Another article showing concern in the housing market- yet the author may have lacked critical thinking
- Thread starter GON
- Start date
Yup, real estate, like the stock market or any equity is not a short term investment. Been the same throughout history. Chances are the real estate is a far more safe investment because its "real" however can take a decade or two to show appreciation. Due to social media people think they have a "right" for their home to increase in value *LOL*
Nope, supply and demand and what the public can afford to pay.
Behind a wall?
When did the rates drop? If it's only been a month it'd be kinda hard for just that factor to light off sales, no? I mean, people don't just decide to move, find & buy a house inside of a week. At least not typically.
GON
$150 Site Donor 2025
Some analyst predict mortgage rates rising next week.
All I can tell you is good homes go under contract 48 hours after listing. The only slowdown in single family home sales are homes with issues that are asking the same price as a home without the issues.
They have dropped about 1% since July and 2% since spring. Probably almost as low as there going to get at this point.
I think it’s too soon to know based on one month and that month is following July which had a 10% gain in new home sales and the first gain in resales in a couple months.
However, if August holds true to the final end of this year, it will help lower prices, but I wouldn’t hold my breath
https://kpmg.com/us/en/articles/2024/july-2024-new-home-sales.html
New home mortgage applications increased for the month of August
https://www.mba.org/news-and-resear...e-mortgage-applications-increased-4.4-percent
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GON
$150 Site Donor 2025
Yesterday I read an article that stated the price difference between a new and pre existing home has never been slimmer. Article implied new homes may be a significantly better value that a pre existing home with the spread so thin.
I have to tell you I can’t agree more. Coming from Long Island you were forced to buy homes 40 to 60 years old because of no new construction.
Since moving south, I wouldn’t even consider a resale anymore. In fact, we sold our 16-year-old house before anything broke down and needed replacing and just purchased a new one, which you know and now I know I’m good until a ripe old age as far as having work done on the house.
What I’m saying is some places of this country there’s so much land and so much building. It’s wise to look at new home sales and of course, recently built homes if a resale.
All things considered if given two options, the new home is a better deal in this area for sure
I think your thought pattern is common - everyone thinking the fed controls the interest rates - but they only control the short end, the market controls the long end of the curve. Lots of people are going to be disappointed I think.
Here is the average 30 year fixed for the last year. Its just above 6%. You might see a dip to 5.5% over the next months depending on the economy, but if the market and the fed agree the terminal rate is 3.5%, that implies 6% on a 30 year fixed is going to be about average going forward.
Any of them have basements?
This is just one of thousands of people who can’t sell their house because they’re asking too much money or the terms are unreasonable
Last but not least it’s not properly exposed to the marketplace
BrendanC
$100 site donor 2024
having just bought a home, i can say sellers are extremely difficult to work with right now. also, i got mortgage quotes from 5 different vendors and copied them on an email chain together. got me a rate that is unheard of currently. 4.62% for 30 years.
That poster was willing to foreclose on their house and take a 7-year hit instead of lowering the price? That's crazy.
Ya. They have a number in mind since they themselves are buying a new house.
Some do, many have crawlspaces. Some with basements are pumping water with a sump pump 24x7 in the spring. In NY my submersible well pump was at 375' or 400'. Here it's more like 50'.
I am new to a crawlspace. But it sure seems better than a slab. My first floor HVAC and well pump tanks are in crawlspace.
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