Housing market
- Thread starter simply1
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Talked to my realtor friend last night. In the Des Moines area there are around 1,900 homes on the market. Pre-COVID, that number was around 4,000. While not as strong as it was earlier this year, lack of inventory is still a big factor.
Yeah, fundamentally, the rapid increase in prices has been due to supply and demand. Those buying houses are financially capable of supporting the monthly payments, unlike in 2008. My wife talked about waiting a year to buy a house, but I said that it will only be worse next year.
Not all of them. I know a couple couples that I have no idea how they got the house they did. There is still some loose lending going on.
I think it's just a market adjustment. All the people with extra capital have got theirs and now people will either lower their prices to sell or people will start to remodel their current homes in favor of the gouge on materials/general price for building a home.
Yeah, agree this is the readjustment from the frenzy.
Also think with WFH people are realizing they don’t want or need to move either
I think there are just no more people looking to move and are willing to sell their homes. more travel is happening less spending time on the computer looking at zillow.
Probably depends on their wanted lifestyle. With WFH, companies can expand their recruitment base nation wide as opposed to their local city; thus not requiring the need to move. On the other hand, with WFH, some people may want to move to an area they enjoy, whether it be in the country, a quaint small town, or the beach.
Articles I'm reading say the inventory shortage will continue to be with us for years too.
Not sure if we have a bubble to pop when rates are staying low and inventory is remaining low also.
Unless the wheels come off of the economy.....
Mortgage applications sink to their lowest level since before the pandemic hit — CNBC
Mortgage applications fell to the lowest level since the beginning of 2020, even as rates declined.apple.news
Not happening where I live. Put a house on the market on Friday and had double digit offers by Saturday with about half of those being over the already inflated asking price. Accepted an offer on Sunday at about 10% over asking. Probably had 25 showings too.
Fortunately we now have a 40 year mortgage to make your payments even more manageable!
Aging in place is an interesting change too.
My neighborhood has homes 3500 sq ft on up (and up)
Looking out my front door I see a retired man living alone, kids are gone to the left, snowbirds to my right, kids off to college, etc.
Instead of downsizing they are aging in place.
I have a shirt from back in the day that says "Ask me about the 40 year term!"
I see the 40 year as more of a gimmick, but back on 07-08 we were giving those out with stated income and no asset info. The stated income didn't even need to make any sense
That's where I see the biggest difference between the eras.
If I send you an application for a 40 yr and put “Render Services” as my occupation, will I get approved?
If it was 2007 I would say "Lawn/Landscaping Service" would be an automatic green light.
No skin in the game American Dream home purchase.
See I never sold loans. I sold the dream.
Nobody was really building aggressively the last 10 years and now I think that they enjoy the inventory leverage they have influencing prices from the shortage.
Plus the rates have basically been cut in half. People can afford the houses today and don't need any goofy ARM or other bad mortgage that they can't pay in a few years. All of the comps are going up so I expect prices to stay the same or keep going up.
Reminds me of the NW Mutual “financial advisor” pitches I’ve heard. They’re just trying to help people! Why do they keep saying no to whole life?
Is this in the Twin Cities area around Lake Minnetonka? Former co-worker had a house with this same situation, tiny house for a single guy was fine but he couldn't do an addition due the house on a burial ground.
