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Old 04-19-2022, 12:39 PM
 
157 posts, read 123,516 times
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Another Fed President (Bullard) said yesterday that they (the Fed) want the housing market to cool down. 30Y rate is 5.35% today. They are destroying demand to stop prices from going further up.

 
Old 04-19-2022, 12:47 PM
 
Location: NYC/Boston/Fairfield CT
1,853 posts, read 1,934,069 times
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Quote:
Originally Posted by tsek View Post
Another Fed President (Bullard) said yesterday that they (the Fed) want the housing market to cool down. 30Y rate is 5.35% today. They are destroying demand to stop prices from going further up.
Fine by me. There are many who have been engaging in reckless financial behaviors when it comes to home buying.
 
Old 04-19-2022, 01:25 PM
 
Location: USA
6,582 posts, read 3,539,090 times
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Quote:
Originally Posted by tsek View Post
Another Fed President (Bullard) said yesterday that they (the Fed) want the housing market to cool down. 30Y rate is 5.35% today. They are destroying demand to stop prices from going further up.
Won't work. Too many cash buyers or larger than normal downpayments. No Ninjas or Countrywide this time. Interest rates are either moot or don't impact much. The only thing that will destroy the demand is more supply. That's it, nothing else, and until there is more supply there isn't anything anyone can do about it.
 
Old 04-19-2022, 03:28 PM
 
Location: Central CT, sometimes FL and NH.
4,476 posts, read 6,727,480 times
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Quote:
Originally Posted by SteveM85 View Post
Won't work. Too many cash buyers or larger than normal downpayments. No Ninjas or Countrywide this time. Interest rates are either moot or don't impact much. The only thing that will destroy the demand is more supply. That's it, nothing else, and until there is more supply there isn't anything anyone can do about it.
It's a chicken and the egg situation. The biggest opportunity comes from older sellers selling larger homes in established neighborhoods. In order to get them to move (traditional downsize/relocation) they need to have a place to go. Many are looking for smaller, less expensive homes in good locations. That is the same type of homes that many first-time buyers are looking for as well. The people in those smaller homes are often interested in moving to a larger one (owned by the older sellers). With rates increasing the older sellers (and would be buyers) are likely to be cash buyers of the smaller home. They crowd out the first-time buyers who are budget/rate sensitive. Those moving up are likely to be financing. With rates increasing, it makes selling the smaller homes by the younger sellers more difficult because they often are giving up a home with a lower interest rate and will be taking on a larger mortgage with a higher rate. In the past many would be older sellers had a slam dunk to relocate from a place like Connecticut and move south for a cheaper home and cost of living. With Work-From-Home and responses to Covid the cost advantage is significantly reduced or in some cases totally eliminated as many southern locations have seen price appreciation that substantially outpaced Connecticut.
 
Old 04-19-2022, 05:12 PM
 
570 posts, read 470,181 times
Reputation: 617
20% of market is investors. Fed pushes rates down to zero, print trillions in debt then hands it to corps like BlackRock, Zillow and other investment firms who buy up residential properties sight unseen. Fed buys all garbage MBS and now we wonder why housing is going bonkers. Also, why you have Steve's of the world talking like it will never end..it will like a supernova. Oz Powell has been slow to draw because he knows market goes bye-bye once they pull back.
 
Old 04-19-2022, 06:17 PM
 
Location: Connecticut
34,636 posts, read 56,378,147 times
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Quote:
Originally Posted by mdovell View Post
Somewhat true but it depends. 6107 passed last year and it authorized quite a bit of ADU's.
https://ctmirror.org/2021/06/01/the-...s-the-reality/

So technically if we go down this path it's much easier to make a unit without making a whole other house.
I don’t think that law has gone into effect yet and towns can opt out of the “as of right” part of the law. It’s not that encompassing. It certainly hasn’t taken over California where it originated. Jay
 
Old 04-19-2022, 06:19 PM
 
Location: Connecticut
34,636 posts, read 56,378,147 times
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Quote:
Originally Posted by bridgerider View Post
I had never heard the term ADU until looking in CT..... has this term been around for a while now? I must have been under a rock; I thought of one as either an in-law apartment or if unattached, a casita (popular out west).

I have seen a few ADUs in CT recently and they have been very tastefully done, I think the homeowners did a good job of considering their neighbors when putting them in place. How do all of you feel about them?
ADU is a term I believe that was started in California. They’ve had them for years now. Jay
 
Old 04-19-2022, 06:44 PM
 
Location: USA
6,582 posts, read 3,539,090 times
Reputation: 3373
Quote:
Originally Posted by CT_Yank View Post
20% of market is investors. Fed pushes rates down to zero, print trillions in debt then hands it to corps like BlackRock, Zillow and other investment firms who buy up residential properties sight unseen. Fed buys all garbage MBS and now we wonder why housing is going bonkers. Also, why you have Steve's of the world talking like it will never end..it will like a supernova. Oz Powell has been slow to draw because he knows market goes bye-bye once they pull back.
Increasing inventory is the only way out of this. That's it. There isn't anything left to do. It's all been said and done. If the Fed stops printing, whether Oz Powell pulls back or the Wizard of Oz pulls back the curtain, none of it matters until inventory grows. A Toll Brothers guy told me today more than half of offers are cash here in SC now. The rest are 50% down or more. In South FL non-cash offers are tossed aside like bad resumes. Here in CT, non cash offers for small condos get ghosted. There isn't anything you, I, or Oz can do about it until more homes hit the market in bulk.
 
Old 04-19-2022, 07:46 PM
 
Location: Near the Coast SWCT
83,281 posts, read 74,503,009 times
Reputation: 16504
The 30-year rate is 6.875%.

That's a one-day increase of 1.021 percentage points.

That's a one-month increase of 1.988 percentage points.

This gotta slow down the CT market. I'd be shocked if we still have multiple bidders over asking price come Summer
 
Old 04-19-2022, 09:01 PM
 
570 posts, read 470,181 times
Reputation: 617
Quote:
Originally Posted by SteveM85 View Post
Increasing inventory is the only way out of this. That's it. There isn't anything left to do. It's all been said and done. If the Fed stops printing, whether Oz Powell pulls back or the Wizard of Oz pulls back the curtain, none of it matters until inventory grows. A Toll Brothers guy told me today more than half of offers are cash here in SC now. The rest are 50% down or more. In South FL non-cash offers are tossed aside like bad resumes. Here in CT, non cash offers for small condos get ghosted. There isn't anything you, I, or Oz can do about it until more homes hit the market in bulk.
Until companies pay more income than 3% raise in face of 8.5% inflation (more like 20-30%; housing/rent up big, gas up big, all labor services up big), you will have massive bubble where debt load will be unsustainable, especially after recession hits. It is just not true on cash deals being norm. Demand will nose-dive with rates. It will collapse soon bc it is irrational.
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