Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Ok, I get that the market exploded once everyone caught on after a few months in the early days of the pandemic that working from home was the new "thing" and everyone had to rush to buy up all the houses, creating shortages, and bidding wars, and sale prices way above list price. And I know that rates were and pretty much still are historically low. I get it.
But now, there is light at the end of the tunnel. Millions upon millions have been vaccinated, millions more want to be...that's awesome. Many companies are looking at bringing the workforce back into the office, if they haven't already. Many others are giving employees a choice to work remotely full-time, part-time, or not at all.
Rates are ticking up from where they were in January (2.65%) to 3.25%-ish now. And that's still an incredible rate.
But are values just going to continue to climb? Like forever? I mean...just how long can this go on?
The Massachusetts housing market was pretty insulated from the 2008+ bust compared to the rest of the country. There weren't a ton of foreclosures compared to Georgia, Florida, Las Vegas, etc. There hasn't been a banking crisis there since the early '90s. The rest of the country wasn't so lucky in this last crisis, but MA just rolled along immune from the typical dangers other markets face. I know...location, location, location. Yes, I'd much rather be there than where I am...in the state on its very own electric grid.
I was a mortgage underwriter in the 2000s leading up to the crash. I saw the "powers that be" loosen the guidelines, sometimes multiple times a week, if not a day, just to keep up with the other lenders who were making ridiculous deals.
I still see so many homes now where the last purchase was in 2005 - 2007 and they're hoping to sell it for slightly more now than they paid then. I know many homes aren't appraising but buyers are paying cash in excess of the appraised value just to get the home.
I just know that if I buy now, it's only a matter of time until I'm upside down in that house...or just know that I will never sell it for what I paid. I know it. Am I wrong?
So I guess I just want someone to tell me...when will values stabilize? Will they ever come down? What the heck...it can't go on forever.
All the well-paid young professionals who were suddenly finding themselves with enough money for a down payment now that they couldn't blow many thousands of dollars each month on "going out" and "experiences" for a whole year combined with barely any inventory due to eviction/foreclosure moratorium obvisoulsly didn't help things. Prices should return to more reasonable levels once moratorium is lifted and more inventory is hitting the market, and $600+ "fun" weekends are starting to happen every weekend again which leaves those bank accounts nice and empty regardless of the size of the paycheck.
Under 3% with a lot of points, maybe. The 10 year treasury has been back over 1.6% for the last couple of weeks.
Still seems to be the case at 0 points. Enough right at 3 with 0 points. Refi is another story but that's because of the tax that was added. These are those shady internet ones and some small banks. Big Name Banks, yes you will be well above 3.
Under 3% with a lot of points, maybe. The 10 year treasury has been back over 1.6% for the last couple of weeks.
Still seems possible. I just locked a 2.5% rate for a 15yr. refi. No points, just the additional .5% for the ‘adverse market refinance fee’ instituted by the FHFA. 30yr rates were coming in just under 3%. This was through a local CU, but it should be noted this was for an extremely low risk loan from an equity, credit history, and debt-to-income standpoint.
Recent pricing in my local market seems to already be heading in a more rational direct, but it’s tough to make that call prior to seeing closing prices. They could all sell for over asking.
Last edited by Shrewsburried; 03-27-2021 at 05:39 AM..
Will this incredible climb in values end enventually? ABSOLUTELY! Does it absolutely have to end with a crash? DEFINITELY not! The RE market always runs in cycles of up and down. Downturns are often more gradual than what we saw in 2008 and if you bought in some towns the downturn was barely a blip on the radar. Always do your best to set yourself up for strong resale value by buying in the best location possible. It's cliche to say location, location, location but it's absolutely the most important consideration when buying. You can always fix up an old house. It's really hard to move a house to a better location.
Quote:
Originally Posted by GeoffD
Under 3% with a lot of points, maybe. The 10 year treasury has been back over 1.6% for the last couple of weeks.
My local credit union still has rates under 3% on ARMs. 30 year fixed is a little harder to find under 3 from what I've seen.
Quote:
Originally Posted by yesmaybe
Still seems to be the case at 0 points. Enough right at 3 with 0 points. Refi is another story but that's because of the tax that was added. These are those shady internet ones and some small banks. Big Name Banks, yes you will be well above 3.
When I checked earlier this week with some VERY reputable lenders they still had rates under 3%. There were definitely big banks I saw that had rates 3%+ even when other lenders were well below 3%. It's been a funny lending market since COVID started. Some lenders just don't want to lend at market rates or don't want to write certain instruments.
We bought in mid-2019 and at the time it felt like it was the top of the bubble, but we needed something bigger and bought something that we could afford even if we had a financial setback and plan to stay here as long as we can. That's really the best anybody can do...good luck.
What scenarios in a 20-30 year time frame do you see Boston real estate declining in nominal terms? US 15 year treasuries are yielding less than 2% with no inflation protection. Boston real estate is basically an inflation protected risk free asset. It is expensive but remains a good value. It was a staggeringly good value 5 years ago, and it's still a good value now.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
