Cheflife15 455 Posted April 18, 2023 The wifey and I have a baby coming in the next few months so we've been browsing the housing market again. Seems like everything I read gives me a different opinion of what will be happening. Any educated guesses? I know rates won't drop back to 2 percent but will prices actually come down? I saw a 385k house today that is smaller than my 1 bedroom apartment. No idea what the right move Is.. Quote Share this post Link to post Share on other sites
Displaced Texan 11,751 Posted April 18, 2023 Interest rates will eat you alive… Quote Share this post Link to post Share on other sites
father-of-three 243 Posted April 18, 2023 It is difficult because I don't want to be house poor. However getting out of New Jersey and is still worth it. Quote Share this post Link to post Share on other sites
Cheflife15 455 Posted April 19, 2023 47 minutes ago, Displaced Texan said: Interest rates will eat you alive… Yup. I have to be honest. I don't know how the average person is buying right now. My wife and I are blessed to have jobs that pay wayyyy over any average income in this state and still can't stomach pain 2500/ monthly plus for a townhome with over 20% down. Quote Share this post Link to post Share on other sites
45Doll 5,877 Posted April 19, 2023 My wife an I bought our first tiny Cape Cod house in 1979 and had the pleasure of 9.5% interest rates. Four days after we closed on the mortgage Carter gave his 'oil is war' speech, and there was no mortgage money to be had anywhere. At any rate. We were glad we got in the door. Just a cautionary tale for those of you who think you've seen the worst. You haven't. 1 Quote Share this post Link to post Share on other sites
Bklynracer 1,265 Posted April 19, 2023 2 hours ago, Cheflife15 said: The wifey and I have a baby coming in the next few months so we've been browsing the housing market again. Seems like everything I read gives me a different opinion of what will be happening. Any educated guesses? I know rates won't drop back to 2 percent but will prices actually come down? I saw a 385k house today that is smaller than my 1 bedroom apartment. No idea what the right move Is.. No info on the mortgage question, But congrats on the baby coming. 1 Quote Share this post Link to post Share on other sites
Displaced Texan 11,751 Posted April 19, 2023 2 hours ago, Cheflife15 said: Yup. I have to be honest. I don't know how the average person is buying right now. My wife and I are blessed to have jobs that pay wayyyy over any average income in this state and still can't stomach pain 2500/ monthly plus for a townhome with over 20% down. I thank my lucky stars that we own our houses outright (except for the legalized theft, AKA property taxes). I don’t know how we would carry a mortgage these days. Quote Share this post Link to post Share on other sites
gleninjersey 2,141 Posted April 19, 2023 IMHO I would say wait. Prices aren't rising like they were. But they haven't fallen as one would expect with the quick rise in mortgage rates over last six months or so. This would lead me to think that home prices HAVE to come down soon. Especially since the Fed will probably raise rates at least a few more times between now and the end of summer. Once fall hits home sales should slow even further. Families like to be moved in before the start of a new school year. Congrats on the firthcoming baby! The great thing about newborns is they don't take up a lot of space! Time is on your side here. I would wait until prices come down somewhat. You may pay a little more due to a higher rate now but you can always refinance in a few years once rates go down. Once you buy there is no renegotiating the price you paid. Quote Share this post Link to post Share on other sites
Jim Hartman 31 Posted April 19, 2023 I'm in Burlington county and prices are way overvalued my son and daughter-in-law can't find a shed for under 300K . Supply and demand issue . People who want to move up down or whatever don't want to sell their house and buy something else at a higher interest rate. Also young people don't have any recollection of what a high rate really is they have been living in a phony economy and interest rates for the last 10 + years. Look at what mortgage rates have been for the last 50 years 6% 7% isn’t an eaten alive rate. Go back to 1981. 16% 17% and get eaten alive. I'm not sticking up for the fed or bank or any other criminal cartel insurance companies included but I wish my son could buy something he could afford . Quote Share this post Link to post Share on other sites
voyager9 3,434 Posted April 19, 2023 “Back in my day it was…” Blah blah blah. Yes, interest rates were higher 40 years ago. But the cost of the house has skyrocketed too. Paying 16% on a $250k SFH in 1985 is better than 6% on $650k for the same house today. 1 Quote Share this post Link to post Share on other sites
Cheflife15 455 Posted April 19, 2023 Just now, voyager9 said: “Back in my day it was…” Blah blah blah. Yes, interest rates were higher 40 years ago. But the cost of the house has skyrocketed too. Paying 16% on a $250k SFH in 1985 is better than 6% on $650k for the same house today. This. I don't get how people are missing this lol. There's a reason my parents were able to buy a home while working 40 hour weeks and making far less than average. The main reason I started this thread was for educated insight about future predictions. Quote Share this post Link to post Share on other sites
45Doll 5,877 Posted April 19, 2023 Here's a lot of info to digest. If the residential market is in a bubble right now, then prices are due for a correction. Of Two Minds - This Housing Bubble Is Different: It's Much More Precarious Quote Share this post Link to post Share on other sites
always_an_eagle 165 Posted April 19, 2023 I am 26 years old and I still live in my parents house. I am focused on paying off my student loans which I paided over half of what I owe and only have two loans left. But once I pay off my loans and put more into savings, I don't know how I will find my own home in this state if things stay the same or get worse with the market. Realistically, I am going to live at home till I get married so at least it will be two incomes to contribute. Quote Share this post Link to post Share on other sites
Cheflife15 455 Posted April 19, 2023 14 minutes ago, always_an_eagle said: I am 26 years old and I still live in my parents house. I am focused on paying off my student loans which I paided over half of what I owe and only have two loans left. But once I pay off my loans and put more into savings, I don't know how I will find my own home in this state if things stay the same or get worse with the market. Realistically, I am going to live at home till I get married so at least it will be two incomes to contribute. That's the crazy thing. I'm blessed enough to be in good financial shape (i was a chef so i didnt have too many student loans) but the simple thought of even buying anything any time soon seems crazy. 2600/ month for a 350000 townhome with over 25 percent down just doesn't seem worth it. My wife's family is the only thing keeping me here. Quote Share this post Link to post Share on other sites
Bomber 1,092 Posted April 19, 2023 21 hours ago, 45Doll said: My wife an I bought our first tiny Cape Cod house in 1979 and had the pleasure of 9.5% interest rates. Four days after we closed on the mortgage Carter gave his 'oil is war' speech, and there was no mortgage money to be had anywhere. At any rate. We were glad we got in the door. Just a cautionary tale for those of you who think you've seen the worst. You haven't. No comparison between then and now. Housing prices, property taxes are far more expensive today and If you couldn't afford to buy back then rents were reasonable. Today residential real estate is a witches brew of high prices," high" interest rates, low inventory and massive legal/illegal immigration driving up demand for housing. Plus all the FED agencies distorting the market; HUD, Fannie/Freddie Mac, etc. Quote Share this post Link to post Share on other sites
Bomber 1,092 Posted April 19, 2023 On 4/18/2023 at 6:46 PM, Cheflife15 said: Any educated guesses? I know rates won't drop back to 2 percent but will prices actually come down? I saw a 385k house today that is smaller than my 1 bedroom apartment. No idea what the right move Is.. At this point might as well just wait and see what happens. The ultra low interest rate ship has sailed, prices are still at bubble valuations and inventory is low because people can't or won't sell and lose their 30 year 3% mortgages. https://www.oftwominds.com/blogapr23/housing-rates4-23.html 1 Quote Share this post Link to post Share on other sites
45Doll 5,877 Posted April 19, 2023 49 minutes ago, Bomber said: No comparison between then and now. Of course not. The two main points of my post were: Current mortgage interest rates around 6.5% today seem bad. They can (and probably will) get a lot worse. A Black Swan event can change the entire housing (or banking!) outlook in just a few days. As far as the prices of houses... our $55,000 Cape Cod starter house in 1979, being exactly the same house, would cost $228,663.64 in today's dollars due to the DEPRECIATION in the value of the U.S. dollar. People are sleepwalking as the value of everything they own denominated in U.S. dollars goes into the tank. Quote Share this post Link to post Share on other sites
silverado427 10,730 Posted April 20, 2023 Oh look what Brandon wants to do. FJB https://www.yahoo.com/news/biden-rule-redistribute-high-risk-211102885.html Quote Share this post Link to post Share on other sites
10X 3,301 Posted April 20, 2023 1 hour ago, silverado427 said: Oh look what Brandon wants to do. FJB https://www.yahoo.com/news/biden-rule-redistribute-high-risk-211102885.html $#!*%!! FJB!!! We plan to buy the retirement home later this year, and we’ve gotta directly subsidize the high-default borrowers? Sonofabitch Quote Share this post Link to post Share on other sites
Cheflife15 455 Posted April 20, 2023 9 hours ago, silverado427 said: Oh look what Brandon wants to do. FJB https://www.yahoo.com/news/biden-rule-redistribute-high-risk-211102885.html I'm glad I did the right thing in my 20s by paying things off on time so I can help pay for those that "live love laugh." Quote Share this post Link to post Share on other sites