House hunting

[usualsuspect]

I'm currently in the market for a new home and just can't get over how much people are asking and actually getting for their homes. The market is way overpriced right now in my opinion and its only a matter of time before demand starts to cool off. In fact, I decided I'm going to sit on the sidelines for the time being and at least wait until after the election to see what happens with the interest rates. Anyone else looking for a house right now and facing increasing frustration? or did you buy a house over the last year and now regret paying the price you paid? Where do you guys see the prices of houses going over the next several months? The more insight, all the better.

[Elliot]

My parents are looking to get a new house.. a 3 family in nyc goes from 900-1mill in a decent neighborhood.. taking in about 1.2-1.5k for rent each month..

[chicamahomico]

I think this sounds like a wise move. Not looking to buy a house for some time yet but I sure as hell wouldn't buy a house in this market anywhere that I've heard of in North America.....price increases are off the charts. In my local, prices have risen 15-20% per year for several years now. All these fools get cheap floating rate mortgages at prime + .5% and the rate is 4-5% just wait till inflation catches these unlucky saps with their pants down. I'll be right there waiting lol.

I'm currently in the market for a new home and just can't get over how much people are asking and actually getting for their homes. The market is way overpriced right now in my opinion and its only a matter of time before demand starts to cool off. In fact, I decided I'm going to sit on the sidelines for the time being and at least wait until after the election to see what happens with the interest rates.

[brian11]

I just bought a house in july, rates were great....not sure how it is everywhere, but it was a good time to buy for me.

[mass junkie]

I think its a foolish move to wait

How can the demand for houshing ever "cool down" as you put it

Is it frustrating....dam right it is...but any home owner knows that its all worth it

Ive had my house for less than a year and its already gone up in value almost 40,000

the longer you wait the higher the intrest rate will go back up

[usualsuspect]

Simple. Higher interest rates in the near future (as its quite evident the direction interest rates are headed) means less people asking for mortages from banks to finance buying a house and hence less demand.

Anyhows, I'd much rather buy a house at a reasonable and fair mkt price when interest rates are high than right now when interest rates are good but housing prices are exorbent. You can always re-finance down the road.

I think its a foolish move to wait

How can the demand for houshing ever "cool down" as you put it

Is it frustrating....dam right it is...but any home owner knows that its all worth it

Ive had my house for less than a year and its already gone up in value almost 40,000

the longer you wait the higher the intrest rate will go back up

[Harvey Balboner]

rates will be sneaking up very soon, maybe a quarter of a point or so.

it's rare that prices actually go down in real estate, although it may appear so, if the market starts to slow, but usually it is just the prices topping out. It usually takes a major catastrophe for prices to go down.

the market does start to cool down in mid november to mid of jan. (at least in the several states around me) you may be able to find a more motivated seller then, and possibly get a better deal

those are my observations, i own a brokerage company, and have been in the business about 7 years now.

[mass junkie]

Simple. Higher interest rates in the near future (as its quite evident the direction interest rates are headed) means less people asking for mortages from banks to finance buying a house and hence less demand.

Anyhows, I'd much rather buy a house at a reasonable and fair mkt price when interest rates are high than right now when interest rates are good but housing prices are exorbent. You can always re-finance down the road.

Guess it all depends on where you live too

[chicamahomico]

Florida real estate crash? Dot-com bubble? October 1987? Japan in the late 80's early 90's?

There have been many ups and downs in almost every market and people always say that'll never happen again.....but something always does and nobody has any way of knowing what's next. Also, you are actually poorer in real terms when real estate rises in value up in your area faster than your income. The only way you can profit is to sell in your area and move to a cheaper area as all the houses in your market are relatively priced higher. The taxman and the realtors just take more.

Guess it all depends on where you live too

e
meber

[mass junkie]

Florida real estate crash? Dot-com bubble? October 1987? Japan in the late 80's early 90's?

There have been many ups and downs in almost every market and people always say that'll never happen again.....but something always does and nobody has any way of knowing what's next. Also, you are actually poorer in real terms when real estate rises in value up in your area faster than your income. The only way you can profit is to sell in your area and move to a cheaper area as all the houses in your market are relatively priced higher. The taxman and the realtors just take more.

e
meber

Well then you just keep paying somebody elses mortgage for them...and I'll be like George Jefferson...."moving on up to a deluxe apartment in the sky"

[Benches505]

Florida real estate crash? Dot-com bubble? October 1987? Japan in the late 80's early 90's?

There have been many ups and downs in almost every market and people always say that'll never happen again.....but something always does and nobody has any way of knowing what's next. Also, you are actually poorer in real terms when real estate rises in value up in your area faster than your income. The only way you can profit is to sell in your area and move to a cheaper area as all the houses in your market are relatively priced higher. The taxman and the realtors just take more.

e
meber

Very valid points Bro! I've been in real estate since 92 and while I tell people about interest rates in hopes of making them jump to buy I have to agree with you 100% when talking about high demand areas..Now if you live in Arkansas I would say take advantage of the rates but NY/San fran etc I would say wait a while for the right chance. Most here are too young to remember what happened in 87 and that lasted well into the early 90's.

[ironfist]

Prices around here are crazy...I'm still looking but it seems to have slowed down after the summer time rush...

[LeanMeOut]

I just bought my 1st house this month......my loan closed on Wednesday and it became officially mine

It is definitely worth it......was it frustrating to find one? HELL YES. Am I broke right now??? HELL YES. But would I rather own a property instead of making someone else's payment? F*CK Ya......and like Mass said houses go up in value almost immediately. I got locked in and bought my house for $375k and did a 3 year ARM @ the rate of 4.25%...... my house was appraised towards the end of the loan after we agreed on a price, and the appraisal came in @ $400k. So I am not even moved in yet and I made $25k....... how can you beat that??

It has been worth living with my mom the last couple years....I get a lot of **** from people but why should I move out and put myself in a financial **** hole when I can live at home and save like I did and now i own a house. I also am lucky in the fact that if things don't work out I can always move back into my mom's house and just rent mine out....and make a small income off the rent.

Sorry for the long post, I am just stoked about the whole situation. Not many people my age buy houses so it is a big deal to me lol.

[PT]

i built my own house a year ago in the subs of pittsburgh. the instrest rate i have locked in is as low as ive seen them since. you have to wait till you get the rate you want then strike. when everything is said and done after interest ill of paied in the ballpark of 750,000 for my house. i can easily make 50-100 thousand off it right now because of all the other large houses built around mine. i just got real lucky. the neighborhood blew up after i built. and its best to by the cheapest house in a plan because that one will sell for more because of the competition around it.

[decadbal]

realty is all about location, so one state or city will be completely diff than another, so this is completely useless to you, less someone else lives where udo

[chicamahomico]

Mass I'm not saying home ownership is not the way to go....don't think you would find many people who would make that claim. All I'm saying is that there are relatively good and bad times to buy in every market and IMO the past few years of cheap money (ie low inflation) have created a ton of heavily leveraged people so you are getting into a bidding war with buyers who are willing to borrow to the hilt to purchase houses they likely cannot afford. The only reason I haven't bought a home is because I'm a student, otherwise I would have been on the wagon years ago.

Well then you just keep paying somebody elses mortgage for them...and I'll be like George Jefferson...."moving on up to a deluxe apartment in the sky"