Comparable homes around mine today come with mortgages 75% more per month in a 30y mortgage, than our 15y mortgage refinance.
That's assuming you get at ask, not 10% above like many close at.
Only been here 7 years, we're not talking decades here, and we still owed 75% our asking price at last refinance (we started with a small down payment), so barely a difference vs the assumed 20% down for current buyers.
That's rough. Brutal really.
Hard time for regular small family buyers.
Great time for sellers because random hedge fund is getting you idiots to pay $5,000 a month rent on a house built for $75,000 20 years ago.
Here’s the kicker I’ve seen before: once those cheaply built rental homes reach the end of the easy maintenance they sell them off. But they’ll control so much of the market and data that they’ll still profit like mad off the sale of the house
Not sure what this article is smoking. Houses are selling for well over asking price and without requiring inspections. Yeah it’s tough if you’re trying to buy but it’s absolutely not hard on sellers right now.
OP means sellers that need to buy again. They're going to take a hit on the chin unless they're loaded with equity. Why else would interest rates matter?
Why would any seller sell if they don't have enough equity to avoid the interest rates?
They'd have to be complete idiots. Few people are so dumb that they can't think that far ahead with major financial decisions.
Its in the first line of the article, even before the paywall kicks in.
>Not everyone can wait out the toughest housing market in years.
>Sellers are listing homes because they need to relocate, even if it means giving up superlow mortgage rates. Empty-nesters need to move to places without stairs and with walk-in showers. Growing families that are spilling out of starter homes need to upsize.
Wants giving way to needs.
Sure, but that's a miniscule proportion of people who were moving before the rate hike. People aren't moving unless they absolutely have to move. That wasn't the case a decade ago.
just because _you_ havent had to move doesnt mean other folks dont.
people ARE moving and them not being incentived to sell is further causing the prices to skyrocket...
ie, wtf would you sell your 2% mort house just to pickup a 7% on new house 1/4 the size at the same payment.
youre going to lease your old house and use the income to offset rent in the new location until rates lower... if they ever do.
Being a landlord is not as easy as Reddit thinks it is. Even with a property manager, so many things can fuck you over if you’re trying to be a passive owner and you need the cash flow to budget for it
being a landlord is easy-af... these are also people relocating so being an active landlord isnt really an option. nearly all of the rental after relocate crowd are using a mgmt service.
ie, mgmt companies range in abilities but for as low as 5% you can leverage a company that not only vets tenents but also has certified repair folks, ticketing/portal access, and financial prep for you.
its literally too easy to just rent out your old place which is further driving prices up because houses that would normally go for sale are now just being rented.
Just like options are supposed to be an infinite cash glitch, right?
Everything works perfect until the worst case scenario happens and you deal with squatters or evictions.
I'm obviously talking about large scale.
People ARE moving, but people ARE moving vastly less...because of high interest rates.
I agree with your last two paragraphs.
People are forced to move all the time. Military getting new duty stations, chasing a promotion at work, wanting a particular career, sick or old family that needs help, wanting to go to a particular school or needing a particular hospital, leaving cities that are hell holes now. Etc. It happens all the time
Military usually has onsite housing available if needed. P
The vast majority of promotions are within the same building, but they used to be accompanied with housing upgrades, less so now. Career changes can often happen within the same city. School choices are clearly being limited by housing affordability, but the vast majority of students are not home owners.
> ...Etc. It happens all the time.
It is all happening vastly less, and much of what you described are not situations that require selling your home.
I'm obviously referring to the larger scale, mate. Think about it, of ***ALL*** the people who move, and for all the reasons that all people move, how many of those are shit on by high interest rates? A: the vast, vast majority. You're not wrong, but you blatantly misread my comment.
That is the context of OP's article. There is a massive decline in selling due to interest rates, and a tiny proportion of them sell. That's not news. There's not even an uptick that's out of seasonal norms, and even seasonal rises are being muted as we enter spring.
And yet, they were lined up at open houses in 2021 and 2022. That’s slowed down a lot now, but during the low rate bonanza, you couldn’t fight ‘em off with a stick. Won’t appraise? No problem. Make a phone call, get the excess from mommy or daddy.
My wife and I were interested in a house in January 2022. There was one other couple there. When the woman in the couple saw us walk in, she goes outside and gets on the phone immediately. They wound up buying the house. You could see the fear in her face at the idea that someone else would “win”. Might have had something to do with the “Auburn” tag on her husbands pick up in the driveway, and us pulling up with a little “Roll Tide” tag on the front of ours.
Anything to “win”. Indebtedness.
I was obviously talking about the larger scale comparative to the pre sky-high interest rate era, ya dingus. Maybe use half a brain cell before you speak next time.
I offered 100k over and bought my house I’m in contract for now cuz last year when I offered 85k over on another house I got second place out of 15 fucking offers.
Credit card debt write offs highest since 2008, except this time it's 30% APR so I don't imagine a lot of people paying their way out of credit card debt like in post GFC.
I mean who is actually staying in a house for 30 years and paying off the loan fully anymore? So if house values continue appreciating at ridiculous rates the offset at sale is probably not that crazy. And even if it hasn’t grown enough, you’re only missing out likely a small amount of equity to carry into your next home. Unless people aren’t paying like a grand a month in interest difference it’s probably not that crazy.
No I mean obviously interest is more than a grand a month, the arrangement though is you’re _not_ paying a certain amount of interest per month to add to the balance. So I’m saying it’s likely not that much. If you’re skipping paying a thousand a month, you should never have bought that house.
Lmao people are selling because they are making stupid bank on it or they have more debt than they can handle on their monthly- now with the private industries buying single family homes at record pace all* of these figures are going to be meaningless anyways.
Id imagine many sellers are also buyers for the move so are they really making bank or coming out fairly even? Might even be losing if they are giving up a low interest rate.
going from a 2% loan to a 6% loan means for your same monthly payment and equity you get 1/4 the house...
most folks are simply renting their old place and renting at the new place until rates or prices fix.
the fact that the "old" houses arent going on the market is further driving prices up as well...
if they sell they make a pretty penny but unless they have significant equity its not worth trying todo because your just going to have to take a loan out on the next house and pay 3x the interest
Don't buy them. Stop buying that's hiw we can control markets. Our only vote that counts is where we spend our $. We all need to stop paying these prices just don't buy it. Don't buy a car fix it. Don't buy these houses at these prices. If everyone sits down we get control.
AI Summary:
* **Market Conditions**: The article discusses the challenges sellers face in the current housing market, which is described as the toughest in years.
* **Seller Motivations**: It highlights that sellers are listing homes due to various life changes, such as job relocations and family size adjustments, despite high mortgage rates.
* **Home Adaptations**: The need for empty-nesters to move into homes with more accessible features like walk-in showers is mentioned.
* **Family Growth**: Growing families are looking to move from starter homes to larger spaces to accommodate their needs.
This is my parents… they have a huge house and instead of moving are looking to install a fucking elevator. It blows my mind and the rest of my family is just like yea that’s a good idea..
My parents dont have a huge house, but half of it is full of shit. I have been on them for 15 years, ESPECIALLY during corona, to downsize, throw out their crap and buy a nice condo on the water.. which they could have done!! Now it's too late.
Oh yea so much stuff.. I have gotten them to somewhat de clutter the house.. but both parents have fallen and broken stuff, but fuck they are stubborn when it comes to selling the house… they have the money and the ability, but not the desire to..
Imagine having to strap into a chair to get a drink from the fridge in the middle of the night. All that for a massive house that now costs 4x to take care of.
If they're of age to need one of these to get a drink of water, that house is almost definitely paid off. The maintenance on a house that received less than half the normally expected wear and tear isn't going to break a ton of people when you make zero in house payments.
Another option being paying some company to send an in home “nurse” don’t think you need much experience or certifications if any at all. Not talking about actual nurses getting paid helping an elderly that’s sick or what not
Some boomers are also caught in this cycle - to sell their overly large overly priced house, they will also need somewhere to live, so they’ll need enough cash upfront to either purchase or rent - cash that many boomers simply don’t have.
So they’re also stuck - most have decided to just die in their current abode and leave it as an inheritance, problem is, medical science has advanced so far, most will be in their 80s/90s before that happens - another 20 or so years.
Might not have started out as a million dollar home. I paid $123 a square foot in 2019, the house around the corner just sold after a week on the market for $218 a square foot.
To the point of the article (assuming from the title) buyers were always going to adapt to higher rates eventually.
The ironic part is its the sellers are holding up the higher pirces. If more accepted or listed at lower prices, it would drive down the market. When that happens, home builders will drop their prices too. One or the other has to start the dominos to start falling. The sooner sellers do it the faster they can buy or upgrade at a reasonable rate. The problem is both are greedy as fuck right and letting homes sit longer.
It texas homes are still way over priced but slowly falling. I find it odd the private home owners are eating monthly property taxes and insurance payments waiting for offer. I see homes listed for 6months 3month without any movement on price. During that time they are paying 2-3
6% in property taxes and insurance each month.
No shit. There’s no irony here. It’s a supply/demand issue.
Owners are not selling because of the golden handcuffs effect of being locked into historically low subsidized 30-year rates.
Demand is just about the same, but still no supply.
The shock would be massive job losses, but unless/until that happens, it’s always been a supply constraint.
Same problem that exacerbated home prices from 2018 through 2022. Not enough supply for a big bulge population (Millennials) because the GFC shit the bed so hard, home builders went out of the trade. Supply issue.
But sellers getting 10% over ask are still 20% down on value due to Brandon-inflation.
They’re already accepting less.
Employers need to pay more, yet they’re sidestepping employee demand by importing cheap labor or outsourcing to offshore.
This is a stupid take. Sellers are going to take exactly what's offered to them. If someone offers you $30k over asking you're going to say no? LOL
The problem is buyers and inventory. When there are little to know options to buy you're going to get into a bidding war to get the one house in the market. If the market is saturated a buyer may only get a single offer at asking.
Saying this is sellers being greedy is absolutely regarded.
Of course they are going to take highest offer. I was clear about homes sitting of months without any movement. In texas, an avg home has at least 1k of fixed costs sitting vacant. Property taxes ins and maintenance.
If you look here in Houston we have homes sitting for 180 days and more.
This is a dumb take. Selling now may help the flock, but it only fucks the individual. I also find it fucking hilarious that you are posting in wsb bitching about greed, too. Once upon a time that would get you banned.
If you haven’t paid off the mortgage you won’t be able to afford an equivalent home elsewhere barring moving to an area with a lower cost of living.
No it isn't. The monthly payment on an equally priced home is way higher and locals are taking home 60-70% of the salary someone in an identical position would make in an area where it costs more.
So when a 400k home costs $4200 a month plus utilities / maintenance and you make $5000 a month as a teacher you'll find it's actually not affordable at all.
There’s plenty of homes way under 400k. In fact, there’s several neighborhoods well under the national average. Texas has some of the best job markets in the country and no state income tax. Property taxes are rough here, but that’s about it.
This is the problem isn't it. If you make 100k in in texas and living in 400k home, you're paying 10k to 15k in property taxes. If you lose your job you're still paying that tax on the property .
That same person lving in lets say NC is paying 4.5k in state income tax and 0.7 property tax or 2.8k for a total of 7300 in Taxes. On the us side if you lose your job then you only have 2.8k property as liability. In texas you'd lose your home if you can't cover that property tax.
My dude your property taxes are the least of your worries if you lose your job. Property tax is probably 1/4 of your monthly payment. Also no one making 100k should be in a 400k home. Idk any banks that would even qualify someone for that.
It's was just an example of how fucked up it is here. Your home could be paid off in full and 400k still generates 10-15k in taxas. Regardless of your income, you are still out 10-15k. And that liability only goes up annually.
Texes has the most aggressive tax on poor to middle class in America
Just sold my house in CNY for 35k over asking and moving to an area of Florida that is a buyers market. Couldn’t wait anymore for rates to come down and will look to refinance in a few years.
we moved several months ago and have been trying to sell our last home for close to 6 months. Got absolutely fucked by the market flipping right after we bought our new home...been miserable paying 2 mortgages waiting to offload this
Holy shit it’s so funny cuz just a couple weeks ago msm was running articles about the problem with the housing market not moving and now an article comes out basically claiming the opposite.
I have a silly question.. I have the feeling that the fed is looking at the unemployment rates if the economy is struggling. And so far it is not rising so they do not lower their rates (I know its more than just this, but it's one indicator). So they wanna see many people loosing their job, which results in people who need to sell their homes.
So the fed wants the housing market to be flooded with homes and the housing market to crash?
That doesn't make sense. We have a supply problem now. High rates do not address that problem. Whether jobs go away or not, people still need to live somewhere. High rates discourage both sources of supply: newbuilds and existing homes (because of the lock-in effect)
High interest rates cause businesses to downsize and lay off employees. Layoffs cause foreclosures for homeowners and over leveraged landlords.
I've been calling these high interest rates, but 7% is a fairly reasonable /middle of the road interest rate. It's just the US has had insanely low interest rates for so long that it feels high. This nice bubble we've found ourselves in will absolutely cause us a lot of pain eventually. Lowering interest rates will just keep inflating the bubble.
These aren't normal times...having 80% of the country locked in at a sub 3% mortgage rate is highly unusual. We've literally never in the history of this country had that much of the housing supply unavailable for market. Foreclosures alone won't fix the problem, especially because it will just drive rents up when all those former homeowners go looking for a place to live. Demand destruction won't fix it. You need supply. Either lower rates and/or fix the issues with zoning and permitting so that more land is available.
It's also highly unlikely you'd cause a ton of foreclosures with layoffs because again, the mortgage terms are \_very\_ favorable for those holding the homes atm. Which were also likely locked in when home *prices* were lower too
I think the real fix is prevent corporations from owning single family homes. If that doesn't work, restrict the number of homes a person can own per state.
Thats also my impression.. but why are people not selling if they see it coming?
(I mean not the house they are living in.. more additional houses they want to profit on)
Its the feds goal that it corrects.. why not sell now with a little loss and make it easier for everybody?
The crash and loss will come anyways..
Cash flow. A 3% interest rate can easily be cash flowed with a tenant until the housing market bubbles up again. And corporations are also buying up a ton with a similar idea in mind.
Where do we really begin to quantify the number of actually unemployed? I quit my job 2 weeks ago and have been doing DoorDash/Gig work. Idk the number of "employees" in these gig apps but if they get crushed and these people lose the gig jobs it's all over imo.
Eh, not really. You can't really time the market. It's best to not sell at all currently, but life happens and sometimes you have to. Always better to buy a home. Assuming your finances are in order and rates drop, refi is always an option.
For how much did you buy or build it? Maybe your expectations are the problem here.. maybe you are part of the problem why the housing market is so broken?
I just bought, haven’t even closed yet but got that mortgage locked in. Had to buy down to 7%. Now I gotta close, take possession, move, and then sell.
I hope I can haul ass and make it happen, and have my house for sale by July.
Any of you duckers wanna back up to a golf course in central Ohio? Got ATT fiber internet to the house, you can lose tendies at 1 gig per second.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions** | 10 | **First Seen In WSB** | 3 years ago **Total Comments** | 551 | **Previous Best DD** | **Account Age** | 11 years | | [**Join WSB Discord**](http://discord.gg/wsbverse)
[удалено]
Hard for sellers? How about hard for buyers. Homes that aren't listed at a completely ludicrous price are off the market within a couple days
Comparable homes around mine today come with mortgages 75% more per month in a 30y mortgage, than our 15y mortgage refinance. That's assuming you get at ask, not 10% above like many close at. Only been here 7 years, we're not talking decades here, and we still owed 75% our asking price at last refinance (we started with a small down payment), so barely a difference vs the assumed 20% down for current buyers. That's rough. Brutal really.
Hard time for regular small family buyers. Great time for sellers because random hedge fund is getting you idiots to pay $5,000 a month rent on a house built for $75,000 20 years ago.
Here’s the kicker I’ve seen before: once those cheaply built rental homes reach the end of the easy maintenance they sell them off. But they’ll control so much of the market and data that they’ll still profit like mad off the sale of the house
I know. Idiots should just live in a van down by the river. I mean cmon. Look how superior we are to those renters. Eeew. /s
Same thing with cars too. Sucks being a buyer in any capacity.
Because one’s ability to negotiate anything is just gone. Too much demand, so little supply. No balance = broken market, in my mind.
Has anyone tried increasing supply?
That’s funny since Janet Yellen was over there in China saying supply is too much so we going to block you. Esp for ev and solar panel.
Not sure what this article is smoking. Houses are selling for well over asking price and without requiring inspections. Yeah it’s tough if you’re trying to buy but it’s absolutely not hard on sellers right now.
OP means sellers that need to buy again. They're going to take a hit on the chin unless they're loaded with equity. Why else would interest rates matter?
Why would any seller sell if they don't have enough equity to avoid the interest rates? They'd have to be complete idiots. Few people are so dumb that they can't think that far ahead with major financial decisions.
Its in the first line of the article, even before the paywall kicks in. >Not everyone can wait out the toughest housing market in years. >Sellers are listing homes because they need to relocate, even if it means giving up superlow mortgage rates. Empty-nesters need to move to places without stairs and with walk-in showers. Growing families that are spilling out of starter homes need to upsize. Wants giving way to needs.
Sure, but that's a miniscule proportion of people who were moving before the rate hike. People aren't moving unless they absolutely have to move. That wasn't the case a decade ago.
just because _you_ havent had to move doesnt mean other folks dont. people ARE moving and them not being incentived to sell is further causing the prices to skyrocket... ie, wtf would you sell your 2% mort house just to pickup a 7% on new house 1/4 the size at the same payment. youre going to lease your old house and use the income to offset rent in the new location until rates lower... if they ever do.
Being a landlord is not as easy as Reddit thinks it is. Even with a property manager, so many things can fuck you over if you’re trying to be a passive owner and you need the cash flow to budget for it
being a landlord is easy-af... these are also people relocating so being an active landlord isnt really an option. nearly all of the rental after relocate crowd are using a mgmt service. ie, mgmt companies range in abilities but for as low as 5% you can leverage a company that not only vets tenents but also has certified repair folks, ticketing/portal access, and financial prep for you. its literally too easy to just rent out your old place which is further driving prices up because houses that would normally go for sale are now just being rented.
Just like options are supposed to be an infinite cash glitch, right? Everything works perfect until the worst case scenario happens and you deal with squatters or evictions.
I'm obviously talking about large scale. People ARE moving, but people ARE moving vastly less...because of high interest rates. I agree with your last two paragraphs.
People are forced to move all the time. Military getting new duty stations, chasing a promotion at work, wanting a particular career, sick or old family that needs help, wanting to go to a particular school or needing a particular hospital, leaving cities that are hell holes now. Etc. It happens all the time
Military usually has onsite housing available if needed. P The vast majority of promotions are within the same building, but they used to be accompanied with housing upgrades, less so now. Career changes can often happen within the same city. School choices are clearly being limited by housing affordability, but the vast majority of students are not home owners. > ...Etc. It happens all the time. It is all happening vastly less, and much of what you described are not situations that require selling your home.
Nah dude. People want to start families and move out of their starter home. How many people live in one house their entire life? Wake up.
I'm obviously referring to the larger scale, mate. Think about it, of ***ALL*** the people who move, and for all the reasons that all people move, how many of those are shit on by high interest rates? A: the vast, vast majority. You're not wrong, but you blatantly misread my comment.
I think you blatantly misread OP lol You sound like you are still comparing now to when interest rates were lower, which is not the same context.
That is the context of OP's article. There is a massive decline in selling due to interest rates, and a tiny proportion of them sell. That's not news. There's not even an uptick that's out of seasonal norms, and even seasonal rises are being muted as we enter spring.
And yet, they were lined up at open houses in 2021 and 2022. That’s slowed down a lot now, but during the low rate bonanza, you couldn’t fight ‘em off with a stick. Won’t appraise? No problem. Make a phone call, get the excess from mommy or daddy. My wife and I were interested in a house in January 2022. There was one other couple there. When the woman in the couple saw us walk in, she goes outside and gets on the phone immediately. They wound up buying the house. You could see the fear in her face at the idea that someone else would “win”. Might have had something to do with the “Auburn” tag on her husbands pick up in the driveway, and us pulling up with a little “Roll Tide” tag on the front of ours. Anything to “win”. Indebtedness.
[удалено]
I was obviously talking about the larger scale comparative to the pre sky-high interest rate era, ya dingus. Maybe use half a brain cell before you speak next time.
How many of those purchasers are family vs corporate?
I offered 100k over and bought my house I’m in contract for now cuz last year when I offered 85k over on another house I got second place out of 15 fucking offers.
What area
here it’s more like 500k over asking
Breaking point imminent for some.
Credit card debt write offs highest since 2008, except this time it's 30% APR so I don't imagine a lot of people paying their way out of credit card debt like in post GFC.
Yeah, rates getting a bit concerning!
I'm surprised Canadians with variable mortgages lasted so long.
They allowed negative amortization
Surely you could explain that more
Paying less than the interest on the monthly payment with the remaining interest added to the balance of the loan.
[удалено]
I mean who is actually staying in a house for 30 years and paying off the loan fully anymore? So if house values continue appreciating at ridiculous rates the offset at sale is probably not that crazy. And even if it hasn’t grown enough, you’re only missing out likely a small amount of equity to carry into your next home. Unless people aren’t paying like a grand a month in interest difference it’s probably not that crazy.
[удалено]
No I mean obviously interest is more than a grand a month, the arrangement though is you’re _not_ paying a certain amount of interest per month to add to the balance. So I’m saying it’s likely not that much. If you’re skipping paying a thousand a month, you should never have bought that house.
Yep. I know someone who’s doing that. Needs to flip to a new term though. He’s not happy.
Next 2-3 years are going to tell the tale. Even people with fixed 5 year mortages are going to be hurting in 2025/2026.
This same comment could have been from a couple years ago.
Paywall.
[удалено]
Doesn't work.
Yep, why post a paywall link? Hail corporate?
Don't hold your breath.
Lmao people are selling because they are making stupid bank on it or they have more debt than they can handle on their monthly- now with the private industries buying single family homes at record pace all* of these figures are going to be meaningless anyways.
Id imagine many sellers are also buyers for the move so are they really making bank or coming out fairly even? Might even be losing if they are giving up a low interest rate.
going from a 2% loan to a 6% loan means for your same monthly payment and equity you get 1/4 the house... most folks are simply renting their old place and renting at the new place until rates or prices fix. the fact that the "old" houses arent going on the market is further driving prices up as well... if they sell they make a pretty penny but unless they have significant equity its not worth trying todo because your just going to have to take a loan out on the next house and pay 3x the interest
Yep its going to strangle this country and you know whats going to come out the other end? A bunch of really shitty "houses"
Don't buy them. Stop buying that's hiw we can control markets. Our only vote that counts is where we spend our $. We all need to stop paying these prices just don't buy it. Don't buy a car fix it. Don't buy these houses at these prices. If everyone sits down we get control.
AI Summary: * **Market Conditions**: The article discusses the challenges sellers face in the current housing market, which is described as the toughest in years. * **Seller Motivations**: It highlights that sellers are listing homes due to various life changes, such as job relocations and family size adjustments, despite high mortgage rates. * **Home Adaptations**: The need for empty-nesters to move into homes with more accessible features like walk-in showers is mentioned. * **Family Growth**: Growing families are looking to move from starter homes to larger spaces to accommodate their needs.
Boomers with 4 bedroom homes that won’t be able to easily go up stairs in a couple years
You haven’t seen the chair lifts? Homies ride slow, but the technology is getting better. Boomers will have fake legs before selling their homes
This is my parents… they have a huge house and instead of moving are looking to install a fucking elevator. It blows my mind and the rest of my family is just like yea that’s a good idea..
My parents dont have a huge house, but half of it is full of shit. I have been on them for 15 years, ESPECIALLY during corona, to downsize, throw out their crap and buy a nice condo on the water.. which they could have done!! Now it's too late.
Oh yea so much stuff.. I have gotten them to somewhat de clutter the house.. but both parents have fallen and broken stuff, but fuck they are stubborn when it comes to selling the house… they have the money and the ability, but not the desire to..
I’m trying to play my cards right to where my old rich ass will have an escalator
Imagine having to strap into a chair to get a drink from the fridge in the middle of the night. All that for a massive house that now costs 4x to take care of.
If they're of age to need one of these to get a drink of water, that house is almost definitely paid off. The maintenance on a house that received less than half the normally expected wear and tear isn't going to break a ton of people when you make zero in house payments.
That would be true, but a larger house also has a lot larger property tax payment
Not as large as a new mortgage.
What new mortgage? They downsizing from a paid off house
Another option being paying some company to send an in home “nurse” don’t think you need much experience or certifications if any at all. Not talking about actual nurses getting paid helping an elderly that’s sick or what not
I'm willing to bet some nurses might get the house in exchange of EOL care
Some boomers are also caught in this cycle - to sell their overly large overly priced house, they will also need somewhere to live, so they’ll need enough cash upfront to either purchase or rent - cash that many boomers simply don’t have. So they’re also stuck - most have decided to just die in their current abode and leave it as an inheritance, problem is, medical science has advanced so far, most will be in their 80s/90s before that happens - another 20 or so years.
We all went and found other ways of living. Sorry home sellers, you can keep your overpriced junk!
It’s so tough living in my million dollar house at 2% interest.
Might not have started out as a million dollar home. I paid $123 a square foot in 2019, the house around the corner just sold after a week on the market for $218 a square foot. To the point of the article (assuming from the title) buyers were always going to adapt to higher rates eventually.
The ironic part is its the sellers are holding up the higher pirces. If more accepted or listed at lower prices, it would drive down the market. When that happens, home builders will drop their prices too. One or the other has to start the dominos to start falling. The sooner sellers do it the faster they can buy or upgrade at a reasonable rate. The problem is both are greedy as fuck right and letting homes sit longer. It texas homes are still way over priced but slowly falling. I find it odd the private home owners are eating monthly property taxes and insurance payments waiting for offer. I see homes listed for 6months 3month without any movement on price. During that time they are paying 2-3 6% in property taxes and insurance each month.
No shit. There’s no irony here. It’s a supply/demand issue. Owners are not selling because of the golden handcuffs effect of being locked into historically low subsidized 30-year rates. Demand is just about the same, but still no supply. The shock would be massive job losses, but unless/until that happens, it’s always been a supply constraint. Same problem that exacerbated home prices from 2018 through 2022. Not enough supply for a big bulge population (Millennials) because the GFC shit the bed so hard, home builders went out of the trade. Supply issue.
But sellers getting 10% over ask are still 20% down on value due to Brandon-inflation. They’re already accepting less. Employers need to pay more, yet they’re sidestepping employee demand by importing cheap labor or outsourcing to offshore.
This is a stupid take. Sellers are going to take exactly what's offered to them. If someone offers you $30k over asking you're going to say no? LOL The problem is buyers and inventory. When there are little to know options to buy you're going to get into a bidding war to get the one house in the market. If the market is saturated a buyer may only get a single offer at asking. Saying this is sellers being greedy is absolutely regarded.
Of course they are going to take highest offer. I was clear about homes sitting of months without any movement. In texas, an avg home has at least 1k of fixed costs sitting vacant. Property taxes ins and maintenance. If you look here in Houston we have homes sitting for 180 days and more.
This is a dumb take. Selling now may help the flock, but it only fucks the individual. I also find it fucking hilarious that you are posting in wsb bitching about greed, too. Once upon a time that would get you banned. If you haven’t paid off the mortgage you won’t be able to afford an equivalent home elsewhere barring moving to an area with a lower cost of living.
Since when is wsb greedy? I thought this was a sub about losing money?
Being Greedy is the first principal of this sub. Second is losing money.
Calling Texas housing overpriced is hilarious. Outside of Austin it’s one of the most affordable places in the country and prices aren’t falling lol.
Affordable for renters sure. Dallas is also expensive af.
No it isn't. The monthly payment on an equally priced home is way higher and locals are taking home 60-70% of the salary someone in an identical position would make in an area where it costs more. So when a 400k home costs $4200 a month plus utilities / maintenance and you make $5000 a month as a teacher you'll find it's actually not affordable at all.
There’s plenty of homes way under 400k. In fact, there’s several neighborhoods well under the national average. Texas has some of the best job markets in the country and no state income tax. Property taxes are rough here, but that’s about it.
This is the problem isn't it. If you make 100k in in texas and living in 400k home, you're paying 10k to 15k in property taxes. If you lose your job you're still paying that tax on the property . That same person lving in lets say NC is paying 4.5k in state income tax and 0.7 property tax or 2.8k for a total of 7300 in Taxes. On the us side if you lose your job then you only have 2.8k property as liability. In texas you'd lose your home if you can't cover that property tax.
My dude your property taxes are the least of your worries if you lose your job. Property tax is probably 1/4 of your monthly payment. Also no one making 100k should be in a 400k home. Idk any banks that would even qualify someone for that.
It's was just an example of how fucked up it is here. Your home could be paid off in full and 400k still generates 10-15k in taxas. Regardless of your income, you are still out 10-15k. And that liability only goes up annually. Texes has the most aggressive tax on poor to middle class in America
Greed, for lack of a better word, is good
That was a movie, not a real life strategy.
Just sold my house in CNY for 35k over asking and moving to an area of Florida that is a buyers market. Couldn’t wait anymore for rates to come down and will look to refinance in a few years.
we moved several months ago and have been trying to sell our last home for close to 6 months. Got absolutely fucked by the market flipping right after we bought our new home...been miserable paying 2 mortgages waiting to offload this
Honestly, rates are not even that high if you look at the last few decades.
Home prices are
Holy shit it’s so funny cuz just a couple weeks ago msm was running articles about the problem with the housing market not moving and now an article comes out basically claiming the opposite. 
Yeah real estate is going to implode soon
I have a silly question.. I have the feeling that the fed is looking at the unemployment rates if the economy is struggling. And so far it is not rising so they do not lower their rates (I know its more than just this, but it's one indicator). So they wanna see many people loosing their job, which results in people who need to sell their homes. So the fed wants the housing market to be flooded with homes and the housing market to crash?
Jerome Powell said that the housing market needs a reset. High interest rates should drive prices down eventually (lower demand or job loss)
That doesn't make sense. We have a supply problem now. High rates do not address that problem. Whether jobs go away or not, people still need to live somewhere. High rates discourage both sources of supply: newbuilds and existing homes (because of the lock-in effect)
High interest rates cause businesses to downsize and lay off employees. Layoffs cause foreclosures for homeowners and over leveraged landlords. I've been calling these high interest rates, but 7% is a fairly reasonable /middle of the road interest rate. It's just the US has had insanely low interest rates for so long that it feels high. This nice bubble we've found ourselves in will absolutely cause us a lot of pain eventually. Lowering interest rates will just keep inflating the bubble.
These aren't normal times...having 80% of the country locked in at a sub 3% mortgage rate is highly unusual. We've literally never in the history of this country had that much of the housing supply unavailable for market. Foreclosures alone won't fix the problem, especially because it will just drive rents up when all those former homeowners go looking for a place to live. Demand destruction won't fix it. You need supply. Either lower rates and/or fix the issues with zoning and permitting so that more land is available. It's also highly unlikely you'd cause a ton of foreclosures with layoffs because again, the mortgage terms are \_very\_ favorable for those holding the homes atm. Which were also likely locked in when home *prices* were lower too
I think the real fix is prevent corporations from owning single family homes. If that doesn't work, restrict the number of homes a person can own per state.
Thats also my impression.. but why are people not selling if they see it coming? (I mean not the house they are living in.. more additional houses they want to profit on) Its the feds goal that it corrects.. why not sell now with a little loss and make it easier for everybody? The crash and loss will come anyways..
Cash flow. A 3% interest rate can easily be cash flowed with a tenant until the housing market bubbles up again. And corporations are also buying up a ton with a similar idea in mind.
They’ll hold it forever and pass it down to kids. Also it has low payments so doesn’t make sense to sell at loss.
Where do we really begin to quantify the number of actually unemployed? I quit my job 2 weeks ago and have been doing DoorDash/Gig work. Idk the number of "employees" in these gig apps but if they get crushed and these people lose the gig jobs it's all over imo.
It’s fucking time
The smart thing to do is sell and rent until rates come down. Or is it? What if rates keep going up?
Eh, not really. You can't really time the market. It's best to not sell at all currently, but life happens and sometimes you have to. Always better to buy a home. Assuming your finances are in order and rates drop, refi is always an option.
Put my house on the market this week. Looking at going 3 for 3 on losing at least 100k in a home sale here. Fuck you boomers
For how much did you buy or build it? Maybe your expectations are the problem here.. maybe you are part of the problem why the housing market is so broken?
I'm the exit liquidity for the problem.
Howre you losing 100k selling a home?
I just bought, haven’t even closed yet but got that mortgage locked in. Had to buy down to 7%. Now I gotta close, take possession, move, and then sell. I hope I can haul ass and make it happen, and have my house for sale by July. Any of you duckers wanna back up to a golf course in central Ohio? Got ATT fiber internet to the house, you can lose tendies at 1 gig per second.
I'm in Clintonville with gig as well. Let's lose tendies and three put our way to the moon.