Real estate General topic

[paulsharvey]

We just closed on a pay down refinance. We took the vast majority of the cash off the sale of the old home, and paid down refinanced. Because the first loan was FHA, it couldn't be "Re-cast". Rates didn't really drop, but with dumping the money in, getting rid of the PMI, we got the monthly number down to something more manageable

 

[Hay Dude]

I’m juiced for the upcoming lower interest rates.
Thanks DJT!

 

[ultrarunner]

If rates drop me thinks price of Real Estate will increase?

Back in the 80’s with 12-15% mortgage rates the market for sellers was real bad.

I picked up income property at low prices because of the high rates.

As rates dropped the value increased…

I could have sold but opted to do no cost rate refi.

My 13.5% went to 10% and it did not cost me a penny as no cash out.

 

[WinterDeere]

If rates drop me thinks price of Real Estate will increase?

Yes. If you expect to be buying prior to a rate drop is the time to do it, before prices climb. You can always re-finance.

It’d be nice to pretend it’s possible to time right with the drop, and avoid the need to refi, but timing the entire agreement period to closing and knowing when the bottom has appeared, are more luck than science.

 

[ultrarunner]

I’ve been very fortunate.

That said every investment had to pencil out and high interest rates meant lots of languishing inventory with some sellers just needing to get property sold… settle an estate, relocation, etc.

 

[Hay Dude]

If rates drop me thinks price of Real Estate will increase?

Back in the 80’s with 12-15% mortgage rates the market for sellers was real bad.

I picked up income property at low prices because of the high rates.

As rates dropped the value increased…

I could have sold but opted to do no cost rate refi.

My 13.5% went to 10% and it did not cost me a penny as no cash out.

Mabes
But I know another thing that is going to happen is that home inventory will increase tremendously. There’s a lot of people “trapped” in homes with 4% mortgages they dont want anymore-even though they have a 4% mortgage. They are desperate to move. Once rates drop like 2%, people can finally sell knowing their next home can be financed at 5% instead of 7%.

 

[ultrarunner]

If only a crystal ball to see the future.

Supply/Demand at a given location determines value with a ready, willing and able buyer.

Even with high rates folks are still cashing out of high price areas for least expensive locals… and paying cash at destination.

The California exodus also has effected many nationwide markets driving higher prices.

 

[riptides]

....

Supply/Demand at a given location determines value with a ready, willing and able buyer.

....

Around here there is a housing shortage. So prices will probably go higher.

You know what they say about location.

 

[ultrarunner]

They keep saying the Bay Area has an acute housing shortage and it’s been an ongoing refrain for years.

With inventory now at a 10 year high the refrain has been modified to we have a AFFORDABLE housing shortage which again seems odd with home prices in my heart of the Bay Area down about 30%

It seems no matter what happens housing will always be in the spotlight?

 

[WinterDeere]

They keep saying the Bay Area has an acute housing shortage and it’s been an ongoing refrain for years.

With inventory now at a 10 year high the refrain has been modified to we have a AFFORDABLE housing shortage which again seems odd with home prices in my heart of the Bay Area down about 30%

It seems no matter what happens housing will always be in the spotlight?

Votes are won on sentiment, not facts.