Housing market

[HGoat1]

The Fed doesn't have a lot of choices - rates are going to have to go up to slow down inflation. They've been trying to spur the economy through artificially low interest rates for years. We also have too many dollars chasing too few goods, which is the result of our government flooding the market with excess liquidity. And when they raise rates (which they have to) it's going to choke off economic activity (recession) AND dramatically raise the borrowing costs for the government. So - we're going to see the worst of both worlds. Can anyone say "Stagflation?"

It raises an interesting question - which is the bigger evil, economic recession or inflation?

I just know there are a lot of people who live completely outside of their means. When rates are low they are able to consolidate debt and get out of trouble. Rates at 5% or higher eliminate the ability to do that. Could potentially see a repeat of 2008 if rates continue to rise, albeit likely not as bad.

 

[BCClone]

It raises an interesting question - which is the bigger evil, economic recession or inflation?

I just know there are a lot of people who live completely outside of their means. When rates are low they are able to consolidate debt and get out of trouble. Rates at 5% or higher eliminate the ability to do that. Could potentially see a repeat of 2008 if rates continue to rise, albeit likely not as bad.

Yeah, we did a lot of refi appraisals so they could pull cash out for various things. Once the prices flatten, those folks are toast.

 

[CysRage]

Anyone seeing inventory increase in the areas they are looking? I have seen inventory slowly increase and even some price drops. I have to think when the fed meets next week rates are going up again. I'm hoping this puts more downward pressure on prices.

 

[I@ST1]

Anyone seeing inventory increase in the areas they are looking? I have seen inventory slowly increase and even some price drops. I have to think when the fed meets next week rates are going up again. I'm hoping this puts more downward pressure on prices.

Why? You buying a house with cash?

 

[frackincygy]

Anyone seeing inventory increase in the areas they are looking? I have seen inventory slowly increase and even some price drops. I have to think when the fed meets next week rates are going up again. I'm hoping this puts more downward pressure on prices.

I think it still depends on the property quite a bit. My wife (a realtor) showed a couple, a nice acreage the other week (iirc ~10 acres, wooded/ creek nearby). The couple offered $40k over asking and wasn't even considered for a backup offer. We live in North Central Iowa.

I do think rising rates could eventually lead to downward pricing pressure, but I'm thinking it'll be more like 6 months to a year out, before those effects are felt. I'm a moron though, so who knows

 

[mynameisjonas]

At the very least prices are plateauing, if not going down in some areas.

 

[Ms3r4ISU]

At the very least prices are plateauing, if not going down in some areas.

Which areas?

 

[I@ST1]

At the very least prices are plateauing, if not going down in some areas.

You’re an idiot.

 

[mynameisjonas]

You’re an idiot.

Go reread cysrage’s post before you get all triggered.

 

[cowgirl836]

I think it still depends on the property quite a bit. My wife (a realtor) showed a couple, a nice acreage the other week (iirc ~10 acres, wooded/ creek nearby). The couple offered $40k over asking and wasn't even considered for a backup offer. We live in North Central Iowa.

I do think rising rates could eventually lead to downward pricing pressure, but I'm thinking it'll be more like 6 months to a year out, before those effects are felt. I'm a moron though, so who knows

Older home went up last week a block over in next neighborhood. Asking was 44% over what current owners paid...7 - 8 yrs ago? No major updates. Sold at first open house like day 2 by out of state couple who bought over list sight unseen. It's insane in our area.

 

[CysRage]

At the very least prices are plateauing, if not going down in some areas.

The next 3 months will be interesting. We sold in 2021 to move for a job and have been renting since. We are just waiting for fundamentals to return a bit before we jump back in.

 

[CysRage]

I think it still depends on the property quite a bit. My wife (a realtor) showed a couple, a nice acreage the other week (iirc ~10 acres, wooded/ creek nearby). The couple offered $40k over asking and wasn't even considered for a backup offer. We live in North Central Iowa.

I do think rising rates could eventually lead to downward pricing pressure, but I'm thinking it'll be more like 6 months to a year out, before those effects are felt. I'm a moron though, so who knows

That’s nuts. I can’t even imagine buying a house sight unseen let alone in this market where people have been dumping absolute garbage and getting top dollar.

 

[I@ST1]

Go reread cysrage’s post before you get all triggered.

No reason. Downward prices aren’t going to positively impact you in the long run with 5%+ interest rates.

 

[SCNCY]

Looks like my wife and I sold at the right time. We only got one offer, but sold it for 97.5k more than we bought it a year ago, with about 20k in improvements. Although, we listed the Thursday before Easter weekend.

So happy to get out from under that house.

 

[Clonedogg]

We are under contract, selling our house, closing July 1st, fingers crossed. We accepted an offer 1 day on the market, 10% over asking, and we felt like we were pushing the top of the market with our asking price. Our realtor is seeing signs of the market softening, but its still hot. If it is a nice house, ours was, it will go fast. What our realtor is seeing, is some inventory that will sit for 7-10 days and only get asking or slightly below. He's helped buyers get for slightly below asking, and another house he listed went slightly below asking, after a week on the market, both that wouldn't of last fall.

 

[simply1]

No reason. Downward prices aren’t going to positively impact you in the long run with 5%+ interest rates.

I’d rather buy at a lower price and higher rates and refinance when rates come down than buy high at a low rate and be stuck underwater until prices rebound.

 

[I@ST1]

I’d rather buy at a lower price and higher rates and refinance when rates come down than buy high at a low rate and be stuck underwater until prices rebound.

That works if we’re talking 25/30% drops. Not 100% sure where you live… but that’s not happing in the DM Metro.

 

[Proton]

 

[cycloneML]

You’re an idiot.

Gulf shores AL for one example

 

[KnappShack]

Nevertheless, our May Housing Trends Report showed that the active listings count remained nearly 50 percent below its level at the beginning of the pandemic