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.
The housing market is insane. I really hope it goes down and not just a little. I have been watching one market on almost a daily basis for close to 5 years. This house has sold 3 times in that period.
4 years ago sold for $250K
Right before Covid sold for $350k I thought the market was high then and ready for a drop.
About 3 months ago sold for $750K
In the same area empty lots are now selling for the same price you could by a decent house in one of the gated communities before Covid.
I have been watching this area because we had a plan to retire there in a few more years. With the insane price increases we are now priced out of the market for the type of place we want.
Real estate does not fall in a vacuum …..if real estate plunges , you can bet local jobs , incomes and hours working will be slashed and cut making it even harder to afford as they go hand in hand
I hope housing prices crash and burn. But I’ve been hearing that prediction for years. It’s been nothing but up. My old house I sold two years ago is appraised a $100k more than I sold it. $50k a year appreciation is not to bad for the buyer of that place. Good for them. Where I live, I could careless if the value of my land decreases, to even nothing. I own it free and clear and intend on dying in this place.
Real estate prices will go down as mortgage interest rates rise and that seems to be the direction of interest rates right now. Unless you have a pot of money stashed away when prices do fall, your monthly costs for a future home with a mortgage may not vary much from what they would be by buying now with a mortgage.
And too, as Mathjack107 has mentioned above, you'd better be saving that pot of money now because high interest rates can kill jobs and opportunities and it could be your future job that it kills. The best part of lowered housing prices at higher interest rates, at least in Texas and other high property tax states, is that property taxes may be pushed downward. Lower taxes won't matter though if you have no income.
The largest variable here is to remember that real estate is a very local thing and even housing scenarios in Dallas or Houston can exist on different planets than in west Texas.
Real estate prices will go down as mortgage interest rates rise and that seems to be the direction of interest rates right now. Unless you have a pot of money stashed away when prices do fall, your monthly costs for a future home with a mortgage may not vary much from what they would be by buying now with a mortgage.
And too, as Mathjack107 has mentioned above, you'd better be saving that pot of money now because high interest rates can kill jobs and opportunities and it could be your future job that it kills. The best part of lowered housing prices at higher interest rates, at least in Texas and other high property tax states, is that property taxes may be pushed downward. Lower taxes won't matter though if you have no income.
The largest variable here is to remember that real estate is a very local thing and even housing scenarios in Dallas or Houston can exist on different planets than in west Texas.
this is a myth .. our greatest appreciation has been with 6-7% mortgages .
in fact real estate was booming here in the 1980's when i got my first investment property . i was thrilled to get 8-1/4% . the big run up pre 2008 was at 7% mortgages .
real estate is based on the local economy . it is a myth that there is some see saw lever effect with rates that goes on .
all that happens is people just step down a notch in what they buy .
typically rising rates actually spurs prices up as those on the fence go we better buy now before we can afford even less house.
So the middle to low end housing usually sees a bump up ..the upper end has a lot of those who pay cash or just are in effected by a difference in rates so they stay the same .
The biggest myth is that there is some lever effect going on like a see saw where if rates rise the other side comes down.
Rates have to go way way high like the 1970s ,early 1980s to see much rate effect.
We have had booming real estate markets at triple what they are today
Last edited by mathjak107; 09-30-2021 at 03:17 AM..
Real estate prices are booming here in all parts of Australia and I believe in much of the world.
There is no expectation here that they will drop. Perhaps level out. But more likely keep going up when state borders open up.At the moment many people are buying unseen.
I disagree, I see prices stabilize and push people who wants to get into home ownership to the sidelines and allow bigger RE groups to snatch them up and pushing prices 2-3x later.
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.
