Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think there is some difference here we should acknowledge between credit worthiness and the appraised value of a home. When you say getting a mortgage is easy that could mean two things, it's easy to fill out all the paperwork and forms or it's easy to qualify (meet income requirements, general creditworthiness). Person A has a good job and credit and would stay within their means so it's easy to get a mortgage for the house they pick vs, I want to live outside my means so I have to justify, spin facts, move around bank balances, whatever tricks people use. Then it's harder to get a mortgage than it was in 2006.
Here is my view:
Housing bubble was two issues, housing market increasing at an unsustainable rate, combined with lenders willingness to provide loans for overpriced properties. Combine that will low documentation requirements and you get people paying too much for a house they can't afford.
So as long as the checks and balances of the home mortgage system don't go by the wayside like they did in the housing bubble, then things should be ok.
The banks and builder captive lenders are working back to stupidity.
Isn't it all about being a wise purchaser? My husband and I have always purchased a home that we can carry on only one salary. It's always worked for us - so when we need a new HVAC unit, or want to upgrade flooring, we have the means to do so. Not enough people thin that way, though.
Yup. We do the same. Bought on one salary. If we bought on two, we could buy far more than we really need. And we'd be worried about the mortgage.
__________________
When in doubt, check it out: FAQ
You say that like it wouldn't hurt someone who put a lot of money into their home.
What if they then fell on hard times and used up their savings (assuming they even have any) to pay the mortgage and suddenly got hit with a big bill for repair work?
You could have an FHA borrower who started out with little money down, but bought a reasonable home, moved in, and shortly after started saving money because the monthly expenses of the home are cheaper than the rent they were paying and they get hit with a big bill and can afford to pay it or finance it and pay it off with the money they had been putting in savings.
You really never can assume to know other people's finances.
__________________
When in doubt, check it out: FAQ
My wife and I were just talking, in North Raleigh she said her friends were shopping for homes in that area and the competition was particularly fierce. But in my neighborhood Hope Valley Farms it seems pretty quiet. Not alot of turnover; known homes on market have stayed on the market. I am not a realtor though & I don't pay much attention to it. My guess is some markets are hot for whatever reason, and some are not so much.
I think a lot of people are buying right now before the interest levels and prices go up too much. I know someone who recently bought that were going to wait another year before buying. Their thought process was that they have seen prices really jump, so they didn't want to wait it out one more yr. People may be thinking the above. I've seen prices jump so much in my own neighborhood that I am currently priced out of it, so it would make no sense for me to sell. Yes, I could make a profit, but everywhere else has jumped prices as well. After having such a low interest rate, I would hate to have an 8% interest rate. I would probably stay put if that happened.
My wife and I were just talking, in North Raleigh she said her friends were shopping for homes in that area and the competition was particularly fierce. But in my neighborhood Hope Valley Farms it seems pretty quiet. Not alot of turnover; known homes on market have stayed on the market. I am not a realtor though & I don't pay much attention to it. My guess is some markets are hot for whatever reason, and some are not so much.
Location, location, location.
The more desirable areas like North Raleigh, Wake Forest, Cary. Apex and Holly Springs are selling in a matter of days, unless incorrectly priced.
Other areas that aren't quite as desirable are still selling quickly but may take a few weeks or a month to sell. In some of those areas, if the neighborhood is quite desirable, they are selling pretty quickly.
If they are taking more than 2 months, they may be overpriced.
I think a lot of people are buying right now before the interest levels and prices go up too much. I know someone who recently bought that were going to wait another year before buying. Their thought process was that they have seen prices really jump, so they didn't want to wait it out one more yr. People may be thinking the above. I've seen prices jump so much in my own neighborhood that I am currently priced out of it, so it would make no sense for me to sell. Yes, I could make a profit, but everywhere else has jumped prices as well. After having such a low interest rate, I would hate to have an 8% interest rate. I would probably stay put if that happened.
It isn't hard to do an analysis of higher price vs. higher interest rate.
Usually, it tilts towards higher price, unless you are certain you will sell in a few years.
But, I listened to agents telemarketing 7, 8, 9 years ago with the self-serving urgency mantra of "Buy now, before rates go up."
And, look where we are, and have been over the last 7, 8, 9 years.
All that said, the price elevator is rocketing.
Tough time to be a buyer in much of the area, but especially if you are obsessed with school assignment irrationality.
It isn't hard to do an analysis of higher price vs. higher interest rate.
Usually, it tilts towards higher price, unless you are certain you will sell in a few years.
But, I listened to agents telemarketing 7, 8, 9 years ago with the self-serving urgency mantra of "Buy now, before rates go up."
And, look where we are, and have been over the last 7, 8, 9 years.
All that said, the price elevator is rocketing.
Tough time to be a buyer in much of the area, but especially if you are obsessed with school assignment irrationality.
So true...if people are scared that interest rates will sky rocket and simply buying under that fear that is a bad decision. I still say if you are not here for the long term do yourself a favor and RENT...this is a very bad price point for most folks.
I am looking to move to a bigger house, so I have been watching the market for last few months. Yes, there was a big spike in prices in the first quarter and the houses were moving very fast. But, IMHO that has changed now. Similar houses that sold quick earlier are sitting in the market. A few houses had price reductions too. A perfect example is Harmony in Cary. This one had a big turnover in last 6 months. If you compare what's listed out there with what sold earlier in the year, you will see what I am talking about.
I see this as a good news for buyers. In next 2 months more inventory will come in. That will stabilize and normalize the crazy prices that we saw in last 3 months.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
