Venting Here: What is happening with the housing prices and will it ever get better? (Lancaster: condo, houses)
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It’s simple, a mortgage a few years ago was roughly 4.5% which is $450 per every $100k mortgaged.
Today a 2.5% mortgage = $250 per $100k mortgaged. The buying power has doubled.
All that extra buying power was just transferred to the housing prices. Until rates rise significantly I don’t see it coming down. Yes it will plateau but it’s not going to be a collapse.
Quote:
Originally Posted by Ragazza89
Jdawg! How are you?!
Yesssss so true, but we're trying to not spend anything more than $450k...$500k absolute max, and it's been so hard. It's like by the time we can get into a house that's just been listed there's already multiple offers way above asking that we don't even stand a chance. And, if we can get in, the house is entirely way too small and needs to be completely re-done.
Yesssss so true, but we're trying to not spend anything more than $450k...$500k absolute max, and it's been so hard. It's like by the time we can get into a house that's just been listed there's already multiple offers way above asking that we don't even stand a chance. And, if we can get in, the house is entirely way too small and needs to be completely re-done.
Heyy!! Im good
Yes i know. We are looking as well. We asked $20k over asking price but another buyer had CASH & it’s an $800k house!! Crazy. How do ppl have so much money?
It’s simple, a mortgage a few years ago was roughly 4.5% which is $450 per every $100k mortgaged.
Today a 2.5% mortgage = $250 per $100k mortgaged. The buying power has doubled.
All that extra buying power was just transferred to the housing prices. Until rates rise significantly I don’t see it coming down. Yes it will plateau but it’s not going to be a collapse.
I think you should check your math before stating it as a fact. A 100k loan @ 2.5 is $395 and $506@4.5 rate. So it's roughly 20% more buying power - not remotely close to double.
Yes you are right. Terrible brain fart on my part.
2.5% = $395
5% would be $537
I was thinking double in interest rate %.
Quote:
Originally Posted by Uggggs
I think you should check your math before stating it as a fact. A 100k loan @ 2.5 is $395 and $506@4.5 rate. So it's roughly 20% more buying power - not remotely close to double.
This is across the US not just on LI. Prices here are through the roof too.
So true! I saw a condo listed online in Lancaster PA on Friday. Went up on Sat to look at it. It was sold for 15k ABOVE asking price. All within one day.
As interest rates stay at historical levels, housing will also be at record highs. As inflation creeps up on us & interest rates rise, you will see housing level off. However, that could be 2-5 +/- years from now.
A friend has been out bid on 9 condos in Florida in the past month. I think he’s giving up until this gets under control. Chasing record highs then over bidding is crazy.
Developers are willing to pay close to $700k for a regular ranch in order to flip and build up. We bought our ranch for just over $400k and did the same a decade ago. You can't win if you aren't already in. As much as I want to leave here, I'm glad we have a place here already. The time is not right to buy and probably won't be for years. I think it's obvious it's the right time to sell though...
Developers are willing to pay close to $700k for a regular ranch in order to flip and build up. We bought our ranch for just over $400k and did the same a decade ago. You can't win if you aren't already in. As much as I want to leave here, I'm glad we have a place here already. The time is not right to buy and probably won't be for years. I think it's obvious it's the right time to sell though...
Unfortunately if you are selling, you are probably looking to buy also ... here or elsewhere ... unless you are renting. It's a crapshoot.
The other impact of all of this craziness is the cost of building materials. I live in a very busy new construction market now and I can tell you that the impact is being felt here.
This is from less than 3 weeks ago and it is already off in terms of accuracy.
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