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.
How do we find home price drop opportunity in this higher rate environment?
================================================== ==============
Thanks for your replies to my threads. This property is located in Maryland. I find some interesting insights provided in this forum, so I am opening my thread.
We are hearing in media saying that housing market is crashing/downtrend etc.
As you know mortgage rare close to 8% and I see price drop in posted listing.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,550 posts, read 81,117,303 times
Reputation: 57750
As always, real estate trends depend on the location. Here in Sammamish WA (east of Seattle) prices are still going up, and homes are selling in a week or two. Our median price is currently at $1.5 million, while just 50 miles away or less in other cities like Arlington, Monroe Gig Harbor or Puyallup the prices are dropping and prices are averaging just $500k-800k.
What you may be seeing is homes being listed far above what any reasonable price offer should be. So, a $500,000 home that may sell for $600,000 in a hot market, is listed for $999,000. Over the weeks it's reduced a couple of times to $600,000 and ends up with multiple offers and sells for $650,000. Does that mean the market has dropped 35% in that area?
Location: Sarasota/ Bradenton - University Pkwy area
4,613 posts, read 7,532,666 times
Reputation: 6026
The "experts" are predicting the Federal Reserve will start LOWERING rates in 2024, starting in March.
I read where they said a 1 percent drop in Fed rates equates to a 5 - 10 percent increase in home sales. The Fed is not expected to drop rates a full percentage, but even a small drop will motivate buyers to start looking again in hopes of further rate drops.
My understanding in the NYC metro area is that commercial real estate and multi-family homes are dropping in price. Single family still holding steady. I’m by no means an expert on this but I follow some CRE guys on Twitter and that’s what they’ve been saying as of late.
My understanding in the NYC metro area is that commercial real estate and multi-family homes are dropping in price. Single family still holding steady. I’m by no means an expert on this but I follow some CRE guys on Twitter and that’s what they’ve been saying as of late.
SFH will stay hot at least on the North Jersey of the NYC Metro as there aren't enough. Seems like they are building $1M townhomes all over the place. Who all these people snatching up $1M townhomes is beyond me.
The "experts" are predicting the Federal Reserve will start LOWERING rates in 2024, starting in March.
I read where they said a 1 percent drop in Fed rates equates to a 5 - 10 percent increase in home sales. The Fed is not expected to drop rates a full percentage, but even a small drop will motivate buyers to start looking again in hopes of further rate drops.
the problem is fixed rate mortgages are set by investors not the fed …..they are based on bonds not the fed funds rate or discount rate
investors don’t follow the fed when they disagree , which is why short term rates are higher then long term rates now
the problem is fixed rate mortgages are set by investors not the fed …..they are based on bonds not the fed funds rate or discount rate
investors don’t follow the fed when they disagree , which is why short term rates are higher then long term rates now
Which is why rates have already dropped. At the end of the day investors want to make money. They will drop the rates to get people originating loans again. It is why there are the 3/2/1 and 2/1 buydowns right now.
I have attended so, so many webinars this year and the general consensus seems to project that consumer interest rates will be in the 6.5-7.5% range in 2024.
Buy somewhere cheap. Why must everyone buy a macmansion in a well to do area.
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.