This housing market
10-May-22 8:57am
#1 MrBean
I hope none of you are currently in the market. I've been in my house for 13 years and we committed to moving out before our oldest starts Kindergarten - which is this August.
I knew that costs were high, but what the fudge, even the interest rates are bat crap right now. I couldn't believe it when we started playing the numbers game and they're in the mid to high 5's right now. Son of a dog. Had we simply done this last year, we would have been in such a better spot.
This is just fudgeed. I really debate if we shouldn't wait longer, but the reality is ... is this the new norm? Will it come back down? Every time we find something in budget, it's gone the same day. Having a contingent bid, we're always behind the 8 ball as cash is king right now.
This is slightly out of our comfort zone for how much we want to spend, but man ... I love it. The problem is, the upkeep of the yard, jesus christ ... it's a bit much. https://www.zillow.c...
#1 MrBean
I hope none of you are currently in the market. I've been in my house for 13 years and we committed to moving out before our oldest starts Kindergarten - which is this August.
I knew that costs were high, but what the fudge, even the interest rates are bat crap right now. I couldn't believe it when we started playing the numbers game and they're in the mid to high 5's right now. Son of a dog. Had we simply done this last year, we would have been in such a better spot.
This is just fudgeed. I really debate if we shouldn't wait longer, but the reality is ... is this the new norm? Will it come back down? Every time we find something in budget, it's gone the same day. Having a contingent bid, we're always behind the 8 ball as cash is king right now.
This is slightly out of our comfort zone for how much we want to spend, but man ... I love it. The problem is, the upkeep of the yard, jesus christ ... it's a bit much. https://www.zillow.c...
30-Aug-22 1:53pm
#141 John
While I'm sure greed is also often involved... Note that, right now, everyone's property values are jumping hugely each year -- which often means increases in property taxes. As a landlord, our rents have gone up a bit each year -- but, the last couple of years, we're actually making LESS because our property taxes have gone up so much.
Increasing the value of a property means nothing until we sell one day. And, heck, things could be worth less then even. Right now, we're paying more in property taxes for "value" that we'll likely never realize.
#141 John
While I'm sure greed is also often involved... Note that, right now, everyone's property values are jumping hugely each year -- which often means increases in property taxes. As a landlord, our rents have gone up a bit each year -- but, the last couple of years, we're actually making LESS because our property taxes have gone up so much.
Increasing the value of a property means nothing until we sell one day. And, heck, things could be worth less then even. Right now, we're paying more in property taxes for "value" that we'll likely never realize.
30-Aug-22 1:58pm
#142 Porksta
Yea, my property tax went up $50/month... so I had to get an appraisal done to drop my MI lol. Pays for itself in a year!
#142 Porksta
Yea, my property tax went up $50/month... so I had to get an appraisal done to drop my MI lol. Pays for itself in a year!
30-Aug-22 5:52pm
#143 SwiftJAB
Also have to consider inflation and labor rates have also increased. Landlords now need to pay more to maintain their properties. There are also landlords that might be trying to recoup any losses they might have had from not being able to evict tenants from unpaid rent. It could also be a very smart business move to increase rent to the current market value while you can in case there is a bubble that's about to burst. Home prices and rent could be driven down so that landlords are taking a loss.
#143 SwiftJAB
Also have to consider inflation and labor rates have also increased. Landlords now need to pay more to maintain their properties. There are also landlords that might be trying to recoup any losses they might have had from not being able to evict tenants from unpaid rent. It could also be a very smart business move to increase rent to the current market value while you can in case there is a bubble that's about to burst. Home prices and rent could be driven down so that landlords are taking a loss.
30-Aug-22 7:42pm
#144 ChronoLe
I don't live in a super desirable, but not quite terrible, neighborhood in the California capital. For context, I bought my home in 2011 for 67K. The house on my street have been regularly selling for $350-400K depending on the condition and upgrades. Pre pandemic they were selling for around 225-250. I wouldn't be able to afford the prices today, let alone fight with the all cash offers.
Someone had mentioned the first time homebuyer status. The only thing I will say about the FHA backed loans is that if you don't put any money down on the house, you will be charged pmi (mortgage insurance), which, depending on the size of the loan can be hundreds of dollars a month in addition to your mortgage payment. For most mortgages, unless you refinance later on, this fee is there for the life of the loan. It does incrementally decrease with every monthly payment, but not by much.
#144 ChronoLe
I don't live in a super desirable, but not quite terrible, neighborhood in the California capital. For context, I bought my home in 2011 for 67K. The house on my street have been regularly selling for $350-400K depending on the condition and upgrades. Pre pandemic they were selling for around 225-250. I wouldn't be able to afford the prices today, let alone fight with the all cash offers.
Someone had mentioned the first time homebuyer status. The only thing I will say about the FHA backed loans is that if you don't put any money down on the house, you will be charged pmi (mortgage insurance), which, depending on the size of the loan can be hundreds of dollars a month in addition to your mortgage payment. For most mortgages, unless you refinance later on, this fee is there for the life of the loan. It does incrementally decrease with every monthly payment, but not by much.
30-Aug-22 7:53pm
#145 mcorrado
@ChronoLe usually PMI is only until you have a LTV of 80% or less. Usually you just beed to call a bank and ask them to take a look. You shouldn't be paying PMI for the life of the loan
#145 mcorrado
@ChronoLe usually PMI is only until you have a LTV of 80% or less. Usually you just beed to call a bank and ask them to take a look. You shouldn't be paying PMI for the life of the loan
30-Aug-22 8:30pm
#147 ChronoLe
@mcorrado As @Porksta mentioned, I'm not sure if it differs state to state, the original loan for the house I bought for my mom, FHA, did not allow for the auto dismissal of the PMI after it hit 80%. It actually explicitly stated in the terms that it would not. Same thing with my friend's FHA loan. It required a refinance, otherwise it would have extended for the life of the loan.
#147 ChronoLe
@mcorrado As @Porksta mentioned, I'm not sure if it differs state to state, the original loan for the house I bought for my mom, FHA, did not allow for the auto dismissal of the PMI after it hit 80%. It actually explicitly stated in the terms that it would not. Same thing with my friend's FHA loan. It required a refinance, otherwise it would have extended for the life of the loan.
30-Aug-22 10:24pm
#148 SwiftJAB
Right, with FHA, PMI lasts the lifetime of the loan or you can pay the full PMI upfront at the time of closing. Most people end up refinancing to get the PMI dropped once the LTV ratio is 80% or less.
#148 SwiftJAB
Right, with FHA, PMI lasts the lifetime of the loan or you can pay the full PMI upfront at the time of closing. Most people end up refinancing to get the PMI dropped once the LTV ratio is 80% or less.
31-Aug-22 6:06am
#149 mcorrado
@ChronoLe somehow missed the FHA part of your post. Makes sense then, but yes that can add a considerable amount of interest like you said if you never refinance.
#149 mcorrado
@ChronoLe somehow missed the FHA part of your post. Makes sense then, but yes that can add a considerable amount of interest like you said if you never refinance.
27-Jan-23 2:18pm
#150 MrBean
Reviving this thread.
Curious to hear if any of y'all have had luck lately? We're still at it. The market has definitely slowed down around here. Pricing is slowly coming down, but options are also shrinking.
The one from awhile ago that we were stoked about, we ultimately passed on, and SO happy we did! The month after it sold, the person who owned the neighboring lot, cut down ALL the trees and the value of the land feels like it dramatically dropped. Definitely glad we dodged that bullet as that was such an appealing factor of that house. https://www.zillow.c...
We've got a new one tomorrow that we're pretty excited about, but fearful it will go fast. That and it's a bit out of our comfort zone budget wise. Would require some decent lifestyle changes, but as of now feels like a really solid candidate. Checks many boxes, but lack of a woods, and the design of the basement/family room isn't my favorite: https://www.zillow.c...
#150 MrBean
Reviving this thread.
Curious to hear if any of y'all have had luck lately? We're still at it. The market has definitely slowed down around here. Pricing is slowly coming down, but options are also shrinking.
The one from awhile ago that we were stoked about, we ultimately passed on, and SO happy we did! The month after it sold, the person who owned the neighboring lot, cut down ALL the trees and the value of the land feels like it dramatically dropped. Definitely glad we dodged that bullet as that was such an appealing factor of that house. https://www.zillow.c...
We've got a new one tomorrow that we're pretty excited about, but fearful it will go fast. That and it's a bit out of our comfort zone budget wise. Would require some decent lifestyle changes, but as of now feels like a really solid candidate. Checks many boxes, but lack of a woods, and the design of the basement/family room isn't my favorite: https://www.zillow.c...
27-Jan-23 2:50pm
#151 SwiftJAB
Does this check any of your boxes? https://www.zillow.c...
Neighbor sold their home like a month ago. San Diego housing is crazy.
#151 SwiftJAB
Does this check any of your boxes? https://www.zillow.c...
Neighbor sold their home like a month ago. San Diego housing is crazy.
27-Jan-23 2:56pm
#152 MrBean
SwiftJAB wrote:
Does this check any of your boxes? https://www.zillow.c... Neighbor sold their home like a month ago. San Diego housing is crazy.
$665k for 1300sq ft!? Oh my god, that's just insane!!!
#152 MrBean
SwiftJAB wrote:
Does this check any of your boxes? https://www.zillow.c... Neighbor sold their home like a month ago. San Diego housing is crazy.
$665k for 1300sq ft!? Oh my god, that's just insane!!!
27-Jan-23 3:12pm
#153 Qpalzm
LA market is f'n bonkers right now, still.
987 Sq ft, dilapidated 2 bedroom, no lawn, with an ADU with shared driveway that's rented out. $1.1 Million.
Rental rates for comparable $3200 a mo +
This isn't sustainable.
#153 Qpalzm
LA market is f'n bonkers right now, still.
987 Sq ft, dilapidated 2 bedroom, no lawn, with an ADU with shared driveway that's rented out. $1.1 Million.
Rental rates for comparable $3200 a mo +
This isn't sustainable.
27-Jan-23 3:24pm
#154 MrBean
I mean that's just insane! My buddy just left the Bay Area (went to San Diego) and was paying like $3,600 for a 1 bedroom apartment!
The income divide from West Coast to elsewhere, isn't as drastic as it used to be either, so the time old "well they make more in California" isn't as true these days. I don't know how people can afford that life style on most jobs.
Sadly, this one appears to be a bit out of range for us. Just got off the phone with a lender, and I doubt we'll be able to bid on this house ... not unless we dramatically change everything our life style, which sounds awful. Or, I could sell all of my entire video game collection, which would massively help, but my god that's so much work that I wouldn't even know where/how to begin.
#154 MrBean
I mean that's just insane! My buddy just left the Bay Area (went to San Diego) and was paying like $3,600 for a 1 bedroom apartment!
The income divide from West Coast to elsewhere, isn't as drastic as it used to be either, so the time old "well they make more in California" isn't as true these days. I don't know how people can afford that life style on most jobs.
Sadly, this one appears to be a bit out of range for us. Just got off the phone with a lender, and I doubt we'll be able to bid on this house ... not unless we dramatically change everything our life style, which sounds awful. Or, I could sell all of my entire video game collection, which would massively help, but my god that's so much work that I wouldn't even know where/how to begin.
27-Jan-23 3:54pm
#155 Anxiouz
This time around we signed a 1 1/2 year lease on the place we're renting. We just plain gave up trying to buy, and then gave up trying to rent a different place because it was far too competitive for places that really weren't all that great. We're just going to wait this out a bit more, it's so frustrating.
#155 Anxiouz
This time around we signed a 1 1/2 year lease on the place we're renting. We just plain gave up trying to buy, and then gave up trying to rent a different place because it was far too competitive for places that really weren't all that great. We're just going to wait this out a bit more, it's so frustrating.
27-Jan-23 4:12pm
#156 beavis
I mentioned earlier in the thread we put our house on the market in July which was probably the worst time to sell as the rate hike happened two weeks later. I was talked into putting it on the market for 650k by my realtor who said it would be snatched up immediately. This was my first house sale and I’ve now learned that realtors might be more useless than car salesman. It’s an occupation that should go away.
Anyways I basically forced her to bring the price down but we still weren’t getting any bites. We then got an offer for 425k around end of October, but at first we turned it down. It was a low ball offer (at the time) based on the market around us even in my opinion. Apparently the couple were paying cash and just sending lowball offers to a lot of houses. Thought about it for 2 weeks and decided to see if they would haggle. They agreed to 500k and we closed in November. I’m glad to have it off my plate and we made a bit of profit. I didn’t like selling to them because I guess they were investors who were gonna flip 2 years after living in it but the market literally went dead in that area (I haven’t seen a house sold in that area since mine sold).
#156 beavis
I mentioned earlier in the thread we put our house on the market in July which was probably the worst time to sell as the rate hike happened two weeks later. I was talked into putting it on the market for 650k by my realtor who said it would be snatched up immediately. This was my first house sale and I’ve now learned that realtors might be more useless than car salesman. It’s an occupation that should go away.
Anyways I basically forced her to bring the price down but we still weren’t getting any bites. We then got an offer for 425k around end of October, but at first we turned it down. It was a low ball offer (at the time) based on the market around us even in my opinion. Apparently the couple were paying cash and just sending lowball offers to a lot of houses. Thought about it for 2 weeks and decided to see if they would haggle. They agreed to 500k and we closed in November. I’m glad to have it off my plate and we made a bit of profit. I didn’t like selling to them because I guess they were investors who were gonna flip 2 years after living in it but the market literally went dead in that area (I haven’t seen a house sold in that area since mine sold).
27-Jan-23 4:44pm
#157 sinnie
We are seeing homes come down in the St Louis area... not in the ghetto, but nice suburbs. I've seen a lot of real nice condos I would love to buy and rent out, fully updated for 150k. I could see myself doing that down the road but not just yet.
#157 sinnie
We are seeing homes come down in the St Louis area... not in the ghetto, but nice suburbs. I've seen a lot of real nice condos I would love to buy and rent out, fully updated for 150k. I could see myself doing that down the road but not just yet.
27-Jan-23 7:36pm
#158 shadyfozzie
we just had our house reassessed to see if the PMI can come off our mortgage.. turns out our house is valued $160k more than when we bought it!!!
#158 shadyfozzie
we just had our house reassessed to see if the PMI can come off our mortgage.. turns out our house is valued $160k more than when we bought it!!!
27-Jan-23 8:33pm
#159 Feeb
shadyfozzie wrote:
we just had our house reassessed to see if the PMI can come off our mortgage.. turns out our house is valued $160k more than when we bought it!!!
That should definitely get it dropped and save you a chunk.
#159 Feeb
shadyfozzie wrote:
we just had our house reassessed to see if the PMI can come off our mortgage.. turns out our house is valued $160k more than when we bought it!!!
That should definitely get it dropped and save you a chunk.
29-Jan-23 9:39pm
#160 John
Now the question is -- how long until they can raise your property taxes to match the "new value"...
#160 John
Now the question is -- how long until they can raise your property taxes to match the "new value"...
29-Jan-23 10:31pm
#161 MrBean
We were gonna do it... Go over budget and bid on the house. Haha... Yeah... We talked to the selling realtor, many bids over asking. There's such little inventory now and competition is aggressive. Super curios to see how much it goes for.
Probably best to wait until spring/summer regardless. Hopefully rates will come down a bit more too.
#161 MrBean
We were gonna do it... Go over budget and bid on the house. Haha... Yeah... We talked to the selling realtor, many bids over asking. There's such little inventory now and competition is aggressive. Super curios to see how much it goes for.
Probably best to wait until spring/summer regardless. Hopefully rates will come down a bit more too.
This housing market