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Old 09-26-2022, 10:21 AM
 
Location: Near the Coast SWCT
83,455 posts, read 75,034,244 times
Reputation: 16597

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Quote:
Originally Posted by Stylo View Post
Inventory still very low here, though sales have slowed too. Weird times.

If we get a surge of home listings at some point without buyers, that could drive prices down, but for now it's in a holding pattern.
Definitely interesting dynamics going on. With interest rates higher people aren't as fast to list their home for sale so that makes inventory low which makes it seem like its a demand thing. It's not and its showing through the slowing sales. The slow down is happening.



Question is... Is the Fed behind the curve as usual? If so, how much of a recession will happen? Our RE prices will drop hard if we get deeper in the hole and people start losing their jobs. Demand will dry up like you said and those who "need" to sell wont be able to and the domino effect of lower prices comes.


Could be a buyers market 2023-2026

 
Old 09-26-2022, 11:04 AM
 
7,917 posts, read 7,786,532 times
Reputation: 4152
The other part is until the foundation problem is 100% solved we cannot assume that every home that exists is a potential to go on the market. It's being solved but will take some time.
 
Old 09-26-2022, 11:29 AM
 
Location: USA
6,779 posts, read 3,666,888 times
Reputation: 3460
Quote:
Originally Posted by mdovell View Post
The other part is until the foundation problem is 100% solved we cannot assume that every home that exists is a potential to go on the market. It's being solved but will take some time.
Foundations in small fringe areas don't impact the big picture. They just don't.
 
Old 09-26-2022, 01:18 PM
 
Location: Coastal Connecticut
21,653 posts, read 27,964,265 times
Reputation: 6692
Currently, a 30 year mortgage at the average of 6.43% at $350,000 is about the same as a $525,000 mortgage at 2.9% in 2021.

Glad I refi'd at 2.9%!
 
Old 09-26-2022, 01:24 PM
 
Location: Fairfield County CT
4,428 posts, read 3,321,626 times
Reputation: 2773
Quote:
Originally Posted by Stylo View Post
Currently, a 30 year mortgage at the average of 6.43% at $350,000 is about the same as a $525,000 mortgage at 2.9% in 2021.


I see "crash, bang, boom" in the housing market in the near future.
 
Old 09-26-2022, 02:18 PM
 
Location: USA
6,779 posts, read 3,666,888 times
Reputation: 3460
Quote:
Originally Posted by Stylo View Post
Currently, a 30 year mortgage at the average of 6.43% at $350,000 is about the same as a $525,000 mortgage at 2.9% in 2021.

Glad I refi'd at 2.9%!
No one would keep 6.4 for 350 for the life of the loan. That's just not feasible or realistic. They eventually sell or refi as the most likely scenarios, or payoff a much lower balance owed than on a 525
 
Old 09-26-2022, 02:27 PM
 
Location: Near the Coast SWCT
83,455 posts, read 75,034,244 times
Reputation: 16597
Quote:
Originally Posted by Stylo View Post
Currently, a 30 year mortgage at the average of 6.43% at $350,000 is about the same as a $525,000 mortgage at 2.9% in 2021.

Glad I refi'd at 2.9%!
Nice job, nice call!


BTW - The adjustable rates will be more attractive to buyers now. Uh oh
 
Old 09-26-2022, 07:12 PM
 
Location: Danbury CT covering all of Fairfield County
2,628 posts, read 7,414,687 times
Reputation: 1372
One of the local Danbury area banks is giving about 4.5% interest for 30 year fixed, no points, 740 mininum credit and requires a checking acct with their bank with auto deduction. Must be owner occupied single family
 
Old 09-26-2022, 09:15 PM
 
Location: Westport, CT
57 posts, read 46,584 times
Reputation: 94
Quote:
Originally Posted by C28067302 View Post
I think there's a fair amount of people in the same boat as we were/are. We probably couldn't afford much of anything now. The higher price but lower rate enabled us to buy as first time homebuyers in 21, now we'd be out of luck. I think the desire is still there for a lot of people, but the numbers are now out of reach.
Same here. My rate is 2.75. At current rates I don’t think I could afford a single house in my town, let alone my current house which is less than half the median home price in my area. Everyone told me it was stupid to buy last year, I was overpaying, etc etc and I’m so glad I ignored them because my interest rate is awesome and my house is worth another 10-15% more than when I bought it, so even if/when there is a decent sized correction, I’m not too worried. And with my rate, I don’t know if I’ll ever sell. Think even if I want to upgrade I’ll just rent it out.
 
Old 09-26-2022, 10:16 PM
 
Location: Near the Coast SWCT
83,455 posts, read 75,034,244 times
Reputation: 16597
Quote:
Originally Posted by jdhall1 View Post
One of the local Danbury area banks is giving about 4.5% interest for 30 year fixed, no points, 740 mininum credit and requires a checking acct with their bank with auto deduction. Must be owner occupied single family
Interesting. Is that old news? I know they are free to set their own rates but thats really low vs competitors

30yr fixed Almost 7% now

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