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Curious of where the 30 yr and 15 yr mortgage rates have to climb in order to truly cool this hot real estate market. I have also heard as part of Trump's tax cut proposal that reducing or even eliminating the home mortgage deduction would be included as a way to offset the new tax cuts.
I know different part of the country experience different markets but here on the southern east coast the market has been on a tear in the past 3 years- it is not normal for houses to appreciate 30-40% a year, the norm is 2-3%. I have noticed so far this year that days on market has been longer & thinking maybe buyers are not willing to pay inflated prices.
Just curious of the boards thoughts.
Who would want the housing market to cool besides prospective buyers who want to buy low?
When the housing market gets hot it's better for the economy and gets more jobs especially with new builds.
those wishing for a big housing price drop forget these things don't happen in a vacuum . they go with the local economy crashing too . with it usually goes jobs and income cuts
As reported yesterday existing housing sales dropped as a result of raising rates but more likely buyers not willing to pay the inflated prices sellers are asking even though inventory is low. I have noticed in my area that houses are not being "snatched" up like last year and the asking prices have become unreasonable- it's almost as if sellers are saying if someone is willing to pay this price I will sell and downsize or rent & rebuy after normalcy returns.
Who would want the housing market to cool besides prospective buyers who want to buy low?
When the housing market gets hot it's better for the economy and gets more jobs especially with new builds.
I would disagree- if an asset price becomes over-valued most will suffer. So the homeowner that has seen a paper equity value increase only adds to the economy if he/she borrows against that equity and spends the proceeds into the economy but if the valuation is stretched and a return to the mean occurs then much like in 07-08 these borrowing folks will find themselves upside down.
I do agree that low inventory and more builds helps the economy with employing those workers and purchasing materials but if prices get too high then you see inventory build. Real wages have not increased in years and many homebuilders and sellers are pricing themselves out of the market.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Our home prices have only gone up about 10-15%/year, but there is still a severe shortage of inventory and they are selling faster than ever. Slight increases in interest rates spur more buyers, anxious to get in before it prices them out. The death of the mortgage interest deduction, however, will definitely slow things down, since most of the payment is interest for about the first 24 years and that makes a big difference in income tax.
As reported yesterday existing housing sales dropped as a result of raising rates but more likely buyers not willing to pay the inflated prices sellers are asking even though inventory is low. I have noticed in my area that houses are not being "snatched" up like last year and the asking prices have become unreasonable- it's almost as if sellers are saying if someone is willing to pay this price I will sell and downsize or rent & rebuy after normalcy returns.
existing sales dropped not because of rates and lack of buyers . there is a lack of supply of houses available that are not higher end , not buyers lacking to buy
new home sales just were announced a few minutes ago and beat estimates . so obviously rates are not a factor at this point .
As reported yesterday existing housing sales dropped as a result of raising rates but more likely buyers not willing to pay the inflated prices sellers are asking even though inventory is low. I have noticed in my area that houses are not being "snatched" up like last year and the asking prices have become unreasonable- it's almost as if sellers are saying if someone is willing to pay this price I will sell and downsize or rent & rebuy after normalcy returns.
We have a housing market today where the quality jobs are basically in major metros areas, and those housing markets have nowhere to go but up, absent some sort of major economic downturn.
We have a housing market today where the quality jobs are basically in major metros areas, and those housing markets have nowhere to go but up, absent some sort of major economic downturn.
Yup.
Micro-locations will matter more than ever. With "starter" like homes ever more in demand, those prices will go up as well. Interest rates will matter, but people would rather pay a higher interest rate and build some equity than rent.
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