That's to the point where one would think there is no way the house can appraise for that price. Hope the buyers are planning to bring a lot of cash.
Housing market
- Thread starter simply1
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That's to the point where one would think there is no way the house can appraise for that price. Hope the buyers are planning to bring a lot of cash.
If they get a fixed rate and can make the payments, they're fine.
But I wouldn't think of spending anywhere near that on a house. Making the payments would really restrict the rest of my lifestyle.
And don't kid yourself, the price of lumber is going to stay high as long as interest rates are low. They may come down a little but we will never see the prices that we had 12 months ago.
I listened to a fairly long and detailed podcast on the lumber price bubble a couple weeks ago. I'm not even sure movement in the interest rates -- unless it's a huge move -- will necessarily mitigate the lumber prices a great deal.
A big chunk of the bubble is supply shortage from Canada cutting the logging allowance to mills, plus the number of mills being historically low.
You can say that supply will increase to meet demand, and that may happen to some degree, but I think your sentiment is correct that there has been some level of permanent shift in material prices for lumber...probably significant.
I wanted to just laugh at this part...not the whole thing. That sucks man. I know our builder has been buying lumber futures so they can lock in prices once the purchase order has be been signed. We just talked to them a few days ago and he agreed that we are in an unbelievable position. Locked in our price last fall and still getting sub 3% rates w/o points AND seeing the market prices drive up around us. Good luck on the build! If it's any help lumber futures are down pretty substantially over the last week. They are still historically crazy high but there is at least a glimmer of hope prices will start creeping down.
Structurally I don't think 2008 is possible. That was historically bad. There will be some sort of correction though and probably should be.
I agree with this as well. My fiance and I have great credit and a nice cash position to boot. Banks were VERY quick to limit loan options last March. Once they saw signs of any sort of distress they tightened up their standards right quick.
Just because you "pre-qualify" for a dollar amount doesn't mean you'll actually qualify. I honestly think it's a bait and switch ploy by the banks to get your business. I have relationships with two banks and approached them both about loan options. The first gave me an online pre-approval for $1.3M. I assumed it was an error so I resubmitted the request and it came back the same. When I talked to an actual loan officer and gave them the specifics I could still qualify for a nice size loan but it wasn't going to be $1.3M. The second bank I worked with was much more reasonable and I felt did a better job of doing their DD on me as a customer. They would have worked with me on available loan sizes but I don't think the terms would have been as favorable as the risk would have been higher.
There won't be another adjustment. I thought we had locked it in last fall as well, but wasn't considering the fine print on the market adjustment clause in the contract. The house is framed and the roof is on it. In the end it was a little less than a 3% price increase, but that's a big chunk of change on a 400k+ home. Still, I've been looking around the internet and seen stories of cost adjustments that are much worse.
I am getting antsy about locking in a loan rate. We don't have a close date yet so I am just watching the interest rates daily and hoping that catastrophic rise doesn't happen anytime soon.
At the current moment, no, but they have been. Got a 10/1 at 2% on residential earlier this year vs 3% on 30 year. When you have a decent size loan that 1% makes a big difference. It's all situational and rates/terms vary on the daily.
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Your argument about length of time in the home would make sense if the ARM rates were cheaper than the secondary market fixed rates, but they aren't.
Minneapolis is a ******* **** show trying to buy anything. A house will go on a the market and by the end of the day will have 15+ offers minimum and the seller is typically making upwards of $75K over asking price.
We've been trying to buy for a year and it's brutal. You're up against tons of other people looking for the same thing and there aren't really that many homes coming up to buy now so it's a bloodbath.
We're seeing people waiving so many things. Waiving any sort of inspection. Waiving closing costs. Willing to buy a home for $75k over the appraised value and telling seller they'll just pay the cash difference. It's insane.
We've been trying to buy for a year and it's brutal. You're up against tons of other people looking for the same thing and there aren't really that many homes coming up to buy now so it's a bloodbath.
We're seeing people waiving so many things. Waiving any sort of inspection. Waiving closing costs. Willing to buy a home for $75k over the appraised value and telling seller they'll just pay the cash difference. It's insane.
3 houses listed under 120K in Lincoln, NE. 2 are **** holes the other probably the same.....
what is this country doing to do about affordable housing?
what is this country doing to do about affordable housing?
My wife and I want to build a home in 5-6 years. We got antsy the other week, but we realized we are in a good spot to save. 150k salary combined in Des Moines and we bought our home for only 190k in 2018. Mortgage payment is only 11% of our gross (includes taxes and PMI). We only put 3% down and our home is worth 235k now.
Bought our first house in NW Omaha 'burbs in 2010. We paid $129k for a house that was 5 years old at the time. That same house is at $225k on zillow. So $100k in value growth in just over 10 years.
doing our final walkthrough today, closing tomorrow, moving in fully on Saturday. Very excited to be done with this process, but more excited to be in our home
I hear ya man. We were JUST able to lock our rate in last week. We close in July. I kept telling myself that in the long run I wouldn't be upset with a rate at 3% or lower. That is still a crazy low rate on a 30yr note. So you're maybe what...about two months out from being able to lock in? You should still be able to get a good rate at that point. I don't think we'll really see rates jump until this fall or later. I wouldn't be shocked to see them start creeping though. I've been there...and hope to never go back. Good luck!