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I remember those days in 2008 when people would just load up the moving truck in the middle of the night and drive away, leaving the house abandoned. If they were courteous, they didn't rip out the plumbing or defecate in the hallway.
Most broker/ agents will not spend time with a prospective buyer unless prequalified which is not the same thing as approved for a mortgage. No need to persuade anyone to buy anything.
The lender focuses on the monthly nut, principal, interest, property taxes, insurance and the borrower’s other debt vs down payment and income.
While many were impacted by COVID, most people were not despite receiving Stimulus Payments in 2020-2021.
Hard pressed to find a period of time like 2020- 2022, in terms of a 30 year fixed rate mortgage.
People are staying longer in the same home than they used to do. Most have refinanced at current rates. Demand exceeds supply ( inventory) in most areas.
I'm a mortgage broker in Florida but all I seem to do lately are preapproval letters. I've done 30 for 1 person; each specific to each property; I have to run the file through the lender's system; cost to my firm so firm exceeds $1500.00.
I tell the buyers it's not just the principal and interest - there's homeowner's insurance, real estate taxes, PMI (if not 20% down usually) and HOA fees (not always).
I think part of the issue is that baby boomers want to move but there is no where for them to go really. Our neighbors want to downsize but stay in the area. There’s nothing available. I also don’t think it makes sense to sell a home for like 900k just to move into a condo that is about 700 to 800k. In Boston that’s the reality and i don’t think it’s how people envisioned their retirement years.
Ive seen some people buy a cheaper 2nd home in FL and go back and forth between the two homes, snowbird style. Not everyone can afford that way of life
And yes I guess people being active and living longer has created some of this.
It’s interesting because people are having less kids. The birth rate is going down so i do have trouble understanding this housing crisis. I think people are just pickier about what they want today.
I've heard the market in Florida went up too.
People need places to live. By me, most everyone in my development has kids unless they just got married. Most people have at least 2 kids except for one neighbor on my block that only has one. I have Indian neighbors who have a bunch of kids from newborn to about 15. I've never counted the kids, I'd have to say they have about 8 of them now. One set of their parents have always lived with them, I always see the older ones tending to the kids while the parents work at their business which is some sort of eatery. I don't recall if it's a sub place or something like Mexican food.
I'm a North Jersey transplant to South Jersey. Housing is crazy up there because you're closer to NY City. I lived 20 minutes from there. As I said, my dad's 2 family house had sold in 2006 for $400k which is nowhere near what he bought it for in 67. Unfortunately it doesn't list the sale back then, it says that in 2017 it was listed for $217k. That was after someone bought it from foreclosure. It last sold in 2017 for $270k. The zestimate is $488k. Whoever owns it now, is getting rental income from one apartment. Taxes in North Jersey are outrageous in most town, close to $20k. My dad's old house says taxes were $13k in 2020, it's assessed at $160k
You come down by me, my development originally was $400k houses, the most was about $600k. They were new when I bought in 2008. Taxes about $13k. Market crashed, houses that we bought were now worth in the $300k until COVID. A turn key updated house with a brand new kitchen, no one wants cabinets from 10+ years ago, starts at $450k. We're not going to do a new kitchen or change paint, color of wood floors or carpet, so we expect to list about $425. While people want turn key, some still want one like mine where they can buy it cheaper then pick their own colors of everything new.
What's desirable about my area? I'm about 40 minutes from Philadelphia on my side of town plus about the same to Atlantic City. Tons of shopping. Right now there are about 10 new developments under construction within miles of me. No clue where the township plans to put all of the kids that will fill these new houses when they're built. I believe they're starting in the mid $300k
Someone buying near me will most likely commute to work or they're working remote with having to go in every now and then.
Quote:
Originally Posted by springfieldva
Investors seem to be involved. There is more going on here than people simply out home shopping.
I don't think investors are buying houses in this inflated market. I believe they were when COVID started but now that the prices went up, it's people making decent money that work remote looking to settle out of more expensive cities to something cheaper with a good quality of life.
I do have a friend who was underwater on her mortgage. I believe she was foreclosed on. An investor/ flipper bought her $400k house for the mid $200k's, updated the kitchen, paint and carpet, then made $100k on it. That was 3 years ago. No investors in my area right now unless a house goes for foreclosure cheap.
Couple weeks ago a home listed in Seattle for 500 something. Decent looking inside but not amazing and not that big and was in a crappy food desert neighborhood with crappy schools and no amenities whatsoever besides a sketchy convenience store down the road. Half the homes on the street range from poorly maintained to dilapidated. We drove by the open house and there was literally a line of people out the door and down the block waiting to look at it. I think it ended up going for 800 and some change.
What neighborhood was that in? There aren't many areas left in Seattle that fit your description.
So the Realtors who pushed people who couldn't afford to buy a home back in I think it was 2008 didn't learn their lesson. Realtors never factored in all other expenses when they told their clients what the taxes would be and the loan amount would be. Not one considered people have to factor in all expenses when buying a home. The banks didn't either and everything came crashing down. Also I brought this up with a government treasurer that many of the people who never should have gotten a loan in the first place also took out a home equity line of credit and purchased RV's, new furniture, took vacations instead of for home emergencies. When they foreclosed they didn't have to pay that money back either. Every tax payer paid for that catastrophe when the banks bailed them out, at least I think they did.
We are going to watch the same mistake happen again. Realtors don't care because they get their commission upon the closing when the buyers get the loan they can't afford. Here we go again
Sigh. No we aren't and no we don't.
??? To the second sentence. We bought last year. My realtor didn't tell me what the loan amount would be, that's not their role anyway. The lender did and they broke down every penny of it. I also had to take a course for the lender on the loan, budgeting, credit, etc etc. Didn't need it but didn't mind either. Hopefully it helped someone else that had to take it..
I'm in the Tampa area. A few years ago we did a semi custom build of our house. The base price then was $317k. Now the base price for this model is $480k.
I'm in the Tampa area. A few years ago we did a semi custom build of our house. The base price then was $317k. Now the base price for this model is $480k.
I knew Florida had to have gone up too. Lots of people moving there the last 2 years during COVID from what I've read.
I've been surprised by the number of younger people I know buying 2nd/3rd homes in FL. Being based in boston most people i've seen purchase homes in FL or just move to FL are older. Now suddently i'm seeing an influx of people in their 30's/40's buy an Fl home. I think some plan to rent them out and maybe one day retire there, i'm not sure. But yes real estate is going up there. Seems like people are really only interested in purchasing an FL home that is near the water of course.
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Preapproval Letters
