Will Austin Home Prices Continue to Increase? (Round Rock, Spring: mortgage, house)

[hts]

Although none of us can predict the future, and although they certainly may begin to rise (slowly), interest rates will continue to remain low (historically speaking) for quite some time (2-3 years).

I'm not so sure that I agree with your 3rd assumption either--what makes you think interest in peaking? Perhaps we're on the precipice of a historic influx of new residents--who the heck knows?

What do you consider to be an 'outer suburb'? Is Dripping Springs an outer suburb?

[Novacek]

Originally Posted by hts

Although none of us can predict the future, and although they certainly may begin to rise (slowly), interest rates will continue to remain low (historically speaking) for quite some time (2-3 years).

They'll need to completely unwind QE before they even start to raise interest rates.

[Trainwreck20]

I can't see prices decreasing anytime soon so I probably should move up now since my home has appreciated greatly.

I don't understand the logic in 'moving up' unless you need to. You will pay more in taxes, closing costs, utilities, etc. Save 'cashing out' that appreciation until you have to move or are retiring, whatever.

[Uberguber]

Originally Posted by Trainwreck20

I don't understand the logic in 'moving up' unless you need to. You will pay more in taxes, closing costs, utilities, etc. Save 'cashing out' that appreciation until you have to move or are retiring, whatever.

The real kick in the teeth about 'cashing out' is that sellers always pay the 6% commission. RE agents don't really talk about that while you're trading up. The RE industry does this on purpose, because they are trying to coerce people into up-sizing and augmenting the agents commission. When the party's over and you try to downsize, that's when you're left holding the bag.

Imagine what the RE industry would be like if buyers paid the commission instead. It would make housing more affordable, less people would overextned themselves,

-and people would be less likely to get 'stuck' in overpriced houses. You make 100K a year and you live in a 500K house that you extended yourself to get into. The commute hurts, your utilities and taxes are draining you financially until your unable to save for retirement, and you won't sell the house because you can't stomach the $35,000 fee to sell your house.

[RoadWarrior12]

Originally Posted by Uberguber

The real kick in the teeth about 'cashing out' is that sellers always pay the 6% commission. RE agents don't really talk about that while you're trading up. The RE industry does this on purpose, because they are trying to coerce people into up-sizing and augmenting the agents commission. When the party's over and you try to downsize, that's when you're left holding the bag.

Imagine what the RE industry would be like if buyers paid the commission instead. It would make housing more affordable, less people would overextned themselves,

-and people would be less likely to get 'stuck' in overpriced houses. You make 100K a year and you live in a 500K house that you extended yourself to get into. The commute hurts, your utilities and taxes are draining you financially until your unable to save for retirement, and you won't sell the house because you can't stomach the $35,000 fee to sell your house.

Buyers basically DO pay the commission - every house I've sold, I factor that 6% into the price I'd accept. Also, it's not uncommon to negotiate commission deals when doing a move up buy/sell. My last one was 3% on the sale of the old house, full pop on the new build.

The rest of your post doesn't make sense, relative to RE commissions. It's relative to poor decision making.

[llkltk]

Originally Posted by Trainwreck20

I don't understand the logic in 'moving up' unless you need to. You will pay more in taxes, closing costs, utilities, etc. Save 'cashing out' that appreciation until you have to move or are retiring, whatever.

Uh, how about land? What if the OP has a small lot or noisy dogs next door? What about space, maybe they need more space. There are so many reasons for moving up so I don't agree with your assumptions.

[llkltk]

Originally Posted by Uberguber

The real kick in the teeth about 'cashing out' is that sellers always pay the 6% commission. RE agents don't really talk about that while you're trading up. The RE industry does this on purpose, because they are trying to coerce people into up-sizing and augmenting the agents commission. When the party's over and you try to downsize, that's when you're left holding the bag.

Imagine what the RE industry would be like if buyers paid the commission instead. It would make housing more affordable, less people would overextned themselves,

-and people would be less likely to get 'stuck' in overpriced houses. You make 100K a year and you live in a 500K house that you extended yourself to get into. The commute hurts, your utilities and taxes are draining you financially until your unable to save for retirement, and you won't sell the house because you can't stomach the $35,000 fee to sell your house.

Sellers do not always pay 6%.

[llkltk]

Originally Posted by Uberguber

The real kick in the teeth about 'cashing out' is that sellers always pay the 6% commission. RE agents don't really talk about that while you're trading up. The RE industry does this on purpose, because they are trying to coerce people into up-sizing and augmenting the agents commission. When the party's over and you try to downsize, that's when you're left holding the bag.

Imagine what the RE industry would be like if buyers paid the commission instead. It would make housing more affordable, less people would overextned themselves,

-and people would be less likely to get 'stuck' in overpriced houses. You make 100K a year and you live in a 500K house that you extended yourself to get into. The commute hurts, your utilities and taxes are draining you financially until your unable to save for retirement, and you won't sell the house because you can't stomach the $35,000 fee to sell your house.

Commute? What if the person works from home?

[llkltk]

These posts are all silly. What if someone who makes 100K puts down a chunk of change on a property. I wouldn't call that over extending. Sounds like a lot of these posters are probably stuck in their houses and jealous of someone who wants to move up.

[RoadWarrior12]

Originally Posted by llkltk

These posts are all silly. What if someone who makes 100K puts down a chunk of change on a property. I wouldn't call that over extending. Sounds like a lot of these posters are probably stuck in their houses and jealous of someone who wants to move up.

What the hell are you talking about?