard to imagine what new asset bubble might bail us out this time.

I'm just going to hunker down, never sell my house, convert all my dollars to gold coins, bury them under my rose bushes and learn to speak Chinese while I wait for the world, now tilting on its axis, to right itself. This, too, shall pass, and people will always need homes to live in.

I just hope that we never stop making soft drinks, chips, fast food and movies. They're the only things we still produce that the world wants.

[Beretta]

GBH - I started laughing when I read your post because while what you said is scary I had to have a nervous laugh! I read your post to my DH (we're sitting here at the kitchen table drinking tequila sunrises and eating port wine cheese and crackers). He said "it's true" followed by a "she's cute".

[hiknapster]

GBH says it, so I guess it makes it true.

I go to sleep watching CNBC. I wake up and turn it on. I run martetwatch all day.

The government is throwing bad money after bad.

I plan on sticking with my original plan. Keep cash handy, and the rest in a local bank. My inheritance is in the same place.

I wish I had the means to buy gold when it was affordble, but it is too high to buy now. Brazilian stocks are looking good right now.

This country is so misguided, trying to prop up the whole mess when there is no foundation to lay it on.

[hiknapster]

Here's something I've needed to address for a very long time.

I've read over and over that the local housing market is immune because there was never a bubble here.

True. There was never a bubble. However, there was a decent influx of people that have moved here in the last couple of years. And there was a bit of over construction in anticipation of that continued influx. There was also a bit of price inflation because of that anticipation.

Of course, the stampede never really came, did it? It got cut off just as it began.

Most of these people, planning on moving here, didn't get here because they couldn't sell their house. Some bought here and still had a house to sell in their over-inflated market.

And what does Knoxville offer besides not having a true housing bubble?

A booming economy?

Lots of jobs with great pay?

Exactly. That was the problem with this area all along. They were betting on retirees that now can't sell their homes from where they are.

And here we sit.

And that is Knoxville in a nutshell.

[gemkeeper]

Originally Posted by hiknapster

GBH says it, so I guess it makes it true.

I go to sleep watching CNBC. I wake up and turn it on. I run martetwatch all day.

The government is throwing bad money after bad.

I plan on sticking with my original plan. Keep cash handy, and the rest in a local bank. My inheritance is in the same place.

I wish I had the means to buy gold when it was affordble, but it is too high to buy now. Brazilian stocks are looking good right now.

This country is so misguided, trying to prop up the whole mess when there is no foundation to lay it on.

And, then there of those of us who just don't understand all of the ins and outs to begin with. Thankfully, hubby does, but I WANT to. Everyone should be able to take care of their own interests these days.

I am getting quite an education from all of you, but I sure hope there isn't a quiz on Friday!

[hiknapster]

Well, Miss Gemthornton, Miss Hiknapster didn't inform you, because of the nature of the situation, but the fact is that there is a pop quiz, right now. No. You cannot look in your books. Put them under your seats, please. And no looking at your neighbor's paper.

For those not in the "know," MissGemthornton is a teacher, and I always wanted to do that!