How else do rates fall, except for economy going to hell and fed cutting the rates?
Best we can hope for is increased supply from new building. Hard to do in modern NIMBY America, unfortunately
Housing market
- Thread starter simply1
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Best we can hope for is increased supply from new building. Hard to do in modern NIMBY America, unfortunately
Honestly, even if new supply is brought on, I don’t think prices will decrease as a result, we’ll just see more reasonable YoY price increases.
Hard to get more supply when they raise interest rates. Lots of builders are waiting for the election when the rates will certainly go down.
Huh?! Fed is quite independent.
You think builders could be making profit now but are choosing not to make a profit?
I know they are holding off in some cases. I'm a contractor. One of my builders cancelled some townhomes. Long and the short less inventory.
This is the most effed up real estate market I’ve seen in my lifetime.
If your builder who cancelled, somehow knows when rates will go down, and also knows there won’t be a crash preceding the rate drop that kills housing prices and demand (as opposed to now, when prices are at historic highs), then your builder should be running a hedge fund and not building townhomes in Iowa.
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I think I posted earlier in this thread about struggling to find a home after relocating. We finally found an awesome home 2 years after moving but probably over paid a little bit for it (it was either that or stay in our rental which was hiking rent along with no equity gained). We weren't being picky for us to struggle for so long. We literally just wanted a 4 bed home in a safe neighborhood that wasn't $450k+!
I feel for anyone else out there also struggling to find something. Just a weird market that I thought would correct by now. Now to hope rates go down soon even 1-2% to lower our mortgage a couple hundred bucks a month!
I feel for anyone else out there also struggling to find something. Just a weird market that I thought would correct by now. Now to hope rates go down soon even 1-2% to lower our mortgage a couple hundred bucks a month!
2 Bdr in our LOZ complex sold for $146. Listed at $150 2 weeks ago. Had offers of $135 & $145 next day. Bottom floor Lake front. Smallish & nothing special, original appliances from 2006 construction. Realtor told me very few resell condos listed at LOZ is keeping market from dropping.
Yeah, that will happen when David Letterman bags groceries at a Hy-Vee . . . . oh wait.
David Letterman surprises shoppers, bags groceries at Iowa supermarket
Late-night legend David Letterman entertained a crowd at an Iowa supermarket on Friday.
www.wftv.com
Bottom floors don’t bring as much due to lack of privacy with foot traffic by the deck & flat view of the Lake. 3rd floor 3bdr w/2 bath sold for $325 this Spring, 1450 sq ft. in same building.
Rates won't come down while the economy is still doing well, if anything we will see more small rate increases. And rates will never be what they were in 2021 ever again.
Relevant:
www.theatlantic.com
Sorry if too political - bottom line is we need more housing supply, especially in high cost of living areas like the coasts. I know where I live, in affluent suburbia in NJ, there just isn’t a lot of development activity, and most of what’s being built is for the high end of the market. Lot size and multi family restrictions suck! We have lots of commuter rail stations in my county surrounded my single family homes on big lots - if it were up to me, each station would get a development with hundreds of condos/apartments.
Liberal Suburbs Have Their Own Border Wall
Residents of rich blue towns talk about inclusion, but their laws do the opposite.
www.theatlantic.com
Sorry if too political - bottom line is we need more housing supply, especially in high cost of living areas like the coasts. I know where I live, in affluent suburbia in NJ, there just isn’t a lot of development activity, and most of what’s being built is for the high end of the market. Lot size and multi family restrictions suck! We have lots of commuter rail stations in my county surrounded my single family homes on big lots - if it were up to me, each station would get a development with hundreds of condos/apartments.
Maybe so, but we're the first ones to notice when things start to slow down. Last year was crazy, this year guys are sitting more often. Doesn't mean doom and gloom but it does mean less inventory comparatively. People are trying to ride the wave and typically pushing their budgets. The interest hikes have some backing out on the custom market. National builders are trying to sell their lots and not finding as much as appetite.
Well, even though there is a huge demand for mid priced housing, builders can do high end homes and make much more per square foot and/or labor hour than they can by building lower priced homes. There is an upper cap on that plan as luxury homes have a small niche client market, but the nicer higher end homes that are in the upper price ranges, general population will stretch their housing budget to get into those.Relevant:
Liberal Suburbs Have Their Own Border Wall
Residents of rich blue towns talk about inclusion, but their laws do the opposite.
Sorry if too political - bottom line is we need more housing supply, especially in high cost of living areas like the coasts. I know where I live, in affluent suburbia in NJ, there just isn’t a lot of development activity, and most of what’s being built is for the high end of the market. Lot size and multi family restrictions suck! We have lots of commuter rail stations in my county surrounded my single family homes on big lots - if it were up to me, each station would get a development with hundreds of condos/apartments.
This. Nobody is making affordable starter homes. Even townhomes in Ankeny are going for $450k. I would never pay that to share a wall and yard\drive way. There will eventually hit a point where they have saturated this particular niche. You can get really poorly made things from national builders with zero upgrades and its still pushing $300k+. Affordable housing is mostly dead and is a main reason you will see more renovations and houses that are being sold in that lower pricing budget fly off the shelves.
The car industry is almost identical. America used to make inexpensive cars. Now they make monster trucks and consumers have $1000/mo payments. But boy oh boy that profit margin.
Des Moines approves first changes to zoning code, including minimum house sizes
All new homes built in the city would have to be at least 1,100- to 1,800-square-feet, depending on the number of stories and where it would be built.
www.desmoinesregister.com
And cities aren’t helping
Basically get in now or you're probably never getting in.Des Moines approves first changes to zoning code, including minimum house sizes
All new homes built in the city would have to be at least 1,100- to 1,800-square-feet, depending on the number of stories and where it would be built.www.desmoinesregister.com
And cities aren’t helping
In Urbandale, new homes are $600-$750k for 2,000 sf or less. No idea who is paying almost double for a new house, but apparently people are. Houses that are 20-40 years old that are bigger are going for $300-$450k. Does “new” really drive that much of a premium? I guess so.
