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 could not open the article but what does it mean "Anyone thinking of selling or buying a home shouldn’t ignore it.". Make sure you have your home priced right.
What does it mean when market cools off? good for the buyer or wait and see when it levels out a bit? A "cool" market tends to indicate it is a buyers market, not a sellers market.
Sell should try to get house in now instead of later as it cools, maybe it is just seasonal cool. No one buys house in winter Serious buyers buy in the winter, they aren't tire kickers. The point of the article is that there is a shift in the market, which is always location specific. Problems become more evident when it becomes all locations.
See bold replies above. You can also just google the article title & author (the link would not open for me either).
All I am hearing is that the number of sales is down. Also that "inventory" is low.
At this point I am not seeing or hearing that actual selling prices are generally going down. Sorry, but fewer sales of fewer houses at the same high prices is not advantageous for buyers.
Yes.
If inventory is low, I expect absolute sales to be down.
The real question I wanted to know as a seller was how long are houses on the market at the asking prices.
As it turned out in our case, we put our house on the market at a realistic price for the market (which was still a 30% increase over our purchase price 4 years ago) and we got a full-price offer the same day.
If inventory is low, I expect absolute sales to be down.
The real question I wanted to know as a seller was how long are houses on the market at the asking prices.
As it turned out in our case, we put our house on the market at a realistic price for the market (which was still a 30% increase over our purchase price 4 years ago) and we got a full-price offer the same day.
Unless you move to a low cost area, it's a catch 22 with low inventory to buy another home. Renting doesn't seem to be the answer either without a downgrade of living space.
Of course, one reason that prices are cooling is interest rates. "Someone who is able to afford payments of up to $1,432 per month would have the purchasing power to buy a $300,000 home with a 4% interest rate. If that same person who is able to afford the monthly mortgage payments of up to $1,432 now is looking at an interest rate of 5%, they are only able to buy a home for less than $267,000." Unless you're paying cash, you need a lot of "cooling" to offset the interest increase.
All I am hearing is that the number of sales is down. Also that "inventory" is low.
At this point I am not seeing or hearing that actual selling prices are generally going down. Sorry, but fewer sales of fewer houses at the same high prices is not advantageous for buyers.
The cooling period just began. Prices will adjust as per market conditions. As a buyer, I would be happy with a little seller flexibility. Negotiate a bit on the price, some seller contributions, etc.
I could not open the article but what does it mean "Anyone thinking of selling or buying a home shouldn’t ignore it.". What does it mean when market cools off? good for the buyer or wait and see when it levels out a bit? Sell should try to get house in now instead of later as it cools, maybe it is just seasonal cool. No one buys house in winter
Way to go, Captain Obvious (I'm referring to the writer of the article.) It doesn't matter what the RE market is, when a person needs to sell/buy, they need to sell/buy. RE is always a risk. People, especially buyers, think too much about selling in the future and what Mr./Ms. Unknown Potential Buyer would want. The fact is, you, the buyer, may die next week, you may never move away from the home, your house might burn down, be flooded, be swept away in a tornado, the planet might explode from a giant meteor shower, the market may crash and burn, etc. . . A person should buy based on what they want and need at this very moment. If you need to buy now, buy now. If you need to buy a year from now, buy a year from now. But if it's inconvenient, waiting is definitely the best thing to do. RE in the only purchase people regularly make for themselves based on what they think strangers might want years down the road. That is so odd to me.
Of course, one reason that prices are cooling is interest rates. "Someone who is able to afford payments of up to $1,432 per month would have the purchasing power to buy a $300,000 home with a 4% interest rate. If that same person who is able to afford the monthly mortgage payments of up to $1,432 now is looking at an interest rate of 5%, they are only able to buy a home for less than $267,000." Unless you're paying cash, you need a lot of "cooling" to offset the interest increase.
in this case, "cooling" = the rate of increase, that they PROJECT. Not that actual prices are decreasing. I haven't heard of a major market that's been rising that even the rate of increase has gone down.
But your example is exactly correct - for the same payment, you can afford less house. So, if you just barely qualified for 300K at 4% but never acted upon it, you're only going to qualify for 267K today. But the 300K houses then are at least $315K houses now (in most major areas). The interest rate hasn't had anything to do with prices. But instead of having 10 ready and willing buyers for every house, we now have only 8.
There are bubbles. Just because housing isn't at the forefront of one right now doesn't mean there aren't bubbles or that housing won't be impacted. There are a few major bubbles right now but the most pressing will be Corporate debt, household debt (non housing) and Commercial Real Estate. We'll be talking about recession next year at this time.
This time it's more like suds. Little micro-bubbles in each neighborhood. Some are popping, some have a long way to go.
All I am hearing is that the number of sales is down. Also that "inventory" is low.
At this point I am not seeing or hearing that actual selling prices are generally going down. Sorry, but fewer sales of fewer houses at the same high prices is not advantageous for buyers.
That's what I'm seeing in my area, too. Regular winter slow-down and reduced inventory. Pricing steady/increasing slowly.
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.
