Posted on 02/12/2023 6:21:02 AM PST by PK1991
The U.S. housing market cooled off pretty dramatically last year, after mortgage rates more than doubled from historic lows. Home prices, however, have been stickier.
Prices began falling last June, but are still higher than they were a year ago. Now, as demand appears to be coming back into the market, due to a slight drop in mortgage rates, prices are pushing back. **** Hepp notes that some of the exurban areas that became popular during the first years of the pandemic and saw prices rise sharply are now seeing larger corrections. But she doesn’t expect that will last long.
“While price deceleration will likely persist into the spring of 2023, when the market will probably see some year-over-year declines, the recent decrease in mortgage rates has stimulated buyer demand and could result in a more optimistic homebuying season than many expected,” Hepp said.
I don’t see prices dropping on the housing market.
As crime soars in New York City, the prices of homes in upscale suburbs increase regardless of interest rates. Imagine that is the case in Chicago, Atlanta, LA and San Francisco as well.
Our neighborhood is still selling well but we are in the low $300’s so there’s nothing much cheaper in Atlanta.
My banker is predicting a Recession
My neighborhood is in the low millions, and I have a dump.
Rural Hawaii, acreage.
Ainokea what it is worth, it is my home, debt free. That makes it priceless.
Prices appear steady in the inner ring ATL suburb where we will be putting a house on the market in a couple months. I think the younger millennials with kids will be exiting from the City of Atlanta proper for all the obvious reasons, and help keep prices up. We’ve gone exurban and are very happy with the decision.
Yes we are trying to get our house rehab finished up so we can be on the market by March and start the new house on our rural property up near Cornelia. Lilburn/Lawrenceville is getting unlivable.
Was trying to ping you to my post just above, didn’t realize you were already on the thread.
If we’re on the market by mid April I’ll feel good about it. We’re about out of the suburban house. Renovation for sale will proceed shortly.
We’re doing the rehab ourselves and we’re not as young as we used to be. Putting down flooring in a 1968 house is a real treat. I think we bought out all the leveler at HD last week. 😆
You’re brave!
My daughter and fiancé bought a 1950s ranch house in CA. One corner had sunk a couple of inches. After getting bids to raise the foundation, they decided to do the leveling on the interior. They ripped up FOUR layers of old flooring in some places to get down to the subfloor. That alone was a huge job. Then they hired a guy to rip long wedge strips and put new plywood subfloor over that. Then lots of leveling compound! Good thing we weren’t fighting for it.
Enter the rate buy down. A seller makes a relatively minor concession where the money is not used to lower the house price, but is used to lower the mortgage rate for the first few years. BAM! Suddenly an otherwise non-qualified buyer can now afford the initial mortgage...
a rate buydown (define relatively minor), which is a seller concession (which lowers their net) and an adjustable rate mortgage (betting on a future rate decrease) for the buyer. Not a healthy market ...
It’s a place to live
When you’re a homebuyer, you’re competing with Black Rock, et al.
Article:
“more optimistic homebuying season”
The bias of the article writer is given away by that quote.
Higher prices may be great for home sellers but they are bad for home buyers.
For a home buyer there is nothing “optimistic” about higher prices.
This is a zero sum game.
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