Home buying thread

Blazin said:

I feel fortunate to still have my $0/month 0% mortgage, to those who feel they missed out these are still being offered

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I don’t know. I think I would take the negative real rate. I mean you can buy Tbills and pocket the extra cash at this point.

OU Ariakas said:

I was thinking the other day about how bad it is for banks that the interest rates on houses are double what they were a year ago and how that means there is going to be way less people borrowing money from them. I understand that they are getting the money at X rate and have to lend it out at Y over that rate; but if every bank has to have a certain amount of money on their books for their part of the fractional reserve, then why don't they use that money to offset lower rates for better qualified buyers? It blows my mind how conservative money lending has gotten in the land of 'unfettered capitalism.'

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most banks resell the loans, most to Fanny and Freddie still and they have rates they will buy at. If you start originating loans below those rates you eat the difference since you can only sell it for its present value.

the fact home loan costs are even as low as they are is because of govt intervention. If this was a liaise faire loan market the rates would be even higher.

I traded in my 10yr fixed for a 0/0 myself a few years back

How can this not be up to 8% by end of November?

I have some friends who bought their house in 2015 for $144k. 4 Months ago they announced to everyone "We've always wanted to move to Washington, we just put in our 2 week notices at work, then we are going to pack up/sell everything and go." Very spur of the moment and none of us have ever got the impression they were doing well financially based on their jobs and lifestyle, but no real clue. Within a month they listed their house and moved. I've been keeping an eye on them via Facebook, and it seems their plan was to rent a place until the house sold and they found jobs, then buy a place. While they are out fishing and loving where they are living, neither has found work yet, and their house history on Zillow looks like this now...

7-4-22 - Listed for sale at $331,000
7-19-22 Price change reduced to $315,000
8-24-22 Price change reduced to $305,000
9-20-22 Price change reduced to $284,999 (Zillow now lists the estimates value at $275)

I'm expecting them to drop it another $20 or something in the next couple of weeks. They missed the insane window for selling, and are now pricing themselves out of the crash. I really think they have fucked themselves and wouldn't be surprised if they ended up just having to come back even, I guess we'll see.

It's really nuts seeing this housing shit all playing out, as a guy at my work has been looking to buy a house for about 8 months so its been a subject of a lot of conversation. He was bringing up maps of our town back in March-April and showing there would only be like a dozen houses in the whole city under 300k, and most of them were absolute garbage for around $150k (literal meth looking houses in bad shape). You do a search now and there are a couple hundred houses back on the market.

I am bummed I wasn't able to talk my mother in law into selling her fathers shitty trailer back then though. I would normally think that property would go for like 20-40k, but I bet she could have walked away with $120k or something pretty easy 6 months ago. My wife's family has a history of Alzheimer's and her moms been pretty obviously been declining mentally in the last 7 years, so chances are at some point we might be taking care of her. Could have build her a kick ass little guest house in our backyard with that!

Nija said:

Friend of mine ran the stats on his place near Austin, if he were to buy again today at the same price. It REALLY doesn't look good when you line it up like this. People will always skirt around the issue and say shit about being below inflation, so you're still technically ahead. Yeah technically ahead but paying double what one would two years ago.

Another great image would be how the purchasing power changes, or what you could get for the same amount of money today.

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yeah I was just looking at what I'd be paying every month if I bought my house today instead of last spring. Fucking double lol. I couldn't imagine buying anything right now if you're not paying cash.

Well, the prices are adjusting as the interest rates keep rising. That's the market at work.

This isn't exactly surprising. At least... it shouldn't be.

mkopec said:

Back in like 80' or 81' it was upwards of 13%. Weve all been spoiled in the 90s-2K20s.

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Sure, but the median home price was $47k and household income was $21k in 1980. Today that's $429k and like $70k. We weren't just spoiled by the interest rates.

Big Phoenix said:

Hilarious thing is not many who sold at this bubble's top are gonna make out good thanks to these interest rates.

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They are going to make out like bandits if it put them into a position to make all cash offers.

Got locked in with a new build at 4.75, 5 bd/3.5 bath 2700sqft outside of San Antonio. They were running deals for 3.99 a month ago but we just missed that. Didn't have to put down any points or anything, maybe cause we are using a VA loan?