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Generally not predicting a crash but probably a slowing down in the increases.
However when our border reopens shortly to immigrants and temporary workers more demand will be created.
It only benefits people who are downsizing to see these increases. Otherwise you pay a higher commission to the selling agent, pay more stamp duty (sales tax) on purchase and if it is an IP you pay more capital gains tax on selling.
Call it a crash, call it a slowdown, it surely is coming, once the interest rates rise a significant amount. We don't know when, we don't know how much the mortgage rates would have to rise, but the current rate of appreciation is unsustainable. It's fueled by the low rates and the infamous "helicopter" cash. This cash, in the timeless words of Mitt Romney, is borrowed from China.
Do you realize that the Fed is STILL injects the money in the economy by buying bonds to the tune of tens of billions? The talk is only when to stop doing that, not when to actually start raising the rates.
Once the helicopter cash is spent, the ephemeral bitcoin profits gone, the rates rise, the stock market stumbles -- as it has been doing this week at a mere expectation that the interest rates would actually rise sometime -- the RE prices would have to come down. How could they not? Yes, maybe more investors and cash buyers are in the market now, but in the main people still use mortgages and tend to be overly optimistic about their financial futures. When the economy slows, the stock bubble pops, they go down, "their" homes flood the market, and that's when the RE crash/slowdown begins in earnest.
Yup, they'll have no choice but to raise rates to battle inflation. It's a when, not if.
Homeownership is more than making mortgage payments,you need drapes or venetian blinds,you need to water the lawn,and cut the grass,there is HOA fee,homeowner insurance ,you may need more than 1 car,you could be driving more to the stores,there are many small items you do not realise you need until you move in,trips to Home depot to but these items ,there are also maintenance fee like oiling the garage door opener,trimming trees,replacing rotten woodfence,ridding fire ants,termites,rodents,wasps,your utility bills would be higher.
if you use your credit cards to purchase these items and make only minimum payment each month,you are paying high interest to the bank.
Oiling garage door opener? Which part?
I've greased the rollers and tracks but never the GDO (belt).
There is a curious situation - a shortage of new construction - thanks to COVID-19 - and a severe credit crunch coming.
Plus, cash-rich entities are "buying up" houses like craz-zee.
I regularly get offers to "buy house as is" for 150% over current market value. Yet there aren't any houses popping up for sale in our area.
Perhaps "someone" is expecting "something" to happen in the next 12 months, and is holding on to all those properties.
Your guess is as good as mine.
We're a family of 5 and living in a 1500 sqft 3bd/2.5 bath. It's a good size for us. We moved from a larger home in a rural area and enjoy living closer into the suburbs.Since moving into the house, we're averaging $131.2 for electricity and $54.34 for water monthly. I am a spreadsheet geek.
This was previously a property I rented out. So after we moved in, we refinanced to 1.875%. This will allow us to pay off faster and by 2/2025 we'll be mortgage free. I'm currently 41 so this will allow us many years to invest. We know mathematically it's silly to pay off, but our goal has always been to be debt free. We already have health retirement and brokerage balances so this is just icing on the cake.
Depends on what is included in your bill. My "water bill" includes sewer and water line costs...and mine is around $45 a month. Has been $40 or $45 for many years.
Depends on what is included in your bill. My "water bill" includes sewer and water line costs...and mine is around $45 a month. Has been $40 or $45 for many years.
My son recently had the sewer pipe split from the house …a 13k repair that homeowners will not cover plus a lot of damage inside the house .
Insurance covered about 11k of the total 30k in costs redoing the entire basement and first floor
Depends on what is included in your bill. My "water bill" includes sewer and water line costs...and mine is around $45 a month. Has been $40 or $45 for many years.
I blame it on a wife who enjoys long hot showers and 2 kids that like their bath time. We recently turned into a family of 5 so we'll see how that changes. I do a combat shower to try to help dent the bill lol
Our water bill is water and sewer combined. Our water bill is actually cheaper at this house then our previous. The previous was in a rural area but we were connected to city water/sewer and the rates were much higher. The neighborhood page routinely had complaints of $100+water bills
Housing prices are not insane everywhere, even in high-cost states. Many people rely too heavily on school data, especially state test scores. They often over pay for a town with a "highly-rated school system." The reality is often quite different from the perception. In many cases, young homeowners will find that some of the "lower-performing" towns nearby offer more diversity in not only the student body, but also in the programs offered. Ironically these "less desirable" towns may actually offer more future opportunities for their child. It's also naive to assume that living in a community with a higher average income level means fewer problems their child will face.
Here in CT, towns with the best test scores in general have significantly higher home prices. Nearby towns with more diversity, and scores that still outperform national averages, often have homes that are exactly the same style and build quality as the expensive towns at prices that can be as much as 50% lower. Given that a home is the most expensive expense in most young families' budgets, residing in a town where that expense is significantly lower affords opportunities for the parents to actually consider one parent staying home, working part-time, or taking a less demanding job in order to spend more time with their children while they are young.
That being said, given there are areas of affordability still available, I don't see a wholesale bubble. If anything, I believe specific areas that have been significantly run up would be the ones at greatest risk since substitution is a natural market equalizer.
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