Has the market cooled down drastically?

[Anonymous]

Anonymous wrote:Or how about this shack for 799K..any guesses why only 2 pictures in the listing after 32 days?

https://www.zillow.com/homes/for_sale/Mc-Lean-VA-22101/51755614_zpid/67147_rid/500000-900000_price/1870-3366_mp/globalrelevanceex_sort/38.976025,-77.105828,38.895909,-77.218266_rect/12_zm/

After seeing these I don't blame the OP of the other thread for wanting to buy a McMansion for 1.2M with a 260K HHI.

An obvious land sale...0.28 acres.

[Anonymous]

Inventory is up for the first time in a while- http://dc.urbanturf.com/articles/blog/is_dcs_inventory_shortage_finally_beginning_to_ease/12783

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's cooled off in the sense that people need to come down off their prices. Interest rates are going up. Home pricing needs to reflect that. I think some sellers got really lucking in the spring overpricing their homes. Now it's time to come back down to reality.

Home prices aren't affected by interest rates. The two have nothing to do with each other.

Of course there is relation between the two. People can spend X amount on their mortgage. If interest rates are higher, more of that X will be take up by interest payments which will cut into the amount they can pay for a house.

[Anonymous]

Anonymous wrote:I think people don't understand that every new build is not a mcmansion. The ultra contemporary one linked upthread is not a mcmansion-- it adheres to a consistent architectural style, among many other reasons.

I think the two picture are both mcmansions. The first one blends too many surface material, has a weird "nub" of a roof (read about that on mcmansion hell and now can't stop seeing it!), and something is off with the windows. I don't hate it as much as some others but I think it is still a mcmansion.

The second is classic mcmansion. Shudder.

Unless I missed it, literally no one said the modern home is a mcmansion. Your other statements are accurate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think people don't understand that every new build is not a mcmansion. The ultra contemporary one linked upthread is not a mcmansion-- it adheres to a consistent architectural style, among many other reasons.

I think the two picture are both mcmansions. The first one blends too many surface material, has a weird "nub" of a roof (read about that on mcmansion hell and now can't stop seeing it!), and something is off with the windows. I don't hate it as much as some others but I think it is still a mcmansion.

The second is classic mcmansion. Shudder.

Unless I missed it, literally no one said the modern home is a mcmansion. Your other statements are accurate.

Actually not really. The second house is garish and monstrous, but not a typical McMansion. Typical McMansions are large cookie-cutter homes built on small lots, often overcrowding the lot. There are two standard types, the gross tear down and rebuild in a small classic neighborhood where the McMansion is the largest, most expensive property in the neighborhood. The other is the classic cookie cutter suburban neighborhood where a parcel of land is divided up into small lots and the biggest house that they can pack onto the lot is built there. The entire neighborhood is built of 4-6 templates and all have the same (often cheap or sub-grade) building materials and all the houses look a like.

The second house may the the mish-mash of architectural styles common to McMansions, but doesn't fit the usual definition. The neighborhood has large lots, the houses are set back and not easily visible to each other and the other nearby homes are also larger homes with multiple difficult looks and materials. They are all large colonials, but again, that's the only similarity. A mixture of exterior materials, clearly a mixture of house layouts and styles.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's cooled off in the sense that people need to come down off their prices. Interest rates are going up. Home pricing needs to reflect that. I think some sellers got really lucking in the spring overpricing their homes. Now it's time to come back down to reality.

Home prices aren't affected by interest rates. The two have nothing to do with each other.

Of course there is relation between the two. People can spend X amount on their mortgage. If interest rates are higher, more of that X will be take up by interest payments which will cut into the amount they can pay for a house.

No, silly. That's not how economics work. Are you Rick Perry?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think people don't understand that every new build is not a mcmansion. The ultra contemporary one linked upthread is not a mcmansion-- it adheres to a consistent architectural style, among many other reasons.

I think the two picture are both mcmansions. The first one blends too many surface material, has a weird "nub" of a roof (read about that on mcmansion hell and now can't stop seeing it!), and something is off with the windows. I don't hate it as much as some others but I think it is still a mcmansion.

The second is classic mcmansion. Shudder.

Unless I missed it, literally no one said the modern home is a mcmansion. Your other statements are accurate.

Actually not really. The second house is garish and monstrous, but not a typical McMansion. Typical McMansions are large cookie-cutter homes built on small lots, often overcrowding the lot. There are two standard types, the gross tear down and rebuild in a small classic neighborhood where the McMansion is the largest, most expensive property in the neighborhood. The other is the classic cookie cutter suburban neighborhood where a parcel of land is divided up into small lots and the biggest house that they can pack onto the lot is built there. The entire neighborhood is built of 4-6 templates and all have the same (often cheap or sub-grade) building materials and all the houses look a like.

The second house may the the mish-mash of architectural styles common to McMansions, but doesn't fit the usual definition. The neighborhood has large lots, the houses are set back and not easily visible to each other and the other nearby homes are also larger homes with multiple difficult looks and materials. They are all large colonials, but again, that's the only similarity. A mixture of exterior materials, clearly a mixture of house layouts and styles.

The second house is still a McMansion. I think the one pictured above it is not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's cooled off in the sense that people need to come down off their prices. Interest rates are going up. Home pricing needs to reflect that. I think some sellers got really lucking in the spring overpricing their homes. Now it's time to come back down to reality.

Home prices aren't affected by interest rates. The two have nothing to do with each other.

Of course there is relation between the two. People can spend X amount on their mortgage. If interest rates are higher, more of that X will be take up by interest payments which will cut into the amount they can pay for a house.

No, silly. That's not how economics work. Are you Rick Perry?

NP here. Last I checked the interest rate does have a direct impact on how much house you can actually buy. 10% interest on a 100K loan will definitely be a bigger monthly payment than 3% on that same amount, no? Or am I missing something??

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's cooled off in the sense that people need to come down off their prices. Interest rates are going up. Home pricing needs to reflect that. I think some sellers got really lucking in the spring overpricing their homes. Now it's time to come back down to reality.

Home prices aren't affected by interest rates. The two have nothing to do with each other.

Of course there is relation between the two. People can spend X amount on their mortgage. If interest rates are higher, more of that X will be take up by interest payments which will cut into the amount they can pay for a house.

No, silly. That's not how economics work. Are you Rick Perry?

That's exactly how economics works. It may not have a 1-1 impact on prices, but it will absolutely have an impact.

Let's say my income enables me to have mortgage payment of $3,000. If interest rates are 3% I could borrow a litttle over $700k. If rates rose to 4%, I could only borrow about $625k. Assume a 100k down payment. I could now only afford a $725k house instead of more than $800k.

If I were the only one affected, then it would simply suck for me and I would be stuck with a crappier house. But, rates will impact all buyers, except those paying cash. As the vast majority of buyers have their purchasing power reduced by the increase in interest rates, that will create a downward pressure on prices, at least absent some other countervailing market force creating an upward pressure.

[Anonymous]

The market has definitely changed. We had houses on our street go for close to $1 million 2-3 months ago and now a neighbor has her house for $698k for a month and it's finally under contract.

https://www.redfin.com/DC/Washington/3910-Kansas-Ave-NW-20011/home/10034455

[Anonymous]

I joked with her that it would be sold before it went live but then it was cold -- it is a deal for buyers but this one is already gone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it's cooled off in the sense that people need to come down off their prices. Interest rates are going up. Home pricing needs to reflect that. I think some sellers got really lucking in the spring overpricing their homes. Now it's time to come back down to reality.

Home prices aren't affected by interest rates. The two have nothing to do with each other.

Of course there is relation between the two. People can spend X amount on their mortgage. If interest rates are higher, more of that X will be take up by interest payments which will cut into the amount they can pay for a house.

No, silly. That's not how economics work. Are you Rick Perry?

NP here. Last I checked the interest rate does have a direct impact on how much house you can actually buy. 10% interest on a 100K loan will definitely be a bigger monthly payment than 3% on that same amount, no? Or am I missing something??

You're not, that poster is on crack if she seriously believes houses are somehow magically exempt from the laws of supply and demand.

[Anonymous]

Anonymous wrote:The market has definitely changed. We had houses on our street go for close to $1 million 2-3 months ago and now a neighbor has her house for $698k for a month and it's finally under contract.

https://www.redfin.com/DC/Washington/3910-Kansas-Ave-NW-20011/home/10034455

But are those properties remotely comparable? Even if the market is a little cooler, it hasn't dropped anywhere near 30%.

[Anonymous]

The market SHOULD cool down drastically. The prices people are forced to pay for outdated and even borderline ramshackle housing in this region are downright depressing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
There's a silver lining here. If you're heart broken you lost out on this fugly number:


https://www.zillow.com/homedetails/1430-Waggaman-Cir-Mclean-VA-22101/51752268_zpid/?fullpage=true

What is wrong with this house? It looks bright with natural light coming in, amazing kitchen, spacious. If I had the money I would buy it. Some people are so full of it calling everything ugly..maybe it is people who don't have money that want to call everything that they cannot afford as ugly..maybe you'd prefer this AMAZING QUAINT non McMansion..

https://www.zillow.com/homes/for_sale/Mc-Lean-VA-22101/51757545_zpid/67147_rid/500000-900000_price/1870-3366_mp/globalrelevanceex_sort/38.976025,-77.105828,38.895909,-77.218266_rect/12_zm/

I'm kidding, I think its ugly..

Being new and large is a sin to a subset of people.

This. I like it this house!