Home Purchase - PMI vs risk of increased interest rate

[nyliguy]

@ GAG, I could not view your video so not sure if that was the overall housing market or specific to long island. I like to look at specific reports/news on Long Island and do not pay attention to housing as a whole to see impacts on prices.

I pay attention to the overall market and FOMC if trying to get a sense of interest rates. That being said, any signifgant increase in interest rates should show a decline in housing prices on Long Island. There's more variables that keep prices stable for now and if they're prices would drop....i.e interest rate write off and FHA loans.

I don't know if the demand is up for mortgages per say, the Long Island market is more of a slight increase in homes sold vs. last yeat but a huge decrease in the amount of homes listed for sale vs last year.

Long Island real estate market report - Q1'2013:
http://www.elliman.com/pdf/1c46d0fc2...f47223076506c2

This low inventory is what is keeping supply low and the higher prices. If that shadow/phantom inventory hits the market we would see more supply and decline in prices. The banks do not want prices to drop so they're slow to release foreclosures to the market. The banks will likely seem opportunity to sell but they'll always be cautious to foreclose and sell the homes.

[Qnz2LI]

also OP what you didnt mention or consider (maybe you did not sure), if you buy now while the housing prices are lower you can have your hour accessed at the price you bought it for, for property tax reasons, thus lowering your taxes. Most if not all current houses are being taxed as if they are worth what they were when the market was at it's highest.

[gag]

Originally Posted by nyliguy

@ GAG, I could not view your video so not sure if that was the overall housing market or specific to long island. I like to look at specific reports/news on Long Island and do not pay attention to housing as a whole to see impacts on prices.

I pay attention to the overall market and FOMC if trying to get a sense of interest rates. That being said, any signifgant increase in interest rates should show a decline in housing prices on Long Island. There's more variables that keep prices stable for now and if they're prices would drop....i.e interest rate write off and FHA loans.

I don't know if the demand is up for mortgages per say, the Long Island market is more of a slight increase in homes sold vs. last yeat but a huge decrease in the amount of homes listed for sale vs last year.

Long Island real estate market report - Q1'2013:
http://www.elliman.com/pdf/1c46d0fc2...f47223076506c2

This low inventory is what is keeping supply low and the higher prices. If that shadow/phantom inventory hits the market we would see more supply and decline in prices. The banks do not want prices to drop so they're slow to release foreclosures to the market. The banks will likely seem opportunity to sell but they'll always be cautious to foreclose and sell the homes.

The opposite of this was the whole point of the report I showed, that banks are now less inclined to modify and move to foreclose.

FWIW, my video is a national housing report on fox business, but specifically, they showed a heat map from Reaty Trac, and the NY metro is a hot zone for foreclosures in May. I'd assume LI is less but not much different.

[nyliguy]

Originally Posted by gag

The opposite of this was the whole point of the report I showed, that banks are now less inclined to modify and move to foreclose.

FWIW, my video is a national housing report on fox business, but specifically, they showed a heat map from Reaty Trac, and the NY metro is a hot zone for foreclosures in May. I'd assume LI is less but not much different.

Good point. Interesting times for homebuying that;s for sure.